Australia’s Energy Future: Key Takeaways from the 2025 Federal Election

By Vertex 

With the 2025 Federal Election now decided, Australia’s energy sector is poised for a transformative three years under the re-elected Labor government.

At Vertex, we’re analyzing the policies and commitments that will shape the nation’s transition to a cleaner, more efficient energy future.

Net Zero: Staying the Course

Australia remains committed to its 43% emissions reduction target (from 2005 levels) by 2030 and net zero by 2050. The Labor Party has reaffirmed its Net Zero Plan, ensuring continuity in climate policy. Key next steps include:

• Confirming Australia’s participation in the Paris Agreement.
• Setting an interim 2035 emissions target as part of the upcoming Nationally Determined Contributions (NDC) report.

Powering Australia’s Renewable Transition

Decarbonizing the electricity sector remains a top priority, with Labor pushing toward 82% renewable energy by 2030. Key initiatives include:

• Expanding the Capacity Investment Scheme (CIS) to deliver 32GW of new renewable capacity.
• Establishing a National Energy Transformation Partnership to streamline policy.
• Accelerating grid modernization through Rewiring the Nation.
• Developing a multi-billion-dollar offshore wind industry.

At Vertex, we see these measures as critical for stabilizing energy supply while driving down emissions—aligning with our mission to support sustainable energy infrastructure.

$2.3 Billion Home Battery Rebate: A Game-Changer for Households

One of Labor’s standout pledges is the Cheaper Home Batteries Program, offering 30% rebates on installations from 1 July 2025. This initiative is expected to:

• Cut costs for over 1 million households by 2030.
• Boost energy resilience by integrating more rooftop solar and storage.
• Be delivered through the existing Small-scale Renewable Energy Scheme (SRES).

For Vertex Energy, this policy represents a major opportunity to support the broader residential energy storage adoption, helping families reduce bills while supporting grid stability.

Industry Reaction: Calls for Stability and Acceleration

Australian Energy Council (AEC)

• Emphasized the need for long-term policy certainty to attract investment.
• Highlighted the importance of gas and storage in balancing renewables.

Clean Energy Council (CEC)

• Praised the election as a mandate for renewables, urging faster deployment.
• Called for streamlined approvals and stronger incentives for long-duration storage.

Energy Efficiency Council (EEC)

• Stressed that post-2030, electrification and efficiency must drive further emissions cuts.
• Recommended policies to upgrade homes, businesses, and commercial buildings.

Australian Energy Producers (AEP)

• Warned of gas supply shortfalls without faster approvals.
• Urged government to implement its Future Gas Strategy to ensure reliability.

RE-Alliance & Rewiring Australia

• Highlighted the need for community engagement in renewable projects.
• Applauded Labor’s home battery and EV policies, citing cost and emissions benefits.

Vertex Energy’s Perspective

The re-elected government’s policies present both opportunities and challenges for the energy sector. While the focus on renewables, storage, and grid upgrades is promising, regulatory efficiency and investment certainty will be key to success.

At Vertex, we’re committed to supporting this transition through innovative energy solutions, from grid-scale storage to residential electrification. The road to net zero is complex, but with the right policies and partnerships, Australia can achieve a cleaner, more affordable energy future.

What’s next? Stay tuned for our deeper analysis on how these policies impact businesses and households and how Vertex Energy can help you navigate the changes ahead.