Strata buildings represent a largely untapped solar opportunity in Australia. While standalone homes and commercial properties have embraced solar enthusiastically, multi-unit residential and mixed-use strata buildings have been slower to adopt, largely due to the perceived complexity of the approval and implementation process. The reality is that strata solar is more accessible than many committees believe, and the financial case for body corporates has never been stronger.
Why Strata Solar Makes Sense
Most strata buildings carry a significant common area electricity bill covering lifts, car park lighting, shared air conditioning, lobby lighting, pool equipment, and other shared services. In larger buildings this can exceed $50,000 to $100,000 per year. Solar panels on the building’s roof can generate electricity to offset these costs directly, reducing levies for all lot owners. A 30 to 50kW system on a mid-rise building commonly delivers annual savings of $12,000 to $25,000 per year in common area electricity costs, with payback periods of 3 to 6 years.
How Strata Solar Approval Works in NSW
Under the NSW Strata Schemes Management Act, installing solar panels on common property requires a special resolution of the owners corporation. This requires notice of the motion to all owners at least 7 days before the meeting, and no more than 25 percent of total unit entitlements voting against. In practice this means you need broad support but not unanimous agreement. Well-presented proposals with clear financial analysis typically achieve the required threshold without difficulty, particularly when the savings reduce levies that every owner pays.
The Two Main Strata Solar Structures
Option 1: Common Area Solar
Solar is installed on the roof and connected directly to the common area electricity meter. All savings go to the body corporate, reducing common area costs and ultimately reducing levies. This is the simplest structure, involves no change to individual lot electricity accounts, and has no embedded network regulatory implications. The limitation is that only the common area benefits and individual lots continue to buy electricity from their own retailer at retail rates.
Option 2: Embedded Network with Solar
A more comprehensive arrangement where the building installs an embedded network and an authorised retailer supplies electricity to individual lots incorporating the solar generation. This allows all residents to benefit from solar, not just the common areas. It requires an Exempt Embedded Network Operator arrangement, AEMC compliance, and metering upgrades, but delivers maximum benefit to all lot owners. Not all buildings are suitable for embedded networks and we assess eligibility as part of our strata feasibility process.
What the Numbers Typically Look Like
For a 50kW system on a 60-unit apartment building in Sydney:
- Annual solar generation: approximately 65,000 kWh
- Common area electricity consumption: approximately 70,000 to 90,000 kWh per year
- Annual savings to body corporate: $18,000 to $25,000 per year
- Installed system cost: approximately $45,000 to $60,000
- Simple payback: 2.5 to 3.5 years
- Annual levy reduction per lot: approximately $300 to $400
After payback, the system contributes to a sinking fund or further levy reductions for its remaining 20-plus year productive life.
Presenting the Business Case to Your Owners Corporation
The most common barrier to strata solar is not financial. It is getting the proposal past committee and to a vote in a way that addresses all owners’ concerns. Key elements of a strong business case include clear payback period and projected savings per lot, impact on current levy levels before and after solar, an independent engineering report on roof suitability, details of warranties and maintenance responsibilities, and funding options including capital contribution, financing, or a power purchase agreement.
Omni Energy Solutions prepares comprehensive strata feasibility reports and presentation materials specifically designed for owners corporation meetings. We can also attend meetings to answer technical and financial questions directly.
Next Steps for Your Building
If you are a strata manager, committee member, or lot owner interested in solar for your building, the starting point is a no-obligation feasibility assessment. We review your building’s common area electricity bills, roof size and orientation, and structural suitability, and provide a clear financial summary within one to two weeks.
Get a strata solar feasibility study for your building — Contact Omni Energy Solutions