Victoria Launches Midday Power Saver for Significant Energy Bill Savings
The Victorian government has announced it will implement its own variant of the federal Solar Sharer initiative, enabling households across the state to enjoy three hours of complimentary electricity during the midday period. This initiative aims to cut energy costs for families by an estimated £300 to £1,070 annually.
In a statement on Wednesday, the Victorian Labor government revealed that the Midday Power Saver scheme will be available starting from 1 October, with further details regarding the specific timeframes and pricing to be unveiled in May.
Eligibility and Registration
Approximately 2.6 million households in Victoria are expected to qualify for the Midday Power Saver scheme and can easily opt into the programme through their energy retailer.
This decision follows last November’s mandate for electricity retailers to provide at least three hours of free power in the middle of the day for households located in markets overseen by the Australian Energy Regulator. This regulation covers all states within the National Electricity Market, excluding Victoria.
Reforms in the Energy Sector
The Solar Sharer initiative is part of broader reforms to the Default Market Offer (DMO), which caps the costs that energy retailers can impose on a limited number of households and small businesses in New South Wales, south-east Queensland, and South Australia.
Shortly after the federal announcement, the Essential Services Commission (ESC), which sets the Default Offer price for Victoria, expressed its intention to gather feedback on a similar initiative for the state. This request came from Victorian energy minister Lily D’Ambrosio.
Reducing Energy Inequity
Both solar sharing initiatives aim to reduce energy inequity by distributing the financial benefits of rooftop solar power to those who are unable to install solar systems for various reasons. However, it primarily benefits households that can adjust their electricity usage to the midday timeframe—those working from home, owners of electric vehicles who can charge them during these hours, or homes equipped with batteries capable of storing lower-cost power from the grid.
Victorian premier, Jacinta Allan, stated on Wednesday that this new offer is “another reason why working from home can save you time and money.” She further noted, “This could save families up to £300 per year off their energy bills – even more if they possess solar power systems and batteries.”
Grid Stability and Market Impacts
D’Ambrosio expressed confidence that the Midday Power Saver would provide substantial savings for Victorians, stating, “Whether you work from home or use smart appliances, the Midday Power Saver will save Victorians money.”
The implementation of this scheme also aims to mitigate issues related to the excessive influx of rooftop solar energy into the grid during midday, which can complicate operations for the market operator and drive up costs due to necessary network expansions.
Federal energy minister Chris Bowen remarked that the Solar Sharer initiative aims to decrease peak demand during the evenings. This reduction is expected to lower peak electricity prices and diminish the need for expensive network enhancements to maintain grid stability.
Electricity Price Forecasts
Earlier this month, the ESC indicated that electricity prices are likely to decrease across all five electricity distribution zones in Victoria, which could lead to a near £50 reduction in annual household energy costs and approximately £170 for small businesses in the forthcoming financial year.
The ESC’s draft decision on the 2026-27 Default Offer price suggested that domestic customers could see price reductions ranging from £43 to £48 per year, averaging out to around £46, representing a decrease of approximately 3 per cent from 2025-26.
