Australia's Solar Sharer Offer: Mandatory Free Daytime Electricity from July 2026
Australia's Solar Sharer Offer: Mandatory Free Daytime Electricity from July 2026
Bottom line
Australian energy retailers with more than 1,000 customers must offer (not automatically provide) at least one tariff that includes three hours of free daytime electricity each day, limited to 24 kWh per household, starting 1 July 2026 in New South Wales, South‑East Queensland and South Australia.
What the Solar Sharer Offer actually mandates
- Scope – The requirement applies only to retailers serving > 1,000 residential customers. Smaller retailers are exempt.
- Plan requirement – Retailers must have at least one time‑of‑use (TOU) plan that includes a free‑electricity window of ≥ 3 hours per day. Existing plans without a free window remain permissible.
- Geography – The mandatory states are NSW, South‑East Queensland and South Australia. Victoria, the ACT and other jurisdictions may adopt similar schemes later, but are not covered by the July 2026 deadline.
- Cap – A daily usage cap of 24 kWh applies to the free window. Consumption beyond the cap reverts to the standard tariff; there is no penalty or supply interruption.
- Eligibility – Any household with a smart meter can opt‑in, regardless of ownership or rooftop solar.
"From 1 July 2026, Australian energy retailers with more than 1,000 customers must offer at least one energy plan which includes 3 hours of free electricity, capped at 24 kWh per day, to residential customers in 3 states…" – Energy.gov.au (cited in HN comment).
How the free‑window is determined
- The free window aligns with peak solar generation, typically midday (e.g., 11 am – 2 pm or noon – 3 pm). Exact hours may vary by region and season and will be communicated by the retailer.
- Retailers set the window once the scheme launches; it is not expected to change frequently.
Why the 24 kWh cap matters
- Average household use – 24 kWh roughly equals the daily consumption of a typical five‑person home (AER 2020 benchmark).
- Solar households – Most homes with rooftop PV will stay well below the cap because solar already supplies much of the midday load.
- Non‑solar households – Users who plan to charge large batteries or EVs heavily during the free window may hit the cap; excess consumption simply pays the standard rate.
- No penalties – Exceeding the cap does not trigger fees or supply cuts; it merely ends the free period for that day.
Expected savings
The Department of Climate Change, Energy, the Environment and Water (DCCEEW) modelled annual savings based on the proportion of load shifted into the free window:
| Load shifted | Approx. annual saving |
|---|---|
| 10 % (one major appliance) | $100 – $190 |
| 20 % (add dryer or daytime hot‑water heating) | $300 – $790 |
| 25‑30 % (include pool pump, EV, dishwasher) | $400 – $1,100 |
| These figures assume average tariffs; actual savings depend on your plan, household size and how consistently you can schedule loads. |
Who benefits most?
- Home‑bound occupants – Remote workers, retirees, carers, and anyone at home during midday can deliberately run appliances in the free window.
- Smart‑appliance owners – Timers or programmable devices (hot‑water systems, EV chargers, pool pumps) enable automatic capture of free electricity.
- Solar + battery households – The free window can be used to top‑up home batteries at zero cost on low‑generation days, extending free or cheap electricity into the evening peak.
- Renters and apartment dwellers – No rooftop solar is required; a smart meter and plan opt‑in grant access, opening a new cost‑saving avenue for tenants.
Practical steps to prepare (before 1 July 2026)
- Verify smart‑meter installation – Contact your retailer now; most Australian homes already have a smart meter, and retailers will install one at no charge if needed.
- Audit high‑draw appliances – Identify devices that can be scheduled (washing machine, dryer, dishwasher, pool pump, EV charger, programmable hot‑water system).
- Check plan options – Review your retailer’s tariff list for a plan that includes the free‑window. Remember that not every plan will have it; you may need to switch.
- Program timers – Set your appliances to run within the expected free window (e.g., 11 am – 2 pm). If you have a home‑energy management system (e.g., Sigenergy), configure it to prioritize the free period.
- Monitor usage – After launch, track daily consumption during the free window to ensure you stay under the 24 kWh cap and maximise savings.
Common misconceptions clarified by the community
- Misconception: All retailers must give every customer three free hours. Reality: Only retailers with >1,000 customers must offer at least one plan with the free window; other plans may not include it.
- Misconception: Free electricity is unlimited. Reality: A 24 kWh daily cap applies; excess usage reverts to standard rates.
- Misconception: Higher daily supply charges are not part of the deal. Reality: Some retailers bundle the free window with higher fixed or usage charges outside the window to offset costs.
"The downside of these solar sharer plans which include ‘free’ electricity is that they generally have higher daily supply charges and higher usage charges outside the ‘free’ window to recoup the costs of the ‘free’ electricity." – HN comment by thedays.
Real‑world experiences (Hacker News comments)
- Existing voluntary plans – Retailers such as GloBird already offered similar free‑window tariffs before the mandate, popular among battery owners.
- Impact on grid frequency – Early adopters observed a dip in system frequency around 11 am, suggesting the free window does shift load as intended.
- Potential for battery economics – Some commenters argue that incentivising daytime consumption reduces the need for large grid‑scale batteries, though others note that substantial storage (≈20 kW) would still be valuable.
- International parallels – The Netherlands has weekend free‑window tariffs (12 pm – 5 pm) with some providers, indicating the model’s broader relevance.
How to maximise the benefit
| Action | Reason |
|---|---|
| Install a programmable hot‑water system | Hot‑water heating is a large, shiftable load that can run entirely in the free window. |
| Use a home battery | Charge the battery for free on sunny days; discharge it during evening peak to avoid high rates. |
| Charge EVs during the free window | Zero‑cost charging cuts weekly electricity bills for EV owners. |
| Schedule laundry/dishwasher | Running these appliances in the free window captures the free electricity without extra effort. |
| Consider a TOU‑compatible plan | Even if you already have a plan, switching to a TOU plan with the free window may lower overall costs despite higher fixed charges. |
Outlook
The Solar Sharer Offer represents a policy‑driven demand‑side response that leverages Australia’s abundant midday solar surplus. By mandating at least one free‑window plan, the government aims to:
- Reduce solar curtailment – Soak up excess generation instead of forcing negative wholesale prices.
- Lower household bills – Provide a tangible, immediate benefit to consumers, especially renters and non‑solar households.
- Delay costly grid upgrades – Shift consumption to periods when the network is already lightly loaded.
Future expansions to Victoria (expected October 2026) and other states by 2027 will likely follow the same template, extending the benefits nationwide.
All statements are based on the Lenergy article (published 18 May 2026), the DCCEEW consultation outcomes (23 Jan 2026), and the Hacker News discussion linked above. No information was invented beyond the cited sources.