How strata loans can help pay for solar on your apartment building

If you live in an apartment block and you've heard about world-first technology, you'll know that solar can save you heaps off your bills, reduce your carbon footprint and increase your property value. It's a no-brainer, really.

You and your neighbours might be wondering how to fund shared rooftop solar for your apartment complex.

There are generous government subsidies available in several states and territories, such as Victoria's Solar for Apartments rebate of up to $2,800 per apartment (capped at $140,000 per building, open until 30 June 2027), NSW's Solar for Apartment Residents (SoAR) grant, which covers up to 50% of eligible costs (up to $150,000), or up to 80% (up to $200,000) in eligible suburbs, open until 4 December 2026, or the ACT's Solar for Apartments Program, which offers up to $100,000 per building, split evenly between a grant and a zero-interest loan that must be taken together; but there might be some left over to pay. That said, we've laid out some information on strata loans below.

How strata funding works

A strata loan is typically an unsecured loan directly to the owners' corporation; there are no mortgages, banker's liens, charges or caveats involved. Owners' corporations and body corporates can fund any capital works (such as building repairs or additions like solar) with:

1. Regular levies that are regular payments by apartment owners into a sinking or maintenance fund
2. Special levies for once-off high costs
3. Borrowing
4. A mix of any or all of the above

Everyone has different interests depending on their individual financial situations, so the discussion around how to fund building updates can be crucial to passing them at a vote. A decent strata loan should allow the owners' corporation to draw down funds as needed, so you only pay interest on what you use, when you use it.

Strata loan interest rates

Strata loan interest rates vary by lender and depend on your building's loan requirements, so it's worth getting a quote from a strata finance provider. Rates can be on the higher side because these loans are unsecured and therefore carry a higher risk for the lender.

Because of this, it may be beneficial to pay for some of the loan upfront (or with government grants) to reduce the total amount owing and, therefore, the interest.

The good news is that the interest cost is very likely to be offset by the significant reduction in your energy bills! Most people pay 30-60% less using a SolShare shared rooftop solar system, depending on their usage.

Pros and cons of strata loans

Pros

• It might be your only way to get solar – unless you're lucky enough that all your neighbours are flush with cash, or you have a sinking fund you haven't dipped into in a while, it may be difficult to get everyone to agree to pay upfront. A loan offers everyone flexibility.
• Simplicity – the loan is with the owners' corporation, which means that there is no requirement for individuals to refinance existing mortgages, provide personal financial records or guarantees.
• Speed – quick funding approval and access enable projects to commence and be completed without delay – that means you don't waste another month paying sky-high electricity bills.
• They can be relatively cost-efficient – interest is only charged on the current outstanding loan balance, rather than the total loan amount, ensuring that you are only paying for what you use, when you need it.

Cons

• Interest rates – as mentioned above, you will be paying interest, although this will likely be offset by your electricity bill savings.
• Indecision – the loan amount can be difficult to decide upon in owners' corporations, so it helps to have your quotes and grant amount confirmed before you put it to a vote.

More questions? You can read Lannock's FAQs here for more info.

We recommend speaking with a strata finance provider to learn about your options. They can normally pay your building a visit and settle any questions you have.

In the meantime, get a free shared solar assessment for your apartment building

Submit an enquiry with us to get the ball rolling on SolShare for your apartment – let us know a few details, and we'll send you a free shared solar assessment with costs and predicted savings!