Solar for Renters and Landlords: What Works

Around a third of Australian households rent, and almost none of them have solar. The reason isn't technical — it's that the person who pays for the system (the landlord) isn't the person who pays the power bill (the tenant). Economists call this the split-incentive problem. Everyone else calls it "why doesn't my rental have panels?"

It's a solvable problem. Below are the practical models that work in Australia, what each side should ask for, and where the traps are.

Why solar stalls on rentals

A typical owner-occupier justifies solar because the bill savings pay back the upfront cost over a number of years. On a rental, that logic breaks in three places:

• The savings go to the tenant. They use the free daytime power. The landlord funds the hardware.
• Tenancies are short. A tenant on a 12-month lease has little reason to invest in the building, even if they'd love the lower bill.
• The landlord can't easily capture value. Rent increases are constrained by the market and by state tenancy rules, so "just charge more rent" isn't automatic.

The result is a standoff. But landlords do have levers tenants don't: they own the asset, they can claim depreciation and expenses against rental income (talk to your accountant — this is genuinely worth doing properly), and they benefit from a more competitive, lower-vacancy property.

The five models that actually work

1. Landlord pays, rent adjusts at renewal

The cleanest version. The owner installs the system and, at the next lease renewal, sets rent to reflect a more attractive property. The tenant's total housing cost (rent plus electricity) can still fall if the rent adjustment is smaller than the bill savings.

This works best when:

• The property has decent daytime occupancy — families, people working from home, retirees.
• The system is sized to the tenant's actual load, not the roof's maximum capacity.
• You're transparent about it. Tenants who understand the trade-off tend to accept it.

Watch out: rent increase rules differ by state, including notice periods and frequency limits. Check your state's tenancy authority before you build a plan around it.

2. Solar as a retention and vacancy tool

No rent change at all. The landlord installs solar to make the property more competitive — quicker to re-let, fewer vacant weeks, better quality applicants.

A handful of vacant weeks avoided over the life of a system is real money, and unlike a rent increase it doesn't require negotiation. With electricity costs front of mind for renters, "solar included" is becoming a genuine listing feature in some markets.

3. Cost sharing with the tenant

The tenant contributes to the install (or pays a modest monthly amount) in exchange for the full benefit of the generation. This suits long-term tenants who plan to stay for years.

Put it in writing: what the tenant contributes, what happens if they leave early, and who owns the system (the landlord always does — it's fixed to the roof).

4. Solar with a service charge

The landlord installs the system and charges the tenant a fixed monthly fee for access to the solar generation, structured so the tenant's power bill falls by more than the fee. Both sides win.

This one needs care. Selling electricity to a tenant can trigger energy retail rules depending on how it's structured, so keep it simple: a service or amenity charge is very different to on-selling metered power. Get advice, and don't improvise a billing arrangement.

5. Do it between tenancies or at purchase

The easiest time to add solar to an investment property is when it's vacant, being renovated, or just after settlement. No negotiation, no access issues, and you can build the cost into the overall project rather than treating it as a standalone decision.

What landlords should get right

Size for the tenant, not the roof. A big system exporting most of its output relies on feed-in tariffs, which have trended down across the country and vary by retailer and state. A modest system with high self-consumption is usually the better economic story on a rental. Your quote should model this.

Choose durability over cleverness. You won't be there to notice a fault. Prioritise well-supported equipment with a strong local warranty pathway, and use a SAA-accredited installer — that accreditation is also tied to eligibility for the federal STC scheme that reduces the upfront cost.

Set up monitoring you can see. Give the tenant app access for their own visibility, but keep an owner-level view or a service arrangement so a dead inverter doesn't go unnoticed for months.

Handle the paperwork. Notify your insurer, keep the electrical certificate of compliance and warranty documents on file, and confirm the grid connection approval is in the owner's name where required by your distributor.

Check body corporate rules. For units and townhouses, roof space is usually common property. You'll need approval, and the process varies by state and by scheme. Start early — this is the single most common reason a strata solar project dies.

What tenants should ask for

If you're renting and want solar, you're not powerless. Make it easy for the owner to say yes.

Ask for	Why it lands well
A quote at no cost to the landlord	Removes the effort barrier — you've done the legwork
A longer lease in exchange	Gives the owner tenancy certainty, which has real value
Written agreement on any rent change	Protects both sides from surprises later
Reasonable access for install and service	Owners worry about disruption; pre-agreeing helps

Be realistic about the offer. A tenant on a six-month lease asking for a large system has a weak case. A tenant offering a two-year lease on a property they've maintained well has a strong one.

Also worth knowing: some states and territories have run programs aimed at solar or energy upgrades for rental properties, and eligibility and availability change over time. Don't assume one exists in your state — check your state government energy website, and ask your installer what's currently open.

Sizing and cost: what to expect

Costs depend on system size, roof complexity, switchboard condition, storey height and your postcode. Two-storey installs, tile roofs, split arrays and switchboard upgrades all add labour. The federal STC scheme reduces the upfront price at the point of sale, and its value tapers over time — so the number you were quoted a couple of years ago isn't the number today.

What a good quote for a rental should show you:

• Expected annual generation for that specific roof and orientation
• An estimate of how much is likely to be self-consumed versus exported, based on a realistic tenant load profile
• Feed-in tariff assumptions stated clearly as assumptions, not promises
• Any switchboard, meter or export-limit work priced separately rather than buried

Because the numbers hinge on postcode, roof, retailer and how the tenant actually uses power, ranges from a blog post won't help you decide. A quote will.

Batteries on a rental: usually not yet

Batteries add cost, complexity and a second warranty relationship to manage remotely — and the savings flow to whoever is using the power at night, which on a rental is the tenant. For most investment properties, panels first is the sensible sequence.

The exceptions are properties with poor grid reliability, off-grid or fringe-of-grid sites, or owner-occupied-then-rented homes where the battery is already there. If a battery is on the table, make sure the quote includes what happens to it between tenancies and who's responsible for firmware and servicing.

Frequently asked questions

Can a landlord increase rent after installing solar?

Generally yes, but only within your state's tenancy rules — which set limits on how often rent can rise and how much notice is required. Any increase is also subject to market reality. The practical approach is to discuss it with the tenant before installing and put the agreed position in writing at renewal.

Who owns the solar system on a rental property?

The landlord, because it's fixed to the building — even if the tenant contributed to the cost. That's exactly why any tenant contribution needs a written agreement covering what happens if the tenancy ends earlier than expected.

Does the tenant or landlord get the feed-in tariff?

Whoever holds the electricity account, which is normally the tenant. Feed-in credits appear on the account that the meter is billed to. Rates vary significantly by retailer and state, so neither party should build a plan around a specific figure without checking current offers.

Can I install solar on a rental unit or townhouse?

Often yes, but you'll need body corporate or owners corporation approval because the roof is usually common property. Approval processes and voting thresholds differ by state, so raise it well before you're ready to install.

Getting a number you can act on

The hardest part of solar on a rental isn't the technology — it's agreeing who funds it and who benefits. That conversation goes much better with a real quote in hand: actual system size, actual generation estimate, actual price for that roof.

Get your free solar quote and we'll connect you with SAA-accredited installers who can price the job properly, whether you're the owner, the tenant making the case, or both parties trying to land on something fair.