Australia is facing a problem that, at first glance, seems positive: a massive overproduction of solar power around midday. This surge of energy is straining the power grid and driving wholesale electricity prices deep into negative territory. To mitigate this structural imbalance, the government is introducing a system from mid-2026 that will provide private households with three hours of free electricity daily. Households with smart meters will benefit directly. The model not only encourages energy saving but also offers genuine relief from electricity costs. (abc.net.au: 03.11.25)
Free power as a solution for midday surplus
The “Solar Sharer” plan is being introduced in New South Wales, South Australia, and southeastern Queensland. It allows customers to specifically utilize free energy during midday hours, when solar power production often far exceeds demand. Smart meters are key to this model, and they are already standard in most households.
The government is counting on consumers to operate energy-intensive appliances such as washing machines, air conditioners, or electric vehicle charging stations during these free time slots. This smart use of surplus energy also serves as a preventative measure against grid instability and lowers electricity costs for consumers.
Free offer empowers tenants and energy consumers
Households without their own solar connection – especially tenants – will also be able to take advantage of this opportunity. The fact that solar energy is becoming accessible to everyone gives this model a socio-political dimension. The free midday window reduces peak loads in the evening, meaning that fewer expensive grid capacities will need to be built in the foreseeable future. This is ultimately an advantage for end customers, but also for the energy system as a whole.
Resistance from the industry: “Nobody asked us”
Energy suppliers and grid operators consider the model premature. Some providers criticize the lack of consultation during the introduction of the free midday electricity periods. They fear additional costs and emphasize that artificially suppressed market prices harbor the potential for market distortions. The opposition alleges that free electricity at midday is being subsidized by higher electricity prices in the morning or evening.
The government remains optimistic.
Climate Minister Chris Bowen counters that the negative wholesale prices throughout the day provide an ideal basis for the measure. A key argument is: “What’s good for the planet is also good for the wallet.” The system sets new standards for energy efficiency and fairness. Whether this model can be adopted worldwide depends on its success in Australia. This is where, for the first time, an industrialized country is demonstrating how to systematically create household-friendly benefits from massive solar overproduction.