Labor will offer a rebate of up to $2,000 for households earning less than $180,000 to install residential battery systems as part of its revamped energy policy if it wins the next federal election.

Bill Shorten was expected to unveil the program, which is slated to start in 2020 and cost $140.9m over the forward estimates, in a speech on Thursday outlining the ALP’s energy policy. It includes a commitment to keep the Coalition’s national energy guarantee with a higher emissions reduction target of 45%.

Shorten was also expected to outline an alternative set of measures to the Neg in the event the Liberals refuse to support their own policy mechanism.

The measures involve government underwriting of new renewable generation through an instrument like contracts-for-difference, and direct investment in infrastructure. The policy is also expected to include an injection of funds for the Clean Energy Finance Corporation.

“A Labor government I lead will be prepared to directly underwrite and invest in cleaner, cheaper power for Australia,” Shorten will say on Thursday, according to a speech extract. “We will prioritise renewables and support firming technologies like storage and gas.

“Labor will invest in new generation, in better transmission and distribution – because we realise this vital nation-building work cannot be left up to the big power companies.”

Shorten will say the ALP recognises what needs to be done to drive the transition in the energy system, “and we are ready to get on with it”.

“We are still willing to work with the Liberals and the Nationals – but we are not prepared to wait for them. We’ve got a plan that’s right for the environment and good for the economy.”

The policy, signed off by shadow cabinet on Wednesday, includes an industry policy framework to ensure renewables are rolled out in appropriate locations, consistent with an objective of achieving 50% renewables in the electricity grid by 2030, but also with an eye to ensuring grid security and reliability.

The policy was also expected to include measures to improve energy efficiency, and a transition plan for coal communities, given Labor’s higher emissions reduction target will drive a faster shift away from coal-fired power.

The household battery commitment will provide a rebate for eligible battery systems, at a rate of $500 per kilowatt hour of battery capacity, capped at $2,000 for households with a gross annual income less than $180,000.

Labor claims the policy will support 100,000 new battery installations, which allows households to play a role in managing peak demand, as well as reducing their energy bills. Rooftop solar photovoltaic installations will shortly hit 2m.

Labor’s pre-election energy pitch comes as Australian power companies remain on the warpath over the Morrison government’s controversial energy policy reboot, which it is attempting to execute in time for the election.

The Australian Energy Council (AEC) has given Treasury a blast for a truncated consultation process for legislation giving effect to controversial price regulation measures and new divestiture powers which power companies say could be constitutionally invalid.

The AEC is unhappy about at an “unusual” government request that draft legislation be kept confidential, and contends that “further indicates a desire to avoid scrutiny on an important legislative change”.

The energy sector has been furious since the Morrison government ditched the emissions reduction component of the Neg, which was a casualty of the conservative-led coup against Malcolm Turnbull.

The government proposed an emissions reduction target for electricity of 26%, which had broad support from power companies, business groups and other stakeholders.

Labor’s higher emissions reduction target is unlikely to win the same level of consensus from energy stakeholders, although there is strong support for the Neg mechanism.