Solar Panels, Batteries, and Settlement: Who Gets What and What Buyers Need to Know in Victoria

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By David Dawn, Licensed Conveyancer – Victorian Property Settlements

In today’s property market, sustainability sells. More and more Victorian homes are being listed with solar panels, battery storage, and high-efficiency systems. But when it comes to settlement, things can get messy.

Who owns the solar panels? Are the batteries included? Is there a lease or embedded network agreement involved? If the answers aren’t clear before contracts are exchanged, buyers may find themselves paying for equipment they don’t actually own, or sellers may accidentally part with valuable assets they intended to keep.

At Victorian Property Settlements, we’ve seen how these issues can delay settlement, cause disputes, or even land both parties in breach. Here’s what you need to know before you buy or sell a solar-equipped property in Victoria.

Solar Panels and Ownership: It’s Not Always Straightforward

Most buyers assume that solar panels attached to a house are automatically included in the sale. But that isn’t always the case.

There are three common arrangements in Victoria:

  1. Panels fully owned by the vendor — no issue, included as a fixture

  2. Panels installed under a lease or power purchase agreement (PPA) — not owned by the vendor, may not be transferable

  3. Panels funded by a third party (e.g., through finance or council scheme) may have conditions or encumbrances registered on title

If panels are leased or subject to a PPA:

  • The contract must disclose this under Section 32

  • Buyers may need to sign a new agreement or buy out the remaining term

  • There may be restrictions on transfer or early termination

Failure to disclose these arrangements properly can lead to legal liability for the vendor and confusion for the purchaser.

Are Batteries Fixtures or Personal Property?

Battery systems — like the Tesla Powerwall — are increasingly installed in Victorian homes. But the legal treatment of batteries at settlement is less clear.

Whether a battery is included in the sale depends on:

  • Whether it’s physically attached to the home

  • Whether it forms part of the energy system (e.g. wired into solar + mains)

  • Whether the contract of sale specifically lists it under goods included

If the battery is removable or portable, and not mentioned, it may be considered a chattel, and the seller could legally take it with them.

Best practice is to:

  • List the battery system clearly under “goods sold with land.”

  • Specify whether it is included, excluded, or negotiable

  • Include serial numbers or models if there’s more than one system present

Embedded Energy Networks and Apartments

If you’re purchasing in a multi-unit development, solar access may be governed by:

  • An embedded energy network operated by a third party

  • A body corporate agreement controlling usage or savings

  • Shared inverters or battery systems installed on common property

These arrangements must be disclosed in the Section 32 statement, including:

  • Service agreements

  • Network operator contracts

  • Billing structures or rebate schemes

Buyers should review these carefully to understand whether:

  • They can choose their own energy retailer

  • They receive solar benefits or just cheaper electricity

  • They are locked into a service agreement with fees or renewal clauses

Government Rebates, Loans, and Title Restrictions

Some solar systems are funded through government programs, such as:

  • The Solar Homes rebate and interest-free loan scheme

  • Local council Environmental Upgrade Agreements (EUAs)

  • Private loans secured against the property

In these cases:

  • A restriction or charge may appear on the property title

  • The new owner may be required to take over repayments

  • There may be a contractual or council consent requirement before sale

Section 32 must disclose any such encumbrance, but many are missed, especially when rebates are administered indirectly. That can lead to unexpected costs after settlement.

What Buyers Should Check Before Signing

To avoid disputes or financial surprises, buyers should:

  • Ask whether the panels and batteries are owned outright

  • Request a copy of any solar lease or energy agreement

  • Confirm that solar and batteries are included in the contract of sale

  • Check whether any loans or council schemes apply

  • Review the title for restrictions, encumbrances, or service charges

  • Inspect the inverter and meter box for retailer stickers or third-party tags

Where uncertainty exists, we recommend including a special condition confirming the system will remain with the property at no extra cost and that no third-party lease or agreement applies.

What Sellers Should Disclose to Avoid Breach

Sellers can avoid complications by:

  • Clearly disclosing the ownership status of all systems

  • Listing inclusions and exclusions in both the contract and Section 32

  • Providing any agreements or warranties to the purchaser

  • Removing or disconnecting excluded items before final inspection

  • Advising the agent early if any part of the system is under lease or finance

Buyers increasingly expect solar and battery systems to be turn-key and hassle-free. If they feel misled — even unintentionally — it can lead to price renegotiation, settlement delay, or formal complaint.

The Role of a Good Conveyancer

At Victorian Property Settlements, we check for:

  • Solar lease disclosures

  • Embedded network arrangements

  • Goods and chattel clauses

  • Title encumbrances and PPA references

  • Inverter and metering compliance

Solar is a selling point — but only if handled right.

📞 Contact us on (03) 9783 0111
🌐 Visit: www.victorianpropertysettlements.com.au