New plan to give households free electricity over midday

Australia is rich in sunshine, and from July next year everyone in the Illawarra could have a chance to reap the rewards.

Any home with a smart meter will receive free electricity for at least three hours in the middle of the day as part of the government's new Solar Sharer scheme, an energy market reform that local experts have welcomed.

“Today’s announcement is a big win for consumers across the energy system, especially for renters and apartments who often miss out on savings from having their own solar panels,” said Francis Vierboom, CEO of Rewiring Australia, the not-for-profit overseeing the Electrify 2515 Community Pilot. 

“In the middle of the day, our grid is humming with cheap solar. The underlying price of that electricity is often zero or negative. This Solar Sharer reform means energy retailers will have to pass on those ultra-low prices to consumers for at least three hours. 

“That’s enough time to heat up a hot-water tank, blast the air-conditioner to cool a home on a hot day, run a pool pump, or charge an EV, and each one of those could mean hundreds of dollars of savings per year.” 

“I think it is a great plan!” the University of Wollongong’s Energy Futures Network Director, Ty Christopher, said.

Ty has long called for energy market reform to bridge the gap between solar haves and have-nots, catch up with the realities of a grid running almost 50% on renewables, and put consumers before gentailers – that is, generator retailers who own the assets that generate electricity and also sell electricity to businesses and homes.

“It is well past time the retailers and gentailers were directed to take action to reduce power bills and help energy equity, instead of continuing their gouging of all customers through inflated energy bills," Ty said.

“Helping everyone to access cheap and clean solar power when it is abundant will reduce power bills and help the planet.”

Support for the clean energy switch

The Solar Sharer plan comes on top of other recent government incentives to boost the uptake of cheap, clean renewable energy. 

Locally, more than 270 residents have joined the Illawarra Shoalhaven Solar & Battery Bulk Buy program, with the discounted offer extended until December 19. Across the country, since the federal government’s Cheaper Home Batteries program launched four months ago, 100,000 families, businesses and community organisations have taken up the discount of about 30 percent to install batteries. Today, more than four million homes have rooftop solar and in September renewables overtook coal as the largest source of energy in our national energy market.  

Rewiring Australia would like to see the government do even more to encourage home owners to switch to electric appliances and cars.

“Over 100,000 people have already used the Cheaper Home Batteries subsidy, and we should expand it to cover standalone batteries and smart EV chargers that can use Solar Sharer plans,” Francis said. 

“We should also keep expanding flexible finance options to help people make the switch to all-electric homes, and deliver minimum standards for rental homes to require the switch to electric appliances when gas ones break down."

Since July 2024, the Illawarra’s ‘poles and wires’ operator, Endeavour Energy, has had “solar soak” tariffs in place. Earlier this year, an Endeavour spokesperson told the Flame: “Under the new tariffs, the use of the Endeavour Energy network is free between 10am and 2pm every day, meaning we do not charge electricity retailers for their residential and small business customers using our network during these hours.” The spokesperson said the aim was to encourage retailers to pass on these savings.

Now the proposed 'Solar Sharer' regulated electricity offer will require retailers to offer free electricity to households for at least three hours in the middle of the day.  

As well as democratising the benefits of solar power, the Solar Sharer offer aims to take pressure off the grid by lowering evening demand and reducing the need for network upgrades and interventions.   

In announcing the details of the proposed reform to the Default Market Offer (DMO) , Minister for Climate Change and Energy Chris Bowen said free daytime power is proof that what’s good for the planet is good for your pocket: “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."

The opt-in Solar Sharer offer will require a smart meter and be available from July 2026 for households in NSW, South-East Queensland and South Australia, then potentially extended to other areas by 2027.  

Feedback on the scheme closes at 5pm on 21 November. Submissions can be made to SolarSharerOffer@dcceew.gov.au or via the government's website.

Places are still available in the Electrify 2515 Community Pilot, which offers residents in the 2515 postcode subsidies for heat pumps, reverse-cycle air conditioners and induction cooktops. Apply at electrify2515.org