The 2025–26 Western Australian State Budget includes $50 million in new funding to establish a Local Battery Manufacturing Program aimed at stimulating domestic production of residential energy storage systems.
This allocation consists of $30 million in grants and $20 million in low-interest loans or land incentives – the first time this program has appeared in the Budget.
The program is designed to support local firms scaling up residential battery production in response to anticipated demand from the WA Residential Battery Scheme and the Commonwealth’s Cheaper Home Batteries Program.
While many WA manufacturers have focused on remote or commercial-scale systems to date, the government aims to catalyse local capacity for smaller-scale units by matching industry investment dollar-for-dollar through grants of up to $10 million.
The battery manufacturing program sits alongside the $337 million WA Residential Battery Scheme, which is tied to the broader rollout of no-interest loans for households. Combined with federal support, the schemes are expected to help 100,000 households store solar energy and reduce grid reliance.
Budget papers note that Synergy customers can receive rebates of up to $5,000, while Horizon Power customers are eligible for up to $7,500.
Despite this targeted investment, broader battery and renewable energy infrastructure spending appears limited. Horizon Power’s capital works budget for 2025–26 includes $23 million for continued grid modernisation, but only a small portion relates directly to renewable storage or deployment.
Similarly, no significant new battery storage projects are earmarked for Synergy beyond previously announced utility-scale initiatives.
The Climate Action Fund, once central to the State’s decarbonisation strategy, appears to be minimally active in this Budget cycle. No substantial new allocations have been recorded for the fund in 2025–26.