Solar for Renters
Electrification
for everyone
Unlocking solar for renters
Solar energy presents a powerful opportunity to reduce electricity costs, cut carbon emissions, and improve energy resilience for both tenants and landlords. It makes sense for New Zealand, and it stacks up financially for those who can pay upfront or pay it off over time.
But how can renters benefit from solar when they don’t own a roof? We’re currently developing solutions to unlock solar for renters, both in Queenstown and nationally, for residential and commercial rental properties, creating benefits for tenants and landlords alike.
The Queenstown Electrification Accelerator (QEA) is launching a Solar for Renters Trial to make low‑cost solar energy more accessible for residential and commercial rental properties.
Landlords: Are you interested in reducing energy costs for your tenants, increase the desirability of the property, and earning a stable return from solar?
Tenants: Would you like lower power bills, reduced emissions, and greater energy resilience in your home?
How does solar for renters work?
The fundamentals for both residential and commercial properties are:
1: The landlord invests in a solar system for the rental property.
2: The tenant pays for access to solar energy (at cheaper rates than the grid), enabling them to access lower cost energy.
3: The landlord receives payments from the tenant (via either of the two options outlined below).
The payments are calculated such that the tenant gets a net saving on their electricity bills, while the landlord receives a fair return on investment.
4: The system is win-win: the tenant saves money on their bills and the landlords make a return on investment, in addition to making the property more attractive for tenants knowing they’ll get lower bills than a home without solar.
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Volume price ($/kWh) that reflects the amount used from the solar system
Tenants pay a volume price i.e. an agreed cents/kWh for self-consumed solar (which is cheaper than their grid electricity price).
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Fixed monthly payments
Tenants pay a fixed cost per month for access to solar energy, regardless of how much power they use, ensuring net savings are still made.
Option 1
Volume Price
Tenant pays a volume price i.e. an agreed cents/kWh for self-consumed solar (which is cheaper than their grid electricity price).
This option would be facilitated by an energy retailer and agreed upon between a tenant and landlord.
This option works by the tenant paying a fixed price per kWh for the solar electricity they consume. This rate should always be lower than the tenants current grid electricity price to ensure savings are made.
In addition to receiving payments for the self consumed solar from the tenant, the landlord also receives the full value of any solar exported to the grid. This ensures the landlord has guaranteed income even when the tenant is not consuming power or when the property is unoccupied.
An energy retailer is required to facilitate the payments between the tenant and the landlord.
Benefits
Tenant Benefits
- Tenants only pay for the electricity consumed (rather than a fixed cost), which is at a lower rate than grid electricity costs.
- Payments are in proportion to the performance of the solar system.
Landlord Benefits
- The landlord earns money from solar exported to the grid, even if the tenant does not consume any solar electricity themselves.
Drawbacks
Tenant Drawbacks
- The tenant does not earn from the solar export.
Landlord Drawbacks
- The amount of solar consumed is dependent on the tenant’s activities.
Option 2
Fixed monthly payments
Tenants pay a fixed cost per month for access to solar energy, regardless of how much power they use, ensuring net savings are still made. This cost is included in the rent of the property.
Fixed monthly payments are set up from the tenant to the landlord, this would be a part of their rental agreement, similar to a ‘bills included’ set up.
The tenant would hold a separate electricity contract with an electricity retailer to pay for any grid-consumed electricity. The tenant also earns the revenue from any solar exported to the grid. Since the savings from self-consuming solar is higher than the revenue from exporting the solar, this incentivises tenants to shift behaviour to use the panels efficiently, while the landlord gets a reliable, known amount of return each month.
Benefits
Tenant Benefits
- Minimal administration after the agreement is set up.
- Solar consumed by the tenant does not need to be continually metered.
- The tenant earns solar export.
- Tenants can accurately forecast costs as the payment is set monthly.
Landlord Benefits
- The landlord has high confidence in the payback period of the solar investment due to the fixed monthly payments.
Drawbacks
Tenant Drawbacks
- If the solar system is oversized in comparison to the tenant’s consumption profile, the fixed payment may be disproportionate to the savings enabled by solar.
- The set payment is required regardless of the solar performance.
- Higher overall risk and uncertainty for the tenant.
Landlord Drawbacks
- The landlord does not earn any money from solar export.
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Interested in solar for renters?
Fill out the form to register your interest.We’ll ask for a few details about you, your property, and your contact information so we can keep you updated and assess eligibility.
And if you have any questions, contact us.
Frequently Asked Questions (FAQs)
FAQs for Everyone
1. What is the purpose of the Solar for Renters Trial?
The trial aims to make low‑cost, low‑carbon solar energy accessible to renters while creating a win‑win financial model for tenants and landlords across Queenstown and potentially nationwide.
2. Is this part of a wider energy strategy?
Yes. The trial sits within the broader Queenstown Electrification Accelerator programme, which is demonstrating the 2050 energy system by 2030 through smart electrification and distributed generation (via rooftop solar panels and battery storage).
FAQs for Tenants
1. How can I benefit from solar if I don’t own the roof?
The Solar for Renters model lets you access cheaper solar electricity even as a renter. The landlord installs the solar system, and you pay for the solar energy you use at a rate lower than standard grid electricity, giving you net savings on your power bill.
2. Will my electricity bills actually be cheaper?
Yes. The payment structure is designed so that tenants save money compared to buying all energy from the grid. Whether you pay a per‑kWh rate or a fixed monthly fee, the arrangement guarantees lower energy costs.
3. What happens if I don’t use much power during the day?
If the landlord chooses a volume‑based option, you only pay for the solar you consume. If a fixed-price model is used, the fee is set so that you still receive net savings overall.
4. Do I need to switch electricity retailers?
Possibly. The volume‑based option requires an energy retailer, currently Octopus to facilitate billing between tenant and landlord. However, the fixed model allows you to be with whichever retailer you like.
5. Will this affect the comfort of my home?
Solar can help improve energy resilience, lowering risk of outages and giving you cleaner, cheaper daytime power.
FAQs for Landlords
1. Why should I consider installing solar on my rental property?
Benefits include:
2. How do I earn a return on investment?
Tenants pay for access to solar, either per kWh or via a fixed monthly fee. Payments are designed so that you earn a fair and stable return, while tenants still save overall.
3. What payment models are available?
Two models are being trialled:
- Volume price model: Tenants pay cents per kWh for self‑consumed solar.
- Fixed-fee model: Tenant pays a monthly fee regardless of usage.
Both options ensure tenant savings and landlord returns.
4. Do I also earn money from solar exported to the grid?
Yes. Under the volume‑based model, you receive the full value of exported solar, giving you income even when tenants use less power or the property is vacant.
5. What type of properties can participate?
Both residential and commercial rental properties are eligible.
6. What support will I receive if I join the trial?
QEA will work directly with you to explore the best option for your property and guide you through the process.
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