According to a new report from energy analysts Bloomberg New Energy Finance (BNEF) Australia is on track to become the biggest home battery market in the world in 2019, with solar households expected to install tens of thousands of energy storage systems.
The report predicts that driven by $147 million in state government subsidies and other incentives, as well as low-interest loans and demand response schemes, more than 70,000 Australian households will install batteries this year.
According to BNEF the progressive state schemes led by governments in South Australia, the Australian Capital Territory and Victoria, are “solidifying” Australia’s residential energy storage market as one of the largest and most promising in the world.
At the same time consideration must be given to the policy promise of the federal opposition Labor Party, which, if it wins the federal election to be held by May this year, will add a further $200 million to subsidies for another 100,000 household batteries from 2020.
In total, BNEF expects Australia to account for a substantial 30 per cent of global battery storage demand in 2019, as uptake in the residential sector triples over the course of the year.
“State governments in Australia are getting behind residential storage, solidifying Australia as one of the most attractive markets in the world,” the report said.
“While the path could be bumpy, BNEF expects Australia to continue to be an attractive market for residential storage after policy support ends, thanks to its high penetration of household solar, already one in five, and high electricity costs,” it added.
BNEF pointed out that South Australia, in particular had already attracted Sonnen, AlphaESS and Eguana Technologies to set up local assembly facilities, thanks to its push to prioritise locally manufactured battery systems through its battery support policy.
Victoria will follow suit as thousands of households taking up the state Labor government’s installation rebate Solar Homes policy grows the pool of homes that will be ready for the state’s coming battery offer.
Under that scheme, announced in September, the government will provide $40 million in subsidies of up to $5000 for as many as 10,000 homes, depending on the size of the battery.