Australia to Offer Free Daytime Electricity in Solar Power Push
Australia is set to introduce a groundbreaking initiative that will provide millions of households with free electricity during peak solar production hours, marking a significant milestone in the country’s transition to renewable energy. The announcement, made by the federal government this week, follows years of rapid adoption of rooftop solar across the nation and aims to harness the abundant solar power now available on the grid.
Starting in July 2026, electricity customers in New South Wales, South Australia, and the southeastern part of Queensland will be eligible for up to three hours of free electricity each day. The initiative, called the Solar Sharer plan, represents a major step in sharing the benefits of Australia’s renewable energy boom with a wider range of consumers, including those who do not have solar panels installed on their own homes.
Australia’s Solar Boom
Australia has emerged as a global leader in rooftop solar adoption. With the cost of solar installations significantly lower than in many other countries—about $840 (U.S.) per kilowatt of capacity before government rebates, roughly a third of the price faced by U.S. households—the technology has become accessible to a broad segment of the population. As a result, more than one in three Australian homes now have solar panels on their roofs.
This widespread adoption has led to periods where solar power production far exceeds demand, particularly in the middle of the day. During these hours, electricity generated from solar panels can be so plentiful that wholesale electricity prices even turn negative, meaning power providers are sometimes effectively paying customers to use electricity.
How the Free Electricity Plan Works
The Solar Sharer plan is designed to take advantage of these midday surges in solar energy by encouraging households to shift their power usage to times when renewable production is at its highest. To participate, customers will need to have a smart meter installed, but they will not be required to have solar panels themselves. This opens the benefits of cheap, clean energy to renters, apartment dwellers, and those whose homes are not suitable for solar installations.
While the exact hours for the free electricity window have not yet been finalized, officials suggest that the most likely period will be between 11 a.m. and 2 p.m.—the time when solar generation typically peaks. Households must opt in to the program, and many may take advantage of smart appliances or timers to align energy-intensive activities—such as charging electric vehicles or running dishwashers and laundry machines—with the free electricity period.
Chris Bowen, Australia’s Minister for Climate Change and Energy, emphasized the broader impacts of the plan in his announcement. By shifting energy consumption away from the evening, when demand is higher and electricity is more likely to be supplied by coal and gas plants, to the middle of the day, when renewable energy is abundant, the program is expected to reduce both household electricity bills and the country’s reliance on fossil fuels.
Broader Impacts and Global Context
The Solar Sharer plan also addresses a growing challenge in renewable energy grids