Greens to hand households 50% battery cost

The Australian Greens would spend billions handing back half the cost of battery storage to households to encourage the uptake of renewable energy.

The five-year program would be funded by savings through slashing fossil-fuel tax breaks.

The $2.9 billion plan would allow individuals to claim a 50 per cent refundable tax credit on battery storage for their homes, up to $5000 in the first year.

The credit would taper off to $1500 by 2021 which the Greens say reflects the projected decline in battery storage costs.

The minor party will on Thursday reveal the policy, which also includes a grant scheme for low income households.

"Our battery storage plan will help people power up their home and power down their bills," Greens leader Richard Di Natale said.

Business would be able claim depreciation on the battery storage asset over an accelerated period of three years.

Batteries enable simpler storage of renewable energy, which otherwise needs to be consumed as it is generated.

New technologies are emerging, however battery storage remains relatively expensive for households and business.

Parliamentary Budget Office costings obtained by the Greens showed $2.85 billion would be needed over the forward estimates for the household policy.

The business incentives would cost an additional $38 million.

The Greens said it would be funded through by savings, including $2.75 billion from removing accelerated depreciation from fossil fuel intensive industries.