The Victorian Government has announced a new retail electricity initiative aimed at shifting household energy use into the middle of the day, with a three-hour daily window of free power due to be introduced from 1 October 2026.
Under the Midday Power Saver, electricity retailers will be required to offer an opt-in tariff providing households with free electricity during a set three-hour period in the middle of the day. The offer is expected to be available to around 2.6 million Victorian households, with further details on timing and pricing to be released in May.
The policy follows the Federal Government’s Solar Sharer scheme, and reflects the increasing availability of electricity during daylight hours due to strong rooftop solar generation seen across Australia.
Across the state of Victoria, over 30 per cent of households have rooftop solar installed, according to Solar Victoria records. In Melbourne alone, approximately $2 million households use rooftop solar.
Victoria Premier Jacinta Allan said the initiative is intended to reduce household energy costs as more Victorians switch to rooftop solar.
“This could save families up to $300 per year off their energy bills – more if they have solar and batteries. It’s another reason why working from home can save you time and money,” Premier Allan said.
The Victorian Government has indicated households with solar and battery systems could save up to $1070 annually, depending on how effectively they shift electricity use into the free period.
Opt-in tariff and household participation
Households will need to opt-in to a participating retail plan to access the Midday Power Saver and will require a smart meter and an eligible tariff.
Retailers will be required to make these plans available, with the initiative designed to encourage electricity consumption during periods of high solar generation.
Minister for Energy and Resources Lily D’Ambrosio shared that the policy is intended to support a range of household usage patterns.
“Whether you work from home or have smart appliances, the Midday Power Saver will save Victorians money,” Minister D’Ambrosio said.
Daytime demand and solar generation
The initiative is underpinned by the growth of rooftop solar across the state, with more than 850,000 Victorian households currently generating their own clean household power.
Federal and State Governments have repeatedly stated that the initiative is possible because of the increased renewable energy generation seen from Australian sunlight and increased rooftop solar use, resulting in higher levels of electricity supply during the middle of the day.
By encouraging households to shift usage into this period, the policy is also expected to reduce peak demand and support system reliability.
Pricing structure and next steps
While electricity will be free during the three-hour window, overall bill outcomes will depend on how households use electricity across the rest of the day and the tariff structures applied by retailers.
Victoria operates outside the Default Market Offer framework, enabling the state to introduce its own version of a daytime pricing mechanism.
Further details on the Midday Power Saver, including the specific time window and pricing structure, are expected to be released ahead of the initiative’s planned rollout in October 2026.
