Australia to Offer Free Daytime Electricity Under New Solar Sharer Scheme, Leveraging Surplus Solar Power for Households

The Albanese Government has announced a new energy retail initiative that will allow households to access free electricity during the day, even if they do not have rooftop solar panels. The scheme, called Solar Sharer, will be introduced next year under reforms to the Default Market Offer (DMO).

The Solar Sharer program will require energy retailers in DMO-regulated states—New South Wales, South-East Queensland, and South Australia—to offer households at least three hours of free electricity during peak solar generation in the middle of the day.

The initiative aims to make use of Australia’s vast rooftop solar capacity, which now exceeds the combined output of the country’s remaining coal-fired power stations. With over 4 million rooftop solar systems installed nationwide, daytime electricity prices are often very low or negative due to oversupply.

The Solar Sharer offer encourages households to shift electricity use to daylight hours, helping reduce power bills and ease pressure on the grid during evening peak demand. Eligible customers must have a smart meter and be willing to use appliances such as air conditioners, electric vehicle chargers, pool pumps, or battery systems during the designated free electricity period.

According to the Government, the initiative will also lower system-wide costs by reducing peak evening demand, thereby decreasing the need for expensive network upgrades and stabilisation measures.

The offer is set to begin from July next year in DMO-regulated states, with consultations underway to expand it to other jurisdictions by 2027. The Australian Energy Regulator (AER) will oversee Solar Sharer to ensure customers receive fair pricing outside the free electricity window.

Alongside Solar Sharer, the Government will implement major reforms to the existing Default Market Offer to ensure it remains a fair, affordable safety-net tariff. The reforms will remove non-essential costs—such as marketing and competition allowances—from electricity pricing, following AER consultation.

Minister for Climate Change and Energy Chris Bowen said the initiative would help Australians benefit directly from the country’s renewable energy resources.

“Free daytime power for families across Australia is proof that what’s good for the planet is good for your pocket,” Bowen said. “People who move their electricity use into the zero-cost period will benefit, whether they own, rent, or have solar panels.”

The Government said the reforms are part of a broader effort to create a fairer and more efficient energy system while maximising the benefits of Australia’s renewable energy capabilities.