Pilbara mining towns left out of government's battery rebate schemes

Western Australia's Pilbara region is the sunniest in Australia, with an annual average of 10 hours of sunlight a day.

The region is synonymous with mining industry giants who tout a future of renewables, green iron and net zero targets.

But residents say their actions are failing to match their words.

Earlier this year, the WA and federal governments both launched home battery rebate schemes for those on solar power.

Home batteries can cost anywhere between $5,000-$25,000, with the state rebates on offer between $5,000-$7,500 depending on supplier.

But these rebates are only available to customers on Horizon or Synergy grids, leaving customers in small mining towns like Dampier, Newman, Paraburdoo, Tom Price, Pannawonica and Wickham — where the grids are run by mining companies — feeling left out.

Earth, wind and fire

The power grid in Dampier, 1,500km north of Perth, has been managed by Rio Tinto since the town was established in 1965.

Ken Mulvaney has been a resident for 21 years and was keen to purchase his own battery system — but after finding out he was not eligible for the rebate, he said the system was unfair.

"It flies in the face of their stated concerns of wanting to work and have good relationships with community that they work in," he said.

"They continue to give subsidies in power to all their employees, but anybody who's not within Rio Tinto, they seem to just treat as absolute dirt."

He would like Rio Tinto to encourage the government to offer a rebate, or for the company to offer its own rebate instead.

"Rio Tinto has been making at least $12 billion profit a year for basically the last 10 years when you look at their annual statements and yet they cannot pay the equivalent subsidy that the state government has offered," he said.

Rio Tinto has directed its customers to the federal rebate should they comply with eligibility requirements.

Extending to the east

Newman resident Sammi Ryder was shocked to see a 95 per cent decrease in the cost of her electricity bill after the installation of solar panels and a battery at her home this year.

The family's two-month power bill dropped from $2,000 to just $63.

"I know that everyone can't afford it, but if you can, it's literally life-saving," Ms Ryder said.

Newman, 1,200km north-east of Perth, sits on an electricity micro-grid powered by BHP.

Ms Ryder received a government rebate for her solar panels but not for the battery.

Houses on these micro-grids are also not compensated for sending electricity they have generated back to the grid as Synergy and Horizon customers are.

Ms Ryder said she would like to see BHP consider introducing such credits.

BHP have stated it does not supply buyback credit for excess energy because large volumes could create potential instability on the small grid.

Time to go green

Curtin University sustainability professor Peter Newman said it was the responsibility of these companies to adapt to the future.

"I think the mining companies have made a very big case for a long time that they run those towns," he said.

He said if they cannot handle the responsibility, they should hand the systems to state-owned providers.

"This is part of what their responsibility now is to demonstrate how to do this and it's not that hard — they've just got to get on and do it," he said.

"It would be a pity I think because it's an opportunity for those companies to show that they are part of this future."

Slow take-up of scheme

Uptake of the WA rebate has been slow, with only 4,500 batteries installed since July.

A spokesperson for energy Minister Amber-Jade Sanderson said it was only available to eligible customers supplied by Synergy or Horizon Power as they are on the VPP.

Meanwhile, the federal government is set to overhaul its battery rebate system amid reports the $2.3 billion funding has almost been drained only six months into the scheme due to demand.