Australian households will soon be able to enjoy three hours of free electricity each day, under a new federal government plan designed to reward smart energy use and take advantage of Australia’s booming solar output.
The Solar Sharer scheme, unveiled by Climate Change Minister Chris Bowen, will require electricity retailers to offer customers at least three hours of zero-cost power in the middle of the day, when abundant solar energy is flooding the grid and wholesale prices often dip below zero.
The initiative, set to roll out in NSW, South-East Queensland and South Australia from July next year, aims to shift household power consumption into periods of oversupply, reducing strain on the grid during the evening peak and cutting long-term costs for all users. Consultation is underway to expand the program nationwide by 2027.
Households equipped with smart meters will be able to run major appliances (from washers and dryers to air conditioning) during the designated free period without paying a cent.
Bowen said the reform would help ensure all Australians, including renters and those without rooftop solar, share in the renewable energy transition.
“Australians deserve a fairer go when it comes to their energy bills,” Mr Bowen said. “People who are able to move electricity use into the zero-cost power period will benefit directly, whether they have solar panels or not – and the more people take up the offer, the greater the benefits for everyone.”
The government expects the change to lower overall costs by flattening the evening demand spike and reducing the need for expensive grid upgrades.
The announcement follows rising pressure on the Albanese government to ease cost-of-living concerns, as energy rebates wind down and inflation ticks upward. Earlier this year, the Australian Energy Regulator confirmed the Default Market Offer – the benchmark maximum electricity price – would rise between 0.5 and 9.7 per cent across the country, depending on region.
The Solar Sharer plan is being introduced alongside a broader review into how default power prices are set.
Meanwhile, the Coalition remains divided on its approach to climate and energy policy. Over the weekend, the Nationals declared they would formally abandon Australia’s 2050 net-zero emissions target, blaming the policy for rising household energy costs.
Bowen, however, dismissed that argument, pointing out that wholesale electricity prices were negative in every state except Tasmania on Sunday due to high solar generation.
“Free daytime power for families across Australia is proof that what’s good for the planet is good for your pocket,” he said.
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