The government’s new plan promises free daily electricity to eligible homes – here's what you need to know and watch out for.
The federal government has introduced a new initiative that promises households up to three hours of free electricity each day, but there are several important details consumers should understand before signing up.
Called the Solar Sharer Offer (SSO), the program begins on Wednesday, 1 July. It has been created to make use of Australia's large surplus of solar-generated electricity during daylight hours. Under the scheme, electricity retailers will be required to provide at least one residential electricity plan that includes three hours of free power every day, with free usage capped at 24 kilowatt-hours (kWh).
The offer is open to both homeowners and renters, and participation does not require having rooftop solar panels or a home battery system.
However, there is one significant limitation that potential customers should be aware of.
At launch, the Solar Sharer Offer will only be available to households located in New South Wales, South Australia and South East Queensland.
The reason is that these regions fall under the Federal Government's Default Market Offer (DMO) framework, which is overseen by the Australian Energy Regulator.
The positive news is that the government intends to broaden the Solar Sharer Offer to more parts of the country in the future.
Australia's remaining states and territories are excluded because they do not operate under the DMO framework and instead use their own electricity pricing systems, the result of a range of historical arrangements.
Victorian residents will, however, receive a similar opportunity when the state launches its own Midday Power Saver program from 1 October 2026. There is hope that additional states and territories will eventually introduce comparable initiatives.
Australia leads the world in rooftop solar generation, boasting the highest installed solar capacity per person, with more than four million photovoltaic (PV) systems currently operating across the country.
While this represents a major achievement for renewable energy adoption, it has also created an oversupply of electricity flowing back into the grid during daylight hours.
Homeowners equipped with battery storage can save this electricity for later use, but much of the excess generation is currently not being fully utilised. As a result, wholesale electricity prices often fall to very low levels and can even become negative.
By requiring retailers to provide this surplus electricity at no cost during designated periods, the government hopes to make the excess solar generation available to everyone enrolled in an SSO plan, encourage households to move more of their electricity consumption into these free periods to reduce power bills, lower evening demand on the electricity grid with the aim of easing peak electricity prices over time, and ultimately ensure the advantages of Australia's solar boom are shared more broadly instead of being limited to people who can afford rooftop solar panels and battery systems, an issue that has previously been raised as a criticism of government rebate programs.
To qualify for the Solar Sharer Offer, households must live in New South Wales, South Australia or South East Queensland, actively sign up for a participating retailer's SSO plan because enrolment is not automatic, and have a smart meter installed, since the plans rely on time-based electricity billing. Customers without a smart meter are advised to contact their electricity retailer.
The three-hour free electricity periods have been determined according to the peak solar generation times in each participating region. Residents in New South Wales and South East Queensland will receive free electricity between 11am and 2pm, while customers in South Australia will have their free period from 12pm until 3pm.
Although the prospect of free electricity is attractive, households should carefully assess whether an SSO plan is actually suitable for their circumstances before switching.
Customers will still be responsible for paying daily supply charges, electricity consumed outside the designated free period, including peak, shoulder and controlled-load tariffs where applicable, as well as any green energy offset fees.
Before changing plans, it is important to compare all of the pricing details with an existing electricity contract, because the standard rates on an SSO plan may actually be higher.
While receiving three hours of free electricity each day sounds appealing, higher peak electricity prices or increased daily supply charges could ultimately result in a larger overall electricity bill.
For that reason, carefully calculating the overall costs before making the switch is essential, just as it is with any electricity plan.
Whether the Solar Sharer Offer delivers meaningful savings will depend largely on the retailer's pricing structure discussed above, as well as the extent to which a household can realistically move its electricity use into the three-hour free period.
Households that can adjust their routines to operate high-energy appliances such as washing machines and dishwashers, or charge electric vehicles and e-bikes during the free electricity window, are likely to gain the greatest benefit. Using appliance timers or smart scheduling features can further increase savings.
For instance, a typical dishwasher cycle consumes approximately one kWh of electricity. Running it during the free period would eliminate that cost, whereas operating it during an example peak tariff of 35 cents per kWh at night would incur a charge. Although the saving may appear relatively small on any single day, using free daytime electricity for one dishwasher cycle throughout the year would reduce costs by $127.75.
The greatest obstacle to shifting electricity usage is that many people are away from home during daylight hours because of work or other responsibilities. Appliance timers can certainly help, but they cannot completely replace being at home to maximise electricity use during the free period.
Across an entire year, operating a dishwasher load during the daytime free electricity window would amount to savings of $127.75.
As a result, Solar Sharer plans are expected to provide the greatest advantages for retirees, people working from home and those with caring responsibilities who spend more time at home during the day.
Originally reported by CHOICE on Jun 22, 2026.
