Tenants can take advantage of the solar boom with the government’s ‘free power’ scheme – realestate.com.au

From mid-2026, electricity retailers in NSW, South Australia and South East Queensland will be required to offer households three hours of free daytime electricity as part of the federal government’s new Solar Sharer program.

Designed to leverage Australia’s record rooftop solar energy generation, the initiative will reward households who move energy-hungry tasks such as washing, running the dishwasher or heating water to the middle of the day when the sun (and solar energy supply) is strongest.

Announcing the measure this week, Energy Minister Chris Bowen said the change is about fairness: “sharing the benefits of our solar boom with all Australians, whether they own or rent.”

Under the plan, customers with smart meters will have access to a free three-hour block, set by retailers and overseen by Australia’s energy regulator. Households that shift roughly a quarter of their daily energy use to that window could save up to 28% on their bills, according to government models.

But it won’t just happen: households will have to register with their energy supplier and have a smart meter installed if they don’t already have one. Nearly 60% of homes already have a smart meter, with installation costs around $100-$200.

More than four million homes already have roof panels, which have more electricity capacity than the country’s coal-fired fleet, but much of that supply goes unused when demand drops around noon.

There are concerns that some retailers could compensate for these ‘free hours’ with higher peak rates, although the government says Australia’s energy regulator will regulate the Solar Sharer offering to ensure customers get a fair deal outside the free power period.

Tenants in the mix

People who own their homes are more likely to have solar panels than people who rent, meaning renters often don’t have access to solar energy.

The PropTrack Origin Tenant Reality Report 2025 found that 56% of renters feel energy efficiency is ‘out of their control’, and almost half don’t know where to start.

Source: realestate.com.au January 2025 Residential Audience Pulse Survey

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Because the plan is not dependent on roof panels, tenants can register through their electricity supplier.

It is a small structural shift with potentially large social impact, helping to level the playing field between homeowners and renters in the energy transition – a meaningful shift for households that have long felt ‘powerless’ in more ways than one.

The knowledge gap

According to the latest PropTrack Origin Home Energy Report, while many Australians are into the idea of ​​saving on bills, many still don’t know what all the buzzwords mean.

Quick definitions:

Those who understand the terms are much more likely to take action, whether that’s in your own home or asking landlords to upgrade key appliances.

• Electrification: Replacement of gas appliances – heating, cooking, hot water – with efficient electric appliances (e.g. induction hobs, heat pump hot water, reverse cycle/heat pump heating and cooling).

• Energy efficiency: Using less power for the same result – think of insulation, LED lighting or smarter devices.

• Renewable energy: Power from natural sources that are constantly replenished – for example solar energy, wind energy and hydropower.

• Smart house: a house with technical support that automatically monitors and adjusts energy consumption.

New habits

The report shows Australian homeowners are already adapting to rising energy prices. Two-thirds plan to improve efficiency over the next five years, and the average household expects to spend nearly $8,000 on it.

Many upgrades currently target older, mortgage-free owner-occupiers who have more control and capital; younger households and renters remain underrepresented, largely due to costs and uncertainty.

Experts say the Solar Sharer can help spark new habits, encouraging households to think not just about how much power they use, but also when.

The peak body for electricity retailers, the Australian Energy Council, said it was disappointed by the lack of consultation on the plan, saying it adds a complex regulatory solution that delivers a customer outcome already offered by many retailers.

“This lack of consultation risks damaging industry confidence and could lead to unintended consequences,” said CEO Louisa Kinnear.

Rendering of suburban homes showing how many solar panels there are

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“When developing energy products, such as those that offer free energy for a period of time, retailers, and particularly smaller retailers, must carefully consider their market exposure, hedging strategy, the impact of network costs and a range of other factors.”

The Solar Sharer program will launch in NSW, SA and South East QLD in July 2026, with a national rollout likely in 2027, the government said.