Solar panels can be installed in strata buildings, but approval, ownership and property issues need to be considered first. Solar may reduce electricity costs and carbon emissions, although the benefits depend on the scheme, installation location and how the system is used.
This article explains the property checks, approval pathways, financial questions and system options your body corporate should consider before proceeding.
Can you install solar panels in strata?
Yes, solar is possible in a strata scheme. The right approach depends on whether the panels will be installed on a lot, common property or an area subject to exclusive use.
A strata solar project may involve:
- body corporate decision-making
- funding and project management
- roof access and structural considerations
- electrical design and cable runs
- allocating energy or financial benefits
- balancing the interests of renters and owner-occupiers.
Flat roofs, tall buildings, long cable runs and equipment access can increase the complexity of the work. In a mixed scheme, owners and landlords may also have different priorities.
A feasibility study can help the committee understand likely energy use, funding options and implementation requirements before asking owners to decide. The study should be based on the particular building, rather than assumptions about what works in a detached home.
Who owns the roof where solar panels would be installed?
First, establish whether the proposed installation area is part of a lot or common property. The registered survey plan shows the boundaries of lots and common property. The community management statement can also help identify the regulation module applying to the scheme.
Do not assume every roof in a strata building has the same ownership or maintenance arrangements. In some schemes, a roof or part of a roof associated with a standard format plan lot may fall within the lot boundaries. In other schemes, the roof may be common property or may include elements the body corporate must maintain.
This distinction may affect:
- who can propose the installation
- who must maintain the panels and associated equipment
- who pays for repairs or replacement
- whether the body corporate or an owner needs to approve the work
- whether insurance arrangements need to be reviewed.
For schemes under the Standard Module, the body corporate must maintain common property in good condition. However, an owner is responsible for utility infrastructure, including solar panels, where it relates only to supplying that owner’s lot.
If the area is common property, check whether it is affected by an easement, lease, licence or exclusive-use by-law. An exclusive-use by-law gives the occupier of a lot exclusive use of identified common property or a body corporate asset.
The by-laws applying to your scheme are generally found in the community management statement. Exclusive-use rights must be recorded in the community management statement to have effect, although older schemes can have more complicated arrangements.
What body corporate approvals might solar require?
The approval pathway depends on the location, ownership and nature of the proposed work.
The Body Corporate and Community Management Act 1997, known as the BCCM Act, applies to community titles schemes with a registered community management statement. Its by-laws regulate the use and management of common property, body corporate assets, utility infrastructure and lots.
If the body corporate is installing a system on common property for the benefit of the scheme, the work will generally need to be considered as an improvement. Under the Standard Module, approval depends on the total cost:
- up to the basic improvements limit, the committee may be able to approve the work
- above that limit and within the ordinary resolution improvement range, an ordinary resolution at a general meeting may be required
- above the ordinary resolution improvement range, a special resolution may be required.
The limits are calculated using the number of lots in the scheme. If several related works form one project, the cost of the entire project is considered.
Queensland Government guidance describes the same approval ranges for schemes under the Standard, Accommodation and Small Schemes Modules. It also notes that a body corporate can only approve one improvement in the ordinary resolution range each financial year.
An owner proposing panels as an improvement to common property for the benefit of their lot also needs body corporate authorisation. Under the Standard Module, the committee may approve a minor improvement with an installed value of $3,000 or less if it does not detract from the appearance of a lot or common property and is not likely to result in a breach of the owner’s duties as an occupier. Other improvements require an ordinary resolution.
An owner must comply with the conditions of approval and maintain the improvement unless the body corporate agrees otherwise. The owner must also consider whether work within the lot affects common property or is restricted by the scheme’s by-laws.
A by-law cannot stop an owner or occupier installing solar hot water or solar power on their lot merely because it affects the appearance of the building. The property boundaries, other by-laws, approval conditions and technical requirements still need to be checked.
Where common property is subject to an exclusive-use by-law, check whether that by-law authorises improvements. If it does not, the body corporate may need to authorise the installation. For an improvement valued above $3,000, the Standard Module requires authorisation by ordinary resolution.
How should a body corporate assess the financial case?
The committee should assess the financial case using the scheme’s actual electricity use and proposed system design.
Energy-use data can help determine whether solar photovoltaic panels are suitable and how much generation the scheme may use. Consider:
- common-area electricity use
- daytime and overnight consumption
- available roof space
- likely export of excess electricity
- the possible role of battery storage
- maintenance, insurance and replacement responsibilities
- the funding method and ownership of the system.
Feed-in tariffs, battery storage and daytime energy use can all affect the financial case. Model these using current information from appropriately qualified energy and financial specialists, rather than relying on general savings estimates.
The committee should also decide how solar returns or reduced costs will be treated. A common-area system may reduce the body corporate’s common electricity costs. A system connected to individual lots may provide benefits to particular owners or occupiers.
A feasibility report should explain the assumptions behind the proposal, including the system’s expected output, operating costs, funding arrangements and proposed method for allocating benefits. It should also identify who will be responsible for maintenance, repairs, monitoring and future replacement.
Check insurance before installation. Under the Standard Module, an owner must give the body corporate details of improvements where they are likely to increase the reinstatement insurance premium.
Which solar system options suit a strata scheme?
There is no single model that suits every building. The main options are below.
Solar for common areas
A system can support common-area electricity use, such as lighting, lifts or other shared equipment. It may operate behind the common-area electricity meter and reduce the body corporate’s common electricity costs.
This model can be simpler to manage because there is one system and one main point of use. However, it does not directly reduce each occupant’s individual electricity bill where it serves only common-area consumption.
The body corporate can supply utility services for the benefit of owners and occupiers, subject to the requirements applying to the scheme and the relevant service arrangement.
Separately metered systems
Separate systems may allow individual lots to use their own solar generation through their existing electricity arrangements. This may appeal to owners who want benefits connected directly to their lot or tenant.
The committee would need to decide how viable roof space is allocated between participating lots. It should also establish who owns each system and who is responsible for installation, maintenance, insurance and eventual replacement.
A system with an embedded network
An embedded network is another possible model for supplying electricity within an apartment building. It may involve separate metering and a commercial arrangement combining electricity charges, solar credits or other adjustments.
Embedded networks can be complex, particularly when retrofitted into an existing building. They should not be adopted without specialist advice about electrical design, metering, billing, contracts and compliance. You can read more about this option in What is an embedded network.
How can owners plan and allocate solar benefits fairly?
The proposed system should explain who receives the benefits and how the outcome will be measured.
For a common-area system, the benefit may be reflected in lower common electricity costs. For individual systems, the benefit may be linked to the lot using the system. A broader arrangement may use consumption data, agreed credits or another documented method.
Consider the method before the project is approved, rather than after the panels are installed. Owners should be able to understand:
- who will pay for the system
- who owns the equipment
- how energy will be measured
- how electricity costs or credits will be allocated
- what happens if an owner sells or leases their lot
- how non-participating owners are treated
- who pays for repairs and replacement.
The committee can engage an independent consultant to compare suitable systems and explain the consequences of each option. Depending on the project, this may require qualified solar, electrical, financial and legal advice.
Clear communication is particularly important where the proposal involves common property, exclusive-use areas, different groups of owners or an embedded network. The project should give owners enough information to make an informed decision at the relevant meeting.
What should your committee do before approving a solar project?
Before putting a solar motion to owners, the committee should:
- Obtain the registered survey plan and community management statement.
- Confirm whether the proposed installation area is lot property, common property or subject to exclusive use.
- Identify the regulation module and review the relevant by-laws.
- Obtain a site and structural assessment from appropriately qualified professionals.
- Obtain energy-use information and a feasibility report.
- Compare common-area, separately metered and embedded-network options.
- Confirm ownership, maintenance, insurance and replacement responsibilities.
- Set out how costs, credits, savings or other benefits will be allocated.
- Check the approval type required for the location and total project cost.
- Obtain specialist advice about electrical, energy-market and legal issues where needed.
You can also see practical ideas for reducing shared energy use in How your body corporate can save on energy and review options for utility infrastructure.
Solar can be a workable strata project when the property arrangements, approval pathway, financial case and benefit-sharing method are understood before the work begins. If your committee needs help coordinating the body corporate process, contact StrataCare at reception@stratacare.com.au.
