Households in some parts of Australia are now able to get three hours of free electricity during the middle of the day under a government scheme that aims to cut power bills.

The Solar Sharer Offer (SSO) comes into effect on July 1 and, contrary to what the name might suggest, you don’t have to have your own rooftop solar panels to sign up.

However, residents must live in NSW, South Australia or south-east Queensland and have a smart meter installed to be eligible.

As well as cutting household electricity bills, the federal government says the SSO seeks to share the benefits of “abundant renewable energy” more equitably, and ease pressure on the grid during peak periods such as the evening.

“Australia has more rooftop solar capacity than the entire fleet of remaining coal-fired power stations across the country,” Minister for Climate Change and Energy Chris Bowen said when the offer was announced in January.

“The Solar Sharer Offer is about making sure we make the most of our huge solar generation, including by ensuring the benefits of cheap solar can be shared with consumers who don’t have solar systems themselves through the offer of free daytime power.”

So why don’t all parts of the country get these benefits?

The answer is that it currently applies only to areas covered by the Australian Energy Regulator’s Default Market Offer, a safety-net plan that seeks to protect people who can’t or don’t shop around for better deals.

However, at the time of the original announcement the government said it was considering making the SSO “or equivalent option” available in other areas, while the Victorian government will introduce its own “free-power window” later in the year.

 

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Meanwhile, under the Solar Sharer Offer, eligible homeowners and renters in NSW and south-east Queensland can sign up now to access up to 24 kilowatt hours a day of free electricity from 11am to 2pm. In SA, the window will be midday to 3pm.

“To make bill savings under the offer, households must shift some of their energy use to the three-hour free power window,” said the Department of Climate Change, Energy, the Environment and Water (DCCEEW).

It suggested this could include:

• Running the dishwasher, washing machine and dryer during the free period, possibly using delay-start settings.
• Heating and/or cooling during the window to keep your home comfortable later.
• Using the oven for cooking or baking at this time, especially for meals that can be reheated.
• Charging an electric vehicle and home battery.

It is worth noting that some electricity retailers already offer a free-power period. Households are also advised to review their bills and speak to their provider before signing up to check if they will actually be better off.

The Victorian government’s initiative, dubbed the Midday Power Saver, will be available from October 1, giving free power between 11am and 2pm to eligible residents who opt in.

“We’ve estimated that Victorian households who sign up to the Midday Power Saver could save between $149 and $428, depending on their living situation, and assuming a shift of 5 per cent to 30 per cent of energy use to the three-hour free window,” it said.

“Households with an electric vehicle could save even more – an additional $674, and $1102 in total – by charging during the free power period instead of at peak times.”

In spruiking its SSO, the federal government shared similar potential savings figures, based on an analysis by the DCCEEW.

“Just moving 10 per cent of your energy from evening peak usage to during the free hour window could save money.”

However, both offers come with a warning that they may not be suitable for all households. Those who opt in but can’t shift their electricity use may actually end up worse off because prices outside the free hours are expected to be higher.

“Not shifting usage could result in higher electricity costs, and customers may be charged if they exceed the fair-use cap,” the Victorian Midday Power Save announcement warns.

Household appliances that are the biggest contributors to power bills – and therefore considered the highest priority when it comes to shifting their use to the free window – include clothes dryers, reverse-cycle air-conditioners, EV chargers and electric fan heaters.

Energy researchers Saman Gorji and Alireza Ganjovi recently questioned the fairness of the free-power-window schemes, arguing that more needs to be done to ensure they are equitable.

“It’s easy to picture the ideal customer for three hours of free power – a homeowner with a smart meter, flexible hot water, electric vehicle, home battery and the ability to choose when power-hungry appliances run,” they wrote in The Conversation last month.

“That’s great for them. But what about everyone else?”