Free Electricity for 3 Hours a Day in QLD: Can You Get Free Hot Water?

From 1 July 2026, eligible households in South East Queensland are expected to have access to a new free daytime electricity offer, giving smart-meter homes a daily window where electricity can be used for free during the middle of the day.

For Brisbane, Gold Coast and South East Queensland homes, this could create one of the best hot water savings opportunities in years.

The reason is simple: hot water is one of the biggest energy users in many homes. If your electric hot water system or heat pump hot water system can heat during the free daytime electricity window, you may be able to reduce the amount of paid electricity used to make hot water.

The best setup depends on your home, your electricity plan, your hot water system, your tank size, your solar setup and whether your system can be safely controlled.

For many households, the strongest long-term savings option will be a properly selected heat pump hot water system, because heat pumps use less electricity than standard electric storage systems when matched correctly.

For other homes, a standard electric hot water system may still be practical, especially when paired with the right timer, solar setup or electrician-installed control strategy.

Hot Water Outlet does not install hot water systems directly, but can help customers compare supply-only products online and may help arrange quotes from reputable installers where appropriate.

Quick answer

The new free daytime electricity window may help eligible Queensland households reduce power bills by shifting hot water heating into the free power period.

For homes with a smart meter, the biggest opportunity is usually to run high-energy appliances like electric hot water systems, heat pump hot water systems, pool pumps, dishwashers, washing machines and EV charging during the free electricity window.

For hot water, the best options are usually:

• Upgrading to a heat pump hot water system for the best long-term electricity savings

• Using solar power during the day to heat water when your system and household usage suit

• Pairing a suitable hot water system with a timer or smart control setup arranged by a licensed electrician

• Replacing an old tank with a correctly sized electric hot water system

• Ordering the right valves, fittings, pipework and accessories at the same time so your installer has what they need

The right choice depends on the household’s hot water demand, electricity plan, current system condition, solar setup, tank size, product specifications and installation requirements.

Why hot water is one of the biggest savings opportunities

Hot water matters because it uses a large amount of energy, but it does not always need to heat at the exact time you use the water.

A storage hot water system heats water and stores it in the tank. That means the system may be able to heat during a cheaper or free electricity period, then hold that hot water for showers, washing and general household use later in the day.

This is where free daytime electricity becomes important.

If your hot water system currently heats during paid peak or shoulder periods, shifting some or most of that heating into the free electricity window may reduce your energy costs. The more hot water heating you can shift into the free period, the stronger the potential savings.

That does not mean every home should rush into the same setup. Some homes will be better suited to a heat pump. Some may be better suited to keeping electric storage and adding electrician-installed controls. Others may need a larger tank, a different product size, or a complete hot water upgrade.

Heat pumps will still offer the best long-term savings for many homes

Even with 3 hours of free electricity each day, heat pumps will still be one of the best hot water savings options for many Brisbane and Gold Coast households.

A heat pump hot water system works differently to a standard electric storage system. Instead of relying only on an electric element, a heat pump uses heat from the surrounding air and transfers that heat into the stored water.

This is why heat pumps can reduce electricity use compared with standard electric storage systems when the home, product and usage pattern are suitable.

A heat pump may be the best option if you want:

• Lower hot water running costs over time

• A more energy-efficient replacement for an old electric storage system

• A system that can make better use of daytime electricity

• A strong option for homes with solar PV

• A practical hot water upgrade for Brisbane, Gold Coast and South East Queensland conditions

• A long-term saving strategy, not just a short-term tariff trick

• A modern storage hot water system that can often be scheduled to run during better electricity periods

The free power window may make heat pumps even more attractive. If a compatible heat pump can be scheduled to run during the free daytime electricity period, the home may benefit from both lower electricity use and better timing.

That is the key point: timers can help control when power is used, but heat pumps reduce how much power is needed in the first place.

Browse Hot Water Outlet’s heat pump hot water systems to compare supply-only heat pump options online.

Can you get free hot water with solar and the free power window?

For some homes, yes — an appropriate hot water setup with solar can mean most, or potentially all, of the electricity used to heat water comes from free or low-cost daytime energy.

This is where the biggest opportunity may be for Brisbane, Gold Coast and South East Queensland homeowners.

If a home has rooftop solar, a smart meter and a suitable electric or heat pump hot water system, the goal is to make the system heat during the day instead of heating during expensive evening or overnight periods. The new free electricity window may add another layer to this by giving eligible households a daily period where grid electricity is free, even if they do not have solar panels.

For homes with solar, the ideal setup may be:

• Solar panels producing power during the day

• A smart meter or electricity plan that supports daytime savings

• A heat pump hot water system scheduled to run during solar production or the free power window

• A timer, relay, smart controller or solar diverter where suitable

• A correctly sized tank that stores enough hot water for evening and morning use

• A system that avoids unnecessary reheating during paid peak periods

• The correct valves, fittings and accessories ready for the installer

This is how a household may be able to move closer to free hot water.

The system heats during the day when solar power is available, when the free electricity window is active, or when electricity is cheaper. The hot water is then stored in the tank and used later for showers, washing and general household use.

The strongest setup for many homes will be a heat pump hot water system, because it uses less electricity than a standard electric storage system. When a heat pump is paired with daytime solar or the free electricity window, the household may be using a smaller amount of electricity at the cheapest possible time.

That is why heat pumps should still be considered the best long-term savings option for many homes. A timer can help control when power is used, but a heat pump reduces how much power is needed to make the hot water in the first place.

For example, a standard electric hot water system may use a larger amount of electricity during the free period. A heat pump may use less electricity overall, meaning the home gets better value from solar, the free power window or both.

A suitable solar and hot water setup may help:

• Reduce paid electricity used for hot water

• Shift heating away from peak electricity periods

• Use more of the home’s own solar power

• Reduce solar export waste during the day

• Store daytime energy as hot water for later use

• Improve the return from an existing solar PV system

• Lower long-term hot water running costs when the system is matched correctly

But free hot water is not guaranteed for every home.

The result depends on the electricity plan, solar system size, hot water usage, tank size, system efficiency, smart meter setup, tariff structure and whether the system can be safely scheduled. Some homes may still need backup heating outside the free period, especially during heavy hot water use, cloudy weather, high-demand mornings or when the tank is undersized.

For homes with an older, expensive-to-run or failing system, upgrading to a heat pump hot water system may provide a better long-term saving than simply adding controls to an inefficient tank.

For homes that need a lower upfront product cost or a simple like-for-like replacement, an electric hot water system may still be worth comparing.

The best approach is to match the system to the home. Solar, free daytime power, timers, smart controls, heat pumps and electric storage systems can all help, but the biggest savings usually come from combining the right hot water system with the right control strategy.

What about standard electric hot water systems?

Standard electric hot water systems are still a practical choice for many homes.

They are simple, proven, widely available and often cheaper upfront than heat pumps. Hot Water Outlet’s electric hot water systems include a range of storage units, compact electric systems, replacement tanks, valves, fittings, pipework, connection parts, spare parts and accessories for homes, rentals, renovations and trade supply orders.

Electric hot water may be a good fit when:

• You want a lower upfront product cost

• Your current home already has electric storage

• You need a straightforward replacement product

• You want a simple, familiar system type

• You need a wide range of tank sizes

• You want off-peak or scheduled heating compatibility

• A heat pump is not suitable for your site, budget or household needs

The free daytime power offer may make electric storage more appealing for some homes if the system can be controlled to heat during the free power period.

The main limitation is that a standard electric element still uses more electricity than a heat pump. So while free daytime power may reduce running costs, a heat pump can still offer better efficiency over the life of the system.

Compare Hot Water Outlet’s electric hot water systems if you are replacing an old electric tank and want to order a supply-only unit online.

Why heat pumps are the strongest option for the free power era

The free electricity window does not remove the value of efficiency. It makes efficiency more important.

A standard electric hot water system may use the free power window well if it is timed correctly, but once it heats outside the free period, it still uses standard element heating.

A heat pump uses less electricity to heat water. If it can also be scheduled to run during free or lower-cost daytime electricity periods, the home may get a stronger long-term result.

That is why many Brisbane and Gold Coast homeowners replacing old electric storage systems should seriously compare heat pumps before choosing another standard electric tank.

Heat pumps may be especially strong for:

• Family homes with regular hot water use

• Homes replacing old electric storage systems

• Solar PV households

• Properties wanting lower hot water running costs

• Owners planning to stay in the home long term

• Households wanting to reduce reliance on standard electric element heating

• Homes where daytime operation suits the household

• South East Queensland properties where the climate supports heat pump performance

For many households, the smartest move is not just asking, “Can I use the free power window?”

It is asking, “How little electricity can my hot water system use, and can I run that system during the cheapest part of the day?”

That is where heat pumps usually stand out.

Heat pump vs electric hot water for free daytime power

How timers and smart controls can help

A hot water timer, relay, smart controller or solar diverter can help control when an electric or heat pump hot water system heats.

Instead of allowing the system to heat whenever power is available, a control setup can be used to run the hot water system during selected periods. For the free daytime electricity offer, that may mean aiming to heat during the free power window.

This type of setup may help if:

• Your existing hot water system is still in good condition

• The tank is large enough for the household

• You want to avoid replacing the whole system yet

• You want to shift hot water heating into the free power period

• You have solar PV and want to improve daytime energy use

• Your hot water demand is predictable

• Your electrician confirms the system can be safely controlled

The important part is that this is not DIY work. Electrical work should always be completed by a licensed electrician. Do not open covers, alter wiring, modify the switchboard or attempt to install hot water controls yourself.

Hot Water Outlet can help customers compare supply-only hot water systems, parts and accessories online. If you need installation advice, Hot Water Outlet may help arrange quotes from reputable installers where appropriate.

Choosing the right heat pump for free daytime power

Before ordering a heat pump hot water system, check the product specifications carefully.

Important details include:

• Storage capacity in litres

• Household suitability

• Tank dimensions

• Water pressure rating in kPa

• Hot and cold water connection locations

• Inlet and outlet connection sizes

• Electrical requirements

• Airflow clearance requirements

• Operating temperature range

• Noise rating

• Recovery performance

• Required valves and fittings

• Delivery access for larger products

• Warranty information listed on the product page

A heat pump needs more than just the right tank size. It also needs suitable airflow, placement, drainage, electrical supply and installation conditions.

If the system is too small, poorly located or not matched to the household’s hot water use, it may not deliver the result you expect. If it is sized and selected correctly, it can be one of the best hot water choices for reducing long-term electricity use.

Potential savings: what homeowners should know

The biggest savings opportunity comes from shifting paid electricity use into the free power period.

For hot water, savings may come from:

• Heating water during the free electricity window

• Reducing heating during paid peak or shoulder periods

• Using stored hot water later in the day

• Combining a correctly sized tank with better timing

• Upgrading from old electric storage to heat pump hot water

• Using timers or smart controls to reduce unnecessary heating

• Improving use of solar PV during the day

• Reducing reliance on overnight or evening hot water heating

• Using free or low-cost energy when the system is best suited to do so

But savings are not automatic.

Your actual result depends on:

• Your electricity retailer’s free power plan

• Your rates outside the free period

• Your daily supply charge

• Whether you are currently on controlled load or off-peak hot water

• Your smart meter eligibility

• Your hot water system type

• Your tank size

• Your household usage

• Whether your system can heat enough water during the free period

• Whether electrical upgrades or control equipment are required

• Whether the cost of any upgrade makes sense compared with the likely savings

The safest way to think about it is this:

A timer may help you use electricity at a better time.

Solar may help you use your own daytime power.

A heat pump may help you use less electricity overall.

The strongest result may come from combining an efficient heat pump with solar, smart scheduling and the right electricity plan.

Should you keep electric storage or upgrade to a heat pump?

If your existing electric hot water system is near new, correctly sized and working well, a timer or smart control setup may be worth discussing with a licensed electrician.

If your system is old, leaking, undersized, expensive to run or due for replacement, a heat pump may be the better long-term move.

Use this as a guide:

Brisbane, Gold Coast and South East Queensland considerations

Homes across Brisbane, the Gold Coast, Logan, Ipswich, Redlands, Moreton Bay, Scenic Rim and nearby South East Queensland areas can vary a lot.

The right hot water setup may depend on:

• Whether the home already has a smart meter

• Whether the current hot water system is on controlled load

• The location of the existing hot water unit

• Side access and delivery access

• Tank size and household demand

• Existing valves, base and drainage

• Switchboard condition

• Solar PV setup

• Outdoor heat pump location

• Noise near bedrooms, fences or neighbours

• Coastal corrosion exposure on the Gold Coast

• Whether the home has high water pressure

• Whether the owner wants the lowest upfront product cost or best long-term savings

This is why the right answer is not always “buy the cheapest tank” or “choose the biggest heat pump”. The right answer is the product that suits the home, the household demand, the installation location and the electricity plan.

How Hot Water Outlet can help

Hot Water Outlet helps customers compare and order hot water systems online.

This may include:

• Comparing heat pump hot water systems

• Comparing electric hot water systems

• Reviewing tank sizes and household suitability

• Checking product specifications before ordering

• Finding valves, fittings, pipework and accessories

• Choosing supply-only products for homes, rentals, renovations and replacement projects

• Helping arrange quotes from reputable installers where appropriate

Hot Water Outlet does not install hot water systems directly. Customers should use a licensed plumber and licensed electrician where required for installation, electrical work, tempering valves, pressure valves, drainage, pipework and commissioning.

Related Hot Water Outlet options

• Heat Pump Hot Water Systems

• Electric Hot Water Systems

• Hot Water Outlet

FAQs

Can I use free daytime electricity to heat my hot water?

Possibly. If your hot water system can be safely controlled to run during the free electricity window, it may be able to heat water during that period and store it for later use. The best setup depends on your system type, tank size, household demand, electrical setup and electricity plan.

Can I get free hot water with solar?

Some homes may be able to get most, or potentially all, of their hot water electricity from solar power, the free daytime electricity window or a combination of both. This usually requires the right hot water system, correct tank size, suitable controls and a usage pattern that allows the system to heat during the day.

Is a heat pump still worth it if I can get free power for 3 hours?

Yes, for many homes a heat pump can still be the best long-term savings option. Free power helps with timing, but a heat pump reduces the amount of electricity needed to make hot water. If a suitable heat pump can also run during the free power window, the result may be even better.

Is a heat pump better than standard electric hot water?

For long-term running cost savings, a heat pump is often the stronger option because it uses less electricity to heat water. Standard electric hot water may still suit homes wanting a lower upfront product cost, a simple replacement, or a system type that suits the existing setup.

Should I install a hot water timer before replacing my system?

If your current electric hot water system is in good condition, correctly sized and not close to failure, a timer or smart control setup may be worth discussing with a licensed electrician. If the system is old, leaking, undersized or expensive to run, upgrading to a heat pump or new electric system may be the better long-term choice.

Will a timer make my hot water free?

No. A timer only controls when the system heats. It may help shift heating into a free or lower-cost electricity period, but your actual savings depend on your retailer plan, system size, household usage and whether the system needs to reheat outside the free window.

Does Hot Water Outlet install hot water systems?

No. Hot Water Outlet supplies hot water systems, parts and accessories online. Hot Water Outlet may help arrange quotes from reputable installers where appropriate, but installation should be completed by suitably licensed trades.

What is the best hot water system for free power in Queensland?

For many homes, the best long-term option will be a heat pump hot water system because it uses less electricity than standard electric storage. For lower upfront product cost, a standard electric hot water system with suitable timing control may still be practical.

Should I wait until July 2026 before changing my hot water system?

If your current system is working well, it may be worth comparing options before making changes. If your system is leaking, unreliable, undersized or close to failure, waiting may not be practical. A correctly selected heat pump or electric hot water system can still make sense before the free power offer begins.

Need help choosing the right hot water setup for free daytime power?

If your current hot water system is old, unreliable, undersized or due for replacement, Hot Water Outlet can help you compare suitable supply-only hot water options online.

For the strongest long-term savings, start by comparing heat pump hot water systems. If you want a lower upfront product cost or a simple replacement option, browse electric hot water systems.

If you need help with installation, Hot Water Outlet may help arrange quotes from reputable installers where appropriate.