An Albanese government would also fund the installation of hundreds of "community" solar batteries across the country, in an initiative designed to cut emissions and reduce energy prices for households.

Mr Albanese will make the announcement ahead of the second day of Labor's "virtual" national conference, where party delegates are meeting to debate the policy platform it will take to the next election.

After unveiling plans to establish a $15 billion fund to spur investment in Australian manufacturing on Tuesday, Mr Albanese and Labor climate and energy spokesman Chris Bowen will on Wednesday set out a strategy to cut vehicle costs and power bills for families - while reducing the nation's carbon footprint.

Electric vehicle policy sparked one of the flashpoints of the 2019 federal election campaign, with the Coalition claiming then Labor leader Bill Shorten's pledge that half of all new cars sold in 2030 would be electric would "ruin the weekend".

Labor has dumped that 2030 target, with their focus now on reducing upfront costs for households and businesses in an attempt to accelerate Australia's sluggish uptake of electric cars.

Fewer than 1 per cent of cars sold in Australia are electric, Mr Albanese will point out, compared to a global average of 4.2 per cent.

Under a $200 million commitment, Labor would make most electric vehicles exempt from import tariffs and fringe benefits taxes.

Axing the import tariff could reduce the cost of a $50,000 vehicle by $2000, according to Electric Vehicle Council figures cited by Labor.

The tax exemptions would not apply to cars priced above the luxury threshold, which is set at $77,565 for low-emissions vehicles.

The initiative would start in July 2022 and be reviewed every three years.

A Labor government would also work with industry, unions and state and territory governments to develop a national electric vehicle strategy, which would canvass strategies to boost sales and infrastructure.

It would also look at policies to encourage local manufacturing of car parts, such as batteries, and potentially entire vehicles.

The Morrison government has been criticised for its failure to lead on electric vehicle policy, with its so-called "future fuels strategy" leaning on technological advancements and commercial fleets to make cars more affordable over time.

The paper rules out using taxpayer subsidies to reduce the upfront costs, arguing it would not be a cost-effective means of cutting emissions.

While Labor's new policy does go further than the Coalition, it too appears set to baulk at calls to use direct subsidies to encourage drivers to make the switch.

The ACT Labor-Greens government has been hailed a nation leader - including by a Morrison government MP - for its electric car policies, which includes the offer of zero-interest loans of up to $15,000 and free registration.

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In the second plank of his climate action plan, Mr Albanese will commit a future Labor government to funding the installation of 400 "community" solar storage batteries across Australia.

According to Labor, one battery with about 500 kilowatt-hours of storage could support up to 250 households and 100,000 people. Households which can't install rooftop solar, such as apartment owners and renters, would be able to draw on the excess energy.

The $200 million investment would aim to reduce power prices, cut emissions and ease pressure on the electricity grid.

"Only Labor is on your side when it comes to reducing power bills and fuel costs for families," Mr Albanese said.

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