Shared solar service to benefit tenants and landlords

Technology start-up Matter has announced the Australian launch of Digital Solar, a pioneering technology that will enable rented households to benefit from clean and cheap solar power by allowing landlords to sell solar energy to their tenants.

Australia may have high solar adoption levels in owner-occupied homes, but the one-third of Australian households living in rented accommodation do not have solar. This is because landlords cannot justify the expense of providing a solar system when the benefit of a reduced energy bill goes to the tenant. This is called the ‘split incentive’ problem.

To solve the problem, Matter allows property owners and tenants to collaborate through a simple online business case calculator to see what shared benefits they can generate before signing up to the Digital Solar service. Matter then provides a quote and facilitates the installation process.

Digital Solar comes in the form of an unassuming box, installed between the solar panels on the roof and the electrical box, feeding outlets in the home. Power generated by the solar system and consumed by the household is measured and made available to both owner and tenant through Matter’s portal.

The platform allows a property owner to bill their tenant for the power they use with an invoice automatically generated by Matter’s system. A separate log-in allows tenants to view their usage in real time, visualise the dollar value of what they’re saving and even view a usage forecast, leading to more conscious energy consumption habits. Tenants can secure their daytime energy supply with Digital Solar and use traditional grid energy for the top-up energy that can’t be produced by the solar system.

The service means landlords can install solar energy systems that have attractive payback periods and high lifetime returns, which improve both rental incomes and the capital value of their investments. Installing Digital Solar can typically achieve a return on investment of 3–6 years, according to the company, with a net present value of five times the investment.

“By pioneering the shift from ownership to usership in the energy industry, Digital Solar puts landlords and their tenants in control, creating new revenue streams and lowering energy bills,” said Matter CEO Chris Mrakas. “It’s a trend that’s set to continue as solar becomes more prevalent and new business models emerge to meet the needs of the changing energy landscape.”

Digital Solar is currently suitable for single-tenanted rental properties and will be rolled out to multitenanted, mixed residential and commercial properties across next year. The service is planned to launch in the USA and Europe in early 2016.