A third of Australians rent, but almost none of them have solar panels. Why? Because their landlord gets no benefit from cutting your power bill.
☀️The gap: Australians have the highest share of households with rooftop solar of any country in the world.
That uptake splits sharply along one line: 44 percent of owner-occupied homes have solar, compared to just 11 percent of rentals.
🔧 Why landlords don't bother: A 2022 study of small-scale Victorian landlords found "proactive retrofitting by landlords is rare," but for those who do make the investment it’s triggered by one of three things: a government subsidy, a tenant asking directly, or something breaking down.
📏 The standards vary: Some advocacy groups like the Tenants Union NSW argue minimum standards could incentivise landlords to raise the energy standard of a rental property by installing solar panels and a smart meter.
Victoria is furthest along. General minimum standards have applied since 2021, an energy-specific 2-star minimum heater rating came in from 2023, and requirements covering insulation, hot water and cooling are locked in and phase in from March 2027 through to 2030.
The ACT has standards covering ceiling insulation and heater efficiency, and is the only jurisdiction in the country with mandatory disclosure of a property's energy rating at the point of sale or lease.
NSW is still deciding whether to follow, with a public consultation on its own version closing earlier this year.
The rest of the country doesn't really have dedicated energy standards for rentals at all.
What none of the standards do nationwide is force a landlord to install solar or a battery.
💵 Making it worth their while: It's unlikely any government will force landlords to install solar outright, so the alternative is making it worth their while.
Victoria offers landlords a $1,400 rebate for installing solar on a rental property, plus an interest-free loan option.
Queensland's rebate runs up to $3,500 per property.
the NSW Government incentivises landlords through the Home Energy Saver Program.
For renters in apartments or strata buildings wondering where they fit in, there is now technology and government schemes designed to share solar generated on one roof across multiple properties.
🧾 The tax idea: Another proposal, aimed at national change, comes from advocacy group Solar Citizens, and focuses on tax.
Like any other upgrade to a property, solar panels lose value over time, and landlords can already claim that loss against their tax.
Currently, that claim is spread over 20 years. Solar Citizens has put forward an idea that would see landlords able to claim the same total amount back over five years instead.
The change wouldn't reduce what a landlord pays upfront. It would let them recover that cost through the tax system faster, while ending up with a more valuable property.
Watch the National Account’s Archie Milligan below:
Image credit: AAP