Australia’s energy regulator is preparing to roll out a new electricity pricing model that could give households access to several hours of free power each day. The program, known as the Solar Sharer Offer (SSO), is expected to begin from July 1 for eligible consumers in Queensland, New South Wales, and South Australia as part of the Default Market Offer for the 2026–27 financial year.
The initiative is designed to help households reduce electricity bills while also solving a growing challenge in Australia’s energy system — too much solar power during the day and too much demand in the evening. With rooftop solar now installed on roughly 4 million homes and businesses, daytime generation often floods the grid, creating periods where electricity supply exceeds demand.
Instead of letting that energy go unused, the regulator wants consumers to shift more electricity use into the middle of the day, when solar generation is at its peak and wholesale power prices are typically lowest.
How the free electricity plan will work
Under the Solar Sharer Offer, eligible households will receive three hours of free electricity in the middle of the day. In Queensland and New South Wales, the free window will run from 11am to 2pm, while South Australia will receive free electricity between 12pm and 3pm.
The Australian Energy Regulator selected these time blocks after analysing when electricity demand across the grid is at its lowest and when solar generation is highest. According to regulator modelling, these hours consistently produce the lowest wholesale and network prices in the energy system.
Consumers will be able to use up to 24 kilowatt-hours (kWh) of electricity during the free period, roughly equivalent to the daily power consumption of a five-person household. If consumption exceeds that level, the electricity simply reverts to the standard marginal rate rather than triggering a penalty price.
Who will qualify for the Solar Sharer Offer
The offer will initially apply to electricity customers in Queensland, New South Wales, and South Australia who have smart meters, which allow retailers to track electricity usage during specific time windows.
Importantly, the program does not require rooftop solar panels and does not depend on home ownership. Renters and households without solar installations can still benefit if they are able to move energy usage into the free midday period.
The federal government is currently working with other states to expand the program nationwide, with the aim of introducing the offer across Australia by July 2027.
How the pricing structure affects electricity bills
While the midday window is free, the tariff is structured in a way that keeps the average annual electricity bill roughly unchanged for a typical household. The Solar Sharer Offer works similarly to a time-of-use pricing model.
Instead of spreading electricity costs evenly across the entire day, retailers distribute those costs across the hours outside the free period. That means households that do not shift their electricity use may pay about the same amount overall as before.
However, customers who move activities such as laundry, dishwashing, air-conditioning, or electric vehicle charging into the free hours could see meaningful savings.
The regulator says the design protects consumers from being worse off after opting into the plan. The free period is built into the Default Market Offer, which acts as a benchmark price cap that retailers must provide.
Why Australia wants people using more electricity during the day
The policy is closely tied to the growing impact of rooftop solar on Australia’s power grid. Solar panels generate enormous amounts of electricity during sunny hours, but that output drops rapidly once the sun sets.
This creates a sharp surge in electricity demand during the early evening — a pattern known in the energy industry as the “duck curve.” The shape of the demand graph resembles the outline of a duck, with low demand during the day and a steep spike after sunset.
Managing that spike can be expensive because electricity networks must build enough generation and infrastructure to meet peak demand even if those assets are only used for a few hours each day.
Gas-fired power stations are often used to supply electricity during these evening peaks. Although gas provides a relatively small share of total generation, its higher cost means it can have a disproportionate impact on electricity prices.
By encouraging households to move electricity use into the middle of the day, regulators hope to flatten the demand curve and reduce the need for expensive peak-time generation.
How households can maximise the free electricity window
Consumers who want to benefit most from the Solar Sharer Offer may need to adjust when they use electricity. Activities such as running washing machines, dishwashers, pool pumps, air-conditioning systems, or electric hot water units can be scheduled during the free hours.
Modern appliances increasingly include smart scheduling features, allowing users to automatically run devices during cheaper or free electricity periods.
Electric vehicle charging could have one of the biggest impacts on demand shifting. Charging EVs in the middle of the day absorbs large amounts of electricity at the exact time when solar generation is abundant.
Battery systems connected to homes could also charge during the free window and supply electricity later in the evening when demand and prices rise.
How to sign up for the Solar Sharer Offer
The free power plan will officially launch alongside the regulator’s release of the Default Market Offer pricing in July. Eligible consumers will need to opt in through their electricity retailer rather than being automatically switched to the new tariff.
Some electricity retailers already offer plans that include free electricity periods, but consumers are advised to read the fine print carefully before switching. The regulator recommends comparing plans using the official Energy Made Easy comparison tool.
More information about the Default Market Offer and consumer protections can also be found on the Australian Energy Regulator website.
Will global energy tensions affect electricity prices?
Electricity markets remain sensitive to global fuel prices, particularly fossil fuels. The energy crisis in 2022 showed how international events can ripple through electricity bills after the war in Ukraine drove global gas and coal prices higher.
However, regulators say current conditions are different. Wholesale electricity prices have fallen over the past year as renewable generation has increased and volatility has eased.
Even though geopolitical tensions — including concerns around Iran and the Gulf region — are being closely monitored, electricity prices are still below levels seen a year ago.
Draft electricity price proposals for Victoria released recently suggest that residential power prices could fall by about 3 percent compared with the previous year, reflecting lower wholesale costs.
The broader goal of the Solar Sharer Offer is to ensure that Australia’s growing solar capacity works more efficiently. By shifting demand into daylight hours, regulators believe the electricity system can avoid costly infrastructure expansions and reduce reliance on expensive fossil-fuel generation.
For households willing to adjust when they use power, the new midday electricity window could become one of the simplest ways to turn Australia’s solar boom into real savings on energy bills.
Grid reforms and energy pricing changes are becoming a bigger part of the policy conversation globally, much like how major infrastructure and safety issues can quickly move into the spotlight after a high-profile event. In another recent development, authorities intensified scrutiny after the Jeju Air crash that left 179 dead and triggered a police raid over runway safety concerns.
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