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Solar Sharer Offer (SSO) Explained: What It Means for Australian Households in 2026

Updated 25 March 2026 · 10 min read

Key Takeaways

From 1 July 2026, households in NSW, South East Queensland and South Australia can opt in to the Solar Sharer Offer (SSO), a regulated plan providing three hours of free electricity during midday. You do not need solar panels. You do need a smart meter. The SSO uses a time-of-use tariff structure with slightly higher rates outside the free window. Whether it lowers your bill depends on how much usage you can shift to the middle of the day.

What Is the Solar Sharer Offer?

The Solar Sharer Offer is a new regulated electricity tariff introduced by the Australian Government as part of reforms to the Default Market Offer (DMO) framework. Announced in November 2025 and legislated in March 2026, the SSO requires electricity retailers with 1,000 or more customers to offer a standing offer plan that includes three hours of free electricity during the middle of the day.

The policy takes advantage of a structural shift in Australia's electricity market. With nearly 40% of Australian households now generating rooftop solar, wholesale electricity prices during midday hours are frequently very low, and sometimes negative. The SSO shares this benefit with all households, not just those with solar panels.

The SSO is opt-in. No one will be automatically moved to an SSO plan. It launches on 1 July 2026 in DMO-regulated states: New South Wales, South East Queensland and South Australia. The Australian Government is consulting with Victoria and Western Australia about extending the offer to those jurisdictions from 2027.

How the SSO Works

Under the SSO, participating households receive free electricity during a designated three-hour window each day. The specific hours are:

NSW

11am – 2pm

SE Queensland

11am – 2pm

South Australia

12pm – 3pm

During the free window, households can use up to 24 kWh without usage charges. This cap is modelled on the energy needs of a five-person household and is more than sufficient for most households. Any consumption above 24 kWh during the free period is charged at a reasonable capped rate, typically the off-peak rate for your distribution network.

Outside the free window, the SSO uses a time-of-use tariff structure with peak and off-peak rates. The AER has stated that the SSO's annual cost for a typical household is designed to be comparable to the DMO time-of-use tariff, but with slightly higher rates (estimated 1 to 4 cents per kWh) outside the free window to offset the free period.

Who Is Eligible?

To access the SSO, you need two things: a residential electricity account in a DMO-regulated state (NSW, South East Queensland or South Australia), and a smart meter. You do not need solar panels. The SSO is a residential tariff only, so small business customers are not eligible.

If you do not currently have a smart meter, you can request one from your retailer. All NEM customers are expected to have smart meters by 2030 under the national smart meter rollout. Contact your retailer to arrange installation, which is typically free of charge.

SSO vs. Feed-in Tariffs: Key Differences

The SSO and solar feed-in tariffs (FiT) address different parts of the solar equation. A feed-in tariff compensates you for electricity your rooftop solar exports to the grid. The SSO gives you free electricity from the grid during peak solar hours. They can work together.

FeatureFeed-in Tariff (FiT)Solar Sharer Offer (SSO)
What it doesPays you for solar you exportGives you free electricity from the grid
Requires solar panels?YesNo (smart meter required)
How you benefitBill credit for exportsZero usage charge during free window
Typical value3 to 12 c/kWh depending on plan and stateEstimated 20 to 35 c/kWh saved per kWh shifted
Regulated?VIC minimum FiT only. Other states market-based.Yes, part of the DMO framework
Can you have both?YesYes, if your SSO plan includes a FiT

For households with solar panels, the SSO and FiT can complement each other. During the free window, you can consume electricity from the grid at no cost while your solar panels continue exporting to the grid and earning FiT credits. However, some energy commentators have noted that FiT rates may face additional downward pressure as the SSO increases midday demand from the grid.

Who Is Likely to Benefit Most?

The SSO is designed to benefit households that can shift electricity usage to the middle of the day. Households likely to benefit most include those where someone is home during the day (people who work from home, retirees), households with schedulable appliances (pool pumps, hot water systems, washing machines), households with electric vehicles that can charge during daytime hours, and households with battery storage systems that can charge from the grid during the free window and discharge during peak hours.

Renters and apartment dwellers without solar panels can also benefit, since the SSO does not require rooftop solar. However, the savings for households that cannot shift significant usage to the free window may be limited, and the higher rates outside the free period could mean you pay more than on a flat rate plan.

Households with battery systems may see the greatest financial benefit. Charging a battery during the free window and discharging during the evening peak could reduce annual bills substantially. Industry estimates indicate the SSO could reduce battery payback periods by up to two years for some households.

Estimated Impact: Example Scenarios

The following scenarios illustrate the estimated annual impact of the SSO for different household types. All figures are estimates based on draft DMO 2026-27 pricing and typical usage patterns.

Work-from-home household, no solar

Shifts dishwasher, washing machine and dryer to free window. Uses approximately 5 kWh during free period daily.

Estimated $350 to $550 per year less than a flat rate plan

6.6kW solar household, 30% self-consumption

Already using solar during the day. SSO provides free grid electricity during the 3-hour window on top of solar self-consumption.

Estimated $100 to $250 per year additional saving versus standard TOU plan

Solar + 10kWh battery household

Charges battery from grid during free window, discharges in evening peak. Combined with solar exports earning FiT.

Estimated $500 to $800 per year less than a flat rate plan

No solar, away during the day

Minimal ability to shift usage. SSO plan's higher off-peak rates may offset small midday savings.

Estimated $0 to $50 per year saving. A flat rate or standard TOU plan may be more suitable.

Victoria: A Different Regulatory Framework

Victoria is not covered by the DMO. Instead, electricity prices for standing offer customers are regulated by the Essential Services Commission (ESC) through the Victorian Default Offer (VDO). The SSO does not automatically apply in Victoria.

However, the ESC has been asked by the Victorian Government to assess the suitability of a regulated free power period for Victorian households. A consultation ran through late 2025. If Victoria introduces a similar arrangement, it could take effect as early as July 2027.

Victoria also has a minimum feed-in tariff, set annually by the ESC. This is unique among Australian states. Other states allow feed-in tariff rates to be set entirely by the market.

How to Compare SSO Plans

When comparing SSO plans to other electricity plans, looking at the feed-in tariff rate alone is not enough. The total annual cost depends on the interaction between the free window, the usage rates outside the free window, the daily supply charge, and your actual consumption pattern.

Use our SSO Calculator to estimate how an SSO plan compares to your current plan based on your postcode, household size and daily usage pattern. You can also compare all available electricity plans in your area using energy·saver's comparison tool.

SSO Timeline

November 2025
Australian Government announces Solar Sharer Offer and opens consultation
March 2026
SSO regulations finalised. AER releases draft DMO 2026-27 including SSO tariff structure
26 May 2026
AER publishes final DMO 2026-27 determination with confirmed SSO rates
1 July 2026
SSO plans become available in NSW, South East Queensland and South Australia
2027 (estimated)
Potential extension to Victoria and Western Australia

Frequently Asked Questions

Related

DMO and VDO 2026-27: What Is Changing for Your Electricity Bill on 1 July →SSO Calculator: Estimate Your Savings →

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General information only. Prices are estimates based on the AER draft DMO 2026-27 determination and typical usage assumptions. Final rates will be published by the AER on 26 May 2026. Always check your bill for actual charges. energy·saver does not provide financial advice.