Report finds market offers beat government’s solar sharing program
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IEEFA Australia researchers discovered that electricity retailers consistently offer greater power bill savings through their own solar sharing plans compared to the federal government’s Solar Sharer Offer (SSO) in New South Wales, Queensland, South Australia, and soon, Victoria.
The study found the SSO, which provides three hours of free electricity daily, includes features like high shoulder tariffs and a 24 kWh daily cap that limit potential savings.
These features were designed to ensure retailer viability but may unintentionally increase costs for some consumers. Researchers found market-based solar sharer tariffs often feature longer free power periods, higher caps, like 50 kWh offered by GloBird Energy, or no cap at all, providing more flexibility for households. Savings varied by location, with Melbourne seeing considerable savings from the regulated SSO, while Brisbane saw none. However, the difference between the regulated SSO and the best market offerings was substantial.
The report details how households can maximize savings by using free power to heat water, charge batteries, or power electric vehicles. A household with a 20 kWh battery could save between $1,377 and $2,202 annually by storing free power for evening use. IEEFA recommends regulators analyze competitive market offerings and consider expanding the free power window, introducing minimum evening feed-in tariffs, or raising the daily cap to improve the SSO’s effectiveness.
