The federal government is spruiking a new scheme which will give millions of Australians a chance to get up to three hours of free electricity each day.
Right now, huge amounts of solar power generated in the middle of the day go to waste, as most people aren’t home to use it and there aren’t enough batteries to store it.
So the idea is to encourage people to use this free electricity window to run their air conditioners, washing machines or dishwashers while the grid is overflowing with solar energy.
The scheme aims to address large amounts of solar power generated in the middle of the day. (Reuters: Tim Wimborne, file photo)
But not everyone will be able to access the scheme, and there are also concerns it could push up prices at other times of the day.
Here’s everything you need to know.
Who can sign up?
Energy retailers will be required to provide the offer, dubbed Solar Sharer, to households in New South Wales, South Australia and south-east Queensland when it rolls out in July 2026.
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That is because it’s linked to the Default Market Offer (DMO), which is only offered to people in those regions.
The DMO is the maximum energy price retailers can charge electricity consumers, which is set by the Australian Energy Regulator (AER) each year.
Other states have their own equivalent of this, but regulated by state bodies instead of the AER — so they’re not included in this rollout.
Even though the scheme is built on solar power, eligible participants will be able to take up the offer — regardless of whether or not they have solar panels on their property.
Chris Bowen says the plan is expected to make power cheaper in off-peak times as well. (ABC News: Callum Flinn)
“We want to see the benefits of renewable energy flow to all, even those without solar panels and batteries,” Energy Minister Chris Bowen said.
Participants will need to explicitly select the offer from their energy provider which includes the Solar Sharer deal to get the free hours — it won’t be automatically applied.
Another catch is that only households with a smart meter can sign up, and to get savings on their electricity bill they will need to have the ability to shift their electricity use into the free-power period.
The government has not confirmed exactly when the daily free period will be, but it’s likely to be between 11am and 2pm, when solar generation is at its peak.
What about everyone else?
Even though they have been left out of the initial rollout, there are still some positives for those in other states.
Mr Bowen said the government would work with other states to potentially extend the offer to other jurisdictions by 2027.
Tasmania could be an exception, as it runs mostly on hydro-electric power. (ABC News: Eden Hynninen)
It’s not clear what this consultation will look like, but the director of the Victoria Energy Policy Centre, Bruce Mountain, says it’s likely the scheme will eventually go national.
“I think [the other states] will be heavied into it by the government — this will be politically popular,” Mr Mountain said.
He said the one exception could be Tasmania, where the vast majority of energy came from hydro-electric power — which didn’t have the same midday surplus.
Something else to consider is that many electricity providers across the country already offer free energy deals.
These might be somewhat different to Solar Sharer and not necessarily tied to the DMO, but it does mean people in other states can potentially find something similar.
What will it do to power prices?
The impact the scheme will have on power prices is somewhat contested.
Mr Mountain says those who were unable to use the scheme have reason to be sceptical. (ABC News: Lucas Hill)
Mr Bowen said it was expected to lower costs for everyone by shifting more energy use to the middle of the day and reducing peak demand in the evening.
He said this would minimise the need for costly network upgrades to ensure grid stability.
“The more people take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be,” Mr Bowen said.
Australians to get three free hours of power
Others aren’t so sure.
Goanna Energy principal consultant Marc White said cheaper power during one part of the day could lead to higher prices at others.
“To some extent yes, pushing down prices at one period will inflate prices at another period,” he said.
Mr Mountain said those who were able to use the scheme and adjust their power use would experience savings, but those who did not sign up had reason to be sceptical.
He said that unless the government intended to subsidise customers or retailers, it was likely energy providers would increase energy costs in the morning and evening.
