How to use every electron of your three hours of free power

Have you ever seen the viral clip of an old television interview with Mariah Carey in which the singer appears not to know what an electricity bill is?

“Bill who?” Carey says. “Oh you have to pay for that? … In America, we get it free.”

The British interviewer scoffs and tells her that she doesn’t get free electricity, she just feels like she does.

Whether Carey was genuinely clueless or deadpanning for comedic effect, it will never not be funny.

Yet what once seemed ridiculous is becoming reality – from July 1, 2026, households in several Australian states can get three hours of free electricity every day. Some retailers already offer this.

In Australia, we get it free

The federal government is using its power under the default market offer (DMO) framework to force retailers to offer free electricity during the middle of the day. It does not mean that consumers must be on the default offer, but a “solar sharer offer” tariff will be available as well.

The Australian Energy Regulator will be responsible for setting the tariff structure for the solar sharer plan, to ensure that retailers do not simply raise prices at other times.

The mandate will apply in DMO regions: NSW, South Australia and South East Queensland. The government says it will work with non-DMO states such as Victoria and Western Australia to consider implementing the policy elsewhere.

It is worth shopping around – some retailers already voluntarily offer plans with windows of free electricity. Many of the tips on electrification and time-shifting can also be used by households wanting to make the most of their own rooftop solar.

Why is this happening?

The policy helps households with the cost of living, while also improving the stability of the grid, which is straining under mismatched supply and demand. There is plentiful solar supply in the middle of the day when no one wants it, and none in the evening when they do. This demand curve is sometimes called the “solar duck” because of its shape.

There is so much solar power during the day that it is increasingly being switched off, the government says, with the Australian Energy Market Operator recording negative prices nearly a fifth of the time in the most recent quarter. The policy aims to ensure this excess of cheap solar power is not wasted.

The potential savings

By squeezing every kilowatt of power out of three hours of free electricity, households could save almost $6000 a year, according to Saul Griffith, founder of Rewiring Australia.

He says the average Australian home has a connection to the grid that can draw down 15kW an hour (45kWh over three hours). At an average of 36c/kWh, that is worth $16.20 a day ($5913 a year) – as long as you can suck it all down in the time window using batteries and timers.

The potential $6000 value can be offset against a smaller electricity bill, no gas bill and no fuel purchases for a car.

Households will need to select the solar sharer offer tariff from an electricity retailer and ensure they have a smart meter. They don’t need to have solar themselves, so renters can also benefit.

Home batteries

The solar sharer policy works with the federal government’s incentive to encourage the purchase of a battery alongside rooftop solar. As of June 30, 271,000 households had installed solar batteries, the Clean Energy Council says. Since the Cheaper Home Batteries program started on July 1, that has swollen by another 120,000.

Technically, non-solar households could also use home batteries to store free daytime electricity from the grid. However, there is no subsidy, and electricity prices may change before the purchase pays off.

EV charging

Running an EV on free electricity is far cheaper than buying petrol or diesel. The catch is that the car needs to be parked at home during the day.

The average Australian drives 38 kilometres a day, the EV Council says. That means they can either choose to charge for one to two hours each day, or go for a week or more between larger recharging sessions.

Even renters can do it because it is possible to charge an EV via a standard 240V wall socket – it is just slow. Also known as a level-1 charger, this will add one to four kilometres of range for every 10 minutes of charging, the EV Council says, meaning it would take from four to 17 hours to add 100 kilometres of range.

A dedicated level-2 EV charger will add four to 12 kilometres every 10 minutes – or between one and four hours to add 100 kilometres of range.

Ultra-rapid public chargers can add up to 300 kilometres of range in just 10 minutes. Griffith says policies should be extended to ensure free charging is available during the day at workplaces and curbside street chargers.

Electric vehicles are essentially batteries on wheels. New policies to support vehicle-to-grid charging mean EVs can both charge from and discharge to the grid or directly power the home or specific appliances.

While EVs are not subsidised, they are better value than home batteries by cost per kilowatt hour of storage.

Shifting usage

Modern smart appliances come with in-built timers, while basic models can be used with a circuit timer – a small device that can be bought in a hardware store for less than $10.

The easiest thing to time shift is the hot water system. The economics stack up, Griffith says, to replace a gas-powered system with an efficient heat pump machine immediately, despite the high upfront price. Free electricity will unlock savings of $1-1.50 a day, shrinking the payback period to a year or two.

Next is the power-guzzling pool pump. For homes with swimming pools, using a timer to soak up free electricity is a clear win.

It takes effort to change habits around washing dishes and clothing, but there is a pay-off for those who can do it.

Shifting heating and cooling to the middle of the day will also work, but only if you have a well-insulated home.

It is hard to shift refrigeration, or when you turn on lights, cook meals (slow cookers notwithstanding), watch television or use computers. This is a job for batteries.

The next generation of appliances such as fridges and stoves is likely to come with small batteries to allow them to charge by day, Griffith says.

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