Australia’s federal government has proposed a bold plan to offer free electricity during the day to certain households. If it goes ahead, this “Solar Sharer” scheme promises to reduce power bills for eligible Australians, but how will it work, and who stands to benefit the most?
What’s the Solar Sharer Scheme?
The Solar Sharer scheme, which could launch by July 2026, aims to take advantage of the excess solar power generated during the middle of the day. During this window, households would get free electricity for at least three hours. This initiative is part of a broader push to reduce reliance on fossil fuels, helping shift energy use toward cheaper, cleaner sources. While the government hopes the scheme will help lower household costs, it’s not without its critics.
The offer would only apply to households within areas governed by the Australian Energy Regulator’s Default Market Offer, currently limited to New South Wales, South Australia, and southeast Queensland. The idea is that consumers would be able to move to electricity plans where the middle of the day, typically when the sun is shining brightest, would be free of charge. However, the catch is that you’d need to sign up for the plan—and have a smart meter.
Who Would Benefit from Free Power?
So, who exactly would benefit from the free power hours? If you’re someone who works from home, or if your daily routine keeps you at home during the day, you’re probably a good candidate. You could continue using power during the free hours without altering your behavior too much. Need to run the washing machine, air conditioner, or other appliances? You can program them to turn on during those designated hours, saving you some cash.
People with electric vehicles (EVs) or solar batteries are also well-placed to benefit. These individuals could charge their cars or store energy in their batteries during the middle of the day when electricity is free. This could help them avoid the much higher costs associated with peak electricity hours in the evening.
However, the reality of the scheme isn’t as simple as it seems. For starters, it only makes sense for those who have the smart appliances and home automation systems in place to make the most of the free hours. Want your washing machine to run at midday? That requires a machine with a “delay start” function. Not all older models have that capability, and the cost of upgrading these devices may be too much for lower-income households.
The Question of Equity: Who Gets Left Behind?
Here lies the crux of the issue. The scheme might end up benefiting the more affluent households who can afford smart devices, solar panels, and EVs. Lower-income households, on the other hand, may be unable to make the necessary investments. Not everyone has the disposable income to install solar panels or buy an electric car, and renters, who are less likely to own their homes, will likely miss out altogether.
Energy expert Finn Peacock from SolarQuotes raised concerns that electricity retailers could find ways to compensate for the cost of providing free power during the day by pushing up prices during other times, reports ABC. If that happens, the savings offered by the Solar Sharer plan could be minimal—or nonexistent—especially for people who don’t have the means to shift their electricity usage to daytime hours.
Is It a Step in the Right Direction?
Despite the criticisms, the plan has its merits. If implemented effectively, it could help reduce pressure on the national electricity grid by shifting energy use to the daytime when solar generation is at its peak. This would help offset the reliance on coal and gas-fired power plants, which typically generate electricity at higher costs during peak demand times.
It’s not perfect, but it’s a step toward a more sustainable and affordable energy future. However, as with most government schemes, the devil will be in the details. As the scheme moves forward, it’s essential to keep an eye on how electricity retailers balance the free power hours with their overall pricing structure. If it’s done right, the Solar Sharer could genuinely save consumers money, but it will require careful planning to ensure it’s equitable for all Australians, not just the ones with the latest tech and gadgets.
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