A new initiative that allows both renters and landlords to cash in on the benefits of rooftop solar energy has been unveiled for Victoria.
The ‘Solar for Renters’ pilot program, delivered by not-for-profit Moreland Energy Foundation Ltd (MEFL) and social enterprise SunTenants, is offering over $1,000 worth of subsidies to the program’s first 10 participants.
The program enables rental property owners in Moreland to install solar systems on houses in exchange for slightly higher rental incomes, while tenants benefit from saving more on their energy bills than the cost of the rent increase.
“Up until now, owners have had little incentive to install a solar system on rental properties since they won’t be benefiting from the lower bills,” said SunTenants founder Bjorn Sturmberg.
“Up until now, owners have had little incentive to install a solar system on rental properties since they won’t be benefiting from the lower bills.
Solar for Renters is a ground-breaking solution to the ‘split incentive dilemma’ that has kept millions of renters locked out of clean energy and lower power bills.
“This program is a big step towards a clean, affordable, and fair energy future for everyone.”
About 38 percent of Moreland homes are rental properties, few of which have solar systems installed.
The return on investment for property owners is typically greater than 10%.
“At the Moreland Energy Foundation we want to ensure that society as a whole can transition to a zero carbon future,” said Alison Rowe, CEO, Moreland Energy Foundation.
“Moreland has a growing number of renters who until now have faced a major barrier to accessing solar power. By launching our Solar for Renters pilot program we hope to identify an effective mechanism to unlock solar on rental properties.
“The Solar for Renters pilot program aims to deliver a win-win, scaleable renewable energy solution that can benefit tenants and landlords – as well as the environment.”
The Solar for Renters pilot programme is open for applications.