Balcony solar could soon become legal in Australia. Here’s how plug-in systems work

Australia could soon follow in the footsteps of Germany and the United Kingdom as it prepares to lift a ban on plug-in solar and batteries, unlocking access to the technology for millions of apartment dwellers and renters for the first time.

The move was discussed during a meeting of the country’s energy ministers, where they agreed to explore pathways to support the “safe deployment” of plug-in solar across the country.

The systems, which are also commonly referred to as ‘balcony solar’, were legalised in the United Kingdom last month and New Zealand has flagged plans to do the same within 12 months.

Germany is a world-leader in plug-in solar, with an estimated one in 10 households having a system installed.

It can technically be sold in Australia but not legally plugged in and used.

Energy Minister Chris Bowen said a third of Australians have solar on their roof, making the technology “more popular than the backyard pool”.

“Now we’re taking the next step, by looking at how even more Australians can take advantage of free, abundant sunshine to cut their energy bills — even if they don’t have a roof.

“All state and territory ministers are on board and will work with the Commonwealth to look at how plug-in solar and batteries can work in Australia to give apartment dwellers more control over their energy bills.”

Heidi Lee Douglas is the CEO of Solar Citizens, a community organisation that’s been campaigning for plug-in solar to be legalised, and welcomed that Australia was now a step closer to that reality.

“This commitment to make plug-in solar and plug-in batteries legal in Australia is great news for more than a third of Australians who rent or live in apartments, and also for low-income households so they can access some of the bill-busting benefits that cheap clean solar home owners enjoy,” she said.

“We want to see a firm timeline and deadline by December at the next energy ministers meeting for when plug-in solar and batteries will be available for use in every state and territory.

What are plug-in solar and batteries?

Plug-in solar systems and batteries can be plugged into regular power points and do not require installation by an electrician.

The power generated by the panels is fed into the home network via an inverter and a standard plug and helps offset electricity used by appliances.

Overseas, they are commonly attached to apartment balconies or installed in backyards and produce between 600-800 watts of power, typically at a cost of up to $1,300.

They are a popular choice for people who live in an apartment and cannot mount rooftop solar as well as renters, many of whom have never considered the possibility of accessing renewable energy.

More than 30 per cent of Australians are renting, which equates to almost 3 million households.

Maiya Irving-Mackinnon is a renter from the Sydney suburb of Marrickville who estimates her electricity bills have increased by about 15 per cent, or $200, over the past 12 months.

“Solar has never really been something that we can consider as a renter because we can’t install anything on the roof or on a ground floor apartment,” she said.

“I would really like to have the option to install solar panels and for that to be subsidised but it’s not really something that’s been available for a renter before.

Experts have suggested the payback period for plug-in solar systems ranges from four to ten years.

Ms Lee Douglas expects some households will save up to $1,000 a year on electricity bills.

“The average plug-in solar panel will allow you to save about $300-$400 a year, and plug-in batteries will easily double that,” she said.

Importantly, renters would be able to take the panels and batteries with them when they moved.

Barriers to overcome

The federal government will now work with the states and territories to “identify measures that enable the safe use” of plug-in solar and report back on next steps by the end of the year.

The federal government is yet to indicate whether it is considering offering subsidies or rebates for the technology.

Solar Citizens is calling on plug-in solar and batteries to become legal in Australia by July next year.

But there are still barriers to overcome ahead of then, including ensuring safety standards are up to scratch for when products begin to enter the market.

Executive director of the German Plug-In Solar Association Craig Morris said Australia could look to the safety standards that Germany has developed as a starting point.

“The risk of too many companies coming in and some of them not being serious has gone down,” he said.

“If you go back just five years, I think we had a number of companies that you didn’t really know too much about them and maybe they were just trying a quick buck.

Bringing landlords and body corporates on board to allow plug-in solar to be hung on balconies or stationed in backyards is another challenge that would need to be addressed in Australia before the technology is legalised and rolled out.

In Germany, tenants need to get permission to install plug-in solar but landlords need a good reason, such as planned facade renovations, to reject the request.

Mr Morris said ultimately, adoption of plug-in batteries would be crucial in allowing the full benefits of plug-in solar to be fully realised.

“What we’re ultimately offering, which is plug-in solar with batteries, or maybe even plug-in batteries without solar, offering flexibility from households,” he said.

“The batteries would charge and discharge not in order to optimise our consumption of the solar power we generate, but to optimise operation of the local grid.

“And this can save money across the board, across the country for everyone, even if you don’t have a system, because we’re going to optimise the usage of these public power lines.”