Australian Government Unveils Solar Sharer Scheme for Free Daily Solar Power to Households

The Australian federal government has announced a new Solar Sharer initiative that will provide households in New South Wales, south-east Queensland, and South Australia with at least three hours of free solar-generated electricity each day, starting July next year. The move is a good example of allowing the benefits of cheap solar power to be shared over a wider segment of people. In many markets, communities living close to solar or wind power plants have been provided free or subsidised power as compensation. But the moot issue of wider solar adoption, where households with subsidised solar plants benefit while those left out end up paying even higher power costs due to a smaller consumer base from which to recover costs for discoms, remains. Add to that the wastage of solar power in case of excesss supply during solar hours leading to curtailment. Thus, a solution like the one in Australia makes a lot of sense on the face of it. 

This offer is accessible even to homes without rooftop solar panels, provided they have smart meters, a feature present in most homes across these states. 

Further expansion to other regions is expected in 2027.

How the Scheme Works

The program will be delivered via changes to the default market offer (DMO), which regulates the maximum electricity prices retailers can charge customers. 

Energy Minister Chris Bowen insisted that the scheme aims to reduce instances where excess solar power is wasted by making it available to more Australians.

Households will be able to schedule energy-intensive activities such as running washing machines, dishwashers, air conditioners, and charging electric vehicles and batteries during these free solar hours, regardless of panel ownership or rental status.

Grid Benefits and Cost Impact

Australia currently has over 4 million solar systems installed, creating frequent midday surpluses in solar generation. The Solar Sharer scheme encourages users to shift electricity demand from peak times, typically early evening, to the sunniest periods. This shift helps lower peak electricity prices, improves grid stability, and avoids costly network upgrades.

Bowen emphasised that “People who can move electricity use into the zero cost power period will benefit directly… The more people take up the offer and move their usage, the greater the system benefits that lower costs for all electricity users will be.”

Regulatory Oversight and Future Expansion

The Australian Energy Regulator will oversee the scheme to guarantee fair electricity rates outside the free solar period. The government is considering broadening the program to other states not currently regulated by the DMO, with consultations set to follow.

The Solar Sharer initiative was announced alongside a review of electricity price-setting via the DMO. It comes amid political debate over energy policy in Australia, with critics linking renewable energy growth to rising power prices.