Federal Government Launches Solar Sharing Scheme

From July 2026, households in New South Wales, South-East Queensland and South Australia will be eligible for at least three hours of free solar electricity each day — even if they don’t have rooftop panels installed. The announcement comes as part of the federal government’s new Solar Sharing scheme, which aims to let more Australians benefit from the country’s abundant solar energy. It applies to homes with smart meters — which includes the majority of Australian households — and could expand to other parts of the country by 2027.

According to The Guardian, the scheme will be enabled by updates to the default market offer — the government-set electricity price cap used in many areas. This will allow energy retailers to offer zero-cost power during periods of high solar generation, typically in the middle of the day.

Households will be encouraged to use this free electricity by shifting the timing of appliances such as washing machines, dishwashers, or air conditioners — or even charging EVs and batteries — into the zero-cost window.

Reducing Solar Waste and Shifting Energy Demand

Energy Minister Chris Bowen said the scheme was about using “every last ray of sunshine” to power homes, helping to reduce waste from excess solar production while lowering energy bills. He added: “This is proof that what’s good for the planet is good for your pocket.”

The government noted that Australia’s more than four million rooftop solar systems often generate more electricity than needed during sunny periods, leading to low wholesale prices and unused energy. The Solar Sharing program aims to smooth electricity demand by shifting it away from peak evening times, easing grid pressure and potentially reducing future infrastructure costs.

Mixed Industry Response to the Solar Sharing Announcement

While some providers like AGL and Red Energy already offer similar midday solar plans, the move has drawn mixed responses. The Smart Energy Council welcomed the program as a cost-of-living support measure. However, the Australian Energy Council criticised the lack of consultation, warning it could impact energy market confidence and disrupt product innovation.

The Australian Energy Regulator will oversee the rollout to ensure customers are treated fairly outside the free electricity window. The government also confirmed it will consult with other states about expanding the program in future years.

Is the Solar Sharing Scheme A Win for Households with Solar and Batteries Too?

Lenergy sees the new Solar Sharing scheme as a positive for homes with existing solar and battery systems. Why? Because now, you can charge your battery from the grid during the free power window, allowing you to soak up free electricity during the sunniest part of the day — even if your own panels aren’t covering demand.

It also opens the door to scheduling smart energy use. You can set appliances like EV chargers, dryers, washing machines, or hot water systems to run during the three-hour zero-cost period — making better use of your system and reducing your reliance on peak-time grid power.

Thinking about whether solar still makes sense for your home?

Contact the team at Lenergy for an honest chat about your usage, goals, and whether a solar system or battery could still be the right move.