From mid-2026, electricity retailers in NSW, South Australia and south east Queensland will be required to offer households three hours of free daytime power as part of the federal government’s new Solar Sharer scheme.
Designed to tap into Australia’s record rooftop solar generation, the initiative will reward households that can move energy-hungry tasks like washing, running the dishwasher or heating water, into the middle of the day when the sun (and solar supply) is strongest.
Announcing the measure this week, Energy Minister Chris Bowen says the change is about fairness - “sharing the benefits of our solar boom with all Australians, whether they own or rent.”
Under the plan, customers with smart meters can access a free three-hour block set by retailers and overseen by the Australian Energy Regulator. Households that shift roughly a quarter of their daily energy use into that window could save up to 28% on bills, according to government modelling.
But it won't just happen automatically - households need to sign up through their energy providers and have a smart meter installed if they don't already have one. Close to 60% of homes already have a smart meter, with the cost of installation around $100-$200.
Australia's abundant rooftop solar capacity means the energy market often has more electricity in the middle of the day than is being used - though renters often miss out. Picture: Getty
More than four million homes already have rooftop panels, which has more electricity capacity than the nation’s coal-fired fleet, yet much of that supply goes unused when demand dips at midday.
There are concerns some retailers could offset these 'free hours' with higher peak rates, though the government says the Australian Energy Regulator will regulate the Solar Sharer offer to ensure customers get a 'fair deal' outside of the free power period.
Renters in the mix
People who own their homes are more likely to have solar panels than those who are renting, meaning renters are often locked out of solar savings.
The PropTrack Origin Renter Reality Report 2025 found that 56% of renters feel energy efficiency is “out of their control,” and nearly half don’t know where to start.
Source: realestate.com.au January 2025 Residential Audience Pulse Survey
Because the scheme doesn’t rely on rooftop panels, renters can opt in through their electricity retailer.
It’s a small structural shift with potentially huge social impact, helping level the playing field between homeowners and tenants in the energy transition - a meaningful shift for households who’ve long felt “powerless” in more ways than one.
The know-how gap
According to the latest PropTrack Origin Home Energy Report, while many Australians love the idea of saving on bills, many still don’t know what all the buzzwords mean.
Quick definitions:
Those who understand the terms are far more likely to take action, whether that’s in your own home or by asking landlords to upgrade key appliances.
- Electrification: Replacing gas appliances – heating, cooking, hot water – with efficient electric ones (e.g. induction cooktops, heat-pump hot water, reverse-cycle/heat pumping heating and cooling.)
- Energy efficiency: Using less power for the same result – think insulation, LED lighting, or smarter appliances.
- Renewable energy: Power from natural sources that are continually replenished – e.g. solar, wind, hydro.
- Smart home: A tech-enabled home that tracks and shifts energy use automatically.
New habits
The report found Australian homeowners are already adapting to soaring power prices. Two-thirds plan to make efficiency upgrades in the next five years, and the average household expects to spend almost $8,000 doing so.
Many upgrades currently skew to older, mortgage-free owner-occupiers who have more control and capital; younger households and renters remain under-represented, largely due to cost and uncertainty.
Experts say the Solar Sharer could help nudge new habits, encouraging households to think not only about how much power they use, but when.
The peak body for electricity retailers, the Australian Energy Council, said it was disappointed by the lack of consultation on the scheme, saying it adds a complex regulatory solution that delivers a customer outcome that is already being offered by many retailers.
"This lack of consultation risks damaging industry confidence, as well as creating the potential for unintended consequences," CEO Louisa Kinnear said.
View of suburban houses showing how many have solar panels
"In developing energy products such as those that offer free energy for a period of time, retailers, and in particular, smaller retailers, need to carefully consider their exposure to the market, their hedging strategy, the impact of network costs, and a range of other factors."
The Solar Sharer scheme will launch in July 2026 in NSW, SA and south east QLD, with a national rollout likely in 2027, according to the government.
English (US) · 