Australian households and small businesses are set to see varied changes to their electricity bills from 1 July 2026, following the Australian Energy Regulator’s (AER) final Default Market Offer (DMO) 2026-27 determination. Crucially, the AER has mandated a new Solar Sharer Offer for the first time, providing an innovative pathway for smart meter customers to access three hours of free electricity daily.
Released on 26 May 2026, the final DMO decision acts as a safety net for customers on standing offer contracts and a reference price for comparing market offers. While overall prices are projected to fall for most, the introduction of the Solar Sharer Offer marks a significant policy shift aimed at leveraging Australia’s abundant solar generation and encouraging demand flexibility.
“This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies,” said AER Chair Clare Savage. “The reductions compared to last year reflect easing cost pressures in parts of the electricity supply chain and addresses industry and consumer feedback to ensure prices remain fair and workable in practice.”
The New Solar Sharer Offer: What You Need to Know
From 1 July 2026, electricity retailers will be required to offer a default Solar Sharer Offer to customers with smart meters. This opt-in energy plan provides three hours of free electricity in the middle of the day. The initiative is designed to enable households, including those without rooftop solar, to utilise excess solar generation during peak production times.
This new offer directly addresses the challenge of matching grid demand with the intermittency of renewable energy supply. By incentivising consumers to shift their electricity usage to the middle of the day (e.g., running dishwashers, washing machines, or charging electric vehicles), the policy aims to reduce reliance on more expensive generation during evening peaks and better integrate renewable energy into the grid. The price of the Solar Sharer Offer will be regulated using the same annual price as the time-of-use DMO available in each distribution zone, acting as a consumer safeguard.
For households looking to maximise savings, understanding how to best utilise periods of free electricity is critical. This could involve adjusting daily routines or investing in smart home technology. For more information on optimising your energy usage, consider exploring our guide on Best Home Energy Management Systems (HEMS) in Australia 2026: Unlock $3,300+ Savings After Rebates.
DMO Price Changes by State for 2026-27
The AER’s final determination brings varied price adjustments across New South Wales (NSW), South East Queensland (SEQ), and South Australia (SA). These changes reflect updated inflation and economic forecasts, alongside shifts in wholesale, network, environmental, and retail costs.
Residential Customers (Flat Rate Standing Offer):
| State/Region | Change | Annual Impact (AUD) |
|---|---|---|
| New South Wales | -3.4% to -5.0% | -$66 to -$137 |
| South East Queensland | -7.2% | -$155 |
| South Australia | +1.4% | +$33 |
Residential Customers (Time-of-Use Standing Offer, Smart Meters):
| State/Region | Change |
|---|---|
| New South Wales | -3.7% to -7.7% |
| South East Queensland | Up to -10.7% |
| South Australia | -1.1% |
Small Business Customers:
| State/Region | Change | Annual Impact (AUD) |
|---|---|---|
| New South Wales | -9.0% to -20.9% | -$432 to -$705 |
| South East Queensland | -10.4% to -14.0% | -$445 to -$705 |
| South Australia | -6.8% to -12.1% | -$379 to -$677 |
Small businesses in all DMO regions will experience reductions, with NSW businesses seeing the largest potential decrease of up to AUD$705. For residential customers, NSW and SEQ will see price drops, while South Australian households on flat rates will experience a modest increase of AUD$33 annually.
These DMO adjustments provide a crucial benchmark for consumers. Households and small businesses are encouraged to compare their current energy plans against these new reference prices. Our comprehensive guide on Best Electricity Plans in Australia 2026: A Comprehensive Guide for Households to Cut Costs can assist in navigating the market for better deals.
Broader Implications for the Energy Market
The introduction of the Solar Sharer Offer reflects a growing emphasis on demand-side management and the integration of consumer energy resources. This policy aims to foster a more flexible and responsive energy market, essential as Australia progresses towards its renewable energy targets. The Clean Energy Regulator’s Q1 Quarterly Carbon Market Report, also released on 3 June 2026, highlighted record growth in home battery installations, with 7.4 GWh of capacity installed in the first nine months of the Cheaper Home Batteries Program.
Policies like the Solar Sharer Offer complement these trends by helping to alleviate pressure on the grid during peak demand periods, thereby contributing to overall system stability and potentially lower wholesale electricity costs. This move aligns with the broader national strategy to leverage distributed energy resources and reduce reliance on traditional generation sources. For homeowners with solar and batteries, understanding how these new offers interact with existing programs, such as Virtual Power Plants, can further enhance savings. Read more about optimising your setup in our guide to Unlock $1,000+ Annually: Best Home Battery VPP Programs in Australia 2026 Ranked.
While the DMO provides a safety net, actively engaging with the market and understanding new offers like the Solar Sharer is increasingly important for Australian energy consumers to manage their costs effectively in a rapidly evolving energy landscape.