Fast read
Two major federal initiatives—the Energy Bill Relief Fund extension and the Cheaper Home Batteries Program—are designed to support Australian households and small businesses with rising electricity costs and the transition to renewable energy. While the benefits include bill savings and clean energy access, there are also practical considerations, including program timing, eligibility requirements, and long-term value.
What are the benefits and risks of the new Federal Government Rebate Program?
The Federal Government is offering two separate energy rebate schemes:
- Energy Bill Relief Fund (2024–25)
Offers direct bill credits—up to $300 for households and $325 for eligible small businesses —applied quarterly.
- Cheaper Home Batteries Program (starts 1 July 2025)
Offers upfront battery rebates of up to $372 per usable kilowatt-hour, reducing the cost of installing home energy storage by up to 30 percent.
Each program addresses a different need: immediate affordability and long-term energy independence.
Energy Bill Relief Fund: Key benefits
Immediate cost reduction
For the 2024–25 financial year, households receive up to $300 and small businesses up to $325 in electricity bill credits, applied in quarterly instalments. An additional $150 rebate is planned for July–December 2025.
Automatic access
Most households will receive the credits automatically through their electricity retailer. Those in embedded networks, e.g., caravan parks, retirement villages may need to apply through alternative channels.
Complements existing support
This federal rebate can be received in addition to state or territory energy concessions, making it a valuable boost for eligible customers.
Broad eligibility
All households with an active electricity account qualify, and small businesses can typically access the support if they meet electricity usage thresholds.
Energy Bill Relief Fund: Risks and limitations
Short-term relief only
The rebate provides temporary financial relief. Once the program ends, energy bills will return to their full cost unless other measures are taken.
No energy efficiency incentive
Unlike solar or battery schemes, this initiative does not reward lower energy use or investment in efficiency upgrades.
Broad scope may miss those in greatest need
Because the rebate applies to all eligible households regardless of income, some argue it lacks targeted support for vulnerable Australians. The program’s broad scope also comes with a significant fiscal cost—estimated at over $3 billion federally.
Cheaper Home Batteries Program: Key benefits
Substantial upfront savings
The rebate offers up to $372 per usable kilowatt-hour of battery storage, potentially saving households around $4,000 on a typical 13.5 kWh system.
Long-term electricity bill reductions
Storing solar energy for evening use can reduce grid reliance and cut electricity bills by up to 90% for some homes.
Increased energy independence
Battery owners can rely less on grid electricity and better manage energy during peak demand or blackouts, especially when systems are paired with backup features.
Environmental impact and grid support
By storing excess solar, batteries reduce waste and help stabilise the grid, especially when aggregated through Virtual Power Plants (VPPs).
Can be combined with other rebates
Households may be able to stack the federal rebate with state-level programs, such as South Australia’s Home Battery Scheme.
Cheaper Home Batteries Program: Risks and Considerations
Delayed start
The program begins on 1 July 2025. Systems installed before this date may still qualify, but only if they are not commissioned (i.e. switched on) until after the start date—something that requires careful planning with your installer.
Declining rebate over time
Like the Small-scale Renewable Energy Scheme (SRES) for solar panels, the battery rebate is expected to reduce annually until the program ends in 2030.
Investment still required
Even with rebates, home battery systems represent a major investment. The return depends on usage patterns, electricity prices, and whether the battery is used for backup or VPP participation.
Installer availability and quality
High demand may put pressure on installer availability and quality. It’s essential to use a Clean Energy Council (CEC) accredited installer and ensure the battery meets CEC and VPP-capable standards.
VPP-capability required
To be eligible, batteries must be VPP-capable, but participation in a VPP is optional. Consumers should understand the pros and cons of joining a VPP and how it fits with their usage patterns and energy goals.
Final thoughts
Together, the Energy Bill Relief Fund and Cheaper Home Batteries Program offer immediate and long-term pathways to manage energy costs and support clean energy goals. However, like all rebate programs, they work best when paired with good advice, careful planning, and an understanding of your own energy usage.
Your Energy Answers can connect you with accredited local experts to guide you through eligibility, product selection, and installation, so you can make the most of these opportunities.
