The Solar Sharer proposal marks the next stage of the Albanese Government’s retail energy reforms – introducing a regulated electricity offer that gives households access to free electricity during periods of peak solar generation – even if they don’t have panels installed.
Under the plan, to be introduced through the Default Market Offer (DMO) from July 2026, energy retailers in New South Wales, South-East Queensland and South Australia will be required to provide at least three hours of free electricity in the middle of the day. The government intends to consult with other states about extending the scheme nationally by 2027.
To take advantage of the offer, customers will need a smart meter and the ability to shift their energy use into the free power window — for example by running air conditioners, charging electric vehicles, or heating water systems during the day.
Minister for Climate Change and Energy Chris Bowen said the initiative would use excess daytime solar generation to benefit households and the grid alike.
“Free daytime power for families across Australia is proof that what’s good for the planet is good for your pocket,” he said.
He added that the reform would reduce evening peaks and ease network costs by encouraging households to use electricity when it is cheapest and most abundant.
Support from ReWiring Australia
Energy advocacy group ReWiring Australia welcomed the move in a media release yesterday, calling Solar Sharer a practical reform that would deliver savings and reduce emissions. CEO Francis Vierboom said the plan would extend solar benefits to renters and apartment residents who cannot install panels.
“In the middle of the day, our grid is humming with cheap solar. The underlying price of that electricity is often zero or negative. This Solar Sharer reform means energy retailers will have to pass on those ultra-low prices to consumers for at least three hours,” Vierboom said.
Vierboom said those three hours of free power were “enough time to heat up a hot water tank, blast the air conditioner to cool a home on a hot day, run a pool pump, or charge an EV,” potentially saving households hundreds of dollars per year.
He also pointed out that encouraging more daytime energy use would help stabilise the grid and lower system costs, describing it as “a smart update to the old off-peak model.” ReWiring Australia urged the government to pair the Solar Sharer with support for all-electric appliances, EV chargers and household batteries to help Australians make full use of the new free power period.
Concerns from electricity retailers
The Australian Energy Council (AEC), representing electricity retailers, expressed disappointment at the government’s decision to announce the reform without prior consultation. Chief Executive Officer Louisa Kinnear said while the Council supports more choice for customers, the way the policy was introduced risked creating complexity and uncertainty for the industry.
She said the change “introduces a complex regulatory solution that delivers a customer outcome that is already being offered by many retailers,” and warned that “this lack of consultation risks damaging industry confidence, as well as creating the potential for unintended consequences.”
Kinnear noted that the industry had spent months engaging with the government on the DMO review and had been broadly comfortable with its direction, but the new Solar Sharer proposal was not part of that process. She cautioned that universal access to regulated free-energy products could place risks on smaller retailers and affect competition, especially without adjustments to network tariffs.
The AEC is calling for detailed discussions with government to ensure the final design “can deliver positive outcomes for all consumers in a way that limits the potential for unintended consequences.”
Consultation open
The Department of Climate Change, Energy, the Environment and Water has opened public consultation on the Solar Sharer proposal and related DMO reforms through its online consultation hub. Submissions are now invited from consumers, industry, and other interested parties ahead of the offer’s planned introduction in July next year.
