More Australians will have access to solar power in their homes, with the Albanese Labor Government introducing a new retail energy offer that unlocks free solar for homes during the day, regardless of whether they have solar panels.
As part of the Government's retail energy market reforms a new regulated electricity offer, Solar Sharer, will be introduced next year through the Default Market Offer, requiring retailers to offer free electricity to households for at least three hours in the middle of the day when solar generation is at its peak.
Solar Sharer is a uniquely Australian electricity offer and reflects our world-leading rooftop solar status, with over 4 million installations across Australia.
Australia has more rooftop solar capacity than the entire fleet of remaining coal fired power stations across the country. This abundant power makes wholesale daytime prices very cheap, and even negative, and means the energy market often has more electricity in the middle of the day than we currently use.
Solar Sharer addresses this by encouraging consumers to use more of that power when it's abundant.
Customers who sign up to the new Solar Sharer offer through their energy retailer will need to have a smart meter and be able to move their energy use into windows where electricity is free to get the bill savings. If they choose to take up this offer they will be able to use appliances, run air conditioners or swimming pool cleaners and charge their electric vehicles and home batteries at home during the day for free.
As well as cutting power bills for customers able to shift their electricity use, Solar Sharer will lower costs for the system as a whole by lowering peak demand in the evenings. A lower evening peak has flow on effects throughout the system, minimising expensive peak electricity prices and reducing the need for costly network upgrades and interventions to ensure grid stability.
The offer, which will be provided through energy retailers, will initially be available to all households in DMO-regulated states - NSW, South-East Queensland, and South Australia - from July next year. We will consult with other states to potentially extend the offer to other jurisdictions by 2027. The Australian Energy Regulator will regulate the Solar Sharer Offer to ensure customers also get a fair deal outside of the free power period.
This is one retail energy market reform the Government is delivering to make our energy system fairer and easier to use, and to better harness our abundant solar resources.
Alongside the introduction of Solar Sharer, the Government will implement significant reforms to the existing DMO which regulates retailer standard offers in NSW, South-East Queensland, and South Australia. These reforms will strip out unnecessary costs, to ensure the DMO works better as a safety net offer for an essential service.
These changes will include setting a clear objective for the DMO, to deliver a fair, trusted and reasonably priced electricity option that reflects the costs of supplying customers with an essential service. This change will mean costs that are not essential to the provision of electricity, like marketing costs and competition allowances, will be reformed or removed, subject to AER consultation on the exact changes to be implemented.
Minister for Climate Change and Energy Chris Bowen said the Solar Sharer Offer was ensuring every last ray of sunshine was powering our homes.
"Our Solar Sharer Offer means more Australians can be part of our world-leading rooftop solar take up.
"People who are able to move electricity use into the zero cost power period will benefit directly, whether they have solar panels or not and whether they own or rent, and the more people take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be.
"Free daytime power for families across Australia is proof that what's good for the planet is good for your pocket.
"Australians deserve a fairer go when it comes to their energy bills. In our second term, we're getting on with delivering reform to ensure that no household or business pays more than they should.
"Reform to the DMO will strip out unnecessary costs and expand protections to all standing offer customers and small customers in embedded networks, including renters and apartment dwellers."
