The government promises three free hours of electricity every day for Aussie households. Sounds great. You think, “Finally, something to ease the pressure.” But what’s the catch?
You’re not alone in asking this. Across New South Wales, Queensland, and South Australia, people are trying to figure out if this Solar Sharer plan is a win, a waste, or just clever politics.
At PSC Energy, we don’t just install panels. We help everyday people make sense of energy decisions. We’ve worked with thousands of households across New South Wales and seen how quickly policies can shift. That’s why we’re going to break this down for you in plain language.
In this article, you’ll learn about the following:
- What is the Solar Sharer Offer of “Three Free Hours?”
- The Hidden Costs of “Free” Power
- Winners and Losers of the Solar Sharer Offer
- Will the Solar Sharer Offer Hurt Solar Uptake?
- What This Means for You
- FAQ: Problems with the SSO
By the end of this article, you’ll find out what the Solar Sharer policy offers, who benefits most, and who could get left behind.
Let’s take a closer look at what’s really going on behind this “free” electricity, and what you can do about it.
What is the Solar Sharer Offer of “Three Free Hours?”
The Solar Sharer policy offers 3 hours of free electricity per day to homes with smart meters. It is government-regulated. It starts next year in New South Wales, South-East Queensland, and South Australia.
If you already have a smart meter, you may be eligible.
If not, your energy retailer might offer to install one, but this may not always be free.
But the plan comes with conditions and trade-offs.
Here’s what you need to know:
- You won’t be automatically added to a free-hours plan. You have to choose it. It’s one of the options every retailer must offer.
- These plans often raise prices in other ways. While the midday hours are free, you’ll usually pay more in the morning and evening.
- Daily supply charges can also go up. These fixed costs help cover what you use outside the free window.
The government wants retailers to offer free daytime power without lifting prices at other times.
But power companies need to stay profitable. If they can’t make up the cost through this plan, they might adjust their other offers instead. That means customers who don’t use the free hours could end up paying more for different plans.
It’s not all bad. Some households may benefit from the policy, especially if they:
- Use a lot of power between 12 pm and 3 pm.
- Own an electric vehicle and charge it during the day.
- Work from home and can shift appliance use to daylight hours.
But if you can’t shift most of your usage to those hours, the savings might be small or even nonexistent. If you already have solar panels, a plan like this might not work for you at all. You could be better off with a plan that pays you for your exports and has lower rates overall.
While “three free hours” makes a great headline, it’s not a one-size-fits-all solution. You’ll need to read the details and think carefully before switching to one of these offers.
If you’re interested in learning more about solar systems, you might want to check out our introductory article titled, New to Solar: Start Here.
The Hidden Costs of “Free” Power
Free always sounds good. Free power sounds even better. But when it comes to energy, nothing is truly free. If someone gets a discount, someone else is paying for it. That’s how this new plan works, too.
Here’s the problem: the electricity you use is only part of what makes up your bill. Behind the scenes, your bill also pays for:
- Network costs: what it takes to move electricity through poles and wires to your home.
- Retail margins: Power companies need to cover their running costs and make a profit.
- Environmental schemes: Government programs that support clean energy.
- Wholesale prices: These change every 30 minutes and are determined by supply and demand.
Right now, when a retailer offers “three hours free,” they’re losing money during those hours. But they don’t just take that loss. They make it up by:
- Raising prices outside of the free window.
- Charging more per day to be connected to the grid.
- Cutting back on perks like feed-in tariffs for solar exports.
Let’s say you can’t run the washing machine or charge your EV during the free hours. You’ll still need to use power at night. And those night-time prices? They’re likely going to be higher to make up for what’s being lost during the free hours.
And that’s not the only cost.
It’s a bit like offering free drinks at a café for an hour. The café still needs to pay staff, rent, and supplies. So they bump up food prices or charge more for drinks at other times. Someone is always covering the difference.
This is why you need to look beyond the freebie. Ask yourself:
- What am I paying outside the free window?
- Is my daily supply charge going up?
- Will I lose my feed-in tariff if I join this plan?
- How much power can I shift to the free hours?
If the answer to that last question is “not much,” then you may end up worse off. And that’s a hard truth the headline doesn’t tell you.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
Winners and Losers of the Solar Sharer Offer
Not everyone gets the same benefit from this policy. Whether this plan helps or hurts you depends on how and when you use electricity, where you live, and what tools you already have at home.
Let’s start with the winners.
Households with flexible schedules.
If someone is home during the day, they can take advantage of the free hours. They can run the dishwasher, do the laundry, or cook meals before 3 pm.
People who work from home.
These households can shift major appliances to run during the free period. They might already be using more power during daylight hours.
EV owners.
If you own an electric vehicle and can charge it at home in the middle of the day, this policy could save you a lot of money. Charging an EV uses several kilowatt-hours. Doing that during the free window means you’re avoiding some of the day’s most significant energy costs.
Households with home batteries (but no solar).
Some homes might be able to store that free power in a battery and use it later. That gives them more control over their evening energy costs. But this only works if you can charge the battery from the grid during the free window, which not all setups allow.
Now let’s look at the losers.
Renters have little control.
Renters can’t install solar or batteries. Many work jobs and aren’t around during the day to shift their usage. Even though this policy is meant to help them, many won’t see real savings because they can’t change how or when they use power.
Households that can’t load-shift.
People who get home late and cook dinner in the evening won’t get much out of this plan. If they’re using most of their power after 5 pm, the free midday hours don’t help, and the higher peak rates might make things worse.
People in homes with poor insulation.
If you’re trying to keep your house cool in summer or warm in winter, and you don’t have proper insulation, you’ll need to run heating or cooling at night too. That means you’re still relying on expensive off-peak power even if you shift some daytime usage.
Existing solar households.
If you already have panels and use most of your power during the day, this policy might make your setup less valuable. The free power window overlaps with when your panels are generating, and if you switch to the free-hours plan, you might lose your feed-in tariff.
Plus, you could be paying more outside the free period.
Who really benefits?
The biggest winners are households that already use power during the day or can easily shift their routines. EV owners who can charge in the middle of the day also come out ahead.
The biggest losers are those with no flexibility. Renters, shift workers, and people without smart appliances or smart meters may end up paying more or seeing no change at all.
This creates a new kind of energy divide. Before, it was about who had solar and who didn’t. Now, it could become about who has a battery, smart home tech, or flexible time and who doesn’t.
If you’re interested in learning a bit more about weighing the cost of solar against the cost of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
Will the Solar Sharer Offer Hurt Solar Uptake?
The short answer is yes. This policy could slow down solar growth. It changes how people think about solar and makes it harder for them to see its value.
Here’s why.
Most people install solar to save money. With solar on your roof, you can use free energy during the day instead of buying it from the grid.
Any extra energy gets sold back to your retailer through a feed-in tariff. Even though those feed-in rates have dropped in recent years, solar still makes sense because it helps you avoid expensive power from the grid.
But this policy sends a new message: “Why buy solar if you’re already getting free power from the grid?”
That message could stop people from installing panels. It makes them think solar is no longer needed. Even though that’s not true, the idea spreads fast. And when the public sees free midday power as the new normal, fewer people may choose to invest in solar.
Let’s look at what happens if you do have solar:
- You can choose not to join a “three free hours” plan. You can stay on a plan with lower peak rates and still benefit from feed-in tariffs.
- Solar still gives you control and choice. You’re not locked into whatever deal the retailer is offering. You can shop around for the best plan that works with your system.
- Your panels still generate value every day, especially when you use appliances during daylight hours.
Australia needs more solar, not less. We need to double, or even triple, rooftop solar to hit clean energy targets. Even if some of that daytime power gets curtailed (switched off when supply is too high), we still need an oversupply of solar to cover:
- Cloudy days.
- Winter mornings.
- Evening peaks.
- Higher demand in future summers.
If rooftop solar slows, it becomes harder to shut down coal and gas. It weakens the push toward 100% renewables. And it puts more pressure on government spending to make up the gap.
For solar installers like PSC Energy, this policy brings new challenges. It means we need to help people understand the whole picture, not just the headline.
The truth is, solar still works. It just needs the right plan, the right habits, and the right long-term view.
If you’re interested in learning a bit more about how to save with solar, you might want to check out the following article titled, Self-Consumption: How to Increase Solar Energy Use.
What This Means for You
Now that you know how the policy works, it’s time to figure out what it means for your home, your bills, and your energy future. Whether you already have solar or you’re still on the fence, this policy will shape how you use and think about electricity.
Start by asking one simple question:
Can you shift your power use to the middle of the day?
If you can, then this policy might work for you. If you’re home between 12 pm and 3 pm, or can set appliances to run on timers, the free power window could lower your bill.
But remember, you’ll still pay higher rates before and after those hours. You need to be sure the savings during the free window are greater than the extra costs at other times.
Now, let’s look at different groups and what this means for each one:
If you already have solar:
- You likely already benefit from using your own free power during the day.
- You probably don’t need a free-hours plan, especially if it cuts your feed-in tariff or raises your supply charges.
- You still have more choices and more control than most people. Don’t trade that away without checking the fine print.
- Look for energy plans that support solar exports and offer a fair rate per kilowatt-hour, rather than ones that offer flashy midday deals.
If you’re thinking about getting solar:
- Don’t let this policy stop you. It doesn’t replace the benefits of owning your system.
- With solar, you control your supply, not the retailer. You also protect yourself against future price hikes.
- Free grid power can be taken away or changed with the next policy shift. Your panels stay on your roof, working for you every day.
If you own an EV or are planning to:
- Charging during the free hours could save you big money.
- But if you have solar and charge your EV during the day already, you’re already winning.
- A solar and EV combo still gives the most long-term value, especially when paired with smart charging or a battery.
If you rent or live in an apartment:
- This plan may not help unless you can shift major usage to midday.
- You might benefit more from smart devices or appliance upgrades.
- Keep a close eye on what energy plans your retailer offers. Not all free-hour deals are equal.
In every case, the best thing you can do is stay informed and active. Don’t wait for the right deal to fall in your lap. Compare your usage, track your bills, and speak to someone who understands the local energy market.
If you’re interested in learning a bit more about feed-in tariffs, you might want to check out the following article titled, Understanding Feed-In Tariffs and Their Limitations.
Three hours of free power? Someone’s still getting shocked.
“Three free hours of power” sounds like a win, but the truth is more complicated. This policy might help a small group of households who already have flexible routines, smart devices, or electric vehicles.
But for most people, it shifts costs around without fixing the real problems in the energy market.
At PSC Energy, we help people find the best path forward, whether that’s solar, a home battery, or just a better understanding of your options. We believe smart energy starts with clear information and a plan that works for your life.
The policy might sound simple, but the decision isn’t. Make it with the whole picture in mind. That’s how you stay one step ahead in a changing energy world.
If you’re interested in learning a bit more about solar and battery rebates in NSW, Australia, you might want to check out the following article titled, Ultimate Guide to Australia’s 2025 Solar Rebate and Battery Rebate: Federal and NSW Rebate for Solar.
FAQ: Problems with the SSO
What is the three free hours of electricity plan in Australia?
It is a new policy that requires electricity retailers in NSW, SE Queensland, and SA to offer one plan with 3 hours of free power each day during sunlight hours.
Who is eligible for the free electricity hours in NSW and Queensland?
Households with a smart meter can join. If you do not have a smart meter, you may need to upgrade before you can access the free hours.
When do the three free power hours happen?
The free hours happen during the middle of the day, usually between 12 pm and 3 pm. Exact times can vary by plan and provider.
Do I get free power automatically?
No. You must switch to a special plan that includes the free hours. You will not receive the discount unless you sign up.
Will my electricity bill go down with this plan?
It depends. You will save during the free hours, but prices are higher outside that window. You may pay more if you use power at night.
Can renters in Australia benefit from the free power plan?
Some renters may save if they can shift their usage to midday. But most renters work during the day and cannot easily take advantage of free power.
Is this policy good for people who already have solar?
Usually not. Solar users already get free power during the day from their panels. Switching to a “free hours” plan may lower their feed-in tariff and raise other charges.
Can I use the free power hours to charge my EV?
Yes. If you charge your electric vehicle at home during the day, this plan could help you save significantly on fuel costs.
What happens if I do not shift my power use?
You may end up paying more. The savings during the free hours will not cover the higher costs outside those hours if your usage stays the same.
Are electricity retailers losing money from this plan?
Yes, during the free hours, they lose income. They recover it by raising rates at other times or increasing daily supply charges.
Can I still switch electricity plans if I join the free power deal?
Yes. You can change plans any time if you find a better deal. Always check the fine print and compare usage charges and supply fees.
Does the free electricity plan replace the need for solar?
No. Solar panels still offer long-term savings and control. The free plan is limited and may not last or suit your usage.
Will this policy help lower-income families?
Not always. Many low-income households cannot shift their usage or install smart appliances, so they may not benefit much.
Do all electricity providers offer this plan?
Only providers in NSW, South-East Queensland, and South Australia are required to offer it. It must be one of their listed plans.
Will electricity prices go up because of this policy?
Some prices will go up. Retailers may charge higher rates during peak periods or increase daily fees to cover the cost of offering free power.
