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Late last week, the Australian Energy Regulator went and shoved a Default Market Offer document onto the internet.\u00a0 But don\u2019t worry \u2014 that\u2019s normal behaviour for an Energy Regulator around this time of year.\u00a0 The important thing is, it came with information on the Solar Sharer Offer that will make 3 hours of free daytime electricity available in NSW, SA, and South East Queensland to anyone with a smart meter who wants it, from July 1.<\/p>\n
How Will Solar Sharer Work In Practice?<\/p>\n
Based on the Australian Energy Regulator\u2019s latest details, I can now confidently state the following about how Solar Sharer is going to work:<\/p>\n
Plans with free daytime electricity will be available from July 1 to those with smart meters<\/a>. If you want to read what the AER says about the Solar Sharer Offer in the draft Default Market Offer for yourself, you can find the relevant information here<\/a>.<\/p>\n There Shouldn\u2019t Be Hidden Or Extra Costs A graphic from the Australian Energy Regulator showing how the Solar Sharer Offer is expected to shift energy demand.<\/p>\n The plans with free electricity periods are supposed to be designed so households with typical electricity consumption patterns won\u2019t pay any extra if they switch to a Solar Sharer Offer plan.\u00a0 While they may pay a little more outside of the free period, normal consumption in the free period will even it out.<\/p>\n But households with typical consumption patterns won\u2019t save money unless they shift at least some electricity use to the free period.\u00a0 This will be easy with a battery or an EV that\u2019s sometimes parked at home during the day.\u00a0 But there are plenty of other ways to do it.\u00a0 You can put a timer on your hot water system or other appliances, or heat or cool your home during the day using your air conditioner<\/a>.\u00a0 The better your home\u2019s insulation and weather sealing, the better this will work, so you may want to consider improving it now to beat any rush and be ready for winter.<\/p>\n If you want my opinion on whether it\u2019s fair that you\u2019ll only save money if you shift electricity consumption to the free period \u2014 yeah, it\u2019s totally fair.\u00a0 Their whole point is to shift shock juice use to the middle of the day and not to effortlessly make people\u2019s lives better.<\/p>\n Not The Best Option For Solar Only Households<\/p>\n Keep in mind that if you have a decent sized solar system and no battery, you\u2019re likely to be better off without a Solar Sharer Offer plan.\u00a0 This is because you probably use hardly any grid electricity during the free period.\u00a0 But if you do have a battery, it can be very worthwhile because you can charge it with up to 24 free kilowatt-hours on cloudy winter days when your solar system\u2019s output may be minimal.<\/p>\n
\nIt\u2019s opt in \u2014 no one has to have one of these plans if they don\u2019t want it.
\nExpect a 3 hour free electricity period every day.
\nIn NSW and South East Queensland, the proposed free period is from 11am to 2pm.
\nIn SA the proposed free period is from 12pm to 3pm.
\nThere will be a daily 24 kilowatt-hour cap on free electricity.
\nThere\u2019s no penalty for exceeding the cap \u2013 you just start paying your usual daytime rate for any excess.
\nAll modest and major electricity retailers will offer these plans.
\nItty bitty electricity retailers with less than 1,000 customers don\u2019t have to offer them.
\nThey\u2019ll be available in the ACT, Tasmania, and Victoria in the future, with Victoria likely to get them first.<\/p>\n
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