Australian households to get free electricity for three hours a day

Australians will get three hours of free solar power per day, even if they don't have solar panels, the Albanese government has announced today.

From July next year, a plan called Solar Sharer will require 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.

The initiative will eventually be open to all Australian houses and apartments, as long as they have a smart meter and move their electricity use to the middle of the day when the scheme is in operation.

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The offer will initially be available to states and regions under the Default Market Offer (DMO), which acts as a limit to what retailers can charge for electricity.

These are NSW, south-east Queensland and South Australia, with consultations to extend the offer to the rest of the country by 2027.

Climate Change and Energy Minister Chris Bowen said the move would benefit all Australians.

"Free daytime power for families across Australia is proof that what's good for the planet is good for your pocket," he 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.

"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."

Electricity prices are rising, with the Australian Bureau of Statistics showing they have jumped nine per cent in the last quarter, subsequently having an impact on inflation.

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Bowen said the government would reform the DMO to make it cheaper for Australians.

"Australians deserve a fairer go when it comes to their energy bills," he said.

"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." 

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