Cheaper Home Batteries Program: Can it Slash Your Power Bills to Zero?

Zero bills with federal Government Solar Battery Rebate 2025

The unmatched discounts under the Cheaper Home Batteries Program (CHBP) of the Federal government of Australia has triggered an unprecedented surge in uptake of solar battery rebates all across the country.

As per Clean Energy Regulator (CER), nearly 20,000 solar battery storage units, averaging 18.2 kWh each, were installed in the first month of CHBP’s launch.

The total number of battery installations could be over 20 thousands, as CER did not take into account the batteries that were installed on or after 1 July 2025 (first day of CHBP) but energy certificates (small-scale technology certificates or STCs) were not claimed against the battery installation.

If this uptake continues, the allocated $2.3 billion in rebates under the CHBP could get exhausted by as early as 2028, two years before the CHBP program is scheduled to end.

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The prime mover driving this rise is the potential for significant energy bill reductions, with the Federal government CHBP offering upfront discounts of 30 percent on usable battery capacity, which can be combined with the state government rebates.

Depending on the size of your energy usage, installed solar system and battery capacity, the CHBP holds the potential of slashing your energy bills to close to zero.

Is it possible to achieve the benchmark of zero electricity bill?

The 30 percent CHBP upfront discount provided on usable capacity of a solar battery paired with state rebates on solar batteries holds the potential of achieving the zero electricity bill milestone.

A large battery connected to your rooftop solar PV unit will store excess energy generated during daytime. The stored energy reserved can be used during the events of blackouts or peak energy demand, esp during nighttime when solar energy production drop to zero.

However, summiting the mountain of zero energy bill is not that simple. There are certain requirements that must be met to achieve the target. First is, replace all gas-fired and inefficient (electric/gas) appliances with their electric and energy efficient alternative.

For example:

  • Replace electric resistance room heaters, ducted and non ducted gas heaters, central electric resistance ducted heater, refrigerative air conditioners with energy efficient reverse cycle air conditioner.
  • Replace gas or electric resistance hot water heater with heat pump hot water heater.
  • Switch from gas cooktops to electric induction cooktops.
  • Install a rooftop solar system having capacity to meet the household/workplace energy demands.
  • Connect a large battery (15-18 kWh capacity for an average Australian household) to your solar PV unit.
  • Optimize your energy usage for off-peak periods.
  • Join a VPP subscription to earn bill credits.
  • Weatherize your home/workplace to reduce energy demand

State by state comparison for zero electricity bill realisation

State Covered under Federal government CHBP? State rebates/incentives Potential for zero bill
NSW Yes  Up to $1,500 for households and small businesses that connect their solar battery to a VPP and rebates for installing energy-efficient equipment and appliances under NSW Energy Savings Scheme High
VIC Yes.  Rebates for installing energy-efficient appliances under Victorian Energy Upgrades (VEU) program High (with larger battery and solar systems, VPP bill credits)
QLD Yes   Moderate
WA Yes $3,800 solar battery rebate for households and interest-free loans of up to $10,000 for battery, inverter and solar panels.  High
SA Yes Rebates for energy-efficient appliance upgrades available through Small-scale Technology Certificates (STCs) and Retailer Energy Efficiency Scheme (REES).  High (due to the highest solar PV and battery penetration)  
ACT Yes Up to $5,000 rebate for installing energy-efficient products under Home Energy Support Program and air conditioner rebates and bill credits through ActewAGL heating and cooling upgrade program. Moderate

Given the rebates and incentive offered by federal and state government for energy-efficient appliances and equipment, rooftop solar system and battery units, the target of near zero bill looks achievable.

However, absolute zero electricity bill is not possible as energy retailer impose network service charge even if energy drawn from electricity grid is zero.