Solar rebates for rental properties

As part of your application you will need to supply:

• identification – 2 forms of ID
• proof of income from your renters that they earn less than $210,000 combined household income per year
• property ownership proof.

Attach a copy of 2 of the following:

• Driver’s licence
• Medicare card
• Australian passport
• Australian birth certificate
• Australian citizenship certificate
• Foreign passport (with a valid Australian Visa)
• Immicard.

You’ll need to make sure the names on both ID documents are the same. You can find out more about your Australian citizenship by visiting the Australian Government Department of Home Affairs.

You need to provide details of all owners of the property, as they appear on your Council Rates Notice. If your notice lists a trust, super fund or business, you are not eligible a rental property solar panel (PV) rebate.

Find out what we will accept as your proof of income documents.

If you opt-in for an interest-free loan, you also need to supply a credit report which you can create for free at Moneysmart: Credit scores and credit reports. Note: credit reports can take up to 10 days to be sent to you.

Ask your retailer to get pre-approval for your installation from the Distributed Network Service Provider (DNSP) to connect it to the grid. Your retailer must also advise you of any export constraints. This needs to happen before they upload your quote to our portal.  

Make sure you understand what the DNSP is offering you. Any solar export constraints can change your feed-in tariff and your ability to join Virtual Power Plants. Find out more about DNSPs.

When we confirm you are eligible we will email you a unique QR code. The QR code is your eligibility number and provides an extra level of safety.

Your installer must scan it onsite on the day of the installation, and before any work starts, so we know that the installation is about to be done by an authorised installer.

The rebate will be paid directly to your retailer and deducted from your invoice. You only pay any outstanding balance once the system is installed.

If either party does not follow through with their responsibilities under the Rental provider -Renter Agreement, you can contact the Dispute Settlement Centre of Victoria for free advice on dispute resolution and possible options for mediation.

To start a conversation with your rental provider about getting solar, copy and paste the below text into an email to your rental provider. Remember to add your own details, and your rental provider's, in the spaces provided.

Subject: Solar Victoria Rebates for rental providers now available – save up to $2,800 off solar

Dear ,

I write to you in the hope that we may be able to work together to help us both save some money.

The offer

Solar Victoria, an agency of the Victorian Government, is helping Victorians take control of their energy bills, tackle climate change and build a cleaner, renewable future through the delivery of solar rebates. They have recently launched a solar rebate specifically for rental providers to dramatically reduce the cost of installing solar panels on rental properties in Victoria.

I believe we are both eligible for up to $1,400 off the cost of installing a solar system on your rental property.

And you can then further reduce the upfront cost, by applying for an interest-free loan to match the rebate amount, representing an overall saving off the upfront cost of installation of up to $2,800.

Why install solar on your rental property?

I recognise that a rental property is a significant investment and the addition of solar is likely to increase the value of this property. It will also make a huge difference to us as renters, reducing our energy bills and improving our comfort as we can enjoy the benefits of renewable energy to heat and cool our home. We love where we live and having the added benefit of solar and decreased energy bills would increase the likelihood of us staying on longer than the usual 12-month rental period. It’s also a great way for us to both do something good for planet, but also our own back pockets, at a time when we could all do with a financial boost.

How can we (the renter) contribute?

What is unique about this rebate program is that it allows us, the renter, to contribute financially to the loan. Under this model, we could contribute up to 50% of the monthly repayment amount, less than $15 a month (equal to one takeaway coffee a week), to pay back the cost of the system, slashing our energy bills and improving the value and attractiveness of your property.

Are we eligible?

Only one application is available per address, however you can apply for up to two rental properties in a financial year, provided all of the eligibility criteria below are met.

Victorian rental providers are eligible to receive a rebate for their rental property if:

• their renters have a combined household income of under $210,000 per year (based on any of the last two year’s taxable income)
• the property is valued at under $3 million and does not already have solar panels (PV) installed
• there has been no prior participation in the Solar Homes program for that address
• a Solar Homes Rental provider-Renter Agreement is signed by the rental provider and all renters
• the property is currently tenanted with a rental agreement in place.

Next steps

If this sounds like an offer you’d like to take up I would welcome the opportunity to talk more and work out the best way forward.

There are lots of resources on the Solar Victoria website, including a pre-drafted agreement that will make it easy to apply and ensure we’re both protected.

The best number/contact email for me is .

I look forward to talking more about this soon.

Yours sincerely,

When both parties agree to go ahead, the rental provider must prepare an agreement with the renter/s which both parties must sign.

The rental provider can also apply for an interest-free loan to help reduce the cost of the solar system. The interest-free loan must be repaid over four years. There are two ways to pay for solar for a rental property.

Under this agreement, the system is installed without asking the renter/s to contribute toward repayment. In this case, complete this agreement:

If you opted in for an interest-free loan, you are responsible to make the full monthly loan repayment of $29.16 each month.

Under this agreement, the renter/s can agree to contribute $14.58 (up to 50%) of the monthly repayments of the interest-free loan. This must:  

• be agreed upfront and noted in the agreement
• be paid directly by the renter to the rental provider
• continue for the four-year life of the loan or until the renter vacates the property, whichever is earlier.

If both parties agree to contribute to the monthly loan repayments, complete this agreement:

• The amount the renter pays cannot be changed after the loan has been established.
• Renters cannot pay more than 50% of the monthly repayment amount of the loan.
• The renters’ annual contribution cannot exceed $231.25 but can be lower if the rental provider agrees.

Based on the interest-free loan of $1,400, monthly re-payments the renter would need to make are:

• The rental provider is responsible for all other costs associated with the system, its installation and maintenance.
• Installation costs cannot be recouped by increasing rent or taking money from the bond when renters vacate the property.
• New renters cannot be added to the repayment agreement.

Make sure you tick the eligibility criteria (see Part A of the Solar Homes Program Agreement) and that Annexure B (the Residential Tenancy Agreement) is combined with the Rental provider-Renter Agreement into one document for upload.

If either party does not meet their responsibilities outlined in the signed agreement, you can get free advice on dispute resolution and mediation options by contacting the Dispute Settlement Centre of Victoria.

You will be contacted by your electricity retailer to connect the solar system to the electricity grid. This may take a few weeks. You won’t need to be home, but you will need to make sure your electricity meter can be accessed.

Any costs for connecting to the grid must be paid by your rental provider, as the owner of the property and solar system.

When you speak with your electricity retailer about your grid connection, they will also speak with you about your feed-in tariff (credit on your power bill) for any electricity generated by the solar system that you don’t use.

For more information about feed-in tariffs, go to DEECA Energy.

The expected savings from solar power should be reflected in your electricity bills after grid connection. Contact your electricity retailer if you have any questions about the impact of solar on your electricity bill.

Victorian Energy Compare is an independent Victorian Government energy price comparison site. With just a recent energy bill or smart meter data file, you can compare the best energy deals for your circumstances.