Solar for Apartments - Power to the (Strata) People

Q1: Are solar installations classed as scheme assets, and should they be included in the asset register?

Leanne Habib: If the solar panels are permanent fixtures, they should be covered by the building's insurance. The by-laws applicable to the scheme will determine who is responsible for the ongoing repair and maintenance of solar panels. If the owners corporation installed the solar panels for everyone, it will usually retain responsibility for ongoing repair and maintenance. If individual owners install the panels, a by-law will usually confer the responsibility on the owner.

Q2: Does the scheme's insurance cover solar panels?

Tyrone Shandiman: Yes. As they are permanent fixtures, solar panels are covered by the building section of a strata policy. If the solar panels are not permanently attached to the property, they are not covered by strata building insurance.

Leanne Habib: Generally speaking, yes, as they are generally deemed part of the building fixtures subject to the installation. However, you will need to check the policy terms and with the subject insurer.

Q3: Does our insurer need to be advised of any solar installations?

Tyrone Shandiman: It depends on your insurer. At present, we know of only one insurer that specifically inquires about solar panels when quoting. To ensure you're covered, we recommend consulting with your insurer.

Leanne Habib: We recommend that the insurer is advised of any building improvements to ensure that such improvements are properly insured and covered.