Australian property investors are increasingly look at turning buildings into energy-generating assets amid federal government moves to wind back capital gains tax (CGT) incentives.
The shift, described by industry experts as a transformation of buildings from passive assets into active power stations, follows growing anxiety among landlords regarding their long-term cash flow and wealth protection.
Jack Kapoor, founder and Managing Director of clean-energy firm Agile Energy, says enquiries from both residential and commercial property owners have surged as investors look to replace lost tax benefits with tangible revenue.
“For decades, landlords relied on rent and tax advantages to make the numbers work,” Kapoor said.
“That model is changing fast. Your building is no longer just a place people live or work; it can generate and sell energy every single day.”
The emerging energy-as-a-service model allows landlords to utilise vast, unused rooftop spaces on warehouses, apartment blocks, and shopping centres.
By installing integrated solar and battery systems, owners can sell electricity directly to their tenants at a discounted rate or trade it back into the grid during peak periods.
“Your roof can effectively become a power station,” Kapoor said.
“In many cases, landlords can supply cheaper electricity to tenants while creating a completely new revenue stream for themselves.”
The rise of battery storage has been a primary catalyst for this shift.
Unlike standard solar setups, batteries allow landlords to store energy and dispatch it when wholesale electricity prices surge, often participating in virtual power plants to maximise returns.
“When confidence is shaken, investors look for control,” Kapoor said.
“Energy gives them that control. You are producing something of real value that people need every day.”
The model is also being touted as a win-win for the rental market. With tenants facing their own cost-of-living pressures, properties offering lower-cost, renewable power are becoming significantly more attractive.
Early adopters of this model will be the best positioned to navigate the changing policy landscape.
For those with multi-property portfolios, the potential to optimise energy income across several sites represents the next generation of property wealth in Australia.
