At first glance, three hours of free electricity per day sounds like a pretty good deal.
That’s the promise behind the Solar Sharer Offer, a new program rolling out in NSW, southeast Queensland and South Australia from July 2026.
In a recent SolarQuotes video, SolarQuotes founder Finn Peacock explains what’s actually going on – and why “free electricity” isn’t quite as easy as it sounds.
What is the Solar Sharer offer?
From 1 July 2026, electricity retailers in NSW, SEQ and South Australia must offer at least a residential tariff that includes a three-hour block of free electricity in the middle of the day, with a daily cap of 24kWh.
But households are not forced into these plans. Retailers have to offer them – customers decide whether they choose to do so.
It’s a response to a grid that now produces too much solar energy in the middle of the day and doesn’t have enough flexible demand to meet it.
With more than 4 million rooftop solar installations across Australia, midday generation regularly causes wholesale prices to fall to zero or negative territory. In some cases, the use of utility-scale solar energy is limited simply because there is too much electricity and there is not enough demand.
The idea of Solar Sharer is to shift this need to the middle of the day instead of letting the energy go to waste.
There are also plans to expand the system nationwide after the initial rollout.
Three free hours of electricity in NSW, SEQ and SA – from July 1.
How “free” electricity works
To access it, you need a smart meter and an eligible plan.
Retailers continue to generate revenue elsewhere in the tariff, typically through higher peak rates, higher shoulder rates or higher daily delivery fees.
Some retailers are already offering versions of this on a voluntary basis. Starting in 2026, every retailer will be required to offer at least one compliant plan – but the underlying cost balance will not change.
Who actually benefits?
The biggest winners are households that can transmit or store energy – and the difference can be significant.
First, take solar batteries. Charging during a zero-cost lunch window and discharging during peak evening prices shows true value.
Electric vehicle charging is another big topic, but timing is everything. A standard trickle charger could only add about 6 kWh in three hours – about 10% of a typical EV battery. A three-phase home charger can reach close to 30 kWh in the same period of time – around 50% for many electric vehicles. Same policy, completely different result depending on your hardware.
Hot water is also an important lever. Shifting a resistance electric or hot water heat pump system to midday can eliminate one of the largest daily stresses in a typical household.
Then there’s everything else – dishwashers, washing machines, dryers, pool pumps, air conditioners. Individually small, but together they begin to matter.
The rough rule of thumb is: In order to be ahead, at least around 6 kWh of daily consumption must be shifted to free time when higher peak and supply fees are taken into account. For some households this is easy. For others it is a challenge.
Finn estimates that you need to move at least 6 kWh into the free window for it to work.
The argument for solar sharers
At the systems level, the logic is hard to argue with.
In Australia there are already periods when rooftop solar installations exceed daily demand. This leads to cuts, negative prices and waste of renewable energy.
Shifting consumption to the middle of the day helps absorb excess solar energy rather than shutting it down.
It also relieves pressure on the evening peak – still the most expensive and network-heavy time.
And it creates a predictable lunchtime charging window for battery owners to plan for.
The case against solar sharers
The biggest concern is that this could slow solar radiation.
When householders hear “three hours of free electricity a day,” some will inevitably wonder why they would spend thousands on solar panels when they can just use free grid power at lunchtime instead.
However, this ignores one of the biggest advantages of solar energy: autonomy. A household with a decent solar system is not locked into a solar sharer tariff and can choose from a wider range of electricity tariffs, including those with lower peak rates and utility charges.
There are also concerns about the way the system is implemented. Retailers are required to offer a product with free electricity during the day, but the costs don’t go away. For existing plans, they are typically recouped through higher rates outside of the free window.
The bigger question is what happens when the message people take away is simply, “Why bother with solar?”
Australia needs to dramatically expand renewable energy production over the next decade. Around 65 GW of large-scale capacity will be required by 2030 to meet the current targets. Rooftop solar remains a critical part of this transition.
To stay on track, 65 GW of renewable capacity is required by 2030.
What this means for your bill
The solar sharer offer is not a gimmick or a universal discount.
It’s a structural response to a grid that now produces too much solar energy in the middle of the day and doesn’t have enough flexible demand to meet it.
If you can convert or store energy, this could work greatly in your favor. If that’s not possible, it’s another tariff design that requires careful comparison, not headline-grabbing optimism.
In any case, the key point remains: “Free” electricity only works if you can actually shift your usage into the right three-hour window – and have the setup to make it count.
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