Australia Releases Solar Sharer Offer Plan to Provide Free Daytime Power to Households

The Albanese Labor Government on Tuesday released the consultation outcome paper for the Solar Sharer Offer (SSO), marking the next step toward introducing a new electricity retail option that would provide households with at least three hours of free power in the middle of the day.

The proposal, shaped through extensive consultations with market bodies, consumers and energy retailers, received broad support as a way to better utilise Australia’s abundant solar generation while making the energy system fairer and more reliable.

Based on the consultation feedback, the government has outlined a proposed design and implementation framework for the Solar Sharer Offer, which will be introduced through the Electricity Retail Code and supported by the Default Market Offer (DMO) framework. The approach is guided by six key design principles: delivering bill savings for participating households, considering market and system efficiency, aligning with local conditions, ensuring retailer viability, applying a reasonable usage cap, and maintaining adaptability.

The government reiterated that the Solar Sharer Offer will be opt-in and is best suited to households that can shift electricity usage into the three-hour free power window during the middle of the day.

Under the reformed DMO framework, the Australian Energy Regulator (AER) will oversee pricing outside the free power period to ensure customers continue to receive a fair deal. The AER will now work with industry and government to finalise regulations ahead of implementation in DMO jurisdictions—New South Wales, South Australia and south-east Queensland—from July 2026. Discussions are also underway with other states to potentially extend the offer nationwide by 2027. The Victorian Government is separately consulting on a similar proposal under the Victorian Default Offer (VDO).

Commenting on the announcement, Climate Change and Energy Minister Chris Bowen said Australia’s rooftop solar capacity now exceeds the country’s remaining coal-fired power generation fleet.

“The Solar Sharer Offer is about making the most of our huge solar generation and ensuring the benefits of cheap solar power can be shared with households that don’t have rooftop solar,” Bowen said. He added that the scheme would help reduce evening peak demand, easing pressure on energy networks and improving system reliability.

New analysis from the Department of Climate Change, Energy, the Environment and Water indicates that households able to shift electricity usage to the free daytime period could achieve meaningful bill savings. Shifting just 10% of energy use from evening peaks could save around $150 annually for a one-person household and up to $400 for a five-person household. Households shifting 20% of energy use, such as scheduling dishwashers, washing machines, dryers or hot water systems, could save between $300 and $790, depending on household size. Moving 25–30% of energy use, including EV charging and pool pumps, could increase savings to $400 for smaller households and up to $1,100 for larger households, according to the analysis.

The government said the Solar Sharer Offer is designed to deliver direct household savings while strengthening grid stability and supporting Australia’s transition to a cleaner energy system.