This scheme aims to provide a financial reprieve for consumers while promoting renewable energy usage. By encouraging households to consume power during midday, when solar generation is most abundant, the government hopes to reduce the need for expensive network upgrades and foster a greener energy system. However, while the promise of free power sounds enticing, there are questions about who will truly benefit and whether it will lead to higher costs at other times of the day.
Free Power for Millions – But Not for Everyone
The Solar Sharer plan will initially be available to households in three states: New South Wales, South Australia, and South-East Queensland. These regions fall under the Default Market Offer (DMO), which regulates electricity prices, ensuring consumers pay a fair rate for their energy.
According to Energy Minister Chris Bowen, the initiative is designed to help people move their energy usage to midday, when solar power generation is most plentiful and wholesale prices are often low or even negative. This, in turn, should relieve pressure on the grid during the evening, when energy demand spikes.
Households will be able to access the free electricity for a three-hour period, most likely between 11 am and 2 pm, and will be encouraged to run power-intensive appliances, like air conditioners, dishwashers, and washing machines, or to charge electric vehicles.
However, there are clear limitations. To take advantage of the offer, households must have a smart meter. Those without one can request an installation, though this may come at an additional cost depending on the retailer. Moreover, only those able to shift their power use to the free window will benefit. While this will suit some, such as families working from home or retirees, others, especially those who aren’t home during the day, may struggle to make full use of the scheme.
Industry Backlash: Concerns Over Unintended Consequences
While the government promotes the scheme as a win for consumers and the planet, it has sparked significant concern within the energy sector. The Australian Energy Council (AEC), which represents major retailers, has expressed dissatisfaction with the lack of consultation during the policy’s development.
AEC CEO Louise Kinnear warned that this could damage industry confidence and lead to unintended consequences. Without proper adjustments to network tariffs, energy providers could face higher operational costs, which might result in increased prices during the evening or even cause some companies to exit the market.
Retailers have also raised concerns about the financial impact of providing free electricity, particularly if the midday surplus isn’t optimally managed. Some experts, such as Marc White of Goanna Energy, argue that while consumers may benefit from lower daytime energy costs, these savings could be offset by higher prices during the rest of the day. “To some extent yes, pushing down prices at one period will inflate prices at another period,” he noted.
Despite these concerns, Bowen remains optimistic. He believes the scheme will lower overall grid costs by shifting energy demand and reducing the need for costly infrastructure upgrades. “The more people take up the offer and move their use, the greater the system benefits,” Bowen stated.
As it stands, the program is scheduled for launch in mid-2026, with an expansion to other states expected by 2027. Although it promises to make renewable energy more accessible, its true impact will depend on consumer uptake and how the energy market adjusts to the new regulations.
In the meantime, Australians in eligible areas can look forward to a potentially lower electricity bill, but they will need to navigate the limitations of the program carefully to make the most of it.
