Rooftop solar is booming, but how can the industry ensure apartments dwellers are not being left behind?
Australia has long been a global leader in rooftop solar adoption, with 30 per cent of the nation’s homeowners now harnessing the power of the sun.
However, while millions of Australians enjoy the financial and environmental benefits of renewable energy, a significant portion of the population has been left out: people living in apartment buildings.
With approximately 2.5 million Australians calling apartments home, the disparity is striking – less than three per cent of apartment owners have access to rooftop solar. Standalone homes have led the charge, enjoying reduced energy bills and a smaller carbon footprint.
But it doesn’t have to be that way.
Research from the University of New South Wales estimates that up to 3.3GW of solar photovoltaic (PV) could be installed on apartment rooftops across the country, providing renewable energy access to the 16 per cent of Australians living in strata schemes.
Why do apartments lag behind?
The road to clean energy adoption for apartment buildings has not been an easy one, and there are additional challenges to installing rooftop solar on multi-tenant buildings.
Shared ownership of buildings means such a system often requires sign-off from multiple parties, and there can be conflicting opinions on how the asset should be installed, operated and maintained.
In addition, installing and maintaining large-scale distributed energy resource (DER) solutions such as solar panels, battery storage and electric vehicle (EV) chargers requires significant upfront investment, technical expertise and ongoing maintenance.
Energy Locals CEO, Adrian Merrick, said developers, owners’ corporations and strata committees have historically struggled with the cost required, as well as the technical complexities of electrification and sustainability upgrades.
“These often prove too high to overcome for stratas busy with many other priorities,” he said.
The challenges are especially pronounced in high-rise apartment buildings, where up to 60 per cent of energy consumption comes from common areas and shared services such as elevators, lighting and air-conditioning, with approximately 25 per cent of strata levies spent on energy bills alone, according to a study from NABERS (National Australian Built Environment Rating System).
“We’ve found that most decision-makers don’t need convincing of the environmental benefits – they already know sustainability is becoming a priority for buyers and renters,” Merrick said.
“What they want to avoid are the additional costs and hassles.”
Navigating obstacles
There are now a range of options available to help overcome these barriers and allow apartment residents to access renewable technologies.
Government initiatives such as the Solar for Apartments pilot program in Victoria and the Federal Government’s Community Solar Banks program aim to reduce upfront costs and encourage uptake in multi-tenant buildings.
The Clean Energy Finance Corporation (CEFC) has also signed a memorandum of understanding with Lannock Strata Finance to develop a green strata loan product that would make it cheaper and easier for owners corporations to install rooftop solar.
However, these options still require often-significant upfront investment for strata committees, and other models are emerging to help close the gap.
Energy Locals provides one such model with an integrated solution designed to simplify the process for developers and owners corporations to integrate solar PV, battery storage and EV chargers into their buildings.
The energy retailer funds the cost of renewable energy solutions to which apartment buildings may not otherwise have access, taking on the upfront costs of the infrastructure as well as ongoing maintenance and management.
By acting as the asset owner and operator, Energy Locals aims to remove the traditional financial and administrative burdens on owners’ corporations that restrict tenants from accessing the benefits of rooftop solar. The model includes a number of benefits:
- Zero upfront cost – Energy Locals covers the costs, from funding to installation and maintenance
- Ongoing management – as the asset owner and operator, it’s in Energy Locals’ best interest to ensure optimal performance
- Energy prices – access to the wholesale market enables the retailer to provide competitive energy prices to residents
- Seamless project management – every project is overseen by a dedicated project manager to ensure a smooth and hassle-free process
Energy Locals can help developers when marketing their properties, with clean energy infrastructure increasingly sought by buyers and renters.
“Additionally, owners corporations and residents enjoy competitive rates and the satisfaction of contributing to a sustainable future,” Merrick said.
Future-proofing apartments
To meet the growing demand for sustainability, Energy Locals offers a suite of clean energy technologies tailored to apartment living:
Solar PV
Solar panels are at the heart of the renewable energy movement. By generating electricity directly from sunlight, they reduce reliance on the grid and significantly lower energy costs for common areas and individual units.
Battery storage
Excess solar energy generated during the day can be stored in batteries for use at night or during peak demand periods. This technology optimises energy consumption, provides back-up power during blackouts and supports load management, creating a more resilient energy system.
EV chargers
As EV adoption accelerates, so too does the need for accessible charging infrastructure. Providing EV chargers not only meets regulations but helps to future-proof apartment buildings, enhancing their appeal to eco‑conscious buyers and renters.
Electric hot water
Switching to electric hot water systems eliminates the need for gas, reducing emissions and energy costs. This is particularly impactful for buildings looking to phase out fossil fuels.
Energy Locals’ solutions are already making a difference. The energy retailer has implemented clean energy systems at more than 135 sites nationwide, demonstrating the scalability and effectiveness of its model.
In 2024 alone, Energy Locals’ solar installations generated more than 5.8GWh of renewable energy.
This output is equivalent to powering the average Australian household for 420 years; streaming Netflix continuously for 42,000 years; or fully charging a Tesla Model 346,000 times (enough to drive 6000 laps around Australia).
But the benefits extend beyond the environmental. These installations have also saved residents and owners corporations tens of thousands of dollars in energy costs, making clean energy a win–win solution.
Accelerating the uptake
The clean energy revolution for apartment buildings is gaining momentum, thanks in part to a $25 million investment by the CEFC, supported by Palisade Impact.
CEFC CEO, Ian Learmonth, said the funding has transformative potential for apartment buildings in Australia.
“This investment will help put more renewable energy into the hands of more Australians,” he said.
“It targets a section of the community which has previously struggled to share in the benefits of renewable energy generation and storage, empowering them to lower their carbon emissions and energy use.”
CEFC Head of Impact Capital, Malcolm Thornton, said eliminating the barriers to renewable adoption makes it easier for multi-tenant buildings and retirement villages to enjoy the advantages of shared renewable infrastructure.
“By accelerating the uptake of renewable energy technologies, more green electricity can be delivered to hundreds of apartments and thousands of tenants who would not otherwise be able to participate fully in the energy transition,” he said.
“This is a great opportunity to speed up the deployment of renewable energy infrastructure at scale and power up renewables for more Australians.”
The case for renewable energy in apartment buildings, according to Energy Locals, has never been stronger.
Beyond the clear financial and environmental benefits, there’s growing pressure from buyers, renters and governments to prioritise sustainability.
“Installing DER is no longer a consideration – it’s a must,” Merrick said. “It’s what more Australians want and expect, so there’s really no excuse.”
By making clean energy accessible and affordable, Energy Locals is helping to close the gap between standalone homes and apartment buildings.
Energy Locals’ innovative approach helps to ensure that all Australians – regardless of where they live – can participate in the clean energy revolution.
For more information, visit energylocals.com.au/developments
