In the midst of a global energy crisis — with growing instability in oil markets and threats to international fuel supply routes —Solar Citizens is disappointed that this Federal Budget failed to deliver major new investment in household energy security.
“At a time when Australians are worried about the cost of living and global instability, this Budget should have done far more to help people power their homes and cars with our most abundant, accessible and secure natural resource - sunshine backed by storage,” said Heidi Lee Douglas, CEO of Solar Citizens.
“Energy security today means reducing dependence on imported fuels and volatile global energy markets. The fastest way to do that is through rooftop solar, batteries, energy-efficient homes, and electric vehicles.”
“Energy experts tell us that electrification is the best route to reliable, affordable and secure energy and the best defence from energy price shocks. So it is very disappointing that the Fuel Security Program does so little to further the electrification agenda.”
Missed opportunity to unlock solar for renters
“In a Budget full of significant reforms to make our tax system fairer, homes more affordable and give support to small businesses, it is disappointing that the Budget missed the chance to reform the tax system in a way that would directly lower power bills for renters”.
“Whilst making changes to negative gearing and capital gain tax discounts, the government is also giving tax breaks to businesses with instant asset write offs and new instant tax deductions for work related expenses for every tax payer.”
“Our proposal to accelerate depreciation for landlord investments in rooftop solar and batteries would have been a complimentary tax change for this budget to make our tax system fairer.”
“Accelerating depreciation from 20 to five years would significantly improve the financial equation for landlords while delivering major savings for renters,” said Ms Douglas
- If 30% of rental properties installed rooftop solar and battery storage by 2030, renters could save between $27 billion and $57 billion nationally over the next 20 years — equivalent to around $38,000 to $45,000 in household energy savings.
- Around one-third of Australians rent, yet most are locked out of the benefits of rooftop solar and home energy upgrades.
“Thousands of Australians from diverse backgrounds — renters, landlords, multicultural community leaders and housing advocates — have been calling for this simple tax change to encourage landlords to invest in rooftop solar, efficient appliances and batteries for rental homes,” Ms Douglas said.
Break on Electric Vehicles
Whilst public advocacy prevented the removal of the Electric Car Discount entirely, it is disappointing that it will be wound back after 2029.
“Thousands of Australians took action to defend the Electric Car Discount because it is one of the only major incentives helping households access clean transport,” said Ms Douglas.
“The ECD is effectively the rooftop solar rebate for electric vehicles — helping everyday Australians cut fuel costs and reduce dependence on petrol,” said Ms Douglas.
Solar Citizens calls on the government to maintain the ECD full incentives beyond 2029 for vehicle-to-grid (V2G) enabled vehicles.
Clean energy manufacturing cut
We are also concerned about redirection of $1.3 billion away from the Future Made in Australia program, especially initiatives for domestic battery manufacturing.
Solar Citizen welcomes
- Continued commitment to household batteries through the national battery rebate scheme - the Cheaper Home Batteries program.
- Confirmation to establish a National Technical Regulator for consumer energy resources: Solar Citizen supporters made hundreds of submissions since 2024, calling for the establishment of a distributed energy resources technical regulator, to establish consistent national standards, as they are essential to unlocking the full system value of these technologies.
- The commitment of funding to support Australia’s partnership with the Pacific to deliver the Pre‑COP 31 meeting and a Leaders’ Event in the Pacific.
Read Solar for Renters: Closing the Gap with Accelerated Depreciation