Australia leads the world in rooftop solar, with about four million homes already generating their own electricity. Yet millions more remain without panels because of one stubborn obstacle — cost. For many households, the upfront price of installation is still too high, and that’s slowing progress towards the nation’s renewable-energy goals.
Researchers from the University of Technology Sydney have suggested a new way to overcome that barrier. Their proposal — described as a “use it or lend it” model — could help spread the benefits of solar power beyond homeowners who can already afford it.
The affordability gap
While solar panel prices have fallen steadily over the past decade, affordability pressures on Australian households have increased. In cities such as Sydney, high property prices leave many owners with limited spare income. Even with the Commonwealth’s Small-Scale Renewable Energy Scheme rebate, a typical 6.6 kW system still costs around $6,200 after subsidies — money that many households simply don’t have on hand.
Feed-in tariffs, once a strong incentive for households to invest in solar, no longer have much influence on uptake. Instead, research shows that falling equipment costs and rising electricity prices are the main drivers of new installations. But for people already stretched by mortgages or rent, even the promise of long-term savings isn’t enough to bridge the gap.
A new approach: “Use it or lend it”
Under the proposed program, homeowners who can’t afford solar could allow the government to install and operate solar panels on their rooftops. In return, they would receive compensation — for example, an annual lease payment — while keeping full ownership of their property.
Electricity generated by these publicly owned systems could then be directed to low-income households and renters, who currently have the least access to rooftop solar. The program could operate through virtual energy networks, enabling solar households to share or sell excess electricity digitally to others who don’t have panels.
Property owners would also have the option to buy out the government-installed system later, at a price calculated on a “cost-neutrality” basis so that the government doesn’t profit from the sale. The scheme’s design would include safeguards for roof integrity, fair access for installation and maintenance, and appropriate indemnity for property owners.
Closing the gap in the renewables target
Australia has committed to reducing greenhouse-gas emissions by 43 per cent below 2005 levels by 2030 and reaching net zero by 2050. More recently, the federal government set an even tougher interim target of 62 to 70 per cent below 2005 levels by 2035. To stay on track, more than 80 per cent of national electricity generation will need to come from renewables by 2030.
At the current rate, that goal is at risk. Policies that make rooftop solar accessible to all households — not just to those who can pay upfront — will be essential.
Organisations such as the Climate Council have called for solar systems to be mandatory on new homes and major renovations, while the Grattan Institute has urged state and territory governments to set clear timelines for phasing out gas. But both of those approaches will take time.
The “use it or lend it” idea offers a practical, complementary step that could deliver benefits sooner. With the existing solar rebates due to phase out by 2030, a new mechanism is needed to keep installations growing and ensure that the clean-energy transition reaches everyone.
Shared benefits
If well designed, the model could be a win for homeowners, renters, governments and the climate alike. Homeowners gain a new income stream without upfront costs, low-income families gain access to cheaper clean energy, and the nation moves closer to its emission-reduction goals.
Australia’s rooftops represent a huge, largely untapped energy resource. Harnessing them more equitably could be one of the simplest ways to accelerate the shift to a renewable future.
Source:
This article draws on “Many rooftops are perfect for solar but owners and renters can’t afford it. Here’s our answer”, written by
Song Shi,
David Robinson, and
Mustapha Bangura from the
University of Technology Sydney, and originally published by The Conversation on 17 October 2025.
Republished under the Creative Commons (CC BY-ND 4.0) licence.
