The Solar Sharer scheme provides three hours of free electricity daily between 11 am and 2 pm for eligible households in New South Wales, South Australia, and south-east Queensland starting July 1. This federal initiative aims to lower electricity bills and stabilize the grid by encouraging consumers to use power during midday renewable energy surges.
How much can the Solar Sharer scheme save you?
Potential savings depend heavily on how much electricity a household can shift to the midday window. According to federal government estimates, a three-person household could save up to $350 a year by moving a few high-energy appliances, such as a dishwasher or washing machine, to the free period.
For households capable of larger shifts, the savings increase significantly. The government states that shifting 30 per cent of total electricity use—including pool pumps, electric vehicle charging, and washing machines—could save more than $1,000 annually.
Which states and territories are included in the rollout?
The rollout is occurring in stages across Australia. The Solar Sharer scheme begins in New South Wales, South Australia, and south-east Queensland on July 1. These regions operate under pricing administered by the Australian Energy Regulator.
Victoria will implement an equivalent state-regulated scheme called the Midday Power Save, which is scheduled to begin on October 1. While the programs are similar, Victorian pricing is regulated at the state level rather than by the federal regulator.
The scheme is available to both houses and apartments. Eligibility is not dependent on owning solar panels, but consumers must have a smart meter and must actively opt in to the new plans.
Why is the government changing electricity regulations?
The move is designed to address a growing imbalance in the Australian energy grid. Australia currently has approximately 4.5 million rooftop solar installations, and renewables now supply nearly 50 per cent of the electricity used in the grid.
This high volume of solar uptake causes electricity to flood the grid during the middle of the day, which sends wholesale costs toward zero around noon. However, demand remains low during these hours. Conversely, the “evening peak” occurs after 5 pm when solar production drops and households switch on appliances, forcing the grid to rely on more expensive gas and coal plants.
Energy Minister Chris Bowen stated that the scheme is a way to encourage daytime consumption to reduce this midday glut and alleviate the evening strain. “Solar sharer is a great option if you are in a position to shift some of your electricity use to the middle of the day,” Bowen said.
What are the concerns from electricity retailers?
Not all industry players support the mandatory nature of the scheme. Electricity retailers have argued that Solar Sharer could lead to a “cross-subsidy” effect. They suggest that costs could rise for consumers who are unable to shift their usage times, effectively making them pay more to subsidize those who can.
Retailers have also raised concerns regarding equity. They argue the scheme may disproportionately benefit households that already possess home batteries or electric vehicles, as these users can capitalize more easily on the free power window to charge their systems.
Under the new regulations, electricity retailers with more than 1,000 customers are required to offer these plans. While these plans must comply with the Default Market Offer price cap, retailers noted that they may not be cheaper than existing contracts depending on a customer’s specific usage patterns.
Frequently Asked Questions
Do I need solar panels to use Solar Sharer?
No. The scheme is available to all houses and apartments, regardless of whether they have solar panels installed.
Is the free electricity automatic?
No. Customers must opt in to the new plans offered by their electricity retailers.
What happens to my current electricity contract?
Retailers are not required to automatically move existing contracts onto the Solar Sharer scheme or to alert customers of the new availability.
What is the daily limit for free power?
The scheme is capped at 24 kilowatt-hours of free electricity within the three-hour window each day.
Are you planning to switch your appliance usage to the midday window? Let us know your thoughts in the comments below or subscribe to our newsletter for more energy transition updates.