The federal energy minister’s plan to make electricity free for three hours in the middle of each day for customers on the default market offer has made a big splash in the energy world, and sparked calls for more electrification and demand flexibility.

Chris Bowen told ABC radio on Tuesday morning that the basic principle of the proposed Solar Sharer offer is simple: “Use the abundant excess daytime solar from Australia’s millions of rooftop PV systems to help make the default market offer as attractive as possible for those who are on it.”

After all, Australia’s rooftop solar riches often mean daytime electricity prices are either negative or negligible, so why not compel energy retailers to pass through those benefits to DMO consumers?

But the detail — and the application — of the proposed reform is a bit more complicated. And some are worried that, without additional policy mechanisms to drive electrification and flexible energy management, it could miss the mark or have unintended consequences.

Rewiring Australia says it’s a smart reform that will lower bills and emissions, but has also seized the opportunity to push for more government support to electrify homes.

“Today’s announcement is a big win for consumers across the energy system, especially for renters and apartments who often miss out on savings from having their own solar panels,” Rewiring Australia chief executive Francis Vierboom said.

“In the middle of the day, our grid is humming with cheap solar. The underlying price of that electricity is often zero or negative. This Solar Sharer reform means energy retailers will have to pass on those ultra-low prices to consumers for at least three hours.

“That’s enough time to heat up a hot water tank, blast the air conditioner to cool a home on a hot day, run a pool pump, or charge an EV, and each one of those could mean hundreds of dollars of savings per year.

Here’s a round-up of other reactions to the proposed market reform, so far.

“Solar Sharer shows what good policy looks like,” said Clean Energy Council chief executive Jackie Trad in a statement on Tuesday. “Practical, equitable and built on the momentum of what millions of Australians are already doing – generating their own clean power.”

The CEC says Solar Sharer aligns with industry modelling that shows greater use of consumer energy resources — including rooftop solar, smart appliances and home batteries — can unlock over $22 billion in system-wide savings and take $35–$71 off the average annual energy bill.

“We’re already seeing retailers pilot free-power windows, EV charging incentives and battery-bundled tariffs. Solar Sharer will help normalise these smart offers,” Trad said.

“This is excellent, minister,” said Climate Energy Finance founder and chief executive Tim Buckley on LinkedIn. “This means many, many more consumers will … benefit from free solar power … at zero cost to the market, and massively incentivise demand load shifting to the middle of the day.

“A strong virtuous loop that should massively boost solar’s social licence to operate,” Buckley says.

Gabrielle Kuiper, an expert in consumer energy resources in Australia, is less effusive: “This is a cute policy from minister Chris Bowen,” Kuiper wrote on LinkedIn on Tuesday.

“For it to be most effective however, households need electric appliances with built-in flexibility and/or EVs they can charge in the middle of the day.

“We also need information and advice for households and businesses to support the uptake and use of flexible demand. Solar Victoria provides a  solid model for consumer information.”

Stephanie Bashir from Nexa Advisory says the most important element of the proposed policy is that it will force energy retailers and networks to come to the distributed energy party.

“This policy will incentivise consumers to move their energy consumption to cheaper times of the day that is good for their bills and for the network. Crucially, it will force big energy to fix their systems and to innovate.

“Tariff reform has been the biggest blocker to take up of consumer energy resources and flexible arrangements, and to sharing the benefits of renewable energy with all consumers. This policy will help move the dial.”

Solar Citizens chief executive Heidi Lee Douglas says Solar Sharer is “a great start – it’s smart, fair policy that helps renters and apartment residents tap into our rooftop solar advantage".

“Rooftop solar is one of Australia’s greatest energy success stories – and this reform shapes pricing mechanisms to reflect that success, rather than penalising it with clumsy export charges like the so-called ‘sun tax.’”

Solar Citizens is particularly impressed with the proposed reform’s focus on load-shifting, which Douglas says will encourage a better understanding of how consumers can change their behaviour to bring down energy bills.

“Behaviour change like this is smarter and cheaper than building expensive new transmission,” she says.

“Now we need to build on this with a dedicated Solar for Renters policy, tied to state-based minimum energy efficiency standards, to overcome the split incentive dilemma that locks millions of renters — one third of our homes — out of solar savings.”

Vierboom and Rewiring Australia also want the Cheaper Home Batteries subsidy expanded to cover standalone batteries and smart EV chargers that could also take advantage of Solar Sharer plans.

“We should also keep expanding flexible finance options to help people make the switch to all-electric homes, and deliver minimum standards for rental homes to require the switch to electric appliances when gas ones break down,” he adds.

“Australia first started using off-peak systems back in the 1950s, when we ran hot water tanks to balance the grid for coal power stations that couldn’t turn off overnight.

“But the new off-peak is midday, when we’re making free energy on our own rooftops. This update will save Australians money and keep our electricity system strong.”

Retailers, meanwhile, are not so thrilled, with peak industry body the Australian Energy Council releasing a statement on Tuesday effectively saying, “well, this is news to us!”

“Today’s announcement of a new regulated Solar Sharer Offer was a surprise to the industry and did not form part of the DMO Review consultation process,” AEC chief executive Louisa Kinnear said on Tuesday.

“This lack of consultation risks damaging industry confidence, as well as creating the potential for unintended consequences.

“All limbs of government and other agencies are seeking to cut red tape and improve productivity and this change introduces a complex regulatory solution that delivers a customer outcome that is already being offered by many retailers,” Kinnear said.

“In particular, it will be critical for the government to consider changes to network tariffs across all jurisdictions to ensure that retailers can provide the most cost-effective retail price to DMO customers. Without this change, this offering is unlikely to be successful.”

Republished from Renew Economy, 5 November 2025

The views expressed in this article may or may not reflect those of Pearls and Irritations.