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Solar Power Rebate - Special Clause

Discussion in 'Property Management' started by Frosty123, 22nd Dec, 2015.

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  1. Frosty123

    Frosty123 Well-Known Member

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    Hi all,

    When it comes to having solar power on your IP, which of the following options do you tend to select:

    1. Owner keeps electricity in their name, Tenant pays actual consumption less credits.
    2. Owner keeps electricity in their name, Tenant Pays Actual Consumption with no credit amounts
    3 Owner keeps electricity in their name, Tenant does not pay for any electricity as it is included in the rent amount
    4. Owner disconnects electricity and Tenant has account in their own name

    I have a property in QLD I've just purchased, that already has solar panels installed. I was wanting to know how option 2 would work. Would I receive an invoice of, let's say, $100 for usage during the quarter. I then get credited $10 for providing power back to the grid. Would I be able to invoice the tenants for $100, even though I've only paid $90? Is this common?

    Thanks

    Frosty
     
  2. dabbler

    dabbler Well-Known Member

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    Good question, I have been pondering the same thing.

    I would think, usage is just that, in NSW, you can choose to have the excess as a paid sum, or taken off the bill.

    I was thinking of discussing with agent to do the same as water, the usage will already be offset in some way by solar output on many systems.

    I am sure the authorities must have some rules regarding this, as solar is nothing new.
     
  3. WestOz

    WestOz Well-Known Member

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    As a LL I'd like 2.

    As a tenant I'd expect 1.

    3. wld be an unknown cost for LL, cld be abused.

    For me 4. = 1.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Are you required to be registered as a reseller of electricity? What warranties are you providing to the tenant that the power supply is fit for the purpose? Availability? Service interruption?
     
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  5. dabbler

    dabbler Well-Known Member

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    There is always a benefit to the user if system is a nett wired system as they can use as much of the solar production as possible, if solar was not working, it is normal usage.

    I guess they could address you as God ? for supplying power from the universe ?

    In reality, the supplier etc is the same, no different to water, you do not become a re seller of water for tenants charged for water usage.
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    With commercial property you must add gst to the supply or the vendor is liable for any gst. Refer to GST ruling 2000-01
     
  7. dabbler

    dabbler Well-Known Member

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    I am not familiar with commercial, but in NSW with a nett wired setup and a supplier that pays for excess power fed to grid, that is a separate amount to usage, so you should be able to pass on the usage and usage charges as is, one would think.......
     
  8. quop

    quop Well-Known Member

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    Keen to know too. Currently have a PPOR with solar on the old FITs, which will likely become an IP early next year. Because I'm on the old FIT, it makes sense to keep the account in my name if I can - potentially more credits for the tenant under scenario 1 (better than scenario 4), as well as for me if I ever move back.

    I was thinking of maybe a modified scenario 1 where the tenant gets the benefit of half the credits. This should be a win-win arrangement as there's something in it for me, and the tenant gets a better deal vs. scenario 2 or 4.
     
  9. Marg4000

    Marg4000 Well-Known Member

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    From a tenants point of view, there are issues.

    What if there is a problem with the electricity? Who does the tenant call? The power supplier will only talk to the person named on the account. Are you ALWAYS available? 24/7? And prepared to sort things out at midnight?

    Failure of electricity is a legislated emergency and the tenant has considerable leeway in authorising emergency repairs.

    If YOU supply power as part of the lease, YOU may be up for compensation in the event of a prolonged blackout.

    If YOU fail to pay the bill, the tenant is the one whose power is cut off.

    If in a desirable school zone, most schools will require energy accounts in the resident's name as proof of residency. Anyone can write out a lease (just download a form from the internet) so electricity accounts are definite proof of residency.

    Who does the meter readings and works out pro-rata charges when a tenant arrives and departs?

    Is it even legal to re-sell power?

    The above scenarios are are admittedly unlikely, but don't expect the rental tribunal to be sympathetic to you.
    Marg.
     
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  10. dabbler

    dabbler Well-Known Member

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    Instead of guessing, and assuming it would be different to water, it would be better to just contact those making and enforcing the rules in your state. can anyone show legislation for either situation ?

    If there is an emergency with the supply, the providers look after it anyway, never had to say who I was when there was a major outage and your never alone & if you have a PM, they would or could be authorised to act on behalf.

    I fail to see the difference between this and water, you are not supplying or selling water, merely allocating usage.

    If you need proof of residency, electricity account is not the only way to be verified.
     
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  11. dabbler

    dabbler Well-Known Member

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    Further to this, the naysayers cannot be right in my mind, because if you have dual living and no seperate meters, landlord must pay for electricity, so would be reasonable that account would also be in landlords name, same with shared accomodation etc etc
     
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