“Three Hours of Free Power” Policy Could End Up Costing More

The federal government’s upcoming “Solar Saver” plan, set to launch next July, will require every electricity retailer in Australia to offer at least one plan with three hours of free daytime power each day.

At first glance, the announcement sounds like a win for households. However, behind the headlines, the policy could simply shift costs rather than reduce them — and may even slow the growth of solar in regional areas like Cowra and the Central West.

Costs Moved, Not Removed

While marketed as a bill reduction, the reality is that retailers will likely recover their losses elsewhere. Free daytime energy is expected to be offset by higher peak rates and increased daily supply charges.

Some retailers already offer “free power” plans voluntarily as part of customer acquisition strategies. Forcing all retailers to adopt similar models risks reducing competition and driving up base prices for everyone.

It’s comparable to a restaurant being told to provide free refills because one competitor does. The initial gesture sounds generous — but the overall meal ends up costing more.

Limited Impact for Renters

The policy aims to support renters and low-income households by encouraging energy use in the middle of the day when solar generation is abundant. In practice, shifting enough energy use to benefit from the free window — around six kilowatt-hours — is unrealistic for most families who aren’t home during those hours.

Households with flexible work hours, home batteries, or electric vehicles are more likely to gain, while renters and shift workers may see little to no benefit. The policy could unintentionally widen the divide between those who can afford energy technology and those who can’t.

Risk to Solar Uptake

There’s also concern that the policy could reduce the incentive for homeowners to install solar panels. If consumers believe they can already access free daytime power through retailers, many may postpone or abandon solar upgrades altogether.

That perception is problematic. Australia needs to expand solar generation significantly to meet renewable energy targets and maintain grid reliability through seasonal fluctuations. Slower solar adoption could undermine that transition.

Short-Term Politics, Long-Term Problems

Electricity prices do occasionally fall into negative territory during periods of excess solar supply, but these moments are brief and rare. The policy appears designed to capitalise on that narrative for short-term political gain rather than address long-term structural energy issues.

Mandating free hours across all retailers may distort pricing signals, discourage innovation, and deliver minimal real-world relief to households.

A Better Approach

A more effective way to support renters and low-income households would be targeted daytime tariffs, rebates for efficient appliances, or safe, portable plug-in battery solutions that provide genuine control over energy costs.

For homeowners across Cowra and the Central West, the most reliable way to cut bills remains the same: invest in high-quality solar and battery systems that provide independence from fluctuating grid prices.