ABC News Daily What’s the catch with three hours of free power?
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Nov 10, 2025 In this discussion, Alison Reeve, the Energy and Climate Change Deputy Program Director at the Grattan Institute, dives into the Australian government's plan for three hours of free midday electricity. She explains how the scheme targets states with solar generation surpluses and the necessary opt-in process for smart meter users. Alison highlights the potential for cost savings but emphasizes practical challenges, such as lifestyle compatibility and the impact of cloudy days. Ultimately, she questions whether this initiative will genuinely reduce bills or simply add complexity for households.
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Free Midday Power Offer Explained
- The government will force retailers in NSW, South Australia and SE Queensland to offer three hours of free daytime electricity to default offer customers starting next July.
- The policy aims to use surplus midday solar and requires smart meters and opt-in by customers.
Midday Solar Is Often Wasted
- Midday solar generation sometimes exceeds demand so systems are curtailed and that energy is wasted on sunny but mild days.
- The scheme hopes to shift consumption into midday to use that otherwise curtailed solar output.
Install A Smart Meter To Qualify
- You must have a smart meter to access time-varying rates because it records usage by time of day for retailers.
- Get a smart meter if you want retailers to track and apply free midday hours to your household.