Australia will provide households, including renters and those without solar panels, with at least three hours of free solar power daily under a new government scheme starting in 2026.

Energy Minister Chris Bowen announced on Tuesday that the Solar Sharer programme will initially launch in New South Wales, South Australia, and southeast Queensland before expanding nationwide.

The plan aims to help households shift energy use to the middle of the day, when solar generation is at its peak and costs are lowest.

“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,” Bowen said. “The more people take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be.”

The announcement saw shares of major energy suppliers AGL and Origin Energy drop about 3% by late afternoon.

Around four million Australian homes already have rooftop solar panels, and midday surges in supply often push electricity prices into negative territory. However, demand typically peaks later in the day, placing pressure on the grid.

Under the new scheme, even apartment dwellers and renters without solar systems will be able to benefit.

Households will need a smart meter and must adjust their consumption—such as running appliances or charging vehicles during daylight hours—to take advantage of the free electricity.

The initiative supports Bowen’s 2022 goal of sourcing 82% of Australia’s electricity from renewables by 2030, alongside a legislated 43% emissions reduction target compared with 2005 levels.

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