Can You Charge More Rent for ‘Bills Included’ Solar?

Key Takeaway

Australian landlords can usually charge higher rent for a ‘bills included’ arrangement after installing solar, but they must avoid acting as an unlicensed electricity retailer or overcharging tenants beyond realistic market bills. The safest structure is simply higher rent with transparent inclusions, not per‑kWh on‑selling. A decision-grade check is to compare annual solar loan costs to expected bill savings and rent uplift, stress-testing with 20% lower savings and 3% higher interest rates, then adjust rent accordingly.

You can usually charge higher rent for a ‘bills included’ setup after installing solar, but you can’t just mark up power and on‑sell it to tenants like a retailer.

The clean way is to charge higher rent with clear inclusions (electricity, sometimes gas/internet), not a per‑kWh tariff, and to keep the total “effective bill” reasonable against local market rates and energy laws in your state.

Landlord and tenant reviewing a bills-included lease with solar visible Getting ‘bills included’ rent right starts with clear, simple lease terms.

What’s legally okay when you add solar and include bills?

There are three moving parts:

Residential tenancy law – what you can write into leases.
Energy and metering rules – whether you’re treated as an energy retailer.
Consumer law – you can’t mislead or gouge.

In most Australian states and territories, you can:

Offer higher rent with “electricity included”, where the account stays in your name.
Recover fixed supply charges in the rent (e.g. daily service charge), if disclosed.
Set reasonable usage limits (e.g. up to $X per quarter or Y kWh/day) with a fair sharing rule if tenants go over.

You risk problems if you:

Charge tenants a marked‑up per‑kWh rate as if you’re an energy retailer.
Hide big usage caps or penalties in confusing lease wording.
Quote “free power from solar” when the system clearly won’t cover typical use.

If you’re unsure, get your managing agent to check your template lease against your state’s tenancy and energy rules before advertising.

Structuring ‘bills included’ with solar: safer options

The key is to separate rent from electricity pricing. ### Option 1: Simple “rent plus bills included” - You keep the electricity account in your name. - You charge a higher weekly rent that reflects typical power bills minus your expected solar savings. - Tenants don’t see the actual bill (like many share houses and granny flats). Worked example (illustrative only): - Typical unit power bill without solar: $120/month. - Solar reduces average bills by $60/month. - You bump rent by $20/week (~$87/month) and include electricity. Outcome: - Tenant is…

Frequently asked questions

Can I increase rent just because I installed solar panels?▾

You can usually ask for higher rent if the property is genuinely more attractive or cheaper to run with solar. However, you must follow normal rent increase rules in your state and can’t increase rent mid‑lease unless the agreement allows it. The increase needs to be reasonable against comparable local rentals or you risk longer vacancies and possible disputes.

Is it legal to on‑sell solar power to my tenants at a profit?▾

For most small residential properties, it’s safer not to on‑sell electricity per kWh at a marked‑up rate, as this can trigger energy retailer and embedded network rules. Instead, structure it as higher rent with bills included or a clear utilities allowance. That way you’re charging for occupancy, not acting like an electricity retailer.

Should the energy account be in my name or the tenant’s when I have solar?▾

If the account is in your name, you can more easily offer ‘bills included’ rent and capture feed‑in credits, but you take on usage risk. If it’s in the tenant’s name, they get the direct benefit of solar savings and you avoid bill volatility. Many landlords prefer tenant‑held accounts with a modest rent premium for the solar benefit.

Speak with a specialist advisor

Confidential consultation, bespoke advice for your situation.

Charging More Rent for ‘Bills Included’ with Solar: What’s Allowed?