From 1 July, households across New South Wales, South Australia and South East Queensland can choose an electricity plan that includes three hours of free power each day, under the Federal Government’s Solar Sharer Offer.
The government-regulated tariff aims to give more households access to the benefits of abundant midday solar generation, even if they do not own rooftop solar. While early consumer research indicates strong interest in the scheme, industry experts caution that the offer will not suit every household.
Here’s what you need to know.
The Solar Sharer Offer forms part of reforms to the Default Market Offer, the regulated safety-net price for customers on standing electricity contracts. The reforms are designed to strengthen consumer protections while encouraging greater use of renewable energy during periods when solar generation is at its highest.
Under the scheme, eligible households can receive up to 24 kilowatt-hours of free electricity during a three-hour window each day. The free electricity period runs from 11 am to 2 pm in New South Wales and South East Queensland, and from 12 pm to 3 pm in South Australia.
The Australian Energy Regulator sets the key tariff conditions, including the free-power period, daily supply charges, usage rates outside the free period and any charges that apply if households consume more than the daily 24 kilowatt-hour allowance.
Unlike rooftop solar incentive programs, households do not need to own a photovoltaic system to participate. Instead, the offer is intended to make better use of surplus daytime renewable generation that might otherwise be exported at low value or curtailed.
However, the Solar Sharer Offer is optional, and whether it delivers savings depends largely on a household’s electricity consumption patterns.
Households that can shift energy-intensive activities into the free-power period are expected to benefit the most. This may include operating air conditioning, washing machines, dishwashers, clothes dryers, electric vehicle chargers or charging a home battery during the middle of the day. Using timers or smart appliance settings may also help maximise savings.
By contrast, households that use most of their electricity during the morning or evening may see fewer benefits, as electricity consumed outside the three-hour window remains subject to standard usage charges and the daily supply charge still applies.
To be eligible, customers must live in a Default Market Offer region of New South Wales, South Australia or South East Queensland, have a smart meter installed, receive electricity from a participating retailer and not be supplied through an embedded network. Both homeowners and renters can access the offer.
The Australian Government is also working with jurisdictions outside the Default Market Offer framework to explore a broader rollout of the Solar Sharer Offer.
Before switching, households are encouraged to compare the Solar Sharer Offer with their existing electricity plan and consider whether their daily routine allows them to shift enough electricity use into the free daytime period to realise meaningful bill savings.
For more information about the Solar Sharer Offer, including eligibility and support, visit the Department of Climate Change, Energy, the Environment and Water website.
