How to pay for shared solar in your apartment building

4 ways apartment residents are getting it done

If you're thinking about getting solar for your apartment building, you’ve probably seen the benefits – lower energy bills, a more sustainable building, and better resale or rental appeal.

But one big question still needs to be answered:

How are we going to pay for it?

You’re not the first to ask. Across Australia, apartment owners are successfully installing shared solar by choosing one of a few common funding options. Some use a mix. 

Here’s a breakdown of the four most popular approaches, so you can figure out what might work best for your building.

1. Everyone chips in, aka a special levy
2. Use your building’s sinking fund
3. Apply for a government grant
4. Get strata finance

1. Everyone chips in, aka a special levy

In this model, each apartment owner contributes their share of the cost through what’s called a special levy. While a special levy is usually split based on lot entitlements (e.g. bigger apartments pay slightly more), but your committee may be able to vote to split it evenly if that’s better for your building.

It’s worth considering this early, as the way costs are divided may influence how the solar is allocated between apartments. Don’t fret – your solar installer will walk you through solar allocations and the options for your building.

Not all owners need to participate, although some government grants require it (more info below). In our experience, most residents are keen to opt in once they see the potential savings.

Good for buildings where:

• You don’t want to use the sinking fund/capital works fund, or those funds aren’t available
• Lot entitlements vary widely, meaning an even split of contributions may not be fair
• Owners are comfortable making a one-off payment

Things to consider:

• Agree early on how costs will be divided and how solar will be shared
• This approach still requires a formal vote (ordinary or special resolution, depending on your state and system layout)
• Collecting funds can be easier if the motion is passed at an Extraordinary General Meeting (EGM) or Special General Meeting (SGM) (a meeting called outside the usual annual cycle to address urgent or significant matters requiring owner approval).

2. Use your building’s sinking fund

If your owners’ corporation has money saved in the sinking fund (also called a capital works fund), it can be used to pay for all or part of the solar. This option spreads both the cost and the benefits across all lots, and can save time compared to collecting funds from individual owners.

Good for buildings where:

• Everyone will benefit from solar (apartments + common areas)
• There’s enough in the fund to cover it
• The available funds haven’t previously been allocated to other upcoming capital works projects
• You want to keep things simple and inclusive

Things to consider:

• This still requires a formal vote, and your strata manager will need to update your building’s budget plan
• It will reduce the funds available for future projects
• Your owners’ committee may choose to top up the fund afterwards with future levies

💡 Some buildings combine this option with option one – a special levy – covering part of the cost (e.g. common areas) from the sinking fund, and the rest from participating owners.

3. Apply for a government grant

With the growing popularity of apartment solar, many states – and even some local councils – are offering grants to help cover the cost of solar and batteries. For example, in NSW, the Solar for Apartment Residents program can cover up to 50% of the cost.

Good for buildings where:

• Your building meets the eligibility criteria outlined in the grant
• Owners want to reduce the upfront cost of solar
• There’s motivation to act quickly before funding runs out / to maintain any timelines required by the grant guidelines
• There’s someone in your owners’ committee keen to apply (it’s easy, we can help!), or you have a proactive strata manager who can apply on behalf of the owners’ committee. Note: Individual grants may specify who can submit the application.

Things to consider:

• Applying for a grant takes time and coordination – quotes, committee approval, and paperwork
• You’ll still need to cover the remaining cost – but it can be combined with any of the other funding options on this list
• Grant conditions may include specific installation deadlines or reporting requirements

A few things to confirm when applying for grants:

1. Who receives the grant payment? Some programs may pay the installer directly; others may send the funds to your Owners Corporation or strata manager for them to make payment to the installer.
2. When is the grant paid out? Many programs release funding in instalments. For example, in NSW, 20% is paid once the grant is approved and a funding agreement is signed by both parties, with 40% being release when the project is at 50% of solar panels installed, and the final 40% paid after installation is complete.
3. What are the installer's payment milestones? Most installers will have staged payment terms (e.g. deposit, mid-installation, completion). Knowing when funds are needed helps you choose how to cover the gap.

Why this matters: If the grant pays part of the cost upfront, and the installer only needs the rest later in the project, your committee may have time to raise a special levy or arrange finance without delaying the installation.

4. Get strata finance

With strata finance, the building pays for the solar upfront using a strata loan, and owners repay the cost over time through their regular levies. Depending on the loan amount, this can mean no special levy and no need to collect money directly from individual owners.

Good for buildings where:

• The sinking fund doesn’t have enough available, or the funds are already allocated elsewhere
• Owners prefer smaller, regular payments over time
• You want to act quickly and pay as you save

Things to consider:

• You’ll still need a vote to approve solar, plus a separate motion for the finance, but many buildings find this to be the most flexible option – especially when paired with a grant. These can be held together or at different times (e.g. approve solar first, then finance later)
• The total cost may be higher if interest applies, but more low-interest “green loans” are becoming available
• Loans can often be structured so that your monthly bill savings outweigh the repayments – meaning savings from day one!
• Repayments will be added to your levies for a set period
• The finance provider may require documents like meeting minutes or cost estimates

Want to know more? Read our guide to strata finance →

What should we do next?

There’s no one right answer – it depends on your building, your owners, and what’s available to you...

But we’ve seen that the most successful projects all have one thing in common:

They start the conversation early.

If you’d like help comparing your options or preparing for a vote, we’re happy to support you.