Australia to provide households 3 hours of free solar power daily from 2026
Australia already has roughly 1 in 3 homes fitted with solar panels, the highest penetration in the world
Australia will now begin offering households at least three hours of free solar electricity each day from 2026, under a new energy-sharing scheme designed to lower bills and better align demand with renewable power generation peaks.
Energy minister Chris Bowen announced today, 4 November, that the Solar Sharer programme will launch initially in New South Wales, South Australia and south-east Queensland before being expanded nationwide. The plan seeks to ensure that even households without rooftop solar panels — including renters and apartment dwellers — benefit from the country’s rapidly growing solar capacity.
Bowen said the move would help households and the power system simultaneously. “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. “The more people take up the offer and move their use, the greater the system benefits.”
Why this matters
Australia has the highest household-level rooftop solar penetration in the world, with more than one in three homes fitted with solar panels. The claim is supported by the Australian Clean Energy Regulator, which notes the country has 'the highest uptake of household solar globally', driven by high electricity costs, abundant sunshine and government incentives.
While Australia leads per household, other nations dominate in total distributed solar capacity. China has around 225 GW of rooftop and small-scale systems, followed by Germany with roughly 51 GW and the United States with approximately 47 GW .
Thus, Australia stands out for how widely solar is adopted at home, while China, Germany and the US lead in overall volume.
Meanwhile, the programme in question, the scheme incentivises consumers to use energy during daylight hours when solar output is abundant. Those who shift high-consumption activities — such as running dishwashers, washing machines, and charging electric vehicles — into the free-power window will see the greatest benefit.
Key points of the programme include:
• Three hours of free electricity daily
• Smart meter requirement to track eligible use
• Open to homeowners, renters and apartment residents
• Designed to reduce evening grid pressure and fossil-fuel use
• Intended to lower bills while accelerating clean-energy transition
Customers who do not adjust their consumption habits will not see major savings, officials said.
The initiative forms part of the government’s broader climate roadmap. In 2022, Bowen set a target for 82 per cent renewables by 2030 and legislated a 43 per cent emissions reduction from 2005 levels.
The announcement affected energy stocks on Tuesday, with shares of AGL and Origin Energy falling around 3 per cent in afternoon trade as the market assessed implications for future retail pricing and grid operations.
What comes next
Detailed rules — including the exact timing of the zero-cost period and retailer coordination mechanisms — will be finalised in the coming year. Authorities will run consumer-education campaigns to explain how households can make the most of the scheme.
Expected benefits include:
• Increased daytime electric-vehicle charging
• Better utilisation of rooftop solar across the grid
• Potential reduction in peak-hour tariffs
• Increased stability and reduced need for expensive grid upgrades
Bowen described the scheme as a 'fair and forward-looking' initiative.
“It brings more Australians into the solar economy and helps ensure our energy system evolves in a way that delivers for households and the climate,” he said.
With media inputs
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