Solar battery rebates for Victorian homes: Eligibility and impacts

Highlights

• Home battery uptake has been higher in Victorian postcodes with earlier rebate eligibility.

• Findings are robust to a range of cross-sectional models and a first-differences model.

• Assets have a more robust link with home battery uptake compared to income impacts.

• Policies determining eligibility for battery rebates are encouraged to focus on assets.

• Older age is linked to greater battery uptake, particularly the 40–60 years age bracket.

Abstract

To promote the uptake of home batteries, the Victorian state government has introduced rebates, beginning in 2019. Using postcode-level data, we quantify some important drivers of home battery uptake with methods such as a negative binomial model. The results show a more robust impact on home battery uptake from housing values rather than income. This suggests that policymakers should change rebate eligibility criteria to support households with lower levels of assets rather than income. Greater focus on assets could involve more support for low-asset households, enhancing equity compared to the current approach of a high and binary eligibility threshold of $3 million related to housing values. We also find evidence that battery uptake was higher by 58% in the nine months to March 2021 for postcodes that had earlier eligibility for rebates, compared to postcodes without eligibility at the start of the period. This suggests that even minor timing differences in rebate availability can have substantial impacts on technology adoption. There are also potential social equity implications for policymakers to consider if some locations receive earlier eligibility. Our analysis showing battery-policy effectiveness is informative for other jurisdictions considering details for battery policies, given the novelty of the battery context.