The proposal consist of 3 components, each starting from 1 July 2022.

Component 1 – Public Grid Investment

• Create a new publicly owned electricity transmission and distribution corporation (FutureGrid), with a specific remit to:
  • invest in new transmission infrastructure to connect the existing grid to Renewable Energy Zones
  • buy transmission and distribution infrastructure from the private sector, beginning with privately owned interconnectors.
• Provide $25 billion of equity to FutureGrid ($10 billion in 2022-23 and $3.75 billion in each year from 2023-24 to 2026-27).

Component 2 – Household Solar Storage Scheme

• Element 1 would provide grants of up to $5,000 to any Australian household to install household storage technology. Grants would be limited to 50% of the total cost of the upgrade.
• Element 2 would provide low interest loans of up to $10,000 to any Australian household to install household storage technology. Loans would be offered at the Reserve Bank of Australia (RBA) overnight cash rate with a maximum 10-year fixed term.

Component 3 – Small Business Solar Storage Scheme

• Element 1 would provide grants of up to $10,000 to any Australian small business (a business with a turnover below $10 million in the previous financial year) to install a battery at their business site. Grants would be limited to 50% of the total cost of the upgrade.
• Element 2 would provide low interest loans of up to $50,000 to any Australian small business to install a battery at their business site (excluding those businesses where their site is a residential household). Loans would be offered at the RBA overnight cash rate with a maximum 10-year fixed term.

To be eligible for Components 2 and 3, households and businesses would need to use qualified system providers installing battery systems that meet a set of minimum technical requirements.