Proposed changes to the Default Market Offer are set to reshape how households engage with electricity pricing, with new incentives that directly align with Australia’s growing rooftop solar user and emerging opportunities for installers.
At the centre of the Australian Energy Regulator’s (AER) draft 2026-27 determination is the introduction of a new opt-in Solar Sharer Offer, which provides up to three hours of free electricity during the middle of the day; 11am to 2pm in New South Wales and South East Queensland, and 12pm to 3pm in South Australia.
For households, the shift signals a stronger push toward daytime load shifting, rewarding those who can align consumption with periods of high solar generation. Appliances such as dishwashers, washing machines and electric hot water systems are expected to play a greater role in capturing these savings, particularly as midday solar output continues to rise.
For solar installers, the implications are more structural. The Solar Sharer Offer effectively strengthens the value proposition of rooftop photovoltaic by pairing generation with flexible consumption, reinforcing the case for system design that considers not just export, but onsite utilisation and timing of demand.
The reforms also introduce tighter tariff regulation, with the AER setting caps on daily supply charges and usage rates, including peak pricing. This increases pricing transparency for households while reducing the variability of retail tariff structures, which has historically been difficult area for customers to navigate.
In parallel, the AER will now publish both flat-rate and time-of-use annual prices for each distribution zone. While some regions will see little difference between the two, others, particularly in parts of New South Wales, will reflect more distinct price signals tied to network costs.
For installers, this reinforces the importance of advising customers on tariff selection and system configuration. As time-of-use pricing becomes more prominent, aligning solar generation, storage and consumption patterns will be critical to maximising bill savings.
By incentivising demand during solar-rich periods, the reforms aim to flatten peak demand and reduce reliance on evening generation, easing pressure on networks and lowering long-term system costs.
Despite these changes, the Default Market Offer remains a safety net rather than a market-leading offer. The AER continues to encourage households to shop around, noting that customers on standing offers could save up to 12 per cent by switching to more competitive plans.
With consultation underway ahead of a final determination in May 2026, the reforms point to a more dynamic relationship between pricing, solar generation and household energy use.
For more detailed information about the Default Market Offer, visit the AER website.
