Envirogroup - The Solar and Sustainability Experts

Three Hours of Free Power: What Victoria’s Midday Power Saver Means for Your Home

From 1 October 2026, Victorian households can opt in to a new electricity offer that makes power completely free between 11am and 2pm, every day of the week.

It’s called the Victorian Midday Power Saver, and it’s one of the biggest changes to household electricity pricing in years. But it isn’t a rebate, and it isn’t free money. The rates you pay outside that window go up to pay for it, which means the offer rewards households that can genuinely move their energy use into the middle of the day.

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Here’s how it works, what it’s realistically worth, and how to set your home up to make the most of it.

The basics

  • Free window: 11am to 2pm, every day of the year, in every Victorian distribution zone
  • Starts: 1 October 2026
  • Cost: Nothing to join, it’s an opt-in offer through your electricity retailer
  • Who’s eligible: You need a smart meter, and you need to be with a retailer that has 1,000 or more customers (which covers most of them)
  • Solar not required: You don’t need panels or a battery to sign up
  • Regulated: The Essential Services Commission (ESC) sets the tariffs and reviews the scheme annually

Why is the government giving away power?

Because in the middle of the day, Victoria often has more electricity than it can use.

More than 850,000 Victorian homes now have rooftop solar. On a sunny day, all of that generation floods the grid at once, pushing wholesale prices down to near zero. Meanwhile, the expensive crunch comes in the evening, when everyone gets home, turns on the heating and starts cooking at the same time.

The Midday Power Saver is designed to move demand out of that evening peak and into the solar-soaked middle of the day. Households get cheaper bills; the grid gets a flatter, more reliable demand curve. Victoria generated 44.6% of its electricity from renewables in 2025, beating its 40% target, and this is one way that surplus gets passed back to households.

How the pricing actually works

This is the part worth understanding before you sign up. The Midday Power Saver isn’t a flat rate with a free window bolted on, it’s a four-part time-of-use tariff. Here are the ESC’s regulated rates for the first cycle (1 October 2026 to 30 June 2027), including GST:

There are two important things to pay attention to here.

First, the 4pm–9pm peak is expensive. Around 43 cents a kilowatt-hour on average, and nearly 50 cents in AusNet’s distribution zone. That’s where the cost of the free window is recovered. If your household runs the dryer, the dishwasher and the oven at 6pm, you’ll feel it.

Second, there’s a fair use cap on the free period. Draw more than the cap during the three-hour window and the extra is billed at the “solar soak” rate rather than free. For most homes that won’t be an issue, as a typical Victorian household uses around 15–16 kWh across an entire day. The exception is EV owners: a 7kW charger running the full three hours pulls about 21 kWh on its own.
The national Solar Sharer Offer sets its cap at 24 kWh a day and the Victorian scheme has been designed to align with it, but confirm the exact figure with your retailer when you sign up.

What’s it actually worth?

The Victorian Government estimates households on the Midday Power Saver could save between $149 and $428 a year, depending on their circumstances and assuming they shift 5% to 30% of their usage into the free window.

Households charging an electric vehicle during the free period could save considerably more, an estimated additional $674, or around $1,102 in total.

Those numbers come with an important caveat: shifting 20–30% of your daily consumption by changing when you run typical appliances is genuinely hard for a lot of households. If you can’t move much, the higher peak and off-peak rates could leave you paying more than you do now.

Who does it suit?

Good fit:

  • People who work from home, or are home during the day
  • Households with a hot water heat pump that can be timed to run midday
  • EV owners who can charge on a weekday at home
  • Homes with a battery, pool pump, ducted heating and cooling, or good insulation. Anything that lets you store or “pre-load” energy
  • Anyone comfortable using appliance timers and smart controls

Think carefully:

  • Households out of the house all day with mostly evening usage and no automation
  • Homes without a smart meter (ask your retailer about an upgrade first)
  • Anyone whose hot water or pool pump is on a controlled load circuit that can’t be re-timed
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If you already have solar

You might assume the offer doesn’t for you, you’re already making your own free power at midday. But there are real angles worth looking at:

  • Winter and overcast days: When your array is producing at a fraction of its capacity, free grid power between 11am and 2pm covers the gap and can top up your battery for the evening peak.
  • Battery charging: Charging from the grid at $0 and discharging into a 43-cent peak is a strong arbitrage, especially in the cooler months.
  • Bigger loads than your array: If you’ve added an EV or electrified your heating and hot water, your midday demand may now exceed what your panels can supply.

Why a battery is the strongest way to use this offer

The Midday Power Saver rewards you for using power between 11am and 2pm. The problem for most households is that the power they actually need is at 6pm; dinner, heating, hot showers, the dryer, the EV plugged in for the night. Those are the hours the new tariff charges the most for.

A home battery is the piece of equipment that solves that mismatch. It lets you take energy at 11am and spend it at 6pm.

It works when your solar can’t.
On a clear summer day your panels already fill the battery for free. The gain shows up on the days your array underperforms: winter, cloud, rain, short daylight hours, or a home that has electrified faster than its solar system has grown. Those are exactly the days your evening consumption is highest. A battery paired with this offer means the evening peak is covered every day of the year, not just the sunny ones.

Three things to get right:

  • Charge rate. The free window is only three hours long, so how fast your battery charges matters as much as how big it is. At 5kW you can put roughly 15 kWh in; at 2.5kW you’ll only manage 7.5 kWh no matter how large the battery. If a battery can’t fill itself inside the window, part of its capacity sits idle.
  • Scheduled grid charging. The battery needs to be configured to charge from the grid on a timer, not just from surplus solar. Most modern systems handle this well, but it’s a setting that has to be deliberately enabled. If you’re signed up to a VPP or a retailer control program, check how that interacts before you switch plans.
  • The fair use cap. Charging a battery and an EV simultaneously inside the same three hours can push you over the cap on the free period. Anything above it is billed at the solar soak rate — still cheap, but not free. Sequencing the two matters.

Get a free battery consultation and quote to see how you can save!

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