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VIC Solar for Apartments Program Round 1: Key Lessons for Installers

Picture of Vincent Obasuyi By  Vincent Obasuyi  ·  3 minute read

The first round of the Solar Victoria program brought both challenges and valuable insights for solar installers and retailers. As we get ready for Round 2, it's important to figure out what worked, what didn't, and how we can use these lessons to do even better in the future.

6 Lessons We Learned From Round 1

Mirvac VIC SolShare Solar

 

1. Cash Flow Clarity: A New Payment Structure for Round 2

Owners Corporation and installer cash flow was a notable challenge in Round 1's structure. However, for Round 2, Solar Victoria will be paying the solar retailers and installers directly (in line with their typical solar homes rebate) rather than funds going to the Owners Corporation.

2. System Sizing: The Key to Successful Proposals

We have found that sizing systems appropriately is the key to successful proposals. It is best to aim for 1.3 – 1.5 kW per apartment for SolShare installations – this allows for less out-of-pocket cost (whilst still meeting the 10-year payback requirement) – which seems to be the tipping point for many Owners Corporations' decisions.

3. Self-Consumption Assumptions and ROI Calculations

Solar Victoria is likely to be cracking down on self-consumption assumptions in the ROI calculations for Round 2. The average daytime consumption of apartment owners in Victoria is ~350W*. For SolShare systems this results in 40-55% self-consumption with a 1.3-1.5 kW system per unit. We would advise staying in this range to avoid scrutiny from Solar Victoria in Round 2.

*Based on the current install fleet in Victoria.

4. Strata Managers: Unlock Multiple Engagements at Once

Engaged strata managers are an amazing tool, as they can offer a large volume of proposals from their accounts – allowing multiple sites to be engaged at once.

Reaching out to them to make connections and ask about their portfolios can be a quick win for installers.

5. Switchboard Upgrades: Streamlining the Process

Many of the sites in Round 1 require switchboard upgrades. Some installers consider this a win as it increases the overall project value, but it can be cost-prohibitive for owners corporations.

We are working with some partners to streamline this process and reduce the costs significantly. Reach out to our team if you'd like to discuss this.

6. Landlord Buy-In: Use Our Info Pack to Win Over Investors

Our info pack for landlords and investor owners proved to be a good resource for convincing those who were not owner-occupiers to opt in.

 

Case study - Tips from a successful applicant

Below are some tips from an apartment resident in Fitzroy North who is awaiting Shared solar installation, following a successful grant approval! You may find these helpful to share with people you engage with.

Victorian Strata Voting Regulations

Remember the Victorian voting regulations for passing a special resolution in strata are as follows:

75% Lot Entitlement Consensus:
Special resolution automatically passes if at least 75% lot entitlement consensus is achieved.


50-75% Lot Entitlement Consensus:
If lot entitlement consensus is between 50-75%, the resolution passes if no more than 25% object within 29 days.

Financing Options for Strata

There are a variety of options for strata financing, including using existing funds, a special levy or third party strata financing.

Conclusion

The Solar for Apartments program offers a great opportunity for solar installers to grow their business and help create a more sustainable future. Round 2 provides a chance to apply the lessons learned from the first round. By preparing well, installers can maximise their success and provide greater value to their clients.

If you have any questions or want to learn more about Allume's SolShare technology, please feel free to contact us. Together, we can navigate the Solar Victoria program, take advantage of the opportunities in Round 2, and have a positive impact on Victoria's clean energy landscape. Let's collaborate to make the most of this incredible program!

 

 

Useful Resources

This section provides essential documents and video resources to support your sales process for installing SolShare on apartment buildings:

Documentation for Solar Retailers