3 hours of free electricity every day for millions of Aussies – are you eligible?
Australian households in some states will be encouraged to use free energy during daytime hours when solar generation is at its peak.
Key takeaways
- The Labor government is introducing the Solar Sharer scheme, which requires energy retailers to offer households at least 3 hours of free electricity in the middle of the day.
- This is when there's usually excess power and wholesale electricity prices are extremely low, sometimes even negative.
- The scheme will benefit households in New South Wales, South-East Queensland and South Australia, as these states are regulated by the default market offer (DMO).
- The offer will be live from July 2026. Households will need a smart meter to take advantage of the free electricity scheme. They will also need to explicitly select the offer from their energy provider which includes the Solar Sharer deal.
- Free daytime power means you'll be able to run energy-intensive appliances at no cost, such as air conditioners, heaters and dryers. You could also be charging your electric vehicle during this time.
- The scheme will potentially be extended to other jurisdictions by 2027.
What is the free electricity scheme?
The government is looking to spread the benefits of solar power by introducing the Solar Sharer scheme.
During daytime hours, solar generation often produces more electricity than is being used.
The idea is to encourage energy use when there's excess solar power feeding into the grid.
"Our Solar Sharer Offer means more Australians can be part of our world-leading rooftop solar take-up," Minister for Climate Change and Energy, Chris Bowen, said.
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.
The main caveat is that households will need a smart meter to take advantage of this scheme.
Haven't compared energy plans in over 12 months?
There's a good chance you're missing out on a cheaper deal.
What are smart meters and what if I don't have one?
A smart meter is a digital electricity meter that tracks your home's energy use in at least 30-minute intervals.
There's a big push to replace basic meters with smart meters by 2030.
In fact, as of 1 June 2025, those in NSW, QLD and SA don't have the option of opting out of a smart meter installation.
If your meter has a digital display, you likely have a smart meter. You can always contact your energy retailer for confirmation.
Don't have a smart meter? You can request an upgrade from your retailer. Some retailers install it for free; others may charge a fee.
The key thing to know right now is that if you want to get free electricity next year, make sure you have a smart meter.
We'll probably get more information on how to sign up as the start date gets closer.
Must read
How the free electricity scheme works with the default market offer
The DMO is set by the Australian Energy Regulator each year on 1 July. It represents the maximum price retailers can charge consumers on standing offer plans.
Earlier this year, DMO prices went up by up to 9.7%, depending on location.
You're likely on a standing offer if you don't regularly compare energy plans. Households that do are normally on what's called a market offer.
These are generally more competitive, though they can also be influenced by changes to the DMO.
For example, in June 2025, we reported that AGL and Origin Energy hiked prices by up to $267 in 4 states. This came after the new DMO pricing was announced.
"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.
"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."
Sources
Ask a question
am i entitled to the 3 hour aday rebat
Hi Vincent, if you have a smart meter and live in NSW, South-East QLD or South Australia, you will be eligible once the scheme kicks in on July 2026 and you opt in via your retailer. Hope this helps!