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Budget negotiations - new call for tax incentives on Solar for Renters

As the Federal Budget measures move through parliamentary negotiations — and with the Government facing pressure to back down on proposed reforms to Capital Gains Tax settings — Solar Citizens says a targeted tax incentive for rental property owners that delivers direct benefits to renters deserves far greater scrutiny.

The call comes as new research from Energy Consumers Australia (ECA) shows half of all Australians face barriers to accessing rooftop solar and battery storage, with renters among those most locked out of the clean energy transition. [1]

Solar Citizens is urging the Federal Government and crossbench MPs to seriously consider a targeted tax incentive that would encourage landlords to invest in rooftop solar and batteries for rental properties without increasing the overall cost to renters.

The proposal has now received backing from Energy Consumers Australia, which has called on governments to “explore targeted tax incentives for landlords who invest in energy upgrades — including batteries — for their properties without increasing the total cost renters pay.” [2]

Solar Citizens CEO Heidi Lee Douglas said the ECA findings confirmed what renters across Australia already know: they are carrying the heaviest burden in the energy and cost-of-living crisis while being locked out of the benefits of rooftop solar.

“Renters are paying the price for inefficient homes and soaring electricity bills while missing out on the savings that rooftop solar and batteries can provide,” said Ms Douglas.

“This new research from Energy Consumers Australia confirms that structural barriers — not lack of interest — are preventing millions of Australians from participating in the clean energy transition.”

“While politicians debate tax concessions for wealthy investors, there is a practical, targeted reform sitting right in front of them that could lower bills for renters, reduce pressure on the energy grid, and accelerate Australia’s clean energy transition.”

Independent economic modelling commissioned by Solar Citizens found that bringing forward depreciation on landlord investments in rooftop solar and battery storage from 20 years to 5 years could unlock significant private investment in rental energy upgrades. [3]

The modelling found that if just 30% of rental properties installed rooftop solar and battery storage by 2030, renters could save between $27 billion and $57 billion nationally over the next 20 years.

Ms Douglas said the policy presented a rare “win-win-win” opportunity.

“This is the kind of smart policy that can genuinely improve intergenerational fairness,” she said.

“It helps renters slash power bills, helps landlords invest in better properties, and helps Australia build a cleaner and more resilient energy system.”

“At a time when the Government is under pressure over broader tax reform debates, this proposal stands out because it delivers direct public benefit and tackles the very real cost-of-living pressures renters are facing right now.”

Solar Citizens also supports calls from ECA for minimum rental energy standards, better support for low-income households, and reforms that ensure all Australians can benefit from the clean energy transition.

 

NOTES

1] Understanding household barriers to residential solar and battery uptake…, Energy Consumers Australia, 24/5/2026

2] Half of all Australians facing barriers to solar and battery revolution new report finds, ECA Media Release. 24/5/2026

3] Solar for Renters: Closing the Gap with Accelerated Depreciation, Solar Citizens & Rennie Advisory, 8/5/2026

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