Everyone deserves access to rooftop solar!
As an election commitment the LNP announced a Supercharged Solar for Renters program where landlords will be offered a $3,500 subsidy to install panels on their rental properties.
This is key to make the transition fairer and is a great intiative! If done well, with the benefits shared with the tenants (which isn’t guaranteed), this could save some tenants hundreds of dollars!
This is a key portfolio commitment for the new Treasurer, Minister for Energy and Minister for Home Ownership, David Janetzki MP (as stated in his Charter Letter), to:
“Work with the Minister for the Environment and Tourism and Minister for Science and Innovation, to undertake the Supercharged Solar for Renters scheme, to provide landlords with grants up to $3500 to install solar panels on rental properties and drive down electricity bills for tenants across Queensland.”
We are super excited by this, but the funding allocated to this program is unclear and therefore how many houses would be eligible for this subsidy is also unknown. We have of course had a solar for renters trial before in 2019-2020, b
ut that was only 670 lucky housholds in 3 local government areas – we clearly need greater ambition!
It is also unclear what measures or conditions will be included to keep the house in the rental market, ensuring the tenants get the benefits, or prevent the impact of door knocking sales.We look forward to more detail on the announcement, including detail of protections or mechanisms put in place to ensure the benefits are actually passed onto renters while the property is rented out, while also contributing to emission reductions.
While we love solar at Energetic Communities, all energy performance and electrificaton programs and policy must follow the Energy Hierarchy!
A note for policy design for all parties – tenants must get a share of the benefits!
We have heard some great stories of Queensland landlords providing solar for their tenants, including one who provided not just solar, but also insulation and helping them electrify, at no cost to the tenants, and supportts minimum energy efficiency standards for rentals. Other’s have asked for a small contributon from the tenants. And of course Victoria already has a solar for renters program as part of Solar Victoria.
However, we can’t leave this to individual supportive landlords!
We have heard stories from renters where their homes already have solar panels but the owners may not pass on the savings, or is it unclear what they’re paying for. Some landlords may include energy use as part of the rent in the leasing arrangement but not necessarily pass on any of the solar savings, or charge more than what the tenants would otherwise pay. Transparency is needed to ensure solar for renters is done fairly.
Solar must be fair!
We have even heard of illegal practices, where landlords invoice tenants for energy use rather than provide them with the actual bill. A case of this type has been tested in the Queensland Civil and Administrative Tribunal and the judge ruled that a landlord is not allowed to do this – they must provide the actual energy bill. The decision recorded: “Throughout the life of the current tenancy the Tenants are entitled to the full solar rebate”.
However, without protections for renters such as banning unfair rent-rise retaliation and an end to no-grounds evictions, most renters find the other rights they are supposed to have as meaningless. Renters are already too scared to ask for anything.
This is why we support Make Renting Fair Queensland’s asks for broader renter protections and are disappointed that the LNP and Labor have said no to these asks.
Principles for Models and Programs for Consumer Energy Resources (CER) on Rental Properties
The following principles we arrived to after seeing questionable business models, some well meaning, in 2019. Everyone should be able to have efficient, climateresilient and healthy homes that are affordable to run, though improved energy performance – efficiency, electrification and solar (arguably batteries, but likley EVs).Government and commercial solar for rentals business models and programs and need to be fair!
Overall Costs are Reduced
The tenants must receive a financial benefit compared to the customers existing consumption patterns, with overall costs to tenants being reduced, such as through stipulating no rental increases beyond what’s justified so that rental increases or solar charges are offset by equal or greater savings. We acknowledge that some more well-off renters may knowingly pay a premium to directly contribute to GHG reductions, so communications for models that reduce emissions but not costs need to be clear that is the intention (see Transparency principle).
Affordability
Models allowing renters to install Solar PV or access it through energy trading, peer to peer or VPPs and similar models, must make electricity and/or CER more affordable for the tenant, such as no or minimal up-front costs to the tenant.
Minimise lock in
While acknowledging this is contextual, models should not overly commit to a particular retailer, or effectively lock a customer into a landlords choice of retailer, in order to access benefits of CER, unless the retailer led model or market offer satisfies the other principles listed here.
Accessible to All (but targeting those most in need)
As currently almost no renters have access to solar, commercial models should be open to all renters where possible, but that government programs may be required where the market cannot overcome barriers, and that these should be targeted to low income renters (e.g. social housing), and not at the expense of low-income households who can least afford it.
Agency
Renters must have agency to participate in CER, such as being able to install CER, have it installed on their behalf, or be able to access CER in a fair, affordable and equitable manner.
Consumer Protections:
Consumer protections need to be in place for low-income and vulnerable households, such as solar payments or rent increases are put on hold for the duration of repairs if solar system isn’t working.
Shifting Power
Renters must have access to free and independent advice and support to negotiate with their landlord acknowledging the power imbalance between landlords and tenants. Benefits must prioritise tenants’ costs of living and their right to participate in the transition. This could be provided through Local Energy Hubs.
Transparency
Models, programs and their communications need to be clear and concise, ensuring consumers have full understanding of what they are signing up to what their rights are and potentially how their model differs to other models. Rental agreements must include information on the arrangement and responsibilities, with benefits to both tenant and landlord stipulated.