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Up to 40,000 South Australian households will be eligible for grants of up to $6000 to help install home battery systems in a bid to cut power prices.

The state government launched the $200 million scheme on Monday with Premier Steven Marshall saying households which install batteries could save thousands of dollars over the life of their systems.

‘We are also creating jobs and attracting new business to our state by giving priority to qualified system providers who commit to installing approved battery systems that are manufactured or assembled in South Australia,’ Mr Marshall said.