There’s more than a whiff of politics to the sudden call to slash Labor’s green energy subsidies

EVs and home batteries are in Treasury crosshairs despite a better economic case for scaling back nuclear-powered submarines and diesel fuel rebates for miners

As Jim Chalmers, the treasurer, comes under increasing pressure to fight inflation by slashing spending in the mid-year budget update, the drumbeat is loudest for cuts in one specific area: green energy subsidies for households.

Receiving the most focus is the cheaper home batteries program, which from July last year has offered a taxpayer-backed 30% rebate to households and businesses.

The scheme has become a victim of its own success. Treasury officials originally estimated it would lead to a million new batteries by 2030 at a cost of $2.3bn. The latest estimate is more than triple that figure, and only after a tweak to the policy.