The “solar sharer” offer, set to be available from July next year, is designed to encourage households to use more power in the middle of the day – when solar is plentiful.
The energy minister, Chris Bowen, said he hoped the initiative would benefit the grid by taking pressure off during peak times.
“We’re a solar nation … with 4.2 million households with solar on their roofs,” he said.
How do I get free solar power?
Customers will need a smart meter to take it up the offer. Homes without a smart meter can request one from their energy retailer, and most will install them for free.
Different energy companies may offer different solar sharer plans, provided they meet minimal criteria to be set by the Australian Energy Regulator.
Further details of the scheme are yet to be finalised, with the energy department and regulator currently seeking feedback.
After the initial rollout, the government plans to consult with other states, with a view to extending the offer to other places by 2027.
What if I don’t want to wait?
If free power sounds appealing, households don’t need to wait for the regulated offer.
AGL’s Three for Free, Red Energy’s Red EV Saver, GloBird Energy’s ZeroHero, OVO Energy’s Free 3 plan and Synergy’s Midday Saver all offer free power periods.
The ACCC estimates that 79% of homes could save money by switching to a better deal.
The Australian government’s Energy Made Easy site compares energy price offers in NSW, Queensland, South Australia, Tasmania and the Australian Capital Territory. A similar tool is provided by the Victorian government.
Meanwhile more than 4.2m Australian homes are already benefiting directly from their rooftop solar.
“Solar customers consistently have lower bills, about 18% less than non-solar customers, even though they consume more electricity from the grid,” a report by the ACCC says.
“Customers with solar and battery systems pay even lower bills.”
Which households are likely to benefit most?
Bowen says the solar sharer offer will advantage households able to shift their power use into the zero-cost power period – like professionals or families working from home, retirees, or customers with smart appliances scheduled to turn on in the middle of the day.
For others, the solar sharer may not be the cheapest offer available. “This was never claimed to be a one-size-fits all answer to everyone’s problems,” Bowen says.
Brian Spak, the general manager for policy and advocacy at Energy Consumers Australia, says low-income households may have limited ability to benefit from these plans.
“The best way to maximise savings is to use more energy when power is free and less when it is expensive… but this is easier said than done,” he said.
“For households where no-one is home during the day, they may find it difficult to make use of cheaper power.”
How do I make the most of free power?
Helen Oakey, CEO at Renew, a national not-for-profit that advocates for sustainable living, says “It’s about being smart with your timing”.
“Run your dishwasher, washing machine or dryer in the middle of the day instead of the evening. Set your hot water system or heat pump to operate during daylight hours.”
Households can also set timers to pre-heat or pre-cool their homes at times when electricity is free or cheap, she says.
“If you’ve got an electric vehicle, you can plug it in for a midday ‘solar snack’ rather than charging overnight.”
Oakey says a well-insulated, efficient and fully electric home will “make every kilowatt go further”.
“Replacing gas appliances with electric options you can run during the day is one of the simplest ways to get more value from solar – whether it’s on your roof, or on someone else’s!”
Will free solar power make my bills cheaper?
Some are sceptical about the need for government intervention.
“I’m not sure anyone will necessarily benefit. It depends on the aggregate of their consumption and the prices that apply outside of those periods,” says Prof Bruce Mountain, the director of the Victorian Energy Policy Centre.
“This is populist nonsense,” he says. “These things have long existed in the market. There’s no need to mandate them.”
Households can already choose plans with zero cost periods, Mountain says – he himself has been on one for the last three years, switching his dishwasher, washing machine, and electric vehicle charger to make the most of those hours.