Australia is set to launch an ambitious energy-saving program that will offer households, including those without their own solar panels, at least three hours of free solar power every day. The initiative is expected to go live in 2026, according to Energy Minister Chris Bowen.

The new initiative, dubbed the Solar Sharer program, will first be rolled out in New South Wales, South Australia, and southeast Queensland before being expanded nationwide.

Users will receive the free electricity during the middle of the day, which is when solar generation capacity is at its highest. This strategic timing is designed to ease the strain on the national grid.

Currently, Australia has about four million households with rooftop solar, and on sunny afternoons, the sheer volume of generated power can sometimes push electricity prices into the negative. However, peak demand often occurs several hours later, creating instability.

Bowen highlighted that the program is designed for widespread benefit: "People who are able to move electricity use into the zero-cost power period will benefit directly, whether they have solar panels or not and whether they own or rent."

To participate, customers must have a smart meter. The key to benefiting from the program is shifting major energy use, such as running washing machines, dishwashers, or charging electric vehicles to the free midday period.

The success of the program relies on mass adoption. Bowen added that the more people take up the offer and move their usage, the greater the system-wide benefits will be, which in turn will help lower costs for all electricity users.

Following the announcement, the share prices of two of Australia’s largest electricity suppliers, AGL Energy and Origin Energy, saw a 3% decline by late afternoon.

This initiative supports Australia's broader energy goals. In 2022, the government set a target of achieving 82% renewable electricity by 2030, alongside a legislated target of a 43% reduction in emissions compared to 2005 levels.