The cost of groceries and fuel might still sting, but there’s finally some good news for Victorians tackling the cost-of-living crunch—free electricity is on the way.
From 1st October 2026, every Victorian household will be eligible for three hours of free electricity each day under a new state government scheme designed to take pressure off both family budgets and the power grid.
The Midday Power Saver program will give residents a free three-hour window of power between 11am and 2pm, seven days a week, when renewable energy supply is often overflowing.
The idea is to reward people who run the dishwasher, air fryer or washing machine during the sunny hours—instead of peak evening time—and help balance energy demand in the process.
“Three hours of free power every day will take real pressure off household bills and lower prices outside those hours mean families save even more,” Energy Minister Lily D’Ambrosio said.
The government says households could save anywhere from $149 to $1,102 a year depending on how much electricity use they shift into the free midday period.
Around 2.6 million households will be able to opt in through their energy retailer, regardless of provider or existing plan, making it the biggest free power offer in the country. According to the state government, that’s more eligible households than similar schemes in other states combined.
Victorian households on the Midday Power Saver plan are also expected to pay significantly lower electricity rates outside the free period compared to equivalent offers in South Australia, New South Wales and Queensland. The government says rates will be 12 to 19% cheaper on average across every Victorian region.
Encouraging Daytime Energy Use
Victoria’s huge solar network is at the heart of the move. More than 850,000 homes already generate their own solar power, producing around 11% of the state’s total energy. Energy Minister Lily D’Ambrosio said the new scheme would help spread those benefits to non-solar households while making better use of the daytime surplus.
“When the sun is shining, rooftop solar is flooding the grid with power—and this program makes sure more Victorians can tap into that,” D’Ambrosio said previously.
While the government is pushing the initiative as a win-win for households and the environment, energy retailers say it will only benefit those able to shift their electricity use to midday hours.
Australian Energy Council chief executive Louisa Kinnear said households unable to move their usage away from peak times could end up paying more overall.
“Customers will only benefit if they can shift their usage to the middle of the day. Those who cannot should not opt into the new offer,” she said.
What It Means For Victorians
For remote workers or parents at home during the day, the opportunity is to power up the laptop, run a load of washing and maybe even charge the EV without adding a cent to the bill. For others, it might mean rethinking when to run the dryer or preheat the oven.
The government says the program will be available through all energy retailers, ensuring every Victorian household can access the deal once it launches. Business customers, however, are not eligible.
The announcement comes as the government also highlighted lower electricity costs for households on the Victorian Default Offer (VDO), which it says will be $444 cheaper for households and $1,299 cheaper for small businesses than the average Default Market Offer in NSW, Queensland and South Australia during 2026–27.
In short, if you’re happy to sync your daily chores with the midday sun, your energy bill might soon look a whole lot lighter.
