Free Daytime Electricity Is Coming. How It Actually Works

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Written by Donna Wentworth

Last Updated: June 25, 2026

Free Daytime Electricity Is Coming. Here’s How It Actually Works

From 1 July 2026, energy retailers in NSW, South Australia, and South-East Queensland must give households at least three hours of free electricity every day. No solar panels required. No need to own your home. You just need a smart meter and to opt in through your retailer to have access to free daytime electricity .

The scheme is called the Solar Sharer Offer. It works by passing on the benefit of cheap midday solar power, which has always existed on the wholesale market but never made it to your bill, directly to households. Since it was first announced in November 2025, one significant change has been made to the design. This article covers what that change is, how the scheme works in practice, and how to get the most out of it.

What Is the Solar Sharer Offer?

Australia has more than 4.3 million rooftop solar installations. On a clear midday, those systems push so much electricity into the grid that the market cannot absorb it at normal prices. Wholesale electricity rates go negative. However, households on standard tariffs never see any of that benefit.

The Solar Sharer Offer changes that. From 1 July 2026, energy retailers must provide at least three hours of free daytime electricity per day, timed to coincide with peak solar output. The free window will sit around midday, with the exact hours tailored to local conditions. As a rough guide, expect something like 11am to 2pm or noon to 3pm.

To access it:

You need a smart meter (most Australian homes already have one)

If you do not have one, most retailers will install it at no charge

You opt in through your energy retailer when the scheme launches

Which States Are Included in the Solar Sharer Offer from July 2026?

The July 2026 launch covers three states:

New South Wales

South-East Queensland

South Australia

These are the states governed by the federal Default Market Offer framework. Victoria is under consultation, with some reports pointing to a possible expansion from October 2026. Other states are expected to follow by 2027.

If you are in Victoria, the ACT, or another state not yet covered, check with your retailer. Several retailers including AGL, Red Energy, GloBird Energy, and OVO Energy have already been offering similar free daytime electricity plans voluntarily, so an equivalent option may already exist on the market for you.

What Changed After the Public Consultation?

When the Solar Sharer Offer was first announced, the headline was simple: three hours of free daytime electricity every day, no strings attached. Then the government ran a public consultation from November to late November 2025, receiving 76 submissions from retailers, network businesses, consumer groups, and state governments. One significant change came out of that process.

Per the Department of Climate Change, Energy, the Environment and Water (DCCEEW), a reasonable use cap of 24 kWh per day was added to the scheme. The government’s stated reason is to keep the Solar Sharer Offer financially sustainable for retailers and fair for everyone on the grid.

To put 24 kWh in perspective:

It is roughly the total daily electricity use of an average five-person household, based on residential consumption benchmarks published by the Australian Energy Regulator (AER) in December 2020 and cited by DCCEEW in setting the cap level

Running a washing machine, dryer, dishwasher, air conditioning, hot water, and more during the free window would get you close

Most households will not reach it on a typical day

The regulations for the scheme were finalised and published on 5 March 2026 as amendments to the Electricity Retail Code.

Does the 24 kWh Cap Affect Solar Households?

For most homes with rooftop solar, the cap is not something you will notice. On a sunny day, your panels are already covering a big chunk of your midday electricity use, which means you are drawing less from the grid during the free window than you might expect.

The situations where you might approach the cap are:

Cloudy winter days when your panels are generating less than usual

Charging a large home battery and an EV from the grid at the same time

Households with very small solar systems running high loads during the window

Even if you do exceed the cap, you just revert to standard daytime rates for the remainder of that period. You are not penalised, and daytime rates are still cheaper than evening peak rates, so shifting your load to midday is still worth doing.

For households without solar who...