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Solar-powered apartments cut costs and ease pressure on grids

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Solar-powered apartments cut costs and ease pressure on grids

1756875603079.png Solar-powered apartments cut costs and ease pressure on grids
Proven initiatives that cut emissions and lower costs remain overlooked, expert says. Credit: Depositphotos

Australia's green revolution is ignoring a series of proven initiatives that reduce carbon emissions while actually saving bill payers money in real time, writes Dr Ehsan Noorizenjad.



If Australia is serious about lower power bills and cooler homes, we should stop pretending we need to 'invent' a solution.



California has already done the hard yards.



The state now builds high-rise apartments with rooftop solar and on-site batteries as standard, and it's locking in simple wiring rules so every new unit can easily switch to efficient electric appliances later.



We could copy this today.



Instead, we're stuck in a maze of slow approvals, patchy incentives and rules that make it too hard for renters and strata to benefit.



Here's the blunt truth



Since 1 January 2023, California's energy code has required solar on new high-rise apartment buildings, and it pairs that with battery storage requirements so buildings can keep the lights on when the grid is under stress.









The next code takes effect for permits from January 1, 2026 and pushes even harder on ready-to-electrify buildings.



Australia's National Construction Code lifted the minimum thermal standard to seven-star and added a 'Whole-of-Home' score, which is welcome, but we still don't require solar and batteries on new apartment towers.









That's a clear miss we could fix with one national decision.



California's electric-ready wiring approach



California also baked in a simple, common-sense idea: electric-ready wiring.



If a builder installs gas cooking or hot water today, they still have to run the electrical circuits and leave space in the switchboard so an induction cooktop or a heat-pump water heater can be added later without tearing walls open.









It's cheap to do during construction and saves owners thousands down the track.



This is now a mandatory feature for new multifamily dwellings there.



Australia talks a lot about electrification but hasn't made this the default in new apartments.









Why not just mandate it and end the wiring excuses?



Letting apartment residents share solar value



The US also sorted out something our governments have ducked for years: letting apartment residents share the value of rooftop solar.



Their 'virtual net metering' rules let a building's solar credits be split across individual tenant meters, so renters actually see bill savings.









California then went further with a program called SOMAH that funds solar for affordable housing and guarantees tenants get a big share of the benefit.



On top of that, a new state-approved community solar scheme, backed by federal funds, is opening the door for people without a suitable roof to subscribe to off-site solar and still get credits on their power bill.




'Australia is inching along with pilot 'solar gardens' and guidance for renters, but there is no simple nationwide system to share solar credits in apartments.'

Dr Ehsan Noroozinejad



Canberra could copy California's bill-credit rules tomorrow and finally make rooftop and community solar work for renters.









Grid-friendly buildings



Another quiet area where the US is ahead is grid-friendly buildings.



California's code already expects larger buildings to respond when the grid is under pressure, dimming lights a touch or shifting some loads for short periods, so blackouts are less likely and bills are lower.



And the US federal government is pushing a national playbook for 'grid-interactive' buildings so owners get paid for being helpful to the grid, not punished with red tape.










What grid-friendly controls mean


Buildings automatically adjust energy use when the grid is stressed


Owners get paid for helping prevent blackouts


Simple, automatic controls—no manual intervention needed




We don't require these simple, automatic controls in Australian apartments, even though retailers are rolling out tariffs that reward flexibility.



This is low-cost, high-impact policy that belongs in our code now.



Accountability for old towers



Then there's accountability for old towers.









In the US, major cities and states have set performance targets for existing buildings and backed them with data reporting and, if needed, fines.



New York's Local Law 97 caps emissions from big buildings, including multifamily, and Washington State's Clean Buildings law now covers many apartment blocks down to 20,000 square feet.



Those rules are forcing upgrades of tired hot-water plants, leaky common areas and clapped-out heating, ventilation, and air conditioning (HVAC).









Australia has made progress with ratings and new-build standards, and NSW lifted BASIX for new homes, but we still lack strong, simple performance rules for existing residential towers.



If we copied the US approach, benchmark every year, set clear limits, and give owners a runway, older Aussie apartments would finally get the upgrades residents have been begging for.



The technology gap that isn't



None of this is sci-fi.









California's apartment hot water is rapidly moving to efficient electric heat-pump systems, sized with off-the-shelf guides and supported by utility programs.



Pair those with rooftop solar and batteries and you cut running costs and evening peaks at the same time.[/p>

Did you know?


Did you know?
Electric heat-pump water heaters use 60-75 per cent less energy than traditional electric systems and work perfectly with solar power during the day.



We have the kit and the installers.



What we don't have is the same clarity of rules and a national tool to split benefits fairly in strata.









That's a policy failure, not a technology gap.[/p>

The call-to-action for Australian governments



For viewers sick of government press releases and not much else, here's the call-to-action.[/p>


Key policy changes needed now



  • Make solar and batteries standard on new apartment towers like California did

  • Require electric-ready wiring in every new unit so upgrades are cheap and quick

  • Create a national, apartment-friendly bill-credit system so renters and owners share the savings

  • Add basic grid-friendly controls into the code so buildings can earn by helping the system

  • Set firm energy or emissions targets for existing big buildings so upgrades actually happen




Australia already lifted the construction standard to seven-star and added 'Whole-of-Home', which is good, but it's not the finish line.



It's the starting line. The rest is replicating and adjusting policies that work overseas.[/p>

Quick, fair cost-of-living relief



If governments want quick, fair cost-of-living relief, this is it.



Stop writing strategy documents.



Copy the proven rules, clear the approvals backlog, and let builders deliver apartments that are cheaper to run from day one.





Example Scenario


  1. Renters get lower bills through shared solar credits

  2. Owners get higher-value assets with lower operating costs

  3. The grid gets a breather from peak demand pressure

  4. Ministers get results they can point to in months, not decades





What This Means For You


The technology is ready. The case studies are public.



Canberra's only job is to lift the playbook.



Dr Ehsan Noroozinejad is a senior researcher at Western Sydney University who writes about innovative housing policy, modular construction, and urban resilience. He advises governments and industry on affordable-housing strategy and has appeared on ABC News, Sky News, The Guardian, The Policymaker, The Sydney Morning Herald and The Conversation





  • Original Article


    https://www.skynews.com.au/insights...s/news-story/5b54cbf5a5099b14fd8ae09db43ab625





  • Solar batteries | Clean Energy Regulator

    Cited text: This equates to around a 30 per cent discount on the upfront cost of installing small-scale solar batteries.


    Excerpt: The Australian Government



    https://cer.gov.au/schemes/renewabl...cale-renewable-energy-systems/solar-batteries





  • Federal Government Solar Battery Rebate Explained (2025) | Solar Choice

    Cited text: It offers an upfront discount of around 30 per cent of the upfront cost or a maximum of $372 per usable kilowatt-hour (kWh).


    Excerpt: The Australian Government



    https://www.solarchoice.net.au/learn/solar-rebates/government-battery-rebate/





  • Federal Government confirms Strata Inclusion in Solar Battery Scheme | The Real Estate Conversation

    Cited text: With more than five million Australians now living in strata-titled housing, this recognition highlights the government’s understanding that community...


    Excerpt: with more than five million Australians now living in strata-titled housing, this program specifically includes apartment buildings after sustained advocacy efforts



    https://www.therealestateconversati...ata-inclusion-solar-battery-scheme/1753332618





  • Federal Government confirms Strata Inclusion in Solar Battery Scheme | The Real Estate Conversation

    Cited text: “To have the Federal Minister confirm that strata is not only included in the Solar Battery Scheme but also positioned as a key focus of future energy...


    Excerpt: with more than five million Australians now living in strata-titled housing, this program specifically includes apartment buildings after sustained advocacy efforts



    https://www.therealestateconversati...ata-inclusion-solar-battery-scheme/1753332618





  • Home batteries in Australia explained | Climate Council

    Cited text: While the payback period depends on a lot of factors, in 2024, the average payback period on a home battery in Australia was around 8.3 years, compare...


    Excerpt: The economics have shifted dramatically in favour of batteries: the average payback period has dropped from 19 years in 2016 to just 8.3 years in 2024, with the average Australian staying in their home for around nine years



    https://www.climatecouncil.org.au/resources/home-batteries-in-australia-explained/





  • Solar Panels for Strata Schemes Supported by NSW Government—Strata Community Association (NSW)

    Cited text: “Today, we’ve changed the law so that strata communities only need 50 per cent of owners to agree to install clean energy infrastructure in their apartment bu...


    Excerpt: But NSW recently changed the law, reducing the voting threshold for sustainability upgrades from 75 per cent to just 50 per cent of owners



    https://nsw.strata.community/solar-panels-for-strata-schemes-supported-by-nsw-government/





  • Solar for Strata Apartment Buildings: Everything you need to know (almost)

    Cited text: In NSW, new laws allow a 50 per cent majority vote (previously 75 per cent) for sustainability upgrades.


    Excerpt: But NSW recently changed the law, reducing the voting threshold for sustainability upgrades from 75 per cent to just 50 per cent of owners



    https://www.solarchoice.net.au/commercial-solar/strata-apartments/





  • Federal Government Solar Battery Rebate Explained (2025) | Solar Choice

    Cited text: That puts the expected rebate at $344 per usable kWh. For example, a 10 kWh battery (average price: ~$11,120) would attract a rebate of around $3,440,...


    Excerpt: The rebate works out to about $344 per usable kilowatt-hour. For example, a 10 kWh battery system typically costing around $11,120 would attract a rebate of approximately $3,440, reducing your net cost to $7,680



    https://www.solarchoice.net.au/learn/solar-rebates/government-battery-rebate/





  • Federal Government confirms Strata Inclusion in Solar Battery Scheme | The Real Estate Conversation

    Cited text: The Strata Community Association Australasia has achieved a major advocacy milestone following a high-level meeting between SCA President Joshua Baldw...


    Excerpt: Following high-level advocacy meetings, the Minister for Climate Change and Energy has positioned strata as



    https://www.therealestateconversati...ata-inclusion-solar-battery-scheme/1753332618





  • Federal Government confirms Strata Inclusion in Solar Battery Scheme | The Real Estate Conversation

    Cited text: This is a direct result of sustained advocacy, and a major win for the five million people living in apartments and townhouses across the country.” · ...


    Excerpt: Following high-level advocacy meetings, the Minister for Climate Change and Energy has positioned strata as



    https://www.therealestateconversati...ata-inclusion-solar-battery-scheme/1753332618





  • Solar for Strata Apartment Buildings: Everything you need to know (almost)

    Cited text: ... New in 2025: The Solar for Apartment Residents Grant provides $25 million in funding, with up to $150,000 per project, covering 50 per cent of the cost of...


    Excerpt: Australia



    https://www.solarchoice.net.au/commercial-solar/strata-apartments/





  • Home batteries in Australia explained | Climate Council

    Cited text: Community-scale batteries are one key way of sharing the benefits of cheaper, clean solar power with households that face barriers to installing their...


    Excerpt: Community-scale batteries are being positioned as



    https://www.climatecouncil.org.au/resources/home-batteries-in-australia-explained/





  • Home batteries in Australia explained | Climate Council

    Cited text: Early adopters of V2G are making around $1000 every year from selling energy back into the grid from their cars. On top of this, switching to an EV ca...


    Excerpt: Early adopters of vehicle-to-grid technology are already making around $1,000 annually selling energy back to the grid from their cars, on top of saving around $2,000 yearly on fuel costs



    https://www.climatecouncil.org.au/resources/home-batteries-in-australia-explained/





  • Solar batteries | Clean Energy Regulator

    Cited text: A battery allows you to store excess solar energy and use it later, which can lower your bills if you’re using electricity in the evening.


    Excerpt: A battery allows you to store excess solar energy and use it later, which can lower your bills if you



    https://cer.gov.au/schemes/renewabl...cale-renewable-energy-systems/solar-batteries





  • Home batteries in Australia explained | Climate Council

    Cited text: Government incentives for installing a home battery are increasingly requiring participation, or capacity to participate in, a virtual power plant (VP...


    Excerpt: Government incentives increasingly require participation in virtual power plants (VPPs), where individual batteries connect to act as one large power plant, allowing households to access financial benefits by selling stored solar power to…



    https://www.climatecouncil.org.au/resources/home-batteries-in-australia-explained/





  • NSW: Q&A Solar for Apartments—Power to the (Strata) People

    Cited text: Solar penetration on strata buildings in Greater Sydney has now passed 3 per cent penetration. This is up from 0.6 per cent penetration back in 2019 which shows there...


    Excerpt: Solar penetration on strata buildings in Greater Sydney has jumped from just 0.6 per cent in 2019 to over 3 per cent today, showing rapid adoption once barriers are removed



    https://www.lookupstrata.com.au/nsw-solar-strata-apartments/





  • Solar batteries | Clean Energy Regulator

    Cited text: We expect demand for batteries to be high during the roll-out of the program. Consumers can expect that there may be longer than usual wait times for ...


    Excerpt: Government agencies are warning that demand for batteries will be high during the program rollout, with longer than usual wait times expected for both ordering and installation



    https://cer.gov.au/schemes/renewabl...cale-renewable-energy-systems/solar-batteries



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