Australian households will have their burden of rising cost of living alleviated with three hours of free electricity and lower income threshold for meeting solar panel and hot water rebates eligibility.
The three hours of free power is being offered under Solar Sharer Offer (SSO) by the Federal Government of Australia has been rolled out in three states: NSW, Qld and SA, while the lower income cap for availing solar panel and heat pump hot water unit rebates will apply to Victoria state households.
Together, these two measures, lower income cap for solar rebates and three hours of free power under SSO, will significantly reshape the clean energy generation landscape of Australia.
Let’s dig into the why behind the government policy decision vis-a-vis SSO and lower income limit for solar rebates in Victoria.
3 Hours of free power is being offered under SSO
The three hours of free electricity under Solar Sharer Offer took effect from 1st July 2026. Under this offer free electricity is being provided to households in New South Wales (NSW), Southeast Queensland (SE QLD), and South Australia (SA).
The free power window starts from 11am for NSW and SE QLD residents and ends at 2pm. For SA households the window is between 12pm to 3pm.
According to the Department of Climate Change, Energy, the Environment and Water (DCCEE&W), after opting for SSO, households could save up to $1000 a year if they adapt their energy usage by shifting energy intensive tasks (such as dishwashing, EV/solar battery charging and laundry) to free power window.
On the surface, this initiative by the federal government looks great but it has already shown some unintended consequences.
However, as reported by The Sydney Morning Herald (SMH), the consumers may have to pay higher electricity bills if they opt-in for the Solar Sharer Offer.
Some Sydney residents SMH spoke have been advised by their energy retailers not to switch to Solar Sharer plan as this will cause a spike in power bills.
Under the SSO, all residents (including renters) living in NSW, SE QLD and SA are eligible for free three hour power if they have a smart meter installed and their energy retailers are legally obliged to offer the Solar Sharer plan.
Moreover, all energy retailers operating in aforesaid states that have more than 1,000 residential electricity users are legally obliged to provide the Solar Sharer Offer.
The Victorian resident will have a similar free power (Midday Power Save) offer from October 1, 2026.
$150k Income cap for availing solar and hot water rebates under Solar Homes Program
Starting from 1st July 2026, Solar Victoria dropped the upper income ceiling from $210,000 to $150,000 for availing solar and hot water rebates in Victoria State.
Victorian households meeting the $150k income ceiling and property value of less than $3 million are eligible to receive a solar rebate of up to $1,400.
The households can also apply for interest + collateral-free loan of up to $1,400 to lighten the burden of solar PV upfront cost.
Heat pump powered hot water systems are eligible for up to $1,400 rebate for made in Australia systems or up to $1,000 for other heat pump hot water heaters.
The Solar Victoria has described the lower income cap as “targeted assistance” to Victorians who are “most affected by cost of living pressures, including renters and lower income households”.