The Australian Government’s new Solar Sharer Offer1 promises some households “free power” for a few hours each day from July 2026. It sounds great — but not everyone can take advantage, and the real savings will depend on when and how you use your electricity.
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What is the Solar Sharer Offer?
The Solar Sharer Offer (SSO) is a proposed time-of-use tariff or free power in the middle of the day, under the government’s Default Market Offer (DMO) reforms. Basically, households can use electricity at zero cost during a daily “free power” window.
Over 35% of Australian homes have solar installed2, which leads to huge daytime solar generation peaks that essentially go to waste as people are not home to take advantage of it.
The offer will start rolling out in NSW, South East QLD, and South Australia from 1 July 2026, with a possible national expansion the following year.
Australia's unusual problem
Australia’s solar boom has created an unusual problem: too much cheap electricity in the middle of the day, and not enough demand to use it. This leads to the so-called “duck curve” — low midday demand and steep evening peaks that stress the grid.
By giving households a reason to shift usage to the middle of the day, the Solar Sharer Offer aims to:
- Soak up excess solar generation that would normally go to waste.
- Ease pressure on the grid during the expensive evening period.
- Lower bills for customers who can time their power use.
- Share renewable benefits more evenly, not just among solar owners.
In short, it’s a load-shifting program dressed as a rebate.
How will it work?
Each participating retailer will offer a daily free power block — expected to last around three hours (likely 10 am – 2 pm, depending on network demand). During this period, the electricity used by residents will be billed at $0 per kWh.
The catch?
Outside the free window, households will pay standard time-of-use rates, which may be higher than current off-peak pricing.
The Australian Energy Regulator (AER) will oversee tariff design, set the official DMO caps, and ensure retailers comply with pricing rules. Consumers will need to opt in to the Solar Sharer Offer through their chosen electricity retailer once available.
Who benefits most?
The biggest winners will be people who can actually use power when it’s free:
- Work-from-home households who can run washing machines, dryers, or dishwashers during the day.
- EV owners who charge vehicles at midday.
- Homes with batteries, which can store free daytime energy for later use.
- Small businesses that operate mostly during daylight hours, like cafés and retail stores.
If you’re out all day and your home sits idle until 6 pm, you’ll struggle to see much benefit — unless you automate appliances or invest in battery storage.
Where the shceme misses the mark
This is the labour governments new plan to give people more “free stuff” to bolster votes, but in the end it’s only going to benefit those who already have a solar system, battery or EV to store this free power.
Those not home through the day, or people with older appliences that can’t be set to switch on during the 10am and 2pm time period will missout.
Renters miss out
Most renters work 9-5 and won’t be able to take advantage of the free electricity window, making the scheme a boon or middle to high-income earners.
Retailers will be required to provide at least one regulated “free-power” or equivalent standing offer — but consumers will still have to actively choose it.
Could Free Power Hours Boost Australian Manufacturing?
Australia’s high energy prices have long made it hard for local manufacturers to compete with China and Southeast Asia. Energy-intensive industries like aluminium, steel, fertiliser, cement, glass, and hydrogen production have thin margins and are competing against countries with much cheaper energy and labour costs.
The proposed Solar Sharer Offer hints at a new opportunity — if we can scale the idea beyond households. A few hours of zero-cost daytime electricity, when solar generation is abundant, could be transformative for sectors that can time-shift their operations or run flexible production cycles.
Industries that could benefit most
- Aluminium smelting and metal refining
- Cement, brick, and glass manufacturing
- Hydrogen and ammonia production
- Data centres and AI computing hubs
If coordinated, a few hours of low-cost energy each day could turn Australia’s midday surplus into a manufacturing advantage, encouraging new investment in “Made-in-Australia” supply chains such as green hydrogen, battery materials, and processed critical minerals.
What happens next
The Solar Sharer Offer is part of a broader DMO reform package outlined in the federal government’s 2025 Review Outcomes report by the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
Public consultation closed in late 2025, and the AER is now finalising guidelines for the first rollout in July 2026 (DMO 8). Additional consultation will determine whether the offer becomes national by 2027.
Bens final word
The Solar Sharer Offer is aiming at using solar energy more intelligently, which is a commendable gesture, but there are far better ways it could be deployed to help more Australians rather than just giving away “free stuff” to try and win favour with voters.
- Department of Climate Change, Energy, the Environment and Water (DCCEEW) 2025, Solar Sharer Offer Consultation Paper 2025–26, Australian Government, viewed 6 November 2025, https://gosolarquotes.com.au/dmo_review_outcomes_2025_reforms_to_the_default_market_offer_pdf_1-1mb_-attachment/
- Australian Photovoltaics Institute (APVI) 2024, Solar potential of Australian housing stock, viewed 6 November 2025, https://apvi.org.au/wp-content/uploads/2024/04/Solar-potential-of-Australian-housing-stock-published-16-4-24.pdf
