The Federal Government has announced plans to give households in parts of the country access to free power for “at least three hours in the middle of the day” from next year.
Power companies will be required to provide solar energy to eligible homes in NSW, SA, and parts of Queensland, even if they don’t have solar panels.
A peak body for power companies has raised concerns about a lack of consultation on the scheme.
Here’s what to know.
Details
Energy Minister Chris Bowen introduced the ‘Solar Sharer’ scheme this week. It will require energy companies to give households three hours of free power while the sun is at its highest.
The scheme will apply to households with smart meters in SA, NSW, and South East Queensland by July 2026.
A smart meter measures a home’s electricity use and sends that data to power companies.
The Government suggested the scheme could be expanded in 2027.
In Australia, rooftop solar has more capacity than coal-fired power stations, which Bowen said makes energy prices “very cheap” at peak solar generation times.
Households that sign up to the scheme are encouraged to run devices requiring large amounts of power like electric vehicle chargers and air conditioners during the window.
Bowen said the offer “will lower costs for the system as a whole by lowering peak demand in the evenings.”
The Government has now opened up the proposal for public consultation.
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AGL scheme
In July, one of Australia’s largest energy providers, AGL,introduced its “Three for Free”plan.
SA customers who use this plan can access three hours of free power between 10am to 1pm daily.
AGL said the plan was “particularly useful for renters, or people with shared or unsuitable roofs for solar.”
Criticism
The Australian Energy Council (AEC) – the peak body representing energy retailers – said the Solar Sharer offer “was a surprise to the industry”.
CEO Louisa Kinnear said a lack of consultation “risks damaging industry confidence.”
Kinnear raised concerns about retailers complying with the scheme, saying "universal access to a product... [puts] risks on retailers” that could see smaller companies “exiting a market.”
Net zero
The scheme comes as the Coalition continues to debate its stance on net zero targets.
The Nationals have unanimously agreed to stop supporting net zero emissions by 2050.
Coalition partner the Liberal Party, which is yet to reach a consensus on net zero, said it acknowledges the Nationals’ decision “as their own party… to arrive at their own position.”
