Three 'free' hours of power could leave you worse off

The government is promoting its new “solar sharer” schemes, which promise three “free” hours of power. But if consumers can’t shift enough of their electricity usage to the middle of the day, these plans could increase their electricity bills. 

Solar Sharer Offers (SSO) are intended to spread the benefit of solar power to households without panels and renters – which produce lots of power during the middle of the day, when demand is low. This is done through a $0 usage charge during three hours in the middle of the day – though what time period varies between plans. 

While some similar plans were already available, there will be greater availability from 1 July 2026 in South-East Queensland, New South Wales, and South Australia – these areas were selected first in part because the Default Market Offer applies there. 

“Families who run appliances like dishwashers, washing machines, pool pumps or hot water systems during the free power period may be able to save money on their bills,” said Minister for Climate Change and Energy, Chris Bowen. 

Minister Bowen has said one group who could benefit from the Solar Sharer plans are electric vehicle (EV) owners, though the vehicle would have to be at home to charge during these hours. 

It is important to read the fine print. While the plans do include three hours of electricity during the middle of the day, prices at other times will be higher.  

To save money under these plans households need to increase the amount of power they use during those three-hour windows. Otherwise, the free period will be offset by the higher prices at other times; or worse, the bill could even increase if they use more power during the evening. 

Electricity plans vary widely across Australia, but as an example, the below uses prices in Sydney from Red Energy – which is owned by the Commonwealth Government through the Snowy Hydro. 

It stands out that the solar sharer plans are far more complicated. 

The flat-rate plans have two main tariff prices: the daily supply charge and the usage charge. 

The non-solar sharer time-of-use plans have a supply charge and charge three rates throughout weekdays and two on weekends – which are the same all year round.

But the solar sharer plans have a supply charge plus four prices throughout each day.  These don’t apply on weekends but change with the “seasons” – with “summer” lasting for five months: 

• “Winter”: 1 June – 31 August, usage $0.00 - $0.6372 per kWh 

• “Temperate”: 1 September – 31 October, usage $0.00 - $0.2756 per kWh 

• “Summer”: 1 November – 31 March, usage $0.00 - $0.6372 per kWh 

• “Temperate”: 1 April – 31 May, usage $0.00 - $0.2756 per kWh 

Not only do people need to recognise their usage during the day, but also what month of the year it is.

Solar Sharer plans have the highest daily supply charge and also the highest usage charge – which applies in the peak evening hours during “summer” and “winter”.  

Energy Made Easy doesn’t account for people shifting their usage into the free three hours, which mean if people can’t shift their usage they will pay more on these plans – based on medium 15 kWh/day usage typical for 2-3 people. 

Compared to the flat tariff plan, which is also far simpler, the solar sharer schemes are $340 a year more expensive if people can’t shift their usage. 

Just to break even, if the usage is shifted from across the day would involve moving around 26% of usage, or 3.9 kWh into the middle of the day. This is likely an impractical amount for most households – this would be using an oven for up to four hours, or a load in each of a dishwasher, washing machine, and dryer, not once but every day. 

Because the peak prices are higher, it is easier to break even by shifting power from the evening to the middle of the day. But it would still involve around 15% of daily usage, or 2.3 kWh. 

This would be about two hours of using an oven, a load in a washing machine and dryer, or a bit over an hour of air-con. Again, every day.