On a South Australian rental, the feed-in tariff is paid to whoever holds the electricity account. In most tenancies that is the tenant, so the credit for exported solar normally lands on their bill, not yours. Landlords can still benefit through a stronger, more competitive rental, a lower-bill property that attracts quality tenants, and, where both parties agree in writing, a tenant contribution towards installation. This guide explains how the arrangement works, what the Residential Tenancies Act 1995 (SA) means for it, and how to document it so it never becomes a SACAT matter.
TL;DR
- Feed-in payments go to the electricity account holder. If your tenant holds the account, the credit is theirs. (SA.GOV.AU)
- Electricity use is paid as agreed between landlord and tenant. Without an agreement, the tenant pays based on consumption.
- Since 1 July 2024, SA landlords and tenants may agree in writing that a tenant contributes towards the cost of installing a solar system.
- A tenant needs your written consent for alterations, so settle the solar terms before the work starts.
- Feed-in income can be assessable for tax if the arrangement is more than private or domestic. Confirm your position with a registered tax agent.
Table of Contents
- How solar and feed-in tariffs work on a rental
- Who benefits: the landlord, the tenant or both
- SA rules that apply to solar on a tenancy
- Common arrangements on Adelaide rentals
- Documenting the arrangement
- Tax and solar income
- Other programs that may help
- Our perspective
- Let us handle the paperwork
- FAQ
- Sources
How solar and feed-in tariffs work on a rental
A rooftop solar system produces power during the day. The household uses what it needs, and the surplus is exported to the grid. The payment for that surplus is the feed-in tariff. It appears as a credit on the electricity bill of the person who holds the account for the property.
That single fact drives almost every question landlords ask. The panels belong to the property, and therefore to you. The meter and the account belong to whoever the retailer has on file. In a typical Adelaide tenancy, the tenant sets up the account, pays for consumption, and receives any export credit.
South Australia's official guidance says this plainly: the tariff is credited to the account holder, so where the tenant holds the account, it goes to the tenant. SA.GOV.AU's utilities guidance also sets out that electricity and gas charges are paid as agreed between landlord and tenant under the Residential Tenancies Act 1995 (SA). If nothing is agreed, the tenant pays according to consumption.
What the feed-in rate actually is
Most SA households today receive a retailer feed-in tariff. According to SA.GOV.AU's solar feed-in payments page, these are available to anyone with an eligible solar PV system, and the rate is influenced by factors such as wholesale electricity prices and market competition. In practice, that means the rate differs between retailers and changes over time.
There is also a legacy arrangement. Eligible systems connected before 30 September 2011 may receive a 44c/kWh distributor tariff on the first 45 kWh exported each day. The same SA.GOV.AU page states it continues until 30 June 2028, provided the system is not upgraded or altered. If you buy an older Adelaide investment property with a pre-2011 system, check the connection date before you replace an inverter or add panels, because the change can end that tariff.
The practical point for landlords is that the rate a tenant receives depends on the retailer the tenant chooses. You do not control it, and you should not promise a figure in a lease or an advertisement.
Who benefits: the landlord, the tenant or both
The energy sector has a name for the awkward part: the split incentive. The Australian Government's energy.gov.au guidance on solar for rentals describes it as landlords being reluctant to invest in upgrades because tenants benefit while landlords see no direct financial return.
For a well-run portfolio, the return is real but indirect. Consider where it shows up:
- Tenant appeal. A home with lower running costs draws more applications. More applications means more choice, and more choice means better tenant quality.
- Tenant retention. Tenants who save on bills tend to have a reason to stay. Fewer vacancies protect your annual income.
- Asset presentation. Solar is a visible feature on a listing, particularly in suburbs such as Mawson Lakes, Blakeview, Golden Grove and Seaford, where newer housing stock often already carries panels.
- Contribution by agreement. The same government guidance notes that a tenant may agree to a rent increase that helps cover installation, provided the increase is less than the tenant's power-bill savings.
That last point is the test for any arrangement. If the tenant is not clearly better off, it will not hold, and it is unlikely to survive a dispute.
Weighing the numbers as an investor
Before installing, model the property the way you would any other upgrade. Estimate the effect on achievable rent, the likely reduction in vacancy, and the capital cost. The rental yield formula and stress-test approach is a useful way to see how a change in income or cost moves your net position. The government's SunSPOT calculator, referenced on the energy.gov.au page above, can estimate how a system is likely to perform on a specific roof.
A rental appraisal after installation, rather than before, gives you a realistic view of what the market will bear. Our rental appraisal takes the property's features into account, including solar.
SA rules that apply to solar on a tenancy
Written consent for alterations
If a tenant wants panels installed, or if you are retrofitting during a tenancy, the alteration rules matter. The standard South Australian residential tenancy agreement, published by Consumer and Business Services, provides that a tenant needs the landlord's written consent for alterations or additions. The landlord must not unreasonably withhold consent for minor alterations or prescribed-service alterations. The tenant bears the associated costs and must restore the property at the end of the tenancy. The wording is in the CBS periodic tenancy agreement.
In short, a tenant should never be installing panels on a handshake. Put the approval, the installer's details and the end-of-tenancy position in writing first.
Agreements about installation costs from 1 July 2024
From 1 July 2024, a landlord and tenant may agree that the tenant pays an amount towards the cost of installing a solar system. This is set out in the SA.GOV.AU guidance already cited. The word to hold onto is agree. It is a voluntary arrangement, not an entitlement for either side.
A workable agreement answers these questions in writing:
- What is being installed, and by which licensed installer?
- What amount will the tenant contribute, and how is it paid?
- Who holds the electricity account, and who receives the feed-in credit?
- What happens to the arrangement if the tenancy ends early?
- Who is responsible for maintenance, and who arranges repairs?
We keep these documents with the lease on the property file so that, years later, a new owner, a new tenant or SACAT can see exactly what was agreed.
Keeping the agreement consistent with your wider obligations
Solar sits alongside your other duties. Our guide to landlord obligations in South Australia covers the baseline, and our overview of Adelaide rental compliance requirements sets out the safety and documentation side. If an installer or inspector needs roof or switchboard access, follow the notice rules in our guide to tenant privacy laws in SA.
Common arrangements on Adelaide rentals
There are a handful of structures landlords use. The right one depends on who paid for the system and how the property is let.
| Arrangement | Who holds the account | Who gets feed-in credit | What to document |
|---|---|---|---|
| Landlord-owned system, standard lease | Tenant | Tenant | That the tenant keeps the credit and pays for consumption |
| Tenant contributes to installation by agreement | Tenant | Tenant | The agreed contribution, the installer and the end-of-lease position |
| Pre-2011 system with legacy tariff | Account holder at the time | Account holder, if the system is unaltered | Connection date, and a warning not to alter the system without advice |
| Vacant property between tenants | Landlord or agent | Landlord | Account details and the handover date to the new tenant |
The last row is easy to overlook. When a property is vacant, the account sits with you or your agent, and any export credit during the gap belongs to that account. Handover dates matter, and meter readings on the day the tenancy starts keep everyone honest.
Documenting the arrangement
Good records are the cheapest form of dispute prevention. For every property with solar, we recommend keeping:
- Installation date, system size, inverter model and installer details.
- The signed consent and any cost-contribution agreement.
- Meter readings at the start and end of each tenancy, with dates.
- A written record of who holds the electricity account.
- Copies of any correspondence about billing or export credits.
Tenants are also encouraged to keep dated readings and messages, so both sides will have a trail. Our notes on professional tenant communication standards explain why written, dated communication shortens disputes.
If a billing disagreement involving solar credits cannot be settled directly, the next steps are Consumer and Business Services and, if needed, an application to SACAT. A clear paper trail is what makes those steps short.
Tax and solar income
Feed-in payments usually flow to the tenant, so most landlords never see them. Where you do receive them, for instance on a vacant property or in a more commercial arrangement, tax can apply. An Australian Taxation Office ruling database entry states that if a solar arrangement is more than private or domestic in nature, feed-in tariff payments may be assessable income and related costs may be deductible. You can read the ATO's published view.
That entry applies to a specific year and set of facts, so speak to a registered tax agent about your own position. Our summary of SA rental property tax obligations covers the wider picture for landlords.
Other programs that may help
Solar is not the only upgrade route. The Retailer Energy Productivity Scheme (REPS), administered by ESCOSA, may support energy upgrades on rental properties, subject to the landlord's approval before the activity is undertaken. The detail is in ESCOSA's REPS FAQs. The key landlord takeaway is the sequence: approve first, then let the work proceed.
Government solar subsidies for rentals also exist from time to time at state and territory level, according to energy.gov.au. Programs change, so check the current offer before you plan around one.
One caution before signing with any installer: Consumer and Business Services has urged consumers to research installations, compare quotes, and check grid-export rates with their retailer before committing. The advice is in a CBS warning on solar and battery businesses. A landlord who vets the installer protects the asset and the tenant relationship at once.
Our perspective
Solar on a rental is a management question as much as an energy one. The panels are an asset you own, the account belongs to your tenant, and the lease sits between them. Most disputes we see come from a gap in that chain: an undocumented installation, an unclear account holder, or a verbal promise about credits.
We manage property in Adelaide exclusively, and we do not handle sales. That focus lets us put the effort into the details that protect a portfolio: written consent before any alteration, dated meter readings at the start and end of a tenancy, and a 24/7 owner portal so you can see the file at any time.
We also treat tenant quality as the main driver of long-term performance. Our four-layer screening system is designed to place tenants who respect the property, and a solar-equipped home tends to attract strong applications. Our aim is that every arrangement you make on the property is clear, compliant and recorded.
HOSO
Let us handle the paperwork
If your Adelaide investment has solar, or you are considering it, we can coordinate the lease terms, consent records, inspections and maintenance in one place. See our property management services, or start with a rental appraisal to see how the property's features support its rent.
FAQ
Does the tenant or the landlord get the solar feed-in tariff in SA?
The account holder receives it. In most tenancies that is the tenant, so the credit appears on their bill. If the property is vacant and the account is in your name, the credit is yours.
Can a landlord ask the tenant to help pay for solar panels?
Yes, by agreement. From 1 July 2024, SA landlords and tenants may agree that the tenant pays an amount towards installation. It must be agreed by both parties, and it should be recorded in writing before the work begins.
Can a tenant install solar panels on a rental in South Australia?
Only with your written consent. A landlord must not unreasonably withhold consent for minor alterations or prescribed-service alterations, and the tenant bears the associated costs and restores the property at the end of the tenancy.
Do I pay tax on feed-in tariff income from a rental?
It depends on the arrangement. The ATO's published view is that payments may be assessable where the arrangement is more than private or domestic. Ask a registered tax agent to confirm your situation.
What if we disagree about solar credits or bills?
Start with your written records and the lease terms. If the disagreement continues, a complaint to Consumer and Business Services or an application to SACAT are the next steps.
Sources
- SA.GOV.AU: Utilities, connections and insurance
- SA.GOV.AU: Solar feed-in payments
- energy.gov.au: Solar for rentals and multi-occupancy properties
- CBS: Periodic residential tenancy agreement
- ESCOSA: REPS FAQs
- CBS: Public warned against using solar and battery business
- ATO legal database: feed-in tariff payments
- OptiWealth: Rental yield formula