The Australian government plans to oblige energy companies to provide consumers with three hours of free electricity daily to encourage the use of surplus solar energy during the day when wholesale prices are lowest. This was reported by ABC News, citing an interview with Australian Minister for Climate Change Chris Bowen, according to UNN.
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As the publication writes, the federal Solar Sharer program stipulates that energy companies must provide households with at least three hours of free electricity daily during the day — a period when, due to an excess of solar generation, its cost can even become "negative." This will allow owners of "smart" meters to use household appliances, including washing machines and air conditioners, free of charge.
Minister Chris Bowen noted that the initiative will allow even those who do not have their own panels to experience the benefits of solar energy.
The pilot implementation of the program is planned from July 2026 in several regions, and discussions on its expansion will begin in 2027.
So much energy is produced in the middle of the day that prices are often very low or "negative," and, according to our analysis, energy companies should take this into account and offer exactly that
Electricity suppliers were surprised by the minister's statement and reported that the government had not discussed this initiative with them.
A lack of consultation can undermine trust from the industry and also create the potential for unintended consequences
Bowen said he would "make no apology" if the government's program reduced suppliers' profits and stated that he works well with energy companies, but they are not his top priority.
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