On Tuesday, Australian Energy Minister Chris Bowen announced that Australia will launch a solar sharing program starting in 2026, providing households with at least three hours of free solar electricity daily. This benefit will also be available to households without rooftop solar panels.
The program will be rolled out first in New South Wales, South Australia, and Southeast Queensland, with a subsequent phased expansion nationwide. The free electricity period will be locked in during the midday generation peak when solar power capacity reaches its maximum, allowing for the optimal utilization of clean energy resources.
Bowen emphasized that the program’s benefits will extend to all types of households, regardless of whether they have solar panels, own their homes, or are renting. “Users who shift their electricity consumption to the free period will benefit directly. The more people participate, the greater the overall grid benefits, and costs will decrease for all electricity users,” he said.
He stated that participating households will need to have smart meters installed and must shift their peak usage—by running appliances or charging vehicles during the midday period, for example—to enjoy the free electricity.
Data shows that approximately 4 million Australian households have installed rooftop solar panels. During sunny afternoons, when solar generation peaks, electricity prices often turn negative, yet peak demand occurs hours later, putting significant strain on the grid. This program aims to balance generation and consumption peaks through price incentives, alleviating grid operational pressure.
Following the announcement, shares of Australia’s two major electricity providers, AG and Origin Energy, fell by 3% that afternoon.
It is understood that Bowen had already set clear energy transition targets in 2022, including achieving 82% renewable energy by 2030 and a legislated goal to reduce emissions by 43% from 2005 levels. The launch of this solar sharing program is seen as a key measure to advance these targets, particularly benefiting groups such as apartment residents who are unable to install personal photovoltaic systems.
