Solar panels are now more accessible to Melbourne’s apartment residents, despite the challenges of shared living spaces. An average household in a multi-unit development can save up to $500 per year on its energy bills by switching to solar. These savings explain why 85% of buyers and 67% of renters say solar is one of the most important energy efficiency features they seek.
Setting up solar panels on Melbourne’s apartment buildings comes with unique obstacles that houses don’t face. The Victorian government’s Solar for Apartments Victoria program helps residents with rebates up to $2,800 per apartment. On top of that, successful applicants could get funding for up to 100% of their system purchase and installation costs.
Victorian Minister for Energy and Resources Lily D’Ambrosio says of the Victorian solar for apartments program.
“We’re making it easier for Victorians who live in apartments to install solar, so they can slash their power bills by $500 and help us cut emissions.”
Our complete guide will show you four main options for apartment solar solutions. You’ll learn about strata regulations, costs, rebates, and expert tips. Property owners, strata managers, and residents who want lower energy bills and a smaller carbon footprint will find everything they need here.
Why Apartment Solar is Complex but Worth It
Apartment buildings face unique solar installation challenges compared to houses with their own roofs. The numbers tell the story – solar systems exist in just 2% of NSW apartment buildings. Nationwide, only 3.5% of apartments have embraced solar technology.
Shared ownership structure stands as the biggest roadblock to apartment solar adoption. Apartment rooftops belong to everyone, so multiple stakeholders must approve any installation plans. Getting everyone to agree proved tough until now, as many states required 75% of owners to vote yes. Physical barriers add to these complications:
- Fair distribution of limited roof space among residents
- Rooftop obstacles, shade issues, and old wiring systems
- Building structure problems that call for special engineering fixes
- Hard-to-reach areas that make installation costs higher
Houses cost less for a solar setup than apartments from a technical standpoint. High-rise buildings often require cranes to get parts to the roof. The systems also need long cable runs. Flat concrete roofs bring extra costs because panels must be weighted down and tilted for the best sun exposure.
Problems go beyond just physical hurdles. Landlords and tenants often pull in different directions, which matters since 65% of Victorian apartment dwellers rent their homes. Strata bodies find it hard to get money for eco-friendly investments. Traditional solar incentive programmes leave many buildings out.
Why Solar Panels On Apartment Buildings Are Growing In Demand
Solar adoption in apartments has picked up speed lately for several good reasons. Money savings lead the charge. Apartment residents with solar can cut their yearly energy bills by $500 per year. They also shield themselves from future power price jumps. Energy bills eat up about 25% of strata levies, so the chance for shared savings is huge.
Government backing has grown substantially. Victorian and Commonwealth Governments joined forces with AUD 24.46 million to bring solar power to 5,000 apartments. Victorian apartment solar grants double what standalone homes get, showing they understand the special challenges these buildings face.
Exploring the 4 Main Solar Options for Apartments
Property owners have four main options to install solar in apartment buildings. Each approach has unique benefits based on the building’s structure, resident priorities, and how it’s managed.
Option 1: Solar for common areas
The easiest way to start with apartment solar is to power only common areas like hallways, lifts, pools, gyms, and shared lighting. This setup needs minimal discussion because all residents benefit from lower strata levies.
Common area installations are more affordable per kilowatt than individual systems. This makes them a great starting point for buildings that want to try renewable energy. Buildings with high electricity usage in common areas can save a lot on shared costs.
The biggest drawback is that residents don’t see their personal electricity bills go down. The systems are often too large for common area needs, which means excess solar power goes to the grid at low feed-in tariffs.
Option 2: Individual solar systems per unit
Some buildings give specific roof sections to individual apartments. Each unit gets its own small solar system. This works best in townhouses or buildings where the roof space can be split fairly.
Residents keep complete control over their electricity retailer and tariff choices. This is a major plus. Each resident gets direct benefits from their system without complicated sharing arrangements.
This setup comes with challenges. Fair roof space distribution can cause disputes. Small systems cost more than one big shared system because of economies of scale. Long cable runs and separate inverters push costs even higher.
Option 3: Shared solar technology (e.g., SolShare)
SolShare and similar technologies let multiple apartments share one rooftop solar system without complex network changes. This Australian technology is the first of its kind. It splits solar energy from a single system among different dwellings.
The system’s smart algorithm makes sure everyone gets their fair share of solar energy each month. It sends power where people need it most and reduces waste by limiting grid exports.
This technology helps residents save 15-20% more than individual solar systems. Apartment residents can cut their electricity bills by up to 40%. One SolShare unit works with up to 15 apartments in Australia. This makes it perfect for medium-sized buildings.
Residents keep their current electricity retailers and metres because there’s no embedded network. They can join or leave the system as they wish, which makes getting approvals much easier.
Option 4: Embedded network with solar integration
Embedded networks create a private “microgrid” inside the building. The body corporate becomes an energy retailer that distributes solar power and bills residents. This setup helps residents save the most money by sharing solar energy fairly. Experts call it the best way to maximise solar benefits in buildings with multiple tenants.
Solar power in an embedded network creates extra value. Energy sold within the network costs less than power from the main grid. This creates extra income for the owners’ corporation.
This option has some drawbacks. Each apartment needs sub-metering, which adds to the cost. Someone must act as an electricity retailer or hire a company to do it. Large apartment buildings with high electricity usage per unit benefit most from this setup.
Navigating Strata and Owner Approvals
Solar panel installation in Melbourne apartments requires navigating strata regulations and owner approvals. The process might seem overwhelming at first, but recent law changes have made it more available for property owners.
Strata rules for solar installations have changed a lot over the last several years. Many states used to require a 75% majority vote, which made approval nearly impossible in larger complexes.. Victoria made vital changes to the Owners Corporation Act in 2021. The act now states that “an owners corporation must not make rules that unreasonably prohibit the installation of sustainability items on the exterior of a lot”.
Rooftops in most apartment buildings are classified as common property. Any solar installation needs formal approval from the owners’ corporation, no matter who benefits from the system. Individual apartment owners can’t just install panels without going through proper channels.
How To Present a Proposal To The Owners Corporation
Research comes first before you approach your strata committee. Your proposal should include:
- Detailed system specifications and technical reports
- Proposed location with visual mockups
- Cost breakdown and expected financial benefits
- Relevant safety certifications
Working with an experienced solar provider who knows Strata requirements is a great way to get professional documentation. They can guide you through the approval process. The decision usually needs voting at either an Annual General Meeting or an Extraordinary General Meeting, though some schemes allow postal voting.
Tips For Getting The Majority’s Approval
You’ll need at least 50% agreement, so other owners’ support is essential. These strategies work well:
- Build support through early conversations with neighbours before formal meetings
- Show how reduced strata levies can save money on common area electricity
- Deal with cost concerns, fairness and system management upfront
- Show landlord-owners how property values increase and tenants stay satisfied
- Think about offering champagne or other goodwill gestures to celebrate together
Note that the whole ordeal from initial conversation to installation can take up to 12 months, so patience matters. We have a long way to go, but we can build on this progress. Recent rule changes have removed major obstacles, making apartment solar a real option for Melbourne property owners.
Cost, Rebates and Financial Planning
Money plays a vital role in apartment solar projects. The cost factors are different from regular home installations. Melbourne property owners need a complete financial picture to make smart decisions about their renewable energy investments.
Solar Panels for Apartments in Victoria: Costs & Grants
Installing solar panels on apartment buildings in Victoria is no longer a pipe dream—it’s a practical, cost-saving upgrade that’s now more accessible than ever. Thanks to targeted government support and evolving technology, apartment residents and owners’ corporations can finally tap into the benefits of rooftop solar.
But apartment solar isn’t as straightforward as a typical home install. From roof access to wiring logistics, there are unique challenges—and costs—to consider. Here’s what you need to know if you’re exploring solar for your Victorian apartment building.
Why Apartment Solar Costs More Than Standalone Homes
Solar installations on apartment buildings often come with added complexity:
- Flat concrete roofs require ballasted mounting systems and tilt frames, which increase material and labour costs.
- Taller buildings may need crane hire and council permits for traffic control during installation.
- Electrical risers in older buildings often lack capacity, requiring long cable runs or core drilling between floors.
- Limited roof space means individual systems are often small—typically 1.5kW to 2kW per apartment—especially in high-density buildings.
These factors can push apartment solar costs higher than the average standalone home system.
How Much Does Solar Cost in Victoria?
Victorians can expect to pay between $4,100 and $8,430 for a standard solar system, depending on size and complexity. For apartment buildings, costs may be higher due to:
- Shared infrastructure requirements
- Custom mounting systems
- Access and safety considerations
A 6.6kW system, a common size for homes, typically falls within this range, but apartment installs may require tailored designs and pricing.
Victorian Solar Rebates for Apartments
The Solar for Apartments Program, jointly funded by the Victorian and Commonwealth governments, makes solar more affordable for apartment residents.
Key Grant Details:
- Up to $2,800 per apartment
- Capped at $140,000 per building
- Available for buildings with 5 to 50 apartments and up to 8 storeys
- Applies to shared solar PV systems (individual or communal)
- Must be installed by a Solar Victoria-authorised retailer using approved products
This grant is in addition to federal STC incentives, which reduce upfront costs based on system size and location.
What Are STCs and How Do They Work?
Small-scale Technology Certificates (STCs) are a federal incentive that acts like a rebate. When you install an eligible solar system, you receive several STCs based on:
- System size
- Installation date
- Geographic location
Each STC is worth around $38–$40 and is usually applied as an upfront discount by your installer. Melbourne systems receive fewer STCs than northern regions due to lower solar exposure, but the savings still add up.
What to Consider Before Installing Solar in an Apartment Building
- Owners Corporation Approval: You’ll need a formal resolution and approval form signed by two OC representatives.
- System Design: Choose between individual systems for each apartment or a shared system with solar-sharing tech.
- Payback Period: The system must demonstrate a payback within 10 years to qualify for the grant.
- Grid Connection: Your installer must get pre-approval from your Distributed Network Service Provider (DNSP) to export solar to the grid.
- Installation Deadline: Once approved, installations must be completed within 120 days.
Is Apartment Solar Worth It?
Absolutely—when done right. With the right system and support, apartment residents can save up to $500 per year on energy bills. Plus, solar adds long-term value to the building and reduces carbon emissions.
Final Thoughts
Apartment solar in Victoria is no longer out of reach. With generous rebates, expert installers, and smarter technology, it’s now a viable way to cut energy bills and boost property value, even in high-density living.
If you’re part of an owners corporation or a resident keen to explore solar, now’s the time to act. The Solar for Apartments Program is competitive, and funding is limited, so get your application in early.
FAQs
Q1. How much can Melbourne apartment residents save with solar panels? An average household in a multi-unit development can save up to $500 a year on their energy bills by adopting solar technology. Some residents have reported savings of up to $917 annually, depending on their energy usage and system size.
Q2. What are the main options for installing solar in apartment buildings? There are four primary options: solar for common areas, individual solar systems per unit, shared solar technology (like SolShare), and embedded networks with solar integration. Each option has its advantages and is suitable for different building types and resident preferences.
Q3. How has the approval process for apartment solar installations changed recently? Recent regulatory changes have simplified the approval process. In many cases, only a 50% majority vote is now required for sustainability upgrades, rather than the previous 75% threshold. This has significantly reduced administrative barriers for apartment solar projects.
Q4. What financial support is available for apartment solar installations in Melbourne? The Victorian government offers substantial support through the Solar for Apartments Victoria programme, with rebates of up to $2,800 per apartment. Additionally, successful applicants may receive funding for up to 100% of system purchase and installation costs, subject to certain conditions.
