Savings coming for households able to use energy in day
A load of laundry and pool pumps running in the middle of the day can save households hundreds of dollars a year by making electricity free during a three-hour window.
Government modeling of the savings possible under a free solar plan suggests a family of five could spend $800 to $1,100 less on annual electricity bills if they could shift a quarter of their energy use to abundant solar generation time.
This will likely require scheduling the dishwasher, washer, dryer, pool pump, and electric car charging for the middle of the day.
A more modest 10 percent shift in energy use toward zero-cost time could save $400 in a household of five or $150 for someone living alone.
The new figures from the Ministry of Climate Change, Energy, Environment and Water follow consultations on the program, which is planned to be implemented in some states from mid-2026.
Solar Sharer, as it is known, is the aim of the scheme to bring the benefits of producing abundant and cheap solar power during the day to more households, including those who do not have their own panels.
Energy Minister Chris Bowen said shifting more energy use to daylight hours rather than peak evening hours would ease pressure on the grid and help reduce network and system security costs.
“Australia has more rooftop solar capacity than the entire fleet of remaining coal-fired power stations across the country,” he said.
do not follow adviceThe federal government has confirmed that the program will be voluntary, flexible to local conditions and will impose a daily limit on excess energy use to keep the system fair and equitable.
It is acknowledged that the scheme may not be suitable for all households and will depend on households’ ability to shift electricity use to daytime.
The Australian Energy Council, the industry body that represents energy producers and retailers, is calling for changes to network tariffs to align with the free-of-charge period to help cover the costs of poles, cables and other distribution infrastructure.
What is worrying is that energy companies are recovering grid, metering and other costs outside the free window.
“Without this change, there is a risk that energy charges outside the free window will be significantly higher, which could be a disadvantage for some customers,” AEC chief executive Louisa Kinnear said.
Retailers’ concerns are acknowledged in the government consultation document and work will continue with the industry on “how best to price free energy-free periods to enable retailers to recover costs where necessary”.
John Grimes, chief executive of the Smart Energy Council, described the plan as “fantastic” and applauded the move to “democratise” the supply of cheap energy.
“Networks are wasting tens of millions of dollars by turning off free solar power. Instead, Solar Sharer is giving it to people for free,” he said.
“There will be critics of this change, especially those with economic interests, but measures that increase energy resilience, security and independence will be applauded.”
Households with smart meters in NSW, South Australia and South-East Queensland will be able to enjoy three hours of free electricity from July 2026.
Other states can expect the program to be implemented in 2027.
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