Energy Minister Chris Bowen explains how the new Solar Sharer Offer will work. Photo: Region.
Energy retailers will have to offer households up to three hours of free daytime electricity every day under new measures the Federal Government is introducing.
However, while New South Wales, South Australia, and South-East Queensland will be the first to benefit from the rollout next year, Canberrans will have to wait at least another year to access free power.
The aim is to enable more Australians to benefit from solar power when excess energy is fed into the grid, without requiring them to have solar panels.
It will simply require energy retailers to offer free electricity to homes for at least three hours in the middle of the day when solar generation is at its peak.
Known as the Solar Sharer Offer, customers will be able to sign up to the scheme through their energy retailers.
However, they will need to have a smart meter and be able to shift their energy use into periods when electricity is free to achieve the bill savings.
If they choose to take up the 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.
The offer will initially be available to all households in Default Market Offer (DMO) states (NSW, SA and Queensland) from July next year, with consultations planned to potentially extend the offer to other jurisdictions, including the ACT, 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.
Climate Change and Energy Minister Chris Bowen said the offer was uniquely Australian and is a world-leading initiative.
“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,” he said.
“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.”
In addition to reducing power bills for customers who can shift their electricity use, the goal is for Solar Sharer to lower costs for the system as a whole by reducing 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.
Consultation on the Solar Sharer Offer has opened and submissions are invited, but the Australian Energy Council says there have been no discussions yet with energy retailers.
The council’s chief executive officer, Louisa Kinnear, said the AEC was disappointed that the Government didn’t consult with the energy industry before making its Solar Sharer announcement.
“Today’s announcement of a new regulated Solar Sharer Offer was a surprise to the industry and did not form part of the DMO Review consultation process,” she said.
“This lack of consultation risks damaging industry confidence, as well as creating the potential for unintended consequences.”
Mr Bowen subsequently said he made no apology for putting Australian energy consumers “first, second and third”.
He has acknowledged that the offer is not a “silver bullet” and is optional for consumers.
However, retailers will be required to comply with a range of upcoming changes introduced through the government’s retail energy market reforms.
“There’s a number of changes that we’ve announced today. I began this consultation in June, and the conclusion is today,” the Minister said.
“Changes to ensure that consumers are put first, that we have the most efficient Default Market Offer.”
