About 35% of Victorian residential properties have rooftop solar as of 2026, the highest penetration in Australia. When you buy a property with existing solar, you inherit a system that may have a lucrative feed-in tariff, a leased ownership structure, a tied Power Purchase Agreement, or a quietly-failed inverter. Each of these affects what you get and what you owe — and most are not fully disclosed in standard contracts.
This guide covers the four solar ownership structures, the premium feed-in tariff legacy, the contract checks, and what every buyer should verify before settlement on a property with solar.
The four solar ownership structures
| Structure | Who owns | Buyer’s position | Risk |
|---|---|---|---|
| Outright owned | Property owner | Inherits panels and FiT | Low |
| Lease-to-own (Solar Victoria loan) | Owner with state lien | Inherits residual loan or pays out | Medium |
| Solar finance (private loan) | Owner with finance lien | Loan must be paid out at settlement | Medium |
| Power Purchase Agreement (PPA) | Solar provider | Inherits PPA contract | High |
Power Purchase Agreements — the trap
Under a Power Purchase Agreement, the solar company owns the panels on the property’s roof. The homeowner buys the electricity the panels generate at a contracted rate, typically 18–25c/kWh — often cheaper than grid electricity. Sounds good, but:
- The PPA contract typically runs 15–25 years
- The contract binds future owners (you, on resale)
- The buy-out clause can cost $5,000–$25,000
- If you don’t buy out, you must take on the contract
- The property cannot be sold to a buyer who refuses the PPA
Many vendors don’t fully disclose PPA arrangements in the Section 32. The first time the buyer learns about the PPA is at settlement, when they discover they’ve inherited a contract for buying expensive electricity.
Premium feed-in tariffs — the legacy bonus
Victoria operated a Premium Feed-in Tariff (PFiT) program from 2009–2011, paying eligible systems 60c/kWh for 15 years. The PFiT ends in November 2024, so this legacy is mostly over now. But two related schemes still apply:
- Standard FiT. Currently 7c/kWh minimum (set by ESC). Worth $200–$500/year for a typical 5kW system.
- Solar Homes Program rebates. One-off rebate for new installations, no ongoing payment.
FiT is not a property-attached benefit — it’s tied to the retailer and the network meter. When you buy a property with solar, the FiT contract typically transfers to your new retailer arrangement at the prevailing rate.
Solar inverter — the failure trap
Solar inverters are the weakest link in a solar system. Typical lifespan: 10–15 years. A failed inverter means the system stops generating, and replacement costs $1,500–$4,000.
Test the system at inspection by checking the inverter display. Most inverters show daily and total generation. If the display is blank, faulty, or showing zero generation, the system is likely not functioning.
What the Section 32 should disclose
- The age and capacity of the solar system
- The ownership structure (owned, leased, PPA, financed)
- Any registered finance lien on the system
- The feed-in tariff arrangement (rate, expiry date, retailer)
- Any Solar Homes Program loans outstanding
- Any warranties (panel typically 25-year, inverter typically 5–10 year)
- Compliance certificates (Clean Energy Council certification)
Contract conditions to add
- Vendor disclosure of solar ownership structure. Direct question with written response.
- Removal of any liens at settlement. Including Solar Victoria loans.
- Operational warranty. Vendor warrants the system is operational and inverter functioning at settlement.
- FiT contract assignment. Confirm whether the existing FiT can be assumed at the same rate.
- Equipment manuals and warranties. Vendor delivers all original documentation at settlement.
EV chargers and home batteries
The same questions apply to EV chargers and home batteries:
- Owned outright vs leased / financed
- Warranty status and remaining term
- Any utility integration agreements (Virtual Power Plant)
- Any subsidies or rebates outstanding
Battery systems in particular carry capacity warranties (typically 70% capacity at year 10). A 5-year-old battery may already be operating at significantly reduced capacity but still appearing functional.
Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.