A new energy scheme gives Australians three hours of free power a day – but there could be an expensive catch

Minister Chris Bowen said Solar Sharer would extend cheap renewable energy to more households. But one observer says peak use charges on the government’s regulated energy deal are much higher than other market offers. Photograph: Lukas Coch/AAP

A government energy deal that promised three free hours of power to houses without solar panels carries higher charges that make it an expensive option for many households, observers say.

Solar Sharer was switched on in July, with customers in Queensland, New South Wales and South Australia able to opt in to the plan, which includes three free hours of electricity in the middle of day.