As we head into a Budget that Treasurer Jim Chalmers has flagged will focus on ‘intergenerational fairness’, Solar Citizens urges the Treasurer to include their proposed tax concession which would save renters thousands of dollars on their electricity bill.
There are 2 million Australian rental households living in homes that are suitable for rooftop solar but which are currently locked out of rooftop solar due to the ‘split incentive’ - where landlords bear the capital cost of solar installation while tenants receive the bill-saving benefits.
Solar Citizens has proposed that the Federal Government introduce accelerated depreciation for landlords investing in solar or batteries for their rental property.
Independent economic modelling by Rennie Advisory of Solar Citizens tax proposal shows that accelerated depreciation for landlord investments in solar and energy efficiency upgrades for 30% of rental homes by 2030 would see $27-57 billion in savings nationally for renters on their energy bills over 20 years, depending on the size of the solar system and battery inclusion, with a cost to the budget of $1.3-4.7 billion for the whole program.
Solar Citizens CEO Heidi Lee Douglas said:
“It’s unfair that renters who are bearing the brunt of the energy and cost-of-living crisis, with rising rents and energy bills, have the least control over their energy use because they don’t currently have access to rooftop solar and storage.
“We sent the Treasurer the proposal to accelerate depreciation from 20 years to 5 years as part of our Budget Submission in January, and it’s backed by 80% of people we surveyed in December - including renters and landlords.
“Nearly 2000 people have sent emails to the Treasurer and Expenditure Review Committee urging the government to make this small change which would unlock billions of dollars in investments, cut bills and speed up the shift to clean energy.
“This is a pragmatic way to address the unfortunate ‘split incentive’ where landlords bear the capital cost of solar installation while tenants enjoy the bill-saving benefits.
“Accelerating depreciation has marginal cost to the Federal budget in comparison to the significant benefits: if 30% of rental properties installed solar panels (by 2030), it would cost the government $1 billion to deliver $27 billion in renter benefits over 20 years.”
The economic analysis found that:
- Renters would save up to $45,000 on electricity bills from solar with battery installations and $38,000 with just solar over the 20 year life of the assets.
- Landlords would save over $6,000 on solar + battery installations and up to $3,000 on solar installations - which is a 25% saving
- The cost to Treasury of accelerating depreciation on solar and battery installations would be $1,100 - $3,700 per installation
- Coordinating this Federal incentive with state and territory based Minimum Energy Efficiency Standards would likely shift this from voluntary uptake by landlords to a structured path for rental reform - modelled as 100% uptake by 2050.
Read and download the Economic Modelling report:
Solar for Renters: Closing the Gap with Accelerated Depreciation, Rennie Advisory, May 2026
