Victoria Introduces Free Midday Electricity to Slash Household Energy Bills
March 25, 2026
The article was updated on March 25, 2026, with the original publication time listed as a few minutes earlier.
Industry feedback from the Australian Energy Council cautions that benefits may be limited for those who cannot shift most of their power usage to midday and could still face higher prices outside the free window.
The proposed scheme could save households up to $300 per year, with larger savings for those with solar panels and home storage, according to the Premier.
Victoria will offer three hours of free daytime electricity for households as part of a state government plan to cut energy bills, with the exact midday hours to be confirmed and begin in October.
Premier Jacinta Allan describes the policy as a measure to reduce costs for families and to highlight potential savings for remote work arrangements.
The scheme aims to counteract peak-hour price spikes and leverages solar generation, which currently accounts for about 11% of the state's energy supply, potentially expanding savings for solar and battery users.
All 2.6 million Victorian households will be eligible regardless of retailer or package, while businesses are not eligible; opt-in details are still being finalized.
Electricity retailers will be required to offer a discounted tariff during the midday free period, and consumers must opt in with their provider; exact prices will be announced in May.
The policy relies on load shifting to the middle of the day, and the benefits depend on consumers’ ability to move most usage to that period.
The policy leverages mid-day solar generation to maximize savings, with the current solar contribution around 11% of the state's energy mix.
Starting in October, eligible households will gain three hours of free electricity during the day, with the exact hours to be announced; opt-in details are forthcoming.
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Summary based on 2 sources
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Sources

The Sydney Morning Herald • Mar 25, 2026
Millions of Victorians offered free electricity during the day
news.com.au — Australia’s leading news site for latest headlines • Mar 25, 2026
Free power for millions of Aussies