Australian households in three states will be promised access to at least three hours a day of free solar power, regardless of whether they have rooftop panels, the federal government has announced.
The “solar sharer” offer will be available to homes with smart meters – which is the majority of homes – in New South Wales, south-east Queensland and South Australia from July next year, with other areas to potentially follow in 2027.
The government said Australians could schedule appliances such as washing machines, dishwashers and air conditioners and charge electric vehicles and household batteries during this time.
The solar sharer scheme would be implemented through a change to the default market offer that sets the maximum price retailers can charge customers for electricity in parts of the country. The climate change and energy minister, Chris Bowen, said the program would ensure “every last ray of sunshine was powering our homes” instead of some solar energy being wasted.
Australians have installed more than 4m solar systems and there is regularly cheap excess generation in the middle of the day. Part of the rationale for the program is that it could shift demand for electricity from peak times – particularly early in the evening – to when it is sunniest.
This could help minimise peak electricity prices and reduce the need for network upgrades and intervention to ensure the power grid was stable.
The announcement comes as the Albanese government faces criticism over increases in electricity prices. Critics have linked this to the rise of solar and wind – largely erroneously.
Bowen said the new offer showed that free solar energy in the day was “proof that what’s good for the planet is good for your pocket”.
“People who are able to move electricity use into the zero cost power period will benefit directly, whether they have solar panels or not and whether they own or rent. And the more people [who] take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be,” he said.
Bowen said the Australian Energy Regulator would oversee the change to ensure households “get a fair deal” outside the free power period. He said the government would consult with states not covered by the default market operator to potentially extend the offer after next year.
Some retailers, including AGL and Red Energy, already offer periods of free solar energy to their customers. But the Australian Energy Council, representing generators and retailers, said it was disappointed by the lack of consultation before the announcement.
The council’s chief executive, Louisa Kinnear, said the announcement without notice risked “damaging industry confidence, as well as creating the potential for unintended consequences”. They could include some businesses “exiting a market”.
“While it is positive that the government recognises that customers are benefiting from innovative products our members are offering, failing to consult with the industry prior to making announcements such as this could have an enduring impact on product innovation that can further support the energy transition and customers,” she said.
The Smart Energy Council, whose members include solar installers, said the offer was “good news for Australian households struggling with the cost of living”. The council’s chief advocacy officer, David McElrea, said the program would “actually help people get access to free power, because the sun doesn’t send you a bill”.
