What owners corporations need to know about solar panels for apartment buildings

The ACT’s outlook for reaching its electrification goals is looking much brighter now that the Sustainable Household Scheme has been expanded to include funding for solar panels for apartment buildings, but one expert says owners corporations (OCs) should go in with eyes wide open.

Jointly funded by the ACT and Commonwealth Governments, the program provides OCs with up to $100,000 in funding for eligible apartment complexes, half of which is in the form of a grant and the other half is funded by a zero-interest loan.

Vantage Strata CEO Rupert Cullen says the push to make sustainable electricity more accessible is an “excellent initiative” that would help level the playing field for people in all types of accommodation, but there are several things to consider.

“It’s a solid step towards the electrification process, but when an OC is considering the installation or upgrade of any electric infrastructure, it will be important that they seek very good advice upfront from an electrical engineer about what their electrification pathway might be,” he said.

“Solar panels might be one part of meeting their overall electrification needs now and into the future, but this is an ever-evolving space. They should ask ‘What does the long-term electrification of the building look like, and how does solar fit into that process?’

“It’ll be important to consider it in the broader scheme so they don’t get hamstrung.”

Rupert recommended a holistic approach that considers the wider long-term electrification requirements of a building, which may include things like electric vehicle charging stations and battery storage. This is crucial to understanding the scope of a building’s solar panel needs.

Then, when it comes to panel and inverter selection, the correct engineering advice and scope is paramount.

Rupert said the payback period (the amount of time it takes for the savings from a solar system to pay off its supply and installation) is usually four to six years, but the funding could reduce this to two to four years.

“The average cost to install a 99 kWh system is $1200 to $1600 per kW. The rebate alone would reduce this to $700 to $1095 per kW,” he said.

“That’s an excellent financial outcome for eligible buildings.”

A solar system’s lifespan is 20 to 25 years, so OCs should aim to select a grid size for optimum production for that specific building’s long-term electricity consumption.

“It’s about getting the right size to handle the load profile of your residential building. Given most don’t have centralised air handlers pushing conditioned air around the building, it not necessarily a question of getting the biggest system you can accommodate and afford,” he said.

For an apartment building to be eligible for the program, it must be a “Class A” unit plan as defined in the Unit Titles Act 2001, and cannot have an existing solar system in place. The average unimproved value of a unit must be less than $300,000 from 2022, which Rupert says would capture most apartment units but not all.

In addition, the development has to be complete at the time of application – OCs cannot make applications for future buildings.

Separate from eligibility, where there’s an embedded network, there may be some contractual obligations to the provider that OCs should consider.

OCs should also have already seen to their obligations under the Unit Titles Management Act (UTMA) 2011 which, following an amendment on 1 July this year, now has a framework in place for sustainability initiatives in apartment buildings.

This requires the establishment of a clear site plan ahead of sustainability measures, which must describe the environmental long-term benefits, the maintenance plan of the systems and infrastructure and the finance terms available, outlining any direct and indirect costs to the OCs.

All things said and done, Rupert says the program would “absolutely” help the ACT reach its electrification goals, and help apartment owners with the pinch of mounting electricity costs.

“The scheme now definitely falls in line with the government’s electrification goals and allows owners corporations to best utilise the roof space of their apartment buildings, giving apartment owners protection against increasing electricity costs over time,” he said.

“Historically, the upfront cost of installation has been a bit of a barrier, so it’s great to see steps to remove those barriers.”