Apartment energy: what the Victorian inquiry means for residents

Electrify Boroondara recently contributed to the Victorian Parliament’s Inquiry into renewable and affordable energy for apartments, both through a written submission and by appearing at the public hearing alongside many industry peers.

The Committee has now released its final report, and we were pleased to see many of Electrify Boroondara’s concerns reflected in its findings (12 mentions in the report), particularly around Owners Corporation decision-making, embedded networks, limited rooftop space and the practical challenges of electrifying shared building infrastructure.

This is highly relevant locally. The council area of Boroondara in inner eastern Melbourne has more than 15,000 occupied apartments — around one in four occupied private dwellings in the municipality.

So what can apartment residents actually do?

Start with what you control

One of Electrify Boroondara’s key messages to the inquiry was that not every energy improvement requires an Owners Corporation decision, a landlord or a building upgrade.

Almost every household can start by understanding their energy use and looking for ways to reduce it.

Simple examples include:

• Check your electricity and gas plans regularly using this free tool from Victorian Government. Your cheapest plan can change as your circumstances and energy use change. This is particularly important as households add EVs, heat-pump hot water or electric heating.

• Use less energy for heating and cooling. Draught-proofing doors and windows, closing curtains or blinds at the right times, and avoiding excessive heating and cooling can make a noticeable difference. Keeping your aircon at 23-26 degrees in the summer can help keep costs down (Energy.vic.gov.au).

• Use efficient appliances. When replacing an appliance, look at running costs as well as purchase price. Heat-pump hot water and efficient reverse-cycle air conditioning can be particularly significant energy-saving opportunities.

• Shift flexible electricity use. If your tariff rewards off-peak or daytime consumption, consider when you run the dishwasher, washing machine, hot-water system or charge an EV.

These measures don't require a vote at an OC meeting. They can start today.

What if your apartment is in an embedded network?

Embedded networks are common in some apartment developments, where the building has a private electricity network and a particular arrangement for supplying residents.

Being in an embedded network doesn't necessarily mean you are stuck with a bad deal. Victorian protections include a cap on electricity prices in embedded networks at the Victorian Default Offer and access to the Energy and Water Ombudsman Victoria for dispute resolution.

If you're unsure whether you're in an embedded network, check your electricity bill or ask your energy provider. Victorian Energy Compare also provides information about embedded networks.

If you are in one, ask what options you have for changing your electricity arrangement and whether you can access a more competitive offer. In some buildings, changing the embedded-network arrangement requires discussion with the property owner or Owners Corporation, so individual choice can be more complicated than it is for a conventional electricity connection.

This is one area where EB believes government should focus on the outcome that matters: can apartment residents access competitive prices and appropriate tariffs?

What about solar?

Victoria is actually relatively well placed compared with other states when it comes to helping apartment residents access rooftop solar.

Solar Victoria's Solar for Apartments program provides rebates of up to $2,800 per household for eligible apartments, units and townhouses. It supports both individual systems and shared solar arrangements.

The program is already delivering results. Since applications opened in February 2024, more than $5.7 million had been paid in rebates for more than 141 multi-unit developments, covering more than 2,650 apartment households — almost half of them renters.

That compares favourably with other states. Queensland has introduced a substantial solar rebate for renters, but apartments are generally excluded because the program is aimed at Class 1a properties such as houses, duplexes and townhouses.

There is also now a national Solar Sharer electricity offer operating in NSW, South Australia and South-East Queensland, allowing eligible households without solar to receive three hours of free electricity each day. However, it isn't available in Victoria and excludes embedded-network customers.

So Victoria has made a genuine effort to tackle the apartment-solar problem.

But solar isn't the whole answer. Apartment buildings have limited roof space, and that space has to serve many households. For some buildings, shared solar will be an excellent investment; for others, improving efficiency, optimising tariffs or electrifying shared infrastructure may deliver greater benefits.

The bigger opportunity

The Parliamentary inquiry has identified many of the building-level barriers: getting an OC to agree, finding suitable technical solutions, upgrading electrical infrastructure and making shared systems such as hot water and EV charging work.

EB believes we also need to keep the resident at the centre.

The cheapest energy is the energy you don't use. And the cheapest energy upgrade may sometimes be nothing more complicated than making sure you're on the right electricity or gas plan.

Our message to policymakers is therefore simple:

Help residents take control of what they can control, and remove the barriers to the things they can't.

That means energy efficiency and tariff optimisation at the household level, followed by practical support for electrification, EV charging, shared infrastructure and solar where these make sense for the building.

The goal isn't simply more solar panels or batteries.

It's lower energy costs, greater choice and lower emissions for the people who live in Victoria's apartments.