It was meant to be a win for households and the environment \u2014 three hours of free power every day to make the most of Australia\u2019s booming solar energy. But energy companies are warning the plan could end up doing more harm than good, particularly for lower-income families.<\/p>\n\n\n\n
The federal government\u2019s new Solar Sharer scheme, due to start on July 1, will force retailers to offer customers three hours of free electricity during the middle of the day when solar supply is at its peak. The goal is to encourage people to shift their usage to daylight hours, easing pressure on the grid and helping stabilise prices.<\/p>\n\n\n\n
But according to major retailers AGL and EnergyAustralia, the timeline is too ambitious and the policy risks backfiring. In recent discussions with government officials, both companies urged a delay of at least a year, arguing that the scheme in its current form could unfairly benefit households with home batteries or electric vehicles while leaving renters and low-income earners worse off.<\/p>\n\n\n\n
Industry leaders say the idea sounds good in theory \u2014 using surplus solar generation to provide free power when the grid is oversupplied \u2014 but the economics are complex. Without reform to network tariffs and environmental costs, retailers may be forced to recover lost revenue by charging more for electricity in the afternoon and evening, explains The Age<\/a>.<\/p>\n\n\n\n