Solar Sharer + Heat Pump Hot Water: Near-Free Hot Water Explained

The Solar Sharer Offer is a federal energy initiative that launched on 1 July 2026. It gives eligible households 3 hours of free electricity per day during the peak solar generation window in the middle of the day. The idea is simple: Australia now generates so much rooftop and grid solar around midday that the power is effectively surplus, so households are being encouraged to soak it up rather than let it go to waste.

It is available in New South Wales, South Australia and South East Queensland from 1 July 2026. The free window is:

• 11am to 2pm in New South Wales and South East Queensland
• 12pm to 3pm in South Australia

You can draw up to 24 kWh free per day within that window. Importantly, this is opt-in through your electricity retailer, not a rebate or a cash payment. You need a smart meter plus an eligible retail plan, and you need to shift some of your usage into the middle of the day to benefit. It is open to both renters and homeowners, and you do not need rooftop solar of your own to take part.

Sources: energy.gov.au; SolarQuotes.

Of all the appliances in your home, hot water is arguably the best match for a 3-hour free window. Here is why.

Hot water is a stored load. A hot water tank heats water and then holds it, insulated, for hours. Unlike cooking or watching television, you do not have to be using hot water at the moment it is heated. You can heat a full tank during the free window at midday and draw on it for that evening's showers, dishes and laundry.

A heat pump only needs a short burst. A heat pump hot water system does not run all day. It typically needs an hour or two to bring a tank up to temperature. That fits comfortably inside a 3-hour free window with room to spare.

The energy adds up to a real share of your bill. Water heating is one of the largest single energy uses in a typical Australian home. Moving that load into a free window is one of the highest-impact things a household can do with the Solar Sharer Offer, rather than trying to reschedule dozens of small appliances.

Because a heat pump uses roughly a third of the energy of a conventional electric element to deliver the same hot water, the amount of electricity you need to pull in the free window is small. Even a large tank reheat sits well under the 24 kWh daily free cap.

Making this work is mostly about timing. The goal is to have your heat pump do its main heating inside the free window, and avoid it topping up on full-price power at other times of day.

1. Opt in with your retailer. The Solar Sharer Offer is signed up through your electricity retailer, and it requires a smart meter and an eligible plan. Check whether your retailer offers it and confirm the exact free window that applies to your area.
2. Set the heat pump timer to the free window. Most heat pump hot water systems have a built-in timer or a smart control that lets you choose when they run. Set the main heating cycle to start at the beginning of your free window (for example, from 11am in New South Wales and South East Queensland, or from 12pm in South Australia).
3. Size the tank so one daily heat lasts. A tank that comfortably holds a day's hot water means you only need to heat once, inside the window. If you regularly run out, a larger tank or a second shorter heating cycle may help. Our sizing guide covers this.
4. Keep an eye on the boost. Many systems have an electric boost element for cold snaps or heavy use. If the boost fires outside the free window it will use full-price power, so use it sparingly.

If you also have your own rooftop solar, you get the best of both: your panels can cover heating on sunny days, and the Solar Sharer window is there as a free fallback when your own generation is low. Our solar soak guide goes deeper on timers, diverters and smart controls.

The Solar Sharer Offer is genuinely useful, but it is worth being clear about the limits so you can plan properly.

• It is opt-in and retailer-dependent. This is not an automatic entitlement. You have to sign up through a participating retailer on an eligible plan, and availability and terms vary between retailers.
• You need a smart meter. The free window is measured by an interval-capable smart meter. If you do not have one, you may need one installed before you can take part.
• Rollout and eligibility vary. The offer is available in New South Wales, South Australia and South East Queensland from 1 July 2026. If you are elsewhere, or on a plan that does not include it, it may not apply to you.
• The rest of your plan still matters. A free midday window can come packaged with different rates at other times. Look at the whole plan, not just the free hours, before switching.

Even with those caveats, the combination is compelling. A heat pump already runs cheaply, and heating it inside a free window can cut the running cost of your hot water even further. Savings depend on your plan, your usage and how well you time the system, so treat this as a way to typically reduce your hot water costs rather than a fixed guaranteed figure.

If you are in New South Wales, South Australia or South East Queensland and thinking about a heat pump, the Solar Sharer Offer strengthens the case: a system that is already cheap to run can heat your water in a free window most days.

The first move is a system sized and set up for daytime heating. A good installer will fit a timer or smart control and help you match the tank size to your household so a single daily heat inside the free window is enough.

Want a quick number first? Our Solar Sharer hot water savings calculator estimates what you could save based on your state, current system and household size. It is a guide, not a quote.

Ready to see what it would cost for your home? Get free quotes from local heat pump installers and ask them to set the system up for solar soaking.