Australian households in three states will be promised access to at least three hours of free solar energy a day, regardless of whether they have rooftop panels, the federal government has announced.
The solar sharing offer will be available to homes with smart meters – which is the majority of homes – in New South Wales, south-east Queensland and South Australia from July next year, with other regions potentially following suit in 2027.
The government said Australians can plan to use appliances such as washing machines, dishwashers and air conditioners, as well as charge electric vehicles and household batteries during this time.
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The solar power sharing scheme will be implemented by changing the default market offer, which sets the maximum price retailers can charge customers for electricity in some parts of the country. Minister of Climate Change and Energy Chris Bowensaid the program would ensure that “every last ray of sunshine powers our homes” instead of letting some of the solar energy go to waste.
Australians have installed more than 4 million solar systems, and cheap excess generation regularly occurs in the middle of the day. Part of the rationale for the program is that it can shift demand for electricity away from peak hours—especially early evening—to periods when it's sunny.
This could help minimize peak electricity prices and reduce the need for grid upgrades and interventions to ensure grid stability.
The announcement comes amid criticism of the Albana government over rising electricity prices. Critics link this to the development of solar and wind energy. largely wrong.
Bowen said the new proposal showed that free solar power was now “proof that what's good for the planet is good for your pocket.”
“People who can shift their electricity consumption to a period of zero energy costs will benefit directly, whether they have solar panels or not, own them or rent them. [who] accept the proposal and change their use, the greater the system benefit of lower costs for all electricity consumers,” he said.
Bowen said the Australian Energy The regulator will monitor changes to ensure households “get a fair deal” outside the free energy supply period. He said the government would consult with states not covered by the default market operator to potentially extend the offer beyond next year.
Some retailers, including AGL and Red Energy, are already offering periods of free solar power to their customers. But the Australian Energy Council, which represents electricity producers and retailers, said it was disappointed by the lack of consultation ahead of the announcement.
Council chief executive Louise Kinnear said an announcement without notice risked “damaging industry confidence as well as creating the possibility of unintended consequences”. This may include some businesses that are “leaving the market.”
“While it is positive that the Government recognizes that customers benefit from the innovative products our members offer, failure to consult with industry before announcements such as this could have a long-term impact on product innovation that can further support the energy transition and customers,” she said.
The Smart Energy Council, which consists of solar installers, said the proposal was “good news for Australian households struggling with the cost of living”. The council's chief advocacy officer, David McElree, said the program would “actually help people access free energy because the sun doesn't send you a bill.”
