Strata Reforms Make Solar For Strata Easy and Safe

With the disclaimer that this is not accounting advice, solar generation reduces (or supplements) the cost of electricity, as a site does not need to purchase the volume of electricity generated onsite (by solar) from the grid.

Two scenarios apply:

1. When solar electricity (i.e., all or a proportion thereof) is allocated to common areas usage, the common electricity charges are reduced for the scheme's benefit as a saving if no charge is applied to the value of each kWh of solar electricity.
2. Where a strata scheme is on selling electricity to occupants in accordance with regulatory tariffs (i.e., solar or grid electricity), it should derive an on-sell margin or profit that would flow into the revenue stream of the strata scheme as the lot owner is charged for the electricity at a tariff rate.
   
   1. From an accounting perspective, how the income is treated would be subject to site specifics and a question for the appointed accountant in accordance with tax law.
   2. Generally, where a profit is derived, it would be assumed the strata company will need to pay the relative tax.

We have plenty of information regarding this on our website:

1. Embedded Networks in Strata
2. Energy Sustainability in Strata
3. Publications