We have received questions about installing solar for apartments from a few of our NSW lot owner and Committee Members.
Table of Contents:
- QUESTION: Would solar panels affect the building insurance? Solar panels are on one lot owner’s side of the roof.
- QUESTION: I want to install solar panels. Before I can install solar panels, I need to upgrade my fuse box. Isn’t it the responsibility of the owners corporation to pay for a fuse box upgrade?
- QUESTION: To install solar panels for an apartment, I believe I need to engage a lawyer to draft a new bylaw and the vote may not be successful anyway. Is there an easier way?
- QUESTION: We are looking into solar panels for apartments. As all roof areas are invariably common property and there are both good (solar efficient) and not so good areas on any roof structure, how does the strata committee go about defining where individual lot owners can position their solar PV panels?
Question: Would solar panels affect the building insurance? Solar panels are on one lot owner’s side of the roof.
Answer: As solar panels are permanent fixtures, they are covered by the strata building insurance policy.
Solar panels being permanent fixtures are covered by the policy. If the solar panels are not permanently attached to the property, they are not covered by strata building insurance.
The only consideration is whether the sum insured should be increased to factor the panels in but most buildings do not increase the sum insured after installation of solar panels.
Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 07 3899 5129
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in Strata News #482
Question: I want to install solar panels. Before I can install solar panels, I need to upgrade my fuse box. Isn’t it the responsibility of the owners corporation to pay for a fuse box upgrade?
I am in a strata complex of 20 units and would like to install solar panels. Before I can install solar panels, I need to upgrade my fuse box. The fuse box is attached to my unit and does not affect any other property or unit.
I have contacted the owners corporation and they state that, because the problem is only affecting my unit, I must pay for the upgrade. Is this correct or is it the responsibility of the owners corporation to pay for the fuse box upgrade?
Answer: It would appear then that the fuse box is your private property and because your proposed works necessitate an upgrade to the existing features of your unit, you will need to upgrade the fuse box to facilitate your works.
Leanne Habib
Premium Strata
E: [email protected]
P: 02 9281 6440
This post appears in Strata News #467.
Question: To install solar panels for an apartment, I believe I need to engage a lawyer to draft a new bylaw and the vote may not be successful anyway. Is there an easier way?
I live in a complex of 8 villas and share a common wall with 1 of the villas.
I have been told there is a by-law that states the maximum number of solar panels permitted for each property is 3 panels. Everyone has 3 panels for their hot water.
I want to install solar with 20 panels for my apartment. I was told I would have to engage a lawyer to draft a new by-law which would be put to the committee. If I couldn’t get 75% in favour then the vote would fail. The money paid to the lawyer for the bylaw would be wasted. Is there an easier way to do this?
Answer: There is no requirement that a lawyer draft a by-law, however, it is recommended.
The first thing to note is that a by-law requires a special resolution, which requires that no more than 25% of owners present and entitled to vote, cast a vote against the motion. A slight technicality, but on occasion, this can make a difference.
There is no requirement that a lawyer draft a by-law. However, as it is a binding commitment, it is recommended. In this case, your by-law and resolutions will need to cover off on several sections of the Strata Schemes Management Act 2015, including s108 (making changes to the common property) and Division 3 (By-laws conferring right or privileges over the common property). As there is an existing by-law, consideration on how to deal with that will also be required. It’s more complicated than it may seem on the service.
If you do decide to put a by-law forward to a meeting for consideration and it is not passed, you can seek relief from NCAT, by seeking orders that the by-law be made on the grounds that the refusal was unreasonable. You’ll find details on this in s149 of the SSMA.
Natalie Fitzgerald
More Than Strata
E: [email protected]
P: 1300 044 979
This post appears in Strata News #341.
Question: We are looking into solar panels for apartments. As all roof areas are invariably common property and there are both good (solar efficient) and not so good areas on any roof structure, how does the strata committee go about defining where individual lot owners can position their solar PV panels?
There have been a number of incentive programs to encourage owners corporations as well as individual lot holders to take advantage of solar for apartments. As all roof areas are invariably common property and there are both good (solar efficient) and not so good areas on any roof structure, how does the strata committee go about defining where individual lot owners can position their solar PV panels?
Our townhouse complex has sufficient roof space to accommodate solar panels for any lot owner wishing to take advantage of solar for apartments. There are however significant variations in the roof’s solar collection effectiveness. This will mandate far more costly solar panel installation for the less solar efficient areas.
Not all owners’ PV arrays can be accommodated on the optimum roof areas. So what guidelines can be applied to logically (and equitably) assign any common property roof area to any one owner for their solar collection panels?
Is it reasonable to allocate the premium collection site to PV panels collecting electricity for the strata, requiring lot owners to accept a lesser power option for their personal electrical needs?
Here are some resources which may assist with your research into Solar for Strata Apartments:
- Raising the roof: Solar for renters and apartment dwellers
- Get in on the ground floor: how apartments can join the solar boom
- More of us are living in apartments. Where does that leave rooftop solar?
- SOLAR POWER – including Case Studies
We are looking for information from our community on this topic. Have you installed solar panels in your building? What is working / not working? Do you have a solution to dividing up the roof space equally? Are you researching the topic of solar panels in your building? Please comment below.
This post appears in Strata News #219.
Have a question or something to add to the article? Leave a comment below.
Read More:
- QLD: Q&A Solar panels and strata – which account do we debt?
- Solar on Strata [Whitepaper]: Strata Energy News
Visit Maintenance and Common Property, Apartment Living Sustainability OR NSW Strata Legislation.
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I live in a 3 story apartment, therefore not all units have a roof. Some owners have expressed desire to have solar on the roof for their benefit, not communal benefit. The strata committee knows that the roof is valuable space, capable of generating income for strata. However this may not fully be known for many years. Some space on the roof achieves high solar output and some achieves low solar output (due to partial shade). Appreciate any comments on how we can achieve a good balance between individual owners wants and the wants of the strata (i.e. benefit for all owners) in splitting up the roof space. Want to avoid a “First in best dressed” scenario.
Is there anyone qualified whom can look at a roof and equitably define how it should be divided so that all parties have a equal share in the solar efficient areas of the roof ?
I am thinking of putting solarpanels, our villa is rented at the moment , I have told our strata manager that I would like to see an item on the next AGM , I was told that in order to have a by-law for those panels, would be in the order of $1500 to $2000 , there are 16 villas there , that may equate to $100 per villa…..
Hi David, how did you go with this project? I am delivering a webinar for strata owners this Thursday 29 April 2021 about by-laws for the implementation of solar. I am interested in your experience, so I can better help others in your position.
Hi Amanda
We would like to implement solar in our complex in QLD, together with an embedded network to sell power to units in the complex.
After the investment cost is paid the ‘free’ solar power will generate a surplus we intend to put to Body Corporate funds.
BUT some have advised we cannot do this because ‘a body corporate cannot make a profit’.
Have you come across this problem and found any solutions? It seems a disincentive to invest in solar for QLD strata.
Hi Phil
We recorded quite a detailed Webinar with Michael Kleinschmidt, Stratum Legal particularly addressing solar in QLD body corporate.
You can watch the video/s along with the Q&A sessions here: https://www.lookupstrata.com.au/qld-permissions-installing-solar-panels-strata/
We’ll send your question along to Michael and get back to you with a response asap.
Thanks
LookUpStrata
Hi Phil
The following response has been provided by Michael Kleinschmidt, Stratum Legal:
The rule in Queensland is that a body corporate may not carry on a business.
However, bodies corporate may engage in business activities to the extent necessary to carry out their functions.
A general function of a body corporate is to administer the common property and body corporate assets for the benefit of the owners of the lots included in the scheme.
Selling excess power back to the grid is unlikely to be viewed as carrying on a business; including because any property owner can do it.
Selling excess power to third parties outside the scheme land may be viewed as carrying on a business.
…. and then there are all the scenarios in between!
The precise circumstances of the proposed activities will dictate whether they offend the Qld legislation.
As always, I recommend that you take legal advice on point.
Michael Kleinschmidt
Stratum Legal
[email protected]
P: 07 5406 1282
Hi,
I was able to put solar panels in a unit of 6 apartments in Newcastle NSW.
I divided the roof space up into 1/7ths as 1 solar install was for common area solar.
Engaged a by-law change via a lawyer for $900 which was divided by 6 unitholders.
Obtained a BCA certifier for regulations for $500.
Conducted an EGM and got > 75% say yes after providing info prior to the EGM to committee members for a $200 manager fee for the meeting.
Then installed 2 x 3.75KW solar systems and a 5.27KW common area array.
Charged the 2 unit renters and extra $10/week rent and they saved $22 per week off their energy bill.
The common array has meant we have had no energy bills for the last 12 months.
We also had to pay for a meter upgrade of $400.
You have to do your research as I am not an installer I cannot give professional advice but could give some tips if lookup strata or commenters wish.
Sincerely,
Jason