Earlier this year we announced that Smart Ease funding solutions are now available to strata companies, effectively helping apartment residents across Australia to access solar savings.
While one in three Australian houses have solar, only 2.5% of apartment buildings do. That represents a hugely underserved market, and a considerable opportunity for solar installers.
With Payment Plans now available to offer strata companies, Smart Ease-accredited installers will be well-positioned to capitalise on this emerging demand.
How Smart Ease makes solar financing easy for strata companies
One of the reasons solar uptake has been slow for apartments is the tricky issue of funding: where exactly will the money come from?
Strata companies traditionally have a few options when it comes to paying for a solar installation:
- Capital Works Fund (commonly known as a sinking fund)
- Special Levy, where new funds are raised specifically for the solar install – usually proportionally to lot entitlement
Now, with Smart Ease funding, they have a new option: a zero upfront Payment Plan that allows the project to be funded through monthly repayments. These payments can be incorporated as small additional fees on top of monthly strata rates. This eliminates the barrier of upfront costs and makes the proposition far more attractive.
Benefits of Smart Ease Payment Plans for Strata Companies
- Zero upfront cost
- Preserve the sinking fund
- Avoid the need for a Special Levy
- Bundle in EV chargers and solar batteries
- Combine with government incentives (e.g., NSW Solar for Apartments rebate)
Strata companies in NSW are also able to benefit from the NSW Solar for Apartments rebate which provides 50% of the cost of the solar install up to $150,000. They can apply for this rebate in addition to their Smart Ease Payment Plan, which will essentially allow them to get a solar system for half price, with zero capital outlay – not bad at all!
Getting a greenlight on solar for strata
The Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2020 makes it easier than ever for strata companies to move forward with energy-efficiency upgrades through a simplified sustainability resolution.
These resolutions can be passed at an AGM or EGM when a quorum is reached. For sustainability projects:
- A quorum is achieved with 25% of owners attending
- If 25% isn’t reached after 30 minutes, a quorum can be formed with those present
- The motion passes as long as “No” votes make up less than half of the total votes from the quorum
Example scenario:
A strata building of 40 apartments have called an EGM to decide on a solar installation project. Only 14 owners attend.
After 30 minutes, the committee nominates they have a quorum.
A vote is executed and there are:
5-Yes, 3-Abstain, 6-No
Total yes & abstaining votes = 8
As this forms the majority, the vote is approved. The OC can then apply for a Smart Ease Payment Plan.
Effective solar sharing
Installing individual solar systems for each unit in an apartment building is as clunky and wasteful as it sounds. Thankfully, there is technology available specifically for effective solar sharing between apartment residents.
Allume’s world-first SolShare technology enables fair and effective solar energy distribution from a central system across multiple units in an apartment building. It allocates solar fairly to residents over the course of a month, improving both equity and efficiency.
The SolShare approach optimises self-consumption – solar power consumed is 20-40% higher with SolShare than with individual systems – resulting in maximum savings. SolShare also sends solar to residents when they are actively using it, supplying an even allocation to each unit per month.
Next steps
Have a strata lead? Get in touch!
Our Sales Directors can guide you through the process of applying for a Smart Ease Payment Plan for a strata customer and put you in touch with the Allume team to discuss technical aspects of the project.
Interested in Smart Ease Payment Plans for strata companies?