Australian energy retailers must offer three hours of free daytime electricity
lenergy.com.au
lenergy.com.au
This is not the case. From 1 July 2026, Australian energy retailers with more than 1,000 customers must offer at least one energy plan which includes 3 hours of free electricity, capped at 24kWh per day, to residential customers in 3 states - NSW, SE Queensland and South Australia. https://www.energy.gov.au/rebates/solar-sharer-offer
Not all energy plans that the retailers offer have to include 3 hours of free electricity. In practice, most energy plans currently offered don’t include 3 hours of free electricity but some retailers such as Globird are offering more than one energy plan which includes ‘free’ electricity.
The downside of these solar sharer plans which include ‘free’ electricity is that they generally have higher daily supply charges and higher usage charges outside the ‘free’ window to recoup the costs of the ‘free’ electricity.
Australian consumers can choose the retailer and energy plan their home or business is on and can change their plan at any time.
This page on the Energy Consumers Australia website has more details about the Solar Sharer Offer and a similar Victorian Government scheme which starts on 1 October. https://energyconsumersaustralia.com.au/news/solar-sharer-of...
Remember Australia has over 10x the rollout of solar than china (per capita of course). It’s not hard to achieve this for any competent government. Bluntly China’s government is corrupt and inefficient (usa is even further behind china since their current government is also corrupt and inefficient).
This rollout of cheap solar in Australia is causing power prices during a global energy crisis and a datacenter build out to plummet.
And fwiw i don’t think Australia’s government is perfect. But it should set the bar to other nations of ‘what could be’. You could have falling power prices right now if you enabled a government to encourage what is currently by far the cheapest form of electricity (solar).
China is huge, and it does have huge solar farms, but the trouble is now you need a huge power transport infrastructure. Australia can move enough power from a desert where nobody lives to a small city 100 kilometres away on a few ordinary hundred kV pylons and be happy. China has huge cities, 2-3 thousand kilometres from those solar farms so it is building long chains of 1MV pylons which is the same idea but at this incredible scale.
China is adding around 10X Australia’s total installed solar power generation every single year. Half of the entire world’s deployed solar is in China.
And while Australia’s solar growth is impressive, it’s worth remembering that it’s only possible because of China. It was Chinese government policy that pushed to develop the huge solar industry that exists today and supplies vast quantities of cheap solar panels to the world.
Equally true is that Chinese manufacturing of solar cells is only partly possible because of Australian solar research and development. In 1983, a research team at the University of New South Wales (UNSW), invented the PERC silicon solar cell. This design fundamentally improved solar cell efficiency to capture sunlight more effectively and reduce electronic losses. Over several decades of refinement, the UNSW team continued to set global efficiency records, pushing cell efficiency from 18% in 1984 up to 25% by the early 2000s.
Today, PERC technology is the cheapest way to generate electricity using solar cells and is utilised in over 90% of solar panels manufactured globally. https://theconversation.com/how-an-aussie-invention-could-so...
The solar research group at UNSW trained over 120 PhD students who went on to establish solar manufacturing, particularly in China.
this is misleading and wrong. At best it is a half true statement.
My total power bill has not decreased.
Solar electrity may be cheap to produce.
However if only generates for 4-5 houra day, generates non at night or bad weather. May generate non for several days in bad (cloudy weather ) So the supply of reneables (solar ) is un reliable. To make renewables (solar ) reliable , we need big (grid size) batterys. For the grid we need new transmission lines. Predicted to be 10,ooo KM for Austrlia. Cost of new transmission network, last estimate i saw was $40 Billion AU
The government mandated smart meters will allow peoples power supply to be turned off when the likely power shortages occur.
This is a remarkable stat that's the opposite of what I expected, but I suppose China is (a) starting from a lower base and (b) much, much larger in absolute population. Australia's population would fit in Chongqing.
Where people get misled on China’s rollout is total generation (since it’s a huge fraction of the worlds population) and the fact that they do large centralised rollouts rather than enabling rooftop solar. So they have some of the biggest solar farms. Rooftop solar is the way the countries that have shot past china have mostly achieved results - remove barriers to installation and grid connection and suddenly every citizen is invested in it since it saves them money. It’s the classic efficiency win from a massively motivated population vs a central bureaucracy. China’s showing everyone how NOT to enable solar.
I reckon more Australians live in SFHs than apartment blocks (so have roofs where personal solar makes sense), and the major cities get more son than eastern Chinese cities do.
https://ourworldindata.org/grapher/solar-electricity-per-cap...
This year is the only year that prices have gone down.
i know a guy who bought an arseload of batteries and buys and sells off the grid to make a moderate amount of money. he says it's not really paying back the time spent but he does it because he finds it interesting to optimise
So countries are only behind Australia because of corruption? And the US is only behind because of Trump, specifically?
Man, must be nice to have such a basic view of the world; everything so sinpmy explained.
It's not all Trump, of course. It's also the people who put him in office twice, the folks who block upgrading the grid, etc. etc.
As the weather warms and we get more solar exposure we will easily be in excess. We get a very small export rate with a bonus for no energy consumption during peak evening hours which can offset the fixed daily charge.
There are a lot of gotchas that you need to be aware of. 42 kWh is nominal capacity not the actual usable capacity. House load, max grid import and export capacity, max inverter capacity, AC or DC coupled panels, battery charging profile, battery temp are all factors in how much you can charge in the window. For example I have max 15 kW grid draw, with a 10 kW inverter that can charge the battery. I can put in max ~30 kWh into the battery, so I also run other loads in the house to use the other 5 kW capacity. If I go over 5 kW house load the battery charge is clipped to maintain grid import limit.
> I am able to charge cars at work
> I am not making any value judgement
Calling something "virtue signalling" is a value judgement.
Edit: should add, that's straight solar no battery
We just got a very high efficiency wood stove, I expect we will now have no electricity bill each year.
> often had negative quarterly invoices (i.e. got paid by our retailer) ... esp. in winter months
Most likely the aircon is running less in winter so they don't use as much power. There is not much of a winter in the tropics.
I believe that incentivizing people to acquire batteries is precisely the purpose of the policy. It's good for the grid for there to be a lot of storage at the edges. As I understand it, the 24kWh cap is subject to annual review, with it being reduced/the policy being soft phased out once curtailment is no longer necessary.
You can't make a blanket statement like that because it depends on a lot of variables about their specific battery system and power needs. If you have just enough battery to get through a normal day so you're running them top to bottom every day then sure, those are likely to have a relatively short life. If you've set up your system with extra capacity to support extended total grid outages and/or bad weather now your normal days might only be cycling from 80% down to 60% and back. Of course battery chemistry is also relevant, and a home battery system doesn't need to care about energy density or peak charge/discharge rates in the same way an EV might.
On top of all that, now that we're over 15 years in to mass-produced EVs we've learned that our battery life expectations were generally pessimistic. As long as the batteries are kept within a reasonable temperature range and not otherwise abused they tend to be in pretty good condition even this far in to their expected service life. Home energy storage systems are a lot easier on batteries than automotive use so as a general rule they should last even longer even with similar cycle counts.
So you could eliminate the usage costs, but not the supply charge.
The whole reason for this is Australia's power grid is a market, where suppliers put in bids for how much they can produce, and at what price. And AEMO then selects the cheapest way to meet demand (paying the marginal price), but also expects residential rooftop solar a given.
As a result we often have an excess of power driving wholesale pricing into the negatives.
The free power is a way to increase usage at times when we're most likely to have negative pricing, and encourage use of high energy appliances like dishwashers etc to be run during that period to reduce demand the rest of the time.
A sneaky tax that keeps rising. In the UK it pays for failed energy companies, people defaulting on their energy bills, energy bill subsidies... and supposedly for grid upgrades lol
It's risen far above inflation (responding to a sibling comment)
In general inflation is increasing everywhere so not completely unexpected. Also solar/battery powered networks are shaped differently than ones only powered by prime movers. The edges become thicker as power becomes generated at the edge.
With sufficient take-up and consumers funding the cost of battery storage, this could replace an amount of commercial balancing services and reduce the overall cost of grid-management.
Free energy is too good to be true, even if you aren't a physicist.
The government won't address this particular perverse situation with the embedded networks until the 2027–28 DMO period.
So I'm stuck with an energy provider that is too incompetent to figure out how to bill me correctly, but puts a markup on what I'd pay as a home owner, and I don't even get the NBN despite having fibre to the premises!
No IPv6, no gigabit Internet, no free solar electricity.
The embedded networks collude with the builders and offer them the installation of wiring, air-conditioning, gas, hot water, and sometimes the internet – usually for free – and that happens before the strata comes into the picture. The strata is left with no choice but to inherit a fixed-term contract (typically 3-5 years), after which it can switch to… another embedded network.
The builders accept offers from embedded networks because it reduces their overall costs.
The NSW government has enacted the first tranche of regulations for embedded networks from the 1st of July this year, with the embedded networks price caps being introduced in early 2027 (that is the promise, anyway). If you live in NSW, IPART is the government body in charge of the regulation, and it is accepting submissions until the end of this month. Prepare and make your own submission whilst you can, as I have done.
I got into a dispute with my embedded provider because of a bad meter and came to discover through friends and family in the construction industry as well as speaking to a former sales person in the industry that there is a lot of additional corruption in the process with straight up payments being made to win installs with developers.
When it came time to switch providers in our building, strata was promised electric vehicle chargers as part of signing a new deal with a new provider. They never delivered because they found an escape clause because of fire safety approval.
We're now locked in for years (again) and they've already increased rates once in the first year.
Nobody in the entire chain works in the interests of residents or owners. It's a completely broken system and a thorn in the side of otherwise advanced and progressive Australian energy policy. It needs to be abolished ASAP.
I still pay more for my single apartment living alone in electricity than what family and friends do in full large homes with air conditioning, 4-6 residents, heated pools, etc. It's astonishing.
I have recently gone through the entire chain of complaints, the ombudsman including, and I have gained plenty of insight into how insidious the current scheme is.
NSW has set out to do something about it, with price caps being introduced in 2027. If you live in NSW, make your submission to the regulator (IPART) ASAP – submissions are closing at the end of July.
HTP!
Australia’s embedded network landscape is a peculiarly intricate tangle of nuance, complexity and regulatory optimism. Note that the embedded networks are distinctly unique and different from retail utility providers.
Please bear with my lengthy explanation for a few rather long moments.
Embedded networks are private distribution systems sitting behind a single connection to the public grid (shopping malls, apartment blocks, retirement villages, camp and caravan sites etc). They all have, effectively, a single wire going into the site.
Originally, they were designed for incidental on-selling by site managers, and they are a regulatory exception allowing the operator to on-sell electricity and other services without becoming a fully authorised energy retailer or licenced distributor. The embedded networks typically bundle: 1) electricity, 2) centralised hot water, 3) cold water, 4) gas, 5) heating / cooling (air-conditioning) and 6) fibre to the premises (sometimes, not always). All those things are governed by separate statutes.
In theory as well as occasionally in practice, they should be cheaper for consumers because they are able to negotiate lower wholesale rates from the upstream supplier and because the customer churn is non-existent (the customer is locked into the network and has nowhere to go). In some cases, that is indeed true, but because the current legislation explicitly excludes the embedded networks from the government reporting, many embedded network operators have resorted to the insidious exploitation of their customers, and the government is clueless because the operators' imposed pricing is opaque.
Natiaonally, Australia does not have a single federal embedded-network statute. The principal framework is a cooperative national scheme comprising 7 government bodies (Australian Energy Market Commission, AER, Australian Energy Market Operator, National Electricity Law and Rules, National Energy Retail Law and Rules, Australian Consumer Law and Australian Competition and Consumer Commission).
At the state level – so far – only Victoria has largely banned new embedded networks, with the remaining states either participating or not participating in the National Energy Customer Framework. Overall, NSW, Victoria, Western Australia and the national regulators are tightening the rules but they still have a way to go.
For a reform such as embedded-network regulation, the path looks closer to:
Voters ↝ political parties ↝ MP's ↝ ministers ↝ departments ↝ intergovernmental bodies ↝ regulators ↝ consultation processes ↝ rule-making bodies ↝ implementation.
Unsurprisingly and consequently, politicians become heavily dependent on: a) departmental advice, b) regulator advice, c) industry submissions, d) consultant reports, and e) lobby groups.
The people who understand the system – and especially those one who know how to work the system to their benefit – therefore acquire disproportionate influence over how the system evolves. That does not necessarily imply corruption, it is a structural feature of technical governance. Customers, however, refer to it as «rent seeking», even if they own an apartment.
Despite all that, elected representatives still do remain one of the few machineries capable of changing the underlying legal framework. The deeper issue is that modern regulatory states are neither pure democracies nor pure technocracies – they are hybrids. Formal authority remains democratic, but practical power is distributed among elected officials, bureaucracies, regulators, courts, industry participants, consultants, lobbyists and organised interest groups.
I have recently gone down the rabbit hole of the embedded networks and learned a bewildering number of things hence the fulmination.
Plus, extra Internet points for using this Unicode char that I didn't know about: ↝
> I don't even get the NBN despite having fibre to the premises!
[1] https://en.wikipedia.org/wiki/National_Broadband_Network
He decided it was waaaaay too expensive and big-governmenty to do that and besides, Uncle Rupert had a satellite tv business to defend, we don't want him to have to compete with the likes of Netflix now do we? So he told Australia that it was too much money for a "glorified video delivery service" and that 25Mbit was enough for anyone for the foreseeable, and threw out the original plans.
The plan was downgraded to "Fibre in some places, we'll reuse copper where possible". This ended up taking longer and costing more than the original plan, delivered worse service, and we're only now getting towards where we should have been under the first plan. A lot of the work has had to be repeated due to the initial poor rollout and then needing to upgrade as that 25Mbit started looking woefully inadequate. Just last year a further $5 billion was pledged to replace more FTTN/Copper with FTTP.
It's still more expensive than other markets I'm aware of, a lot of people who aren't far from cities and major towns are on wireless connections (theoretical 400Mbit, actual ~150), and the real bush "Sky Muster" system tops at 100/5 (actual ~55-83) and is having its lunch eaten by starlink.
tl;dr the Liberal (conservative) party got in and fucked it up.
Because their place of residence is connected to an embedded network that has eschewed the NBN Co and chosen to connect to a private fibre operator who sits outside the NBN. They probably also pay more compared to NBN for the same speed.
Not every embedded network supplies fibre, but some do, and that appears to be the case in their situation.
By the way, NBN has recently upgraded the network to 2Gbps, with 10 Gbps having been trialled but no availability date set as of yet.
Ok, then why not take one plan with retailer A, and another plan with retailer B?
Very interested to see how this turns out. Ultimately we want the transition to benefit both consumers and producers / distributors (the industry). The problem from the rapid uptake of solar in Australia has been an over-supply during this 10/11am to 2/3pm period. If that over-supply is suitably encouraged to be soaked up then hopefully consumers can reduce their power bills whilst the industry has less effort in managing the oversupply and less stress on infrastructure.
It's also about time that those who lack the means or situation to have solar panels of their own can get some advantage, in a 'herd immunity' kind of way.
I'm in the privileged position to have had solar panels for over a decade, and now have a battery as well, and it was very obvious to me at the time that, in regards to solar, it cost money to save money, so if you couldn't afford it then the savings are inaccessible.
This change hopefully helps those who need it, at least somewhat.
For instance, I'm looking at a new hot water system. Economically speaking, I'm better off buying an oversized tank using resistive heating that I only need to heat once per day. The grid provides free power and I buy a cheaper appliance. But environmentally it sucks, as more solar needs to be rolled out to cover the additional non-peak usage (guess about 6x the power usage of a smaller tank with heatpump).
If that's right, it's not obvious to me that building a suitably sized solar panel is environmentally worse than building a heat pump.
Economically to me, the larger tank is cheaper, because the appliance is cheaper, and I never pay for the power it uses.
Environmentally, yes, it is not obvious. The large tank requires many more solar panels to power it but no battery. The small tank and heatpump needs much less solar but battery for nighttime use.
But it is weird, because for decades heat pump tech has been pushed as the environmental choice and there are still a number of government subsidies to invest in heat pump hot water systems. And maybe that no longer makes sense, with the money saved buying cheaper and less efficient devices spent on more solar deployments.
If that’s the case, then we really don’t have to care about usage amounts _during the surplus time_. That in turn will enable completely different patterns. I think the correct analogy is the movement from candles/gas lights to electric lights. Before electricity was widely available nearly everything in life had to be done during daylight hours. Today we don’t even think twice about whether a meal can be cooked “after dark” or to move to a different location or ...
And yes that means I say: We will provide electric power for free [2], just like we do with street lighting
[1] let’s just call all replacements of cells and inverters maintenance for this discussion here [2] at the point of consumption. But that happens if the cost is smaller than the implementation of the sales system
Hot water heater tanks are easily one of the most obviously good applications of noon excess energy, and resistive heating elements might as well be free.
this applies to NSW, South Australia and part of Queensland.
As for everybody in the same time zone .. they are all seeing the same sun angle at noon (more or less) and all sharing the same over supply of power from all the grid connected solar power rooftops and farms. It's free surplus power during that time frame.
Bit like in the UK they had issues with everyone watching popular TV shows and then turning on the kettle after in a perfectly syncronized timing across the country
When solar + wind plunged in price they stopped saying it.
Now that the market has driven down the price of solar, wind and storage, market based mechanisms have become ideal for solving the problem of what to do with surplus electricity.
Australia is the third largest market in the world for grid scale batteries, and has the highest per-capita capacity in the world; https://www.pv-magazine.com/2025/10/21/australia-becomes-wor...
Not to mention more than 200k new household batteries installed in 2025 (out of roughly 10 million households).
After all, if the highest demand is between 16:30 and 19:00 you could use batteries to store power at 12:00 and sell it at 18:00 - or in famously sunny Australia you could build enough solar panels that solar output at 18:00 matches power demand.
If batteries have a solid 9% return on investment, but solar panels have an even better 12% return on investment, panels will outpace batteries even though the batteries are a decent investment.
(Also, from a politican's perspective, making batteries highly economical is how you get batteries built. And an awful lot of pro-environment policies involve raising taxes, banning things and creating new chores; it's nice to have some green policy announcements that actually benefit voters in the short term.)
No you could not. For half the year the sun has set by 18:00.
> If batteries have a solid 9% return on investment, but solar panels have an even better 12% return on investment, panels will outpace batteries even though the batteries are a decent investment.
EDIT
I forgot to say: I like your idea of intraday arbitrage using batteries! It is a very cool idea. Surely, this could be well modeled to know your expected ROI before investment/build-out.
Fire control in Australia is first and foremost about limiting spread - the bush in Australia goes off if it catches hard.
"Mini" pumped hydro is a thing here (in places): https://www.abc.net.au/news/2024-12-01/australian-first-mini...
If you know your way around high voltage DC, got a tractor and appropriate emulator - not exactly difficult or super expensive to pull off.
Granted it's pretty uncommon setup as grid batteries themselves are pretty cheap too and used EV battery is simply too large for home user, too much hassle, liability, etc to save like $2-3k.
Are they a hoarder of old car batteries and the like?
Here are two of SA's (which has the most renewable generation): https://en.wikipedia.org/wiki/Hornsdale_Power_Reserve https://web.archive.org/web/20220523164905/https://www.elect...
They are super economical in Australia and the government even offers discounts and interest free loan of 15k to buy them.
the gov't also offers interest free (but inflation indexed) loans to tertiary education.
Just because there's a subsidy, doesn't mean the tax payer is paying a price for inefficiency. The policy itself needs to be individually examined to determine whether it's an efficient use of funds, not simply that it's a subsidy (time frame needs to be taken into account too).
Meanwhile the government doesn't have any of its own money, so it can't really give you something that was yours to begin with, all it can do is take it from you and then give it back with strings attached. How is that helping you? Instead of subsidizing something you can make up your own mind about whether you want, they should just lower your taxes by the amount of the subsidy and let you use your money for that or something else at your choice.
- home batteries cost more
- homeowners buying batteries are already pretty well off on average
- a large portion of the population (renters) is excluded from the policy.
- prices are falling anyway so the subsidy is just a waste of tax dollars, arguably
- grid scale batteries are more cost effective and benefit everyone via cheap prices broadly, instead of specific homeowners.
Etc. but pork barreling be pork barreling.
I think the likely cost would have been hundreds of billions considering Australia does not have a nuclear energy generation industry. It currently has a very small nuclear workforce as it only has a small nuclear medical reactor on the outskirts of Sydney.
It's just a treasonous level of corruption.
Voters opting to be extorted like this would have been stupid.
$15 billion is far more than Snowy 2.0 should have cost. But it remains substantially cheaper than any lithium-ion battery build for bulk storage. Storage on this scale is essential in a post-coal electricity grid, and batteries are not (yet) plausible substitutes for bulk storage.
[0] This assumes linear scaling. In reality, placing an order like this would grossly distort supply and demand on many levels. Thus the cost would ultimately be superlinear.
And the comparison shouldn't be to batteries alone, but solar/wind and batteries. The former can be used directly and fill the batteries repeatedly on a timeline that is predictable.
It provides no extra value for the electricity to be stored long term if for the same money you can generate and store it short term.
Article on the various restrictions on Snowy 2.0:
https://theconversation.com/snowy-2-0-cost-blowouts-might-be...
Responding to you:
Solar and wind are just as relevant to pumped hydro, which is really just a different kind of battery. The real question is how much short-duration storage is needed from chemical batteries and how much long-duration storage is needed from pumped hydro. Chemical batteries are essential for grid stabilisation, frequency control, and intra-hour balancing. They're necessary, but not sufficient.
Pumped hydro provides something that no economically realistic combination of batteries, solar, and wind can yet deliver at scale: enough stored energy to contribute towards grid stability through consecutive overcast, low-wind days. The main alternative is to build and maintain gas-fired peaking plants for occasional backup, which is both costly and keeps us dependent on fossil fuels.
Responding to the article:
While there are credible doubts about the value of Snowy 2.0, the article does not establish its headline claim that batteries are a cheaper system-level alternative. Most critically, it doesn't acknowledge the role of pumped hydro as an insurance asset. The point of insurance isn't to be cost effective in normal times, it's to be cost effective against the risk-adjusted consequences of grid destabilisation.
It is true that under normal conditions, Snowy Hydro would have little incentive to discharge fully because doing so could depress market prices. That is why capacity contracts, underwriting arrangements and reliability options exist. We know that strategic storage has substantial social value that its owner cannot fully capture through energy arbitrage. This is a common problem for reliability assets: their success can destroy the scarcity rents needed to finance them. Hence contracts.
Vague claims that some alternative like nuclear or Snowy 2.0 will somehow make that last 1% of fossil easier to eliminate are both dubious and irrelevant if their construction uses money that could have easily eliminated 1% of fossil fuel every year for decades.
And once we get close to that last few percent of fossil gas in the electric system it would be better for costs and climate to focus on electrifying industry and homes with cheap electricity anyway.
The cost of the Snowy 2.0 pumped-hydro project is estimated to range from \(\$12\) billion to as high as \(\$42\) billion depending on the scope of costs included (such as direct construction, interest, and broader transmission). Originally announced in 2017 with a $2 billion price tag, the project has faced massive scale and logistical blowouts. The cost of the Snowy 2.0 pumped-hydro project is estimated to range from $12 billion to as high as $42 billion depending on the scope of costs included (such as direct construction, interest, and broader transmission).
That said , hydro systems have a LONG LIFESPAN - 100 YEARS ?
Batteries need to be replaced every X years.
So the ecomiomics of the comparisoan would need to be calculated ...
[1] https://en.wikipedia.org/wiki/Dinorwig_Power_Station
[2] https://www.waterpowermagazine.com/analysis/re-planting-the-...
One of the scariest industrial deaths you can imagine: cutting into a pocket of shale and the TBM and crew just vanishing into the maw of the Midgard serpent and the whole tunnel filling.
https://www.abc.net.au/news/2024-05-22/tunnel-boring-machine...
It didn't work at all for that though - we had a lot of private investment in large-scale batteries anyway, because the cost came down quickly just as most people (apart from the conservatives) expected. Then the other side of Government got in and put a subsidy scheme to get hundreds of thousands of home batteries installed, which has been multiple times better bang-for-buck than the Snowy 2.0 scheme, as well as taking far shorter a time. At the same time coal plants are shutting down as expected because they are increasingly unreliable given their old ages.
Snowy 2.0 be an expensive stranded asset basically, it will work and be somewhat useful but extremely uneconomical so basically relying on the cost being written off - if it had to recoup any investment then it couldn't run because it'd never be able to sell the power for high enough.
And you can get out every drop. And it’s always ready to go. Do need to cycle your inventory.
Fire departments probably wouldn’t be happy about it.
(did you mean 20kwh per user, or 20GW overall?)
Clarke and Dawe - The Energy Market Explained
I can only imagine the comment warnings on that segment considering that, sadly, John Clarke passed away nine years ago.
[1] https://wattclarity.com.au/articles/2026/06/system-frequency...
In winter, I’ve been using Ovo’s 3 hours free for about a year now and that ensures the battery is filled up daily. My electricity bill returns a credit every month since I got the battery a year ago.
Solar installs benefitting everyone, even those who never got solar.
In my specific case, I barely use much power so home solar covers basically all of the usage, my bill is dominated by the daily charge, so the usage component is practically irrelevant to me.
Yes, grid scale deployments are cheaper, but I'm generally guessing a lot of the grid scale solar deployments do not price in the grid infrastructure adaptation costs, and I'm not even talking about grid storage.
Consumer rooftop solar is fundamentally democratic: it reduces reliance on centralized institutions for power delivery, Make society a lot more resilient in bad weather and other emergency situations, insulates everyday people from wild variations and petroleum and other consumable energy availability.
Combined with plug-in hybrid electric vehicles, it would enable electrification of 80 and 90% of daily driving without grid infrastructure costs.
Here in Sweden nearly all of the electricity bill you pay is concentrated on the winter months when there is literally zero sunshine. Even then solar is popular here. I calculated that installing solar would take around 10 years or more to pay for itself, but I have very little hope to stay in the same house all that time so for me it seemed like a bad investment.
That said, if you live in places where it’s sunny most of the time even in winter, like Australia, then solar is absolutely great, just don’t assume most places are like that.
The reality is that a lot of old western europe was built for a climate that no longer exists. Houses are built to prioritize holding on to heat and rebuilding entire cities is definitely not possible if we're already bickering so much about adding heat pumps.
Yes, heat pumps may create a rise in temperatures in cities, but there are other things we can do as a society to also lower temperatures as to create a net-neutral impact.
One downside is that large scale solar projects aren't profitable any more. It kind of sucks for the investors that adopted green tech, that they aren't getting a good payoff.
The good news is that co-located solar and battery projects are still profitable, but capital costs are higher and payback period of batteries aren't as good.
The good thing is that even with over a decade of conservative government trying to kill it, renewables are now commercially the only choice for Australia and we will benefit from the rapid advances in storage as well.
Grid level plants are starting to also incorporate synthetic condensers and other FCAS services to make our grid more resilient and reliable, even as our clapped out coal plants move closer to shut down.
In the US, these people are known as speculators riding on government subsidy or grant, often shadily awarded - and anyone who couldn’t see consumer panel and consumer power-storage tech hooting its inflection point simply didn’t have a good grasp on the technology.
All important factors for investors.
> without any usage cap
At the risk of Reddit-style mass downvoting, I strongly encourage you to borrow Oracle-level of debt (billions of USD) and build a Tesla Megapack battery "farm" and immediately begin mining Bitcoin. Of course, the battery "farm" will conveniently only be activated during these special hours. The only forseeable risk to ROI for this project would be AT&T- or Comcast-style of "double top secret" limitations over the "without any usage cap" clause.
</sacasm>
I imagine eventually we might end up with some thermal storage where during peak renewable production you heat/freeze a large tank of water and then utilize it to heat/cool your house for the rest of the day. A large tank of water is much cheaper than battery storage.
Some large cold storage facilities in Germany are trying to optimize electric demand to use cheap peak day electricity. But they have to observe limitations in range of temperatures and capacity of cooling devices.
https://www.cleanenergywire.org/news/cold-storage-facilities...
" Compared to conventional cold storage systems, renewable energy-driven cold storage demonstrates a 10–35 % reduction in energy losses"
https://www.sciencedirect.com/science/article/abs/pii/S23521...
I've been daydreaming about the tank of water idea as well, but the amount of panels you would need on the roof would be crazy.
A tank of water is cheap, it’s just not possible to distribute hot water over the grid. But it’s very realistic to store it locally and use for heating and cooling. Which is the bulk of power usage anyway.
The other states are aiming for a 100% rollout by 2030.
And whilst EV's or Hybrds are about 50% of new vehicles, there are a lot of existing ICE domestic vehicles.
So, yeah, we actually care.
I'm in a plan that gets me $0.08/kWh during those hours, and I'm planning to switch to one that's just over half that, but I haven't come across any free power in that time span.
People think the solution is to build huge battery packs to store all that excess power during peak periods and drain them down during off-peak times.
That is certainly a solution, even if it is an expensive one. Perhaps a cheaper one is to get everyone to consume the power while it is being produced. Running air conditioners at full blast. Washing clothes and dishes. Charging electric vehicles. There are many things that can be shifted to those peak times, if the incentives are there.
Again, if the incentives are there, people will adjust.
Running the aircon 5 degrees colder at 1pm and turning it off at 2pm will nullify the temperature difference in under 30 minutes.
It is wild how cheap are solar panels now. Really, bonkers cheap. A huge rooftop solar panel costs less than 100 USD. From everything that I read/see/watch, most of the cost associated with solar panel arrays is the labour required for installation. (No hate on those folks -- they are skilled labour!)
So yeah, not universal yet. But the precedent means it's moving in that direction. If WA homes end up producing lots of solar at midday then this opens the door there as well.
Victoria deregulated its market before NSW/SA/Qld.
All of the eastern states (SA/QLD/NSW/VIC/Tas) are part of a single market, with interconnects and wholesale prices set every 5 minutes.
Victoria has its own "default offer" and regulator of the retail market, which is also offering similar "free power" hours.
WA could be part of the NEM with some HVDC across the Nullabor, not sure if it would be economically worthwhile though.
Part of the motive of moving the WEM to 5 minute intervals was to eventually leave this option open.
The largest renewable project in the world is being planned in this area[0] so it's feasible that it all may be connected one day
During this past month with the heatwave, my electricity bill was only about €50 despite running airco all day most days. I have 6 solar panels on my roof for reference (was 3k installed I believe). If I was willing to turn off the A/C at night, I could have easily cut the bill in half since most of the billed usage was between 18-21:00.
I know crypto mining in TX can operate like this, but that's boring.
Desalination and carbon capture are both energy restricted, that sounds a lot more interesting. However, the deployed equipment has to be cheap if you only have 3hrs per day of free power, right?
The payback time was already well in excess of 10 years, but now that power is free during the day, you can't count those hours as helping pay down your investment. Payback time will be 30 + years at least. You are much better just enjoying your neighbors solar rather than paying for your own.
(Feed-in is about 3c now I think. Was 12c when many people bought their panels.)
Note: My state 100% renewable energy so reduction of carbon footprint has not bearing on my solar decisions.
This also feels like a fairly heavy handed way to encourage investments in batteries. But in the famous words of George W, "can't fool me again". As soon as there are too many batteries and the grid companies are not making enough money, they will introduce fees to have the batteries, or increase connection fees.
Solar generation is realitely cheap, much more storage is needed. Storage (overnight and also for several days) is challenging - one reason being its more expensive. Then there is the new transmission lines needed.
Perhaps had they used a napkin they would have agreed with you.
I feel like they had to kill griddy before all the powerwall solutions started showing up. We simply cannot empower the peasants with both things at once. The ability to store energy makes access to wholesale prices substantially more effective.
I'll never forget the days where we would get push notifications about negative prices. I'd throw the dryer and oven on every time to try and unwind the meter a bit.
Not everything is for everyone. At no point did I feel like I was getting scammed as a customer. I was using them during the winter event.
Demand shifting is good. Do not mistake this as free energy, it very much depends. Many people still don't have TOU meters and many people won't successfully move load into the window.
Fixed line costs are rising massively. Electricity should be significantly cheaper but the economics here favour incumbents and people like John Quiggin arguing for renationalisation are drowned out.
What is then the incentive to install (or repair/maintenance) solar panels?
Coinciding with this, suppliers put daily connection charges up.
In practice, any profit-making enterprise will not want to miss out on the income they were previously getting, so will find other times and charges to load it onto. Also, they know some people will specifically choose an energy plan that seems to give them something free, so it's easy to take advantage by increasing the prices they pay less attention to.
So, maybe this is a correction?
But it will still have the desired effect of shifting usage patterns, especially for people with rooftop solar and/or batteries and/or EVs.
We have a very large penetration of rooftop solar (due to government subsidies) and now home batteries as well.
There's definitely been a shift in the market "after sunset" when the coal "baseload" and gas peakers used to make their money.
The batteries are flattening out those spikes dramatically.
basically a free IQ test.
After: 30c/kwh most of the day, 0c from 11-2
It's still worth it if you have a lot of load you can shift to the middle of the day (like a pool heater or battery), but for most 9-5 workers you just end up paying more at the times you're actually home.
Smart meters are free, most people already have one.
Even if you're not home I'm thinking there are a number of ways to make use of the free elec. Hot water geyser seems like the obvious first candidate.
I'd also think heating (in winter), cooling in summer. Even if you're not there in those times, the effects will be evident for many hours after.
For those who have programmable washer/dryers or dishwashers it's also good. Even ovens on occasion.
I get that not everyone is best placed to take advantage of this, but equally improvements don't have to be an "everyone or no one" option.
The government is having to force them to reflect the abundance of cheap, clean energy at these times in at least one of their tariff offerings.
They can bend the rules slightly by adding other daily charges or limitations and upping the price at other times to reduce uptake and move us all slightly further from the global optimum but maximize their profits.
The fundamental costs and margin requirements in the system haven't changed.
This is a government-mandated electricity plan (a default market offer) that competitive electricity retailers are now required to offer. Those retailers still have network costs, environmental costs, energy costs, and administration costs to recover, and so prices at other times of day necessarily go up.
Some consumers may be better off on this plan (generally at the expense of other consumers), and some will be worse off.
It's good politics and only so-so policy.
You can wash your clothes during this time to take advantage on this.
You can cook on the electric stove during this time to take advantage of this.
No battery is required to do this. I can't connect your logic to my reality.
Not Victoria which has bankrupted itself building roads and railways it cannot afford.
Victoria's default offer will include the same offer from October [1].
Victoria has a separate regulator because it deregulated its electricity grid before the other states.
[1] https://www.energy.vic.gov.au/households/save-energy-and-mon...
Sadly probably wont be any good for selective crypto mining, alas.
I think the only way most people could get to 8kW continuous without an EV would be to turn on their electric oven, grill, and all spots on their electric hob. And the kettle.
It's by hour, and the highest times are probably when I was cooking with both the oven and the hob, and perhaps had the washing machine running too. The highest hour used 2.9kWh.
Plenty of cheap (e.g. rental) homes in the UK have crappy electric shows, which are usually rated at 6-8kW — but rarely used for a whole hour.
But also it is unlikely that we used 24kWh in any one day ever.
I imagine that this is not the target audience.
The rest of the states in the NEM are aiming for 2030 to complete their rollouts.
Aside from the supposed "contentious" nature of smart meters, which is mostly the RW cookers thinking it's some nefarious plot, along with vaccines and 5G.
Eh I sit on the fence on this one. Take your pick as to who is going to abuse the data. Corps or the government to taste.
Consider this very proposal, incentives to use power at certain times are good. But that incentive structure could instead be very anti consumer. Higher prices when we need electricity would be a horrid state of affairs when rents have doubled in 5 years and a lot of people are barely holding on.
They enable new services like feed-in tariffs and incorporation of V2G and VPP infrastructure.
Rents have not doubled in 5 years.
Rental inflation peaked at ~8% and is now below 4% pa.
> they are technology that enables better time-of-use metering
Right and we all have to pretend that the technology is neutral and act surprised when it ends up being used for anti consumer purposes? Thats the usual game isn't it?