More Australians will soon have access to free electricity during the day, with the Albanese Government announcing a new energy offer that allows households to use solar-generated power even if they don’t have rooftop panels.
From July next year, energy retailers in NSW, South-East Queensland, and South Australia will be required to offer “Solar Sharer” – a new regulated plan under the Default Market Offer (DMO) that provides households with at least three hours of free electricity in the middle of the day, when solar generation is at its highest.
The initiative is part of a broader package of retail energy market reforms aimed at making the system “fairer and easier to use” while encouraging consumers to take advantage of Australia’s abundant solar resources.
Households that take up the Solar Sharer offer will need a smart meter and the ability to shift some of their power use to the free window, such as running appliances, charging electric vehicles or batteries, and cooling homes during the day.
Minister for Climate Change and Energy Chris Bowen said the initiative would help Australians cut power bills while supporting the energy transition.
“Our Solar Sharer Offer means more Australians can be part of our world-leading rooftop solar take up,” 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 whether they own or rent, and 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.”
“Free daytime power for families across Australia is proof that what’s good for the planet is good for your pocket.”
Australia already leads the world in rooftop solar, with more than four million installations generating more daytime electricity than the country’s entire fleet of remaining coal-fired power stations.
The Government says the Solar Sharer scheme will help use this abundant supply more efficiently, reducing strain on the grid during evening peaks.
The Australian Energy Regulator will oversee the new offer to ensure households continue to receive a fair deal outside the free period. The Government also plans to consult with other states to extend the program nationally by 2027.
Alongside Solar Sharer, the Government will reform the existing DMO to strengthen its role as a safety net for consumers.
These changes include removing unnecessary costs, such as marketing expenses and competition allowance, so that regulated offers reflect the true cost of providing electricity.
“Reform to the DMO will strip out unnecessary costs and expand protections to all standing offer customers and small customers in embedded networks, including renters and apartment dwellers.”
