Australian households in New South Wales, South Australia, and South East Queensland can now access up to three hours of free electricity daily, following the launch of the federal government’s Solar Sharer Offer (SSO) on July 1, 2026. The initiative, designed to leverage Australia’s abundant rooftop solar generation, aims to reduce household electricity bills and better utilise surplus daytime renewable energy.
This new regulated electricity offer, a key reform under the Default Market Offer (DMO), requires participating retailers to provide eligible customers with a three-hour window of zero-cost electricity during the middle of the day.
“Australia’s renewable energy boom has reached a remarkable milestone. The country now generates so much electricity from rooftop solar panels that, during the middle of the day, wholesale power prices frequently fall to zero or even below zero.”
The move acknowledges a growing challenge in Australia’s energy market: the sheer volume of midday solar power from over four million rooftop solar systems and large-scale solar farms often exceeds demand, leading to depressed or even negative wholesale electricity prices.
How the Solar Sharer Offer Works
The Solar Sharer Offer is an opt-in electricity plan available to residential customers with a smart meter installed in NSW, SA, and SE QLD. Crucially, households do not need to have rooftop solar panels themselves to participate.
The specific free electricity windows are:
- New South Wales and South East Queensland: 11:00 AM to 2:00 PM
- South Australia: 12:00 PM to 3:00 PM
During this designated three-hour period, eligible households can use up to 24 kWh of electricity without charge. Electricity consumed outside these hours, along with daily supply charges and controlled load charges, will continue to be billed at the retailer’s standard rates.
Retailers serving more than 1,000 customers in DMO regions are now required to provide this option. The government has indicated plans to extend the SSO, or a similar scheme, nationwide by 2027.
Maximising Your Savings
The primary benefit of the Solar Sharer Offer is the potential for significant bill reductions by strategically shifting high-energy appliance usage to the free midday window. This includes activities such as:
- Charging electric vehicles (EVs)
- Running dishwashers, washing machines, and dryers
- Operating heating and cooling systems
- Charging home batteries
For a three-person household, shifting just 10% of their electricity use to the free window could result in annual savings of up to $350. Shifting 30% of usage, perhaps including EV charging or a pool pump, could save over $1,000 per year.
This initiative encourages a more dynamic approach to home energy management. Households with existing solar systems can further optimise their self-consumption, while those without solar can now directly benefit from Australia’s abundant daytime renewable energy. Understanding and leveraging time-of-use tariffs, such as the SSO, is becoming increasingly vital for managing electricity costs in Australia’s evolving energy landscape. For more on optimising your energy usage, refer to our guide on Slash Your 2026 Peak Electricity Charges by Up To 70%: Your Daily ToU Tariff Playbook.
The Role of Smart Meters and Batteries
Participation in the Solar Sharer Offer requires a smart meter. These devices are fundamental to modern energy management, allowing for real-time tracking of electricity consumption and enabling flexible tariff structures like the SSO. If you don’t have a smart meter, you may need to arrange for one to be installed by your retailer to access these benefits. For further information, see our Unlock $800+ Savings: Your Smart Meter Guide for Australia 2026.
While not mandatory for the SSO, pairing the free electricity offer with a home battery system can amplify savings. Home batteries allow households to store the free midday power for use during evening peak demand periods, further reducing reliance on grid electricity when prices are typically higher. The federal Cheaper Home Batteries Program continues to offer upfront discounts on eligible battery systems, although rebate values are set to reduce from January 1, 2027.
Broader Market Impact
The introduction of the Solar Sharer Offer marks a significant step in how Australia manages its renewable energy surplus. By incentivising daytime electricity consumption, the program aims to:
- Improve grid stability: By encouraging demand during periods of high solar generation, it helps balance the grid and reduce the need for curtailment of renewable energy.
- Lower overall system costs: Reduced evening peak demand can alleviate pressure on the grid infrastructure, potentially leading to lower long-term costs for all consumers.
- Empower consumers: Provides a tangible benefit to households, encouraging greater engagement with their energy consumption patterns.
The energy market is rapidly shifting, moving away from high solar feed-in tariffs towards smart home energy management and consumption at times of abundant renewable generation. This trend is evident in recent changes to NSW feed-in tariffs, which saw IPART’s all-day benchmark for 2026-27 drop to between 3.4 and 6.5 cents per kWh, down from 4.8 to 7.3 cents in the previous financial year. This further underscores the value of consuming your own solar or taking advantage of offers like the SSO, rather than relying solely on export credits.
As Australia continues its transition to a renewable-dominant energy system, programs like the Solar Sharer Offer will play an increasingly important role in integrating clean energy efficiently and delivering direct financial benefits to households.