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                    Planning for solar

                    Rows of solar panels on a flat rooftop
                    Solar makes great sense for some buildings, but not for others. The first thing to find out is whether it will work for your building.

                    ​​​​Shading: Is your roof overshadowed and, if so, for how much of the day? You can find out the average sunlight reaching your roof by using the Australian PV Institute's Live Solar Potential Tool, and check our information about solar overshadowing to help guide you through some of the challenges.

                    Roof structure: It's important to assess the roof structure, especially those on heritage buildings, when considering a solar installation. The orientation of your roof, the ease of access to the installation site and the structural integrity of the roof impact the viability of installing solar panels on your roof.

                    Planning and future development: The City of Melbourne is a growth area - check if buildings are likely to be built nearby that would overshadow your solar installation. Refer to our planning guidance for more information about planning permits and requirements.

                    Planning permits and controls

                    Existing buildings

                    You need a planning permit to install a solar energy system if:

                    • your property is affected by heritage overlay or included on the Victorian Heritage Register
                    • the solar panels are visible from the street (not a lane), or visible from a public park.

                    In all other cases where a solar energy system primarily services the land on which it is situated, a planning permit is not required.

                    If planning approval is required and not obtained, or planning permit requirements are not met, you may have committed an offence and be liable for certain penalties.

                    See Planning applications for more information on how to apply for a planning permit.

                    New developments

                    Planning applications for new developments in the City of Melbourne must demonstrate that the development has the potential to achieve high environmental performance including energy efficiency. The requirements are outlined in the Local Policy (Clause 22.19) Energy, Water and Waste Efficiency (PDF 47 KB) of the Melbourne Planning Scheme. The installation of solar energy systems on new buildings can contribute to achieving these environmental targets.

                    Designers are encouraged to incorporate roof forms with suitable structure, orientation, inclination and solar access in plans for new developments.

                    Solar panels can also be integrated into the building structure, especially as parts of facades, roofs and shading structures. Incorporating solar into the building structure early can make installation easier and may also reduce costs.

                    Planning controls for new and existing buildings

                    We strongly recommended that you know the planning controls and provisions that apply to your building and its surrounding properties, even if no planning permit is required to install the solar energy system.

                    Consider these questions:

                    • What is the development potential of adjoining and surrounding properties?
                    • Will this development potential impact the solar energy system performance in the future? For example, will the neighbouring development overshadow your solar panels?

                    To find out which planning scheme controls apply to your property, see Melbourne Planning Scheme.

                    ​Community Energy

                    Many buildings have restricted opportunities to install solar due to building structure or property ownership. Renters, as well as people living in apartment or multi-unit dwellings, don’t have access to suitable roof space to install solar. Community energy represents an alternative model for these residents to access the benefits of solar energy.

                    A number of community energy projects are currently open to contributions from Victorians, including investment schemes (see ClearSky Solar Investments) and revolving investment funds (see CORENA).

                    The City of Melbourne investigated options for community energy within our municipal boundary. This study found that there are a number of key barriers which limit the commercial viability of a project and it’s likelihood of success.

                    Solar overshadowing

                    Solar access certainty can be a concern in high density built environments. New developments can overshadow either existing or planned solar facilities, and physical structures such as rooftop topology and access and property ownership and governance circumstances (such as strata and rental arrangements) can also limit solar potential. The following information is provided to help you navigate some of these challenges.

                    If you have solar and you are concerned your panels will be overshadowed

                    If you are planning to install solar

                    If the potential for overshadowing makes your project inviable

                    You can:

                    • Explore a resolution privately with the proponent of the development. 
                    • Explore the possibility of lodging an objection to the development as part of the planning process
                    • Look at alternative ways to reduce your power bills, use renewable energy and reduce your emissions.

                    See Responding to overshadowing risk for more information.

                    If you are encountering barriers to installing solar

                    If you are encountering barriers, like building structure or the type of property you live on, you can look at alternative ways to reduce your power bills, use renewable energy and reduce your emissions.

                    See Responding to overshadowing risk for more information.

                    Solar overshadowing FAQs

                    Assessing overshadowing potential

                    I’m thinking about installing solar, but there is a lot of development in my area that might overshadow my property. What can I do?

                    The first step in planning for solar is to understand the extent of overshadowing potential and its likely timing on your property. The following resources are available to guide you in this process:

                    • The City of Melbourne’s Planning Guidance Note: This guides City of Melbourne residents and businesses through questions of due diligence and risk, including the type of development that is allowed in your area and whether this may present any overshadowing. 
                    • Contact a statutory planner: If you live or operate a business in the City of Melbourne you can contact a statutory planner and speak to them directly about your property and how to assess the potential for overshadowing. Call 03 9658 9658 and ask to speak with a development planner or send an email to planning@melbourne.vic.gov.au.
                    • Request an overshadowing diagram from the development proponent: If there are developments that are planned or underway that could create overshadowing on your property, you can request an overshadowing diagram based on the proponent’s proposed design.
                    • Request a solar suitability assessment from a solar installer to examine your solar potential based on the structural suitability of the installation area and any existing overshadowing: If you already have solar, the above resources can be used to explore the overshadowing potential from nearby development(s) on your existing panels.

                    What does the Planning Guidance Note provide? How does it help me?

                    The City of Melbourne’s Planning Guidance Note provides direction for due diligence when planning for solar or assessing possible impacts from nearby developments on your solar installation.

                    The Guidance Note provides information and references resources that can be used to assess the likelihood of development occurring nearby and the associated overshadowing potential. Development guidelines can identify where future overshadowing is possible and residents should be aware that development may or may not occur within the lifetime of their solar installation.


                    I’ve had a look at the information sources provided in the Planning Guidance Note and I think there’s a risk I’ll get overshadowed. Does that mean solar is not viable on my property?

                    Even if there is a risk of overshadowing, a solar system may still be viable for your property. When making a decision on whether to install solar (or when exploring the overshadowing impact of nearby development on your existing solar system), it’s important to consider the following:

                    1. The size of your solar system (either your existing system or the one you would install).  
                    2. The associated payback period based on:
                      • system size
                      • avoided energy costs
                      • where applicable, the feed in tariff received for selling energy into the gird.  
                    3. The level of overshadowing risk, in terms of the timeframe that overshadowing might occur and the proportion of the installation area that could be overshadowed at different times of the day or year. 
                    4. The impact that these factors would have on your payback period. 

                    If the viability of your solar installation (either existing or one you are planning) is significantly impacted by overshadowing potential, there are some alternatives to rooftop solar that residents and businesses can consider (see next question).

                    Responding to overshadowing risk

                    I think a solar project on my property is unviable. What are my options?

                    If reducing your power bill is your main motive for installing solar, energy efficiency measures are an effective alternative to achieving this benefit:

                    If using renewable energy is your main motive for installing solar, you could purchase GreenPower through your retailer or contribute to a community energy project: 

                    • Many energy retailers currently offer a GreenPower option, which allows you to purchase electricity supplied from renewable sources.
                    • A number of renewable energy investment schemes are open to contributions to support the establishment of new renewables systems (see ClearSky Solar Investments) or revolving investment funds (see CORENA). However most of these projects are located outside of the city of Melbourne.

                    If reducing your emissions is your main motive for installing solar, you could purchase carbon neutral electricity:

                    • Some retailers currently offer carbon neutral electricity, where the carbon emissions from generating your electricity are offset by carbon reduction projects.

                    Anybody who is at risk of becoming overshadowed by a new development also has the right to lodge a planning application objection as part of the planning process. 

                    Can I explore a resolution (such as compensation, moving of panels) with the developer of the overshadowing property?

                    It may be worthwhile approaching the proponent of the development to privately seek a resolution (for example, reconfiguration of design, compensation, moving of panels) to any overshadowing impacts. The City of Melbourne has no standing in these disputes and is unable to provide direction or guidance to parties involved.

                    Surely I’m not the only one with this issue. Why doesn’t the City of Melbourne set up a tribunal or a compensation mechanism?

                    A compensation mechanism isn’t possible within the planning scheme (i.e. the Melbourne Planning Scheme). Any compensatory system would require the Victorian Government to pass enabling legislation. To encourage the Victorian Government to create this enabling legislation, contact your State Member of Parliament or the office of the Victorian Planning Minister.

                    Why can’t the new development put solar on its roof and provide me with the power?

                    The sharing of solar electricity across property boundaries may be possible under current state and federal regulations, however it requires the involvement of an electricity retailer and an electricity distributor and there have been no successful examples to date.


                    Restricted opportunities due to building structure or property ownership

                    I’m unable to put solar on my roof because… (1) I live in an apartment and I would need to get agreement from all owners; (2) I live in a rental property; or (3) My property is already overshadowed. What can I do?

                    If reducing your power bill is your main motive for installing solar, energy efficiency measures are an effective alternative to achieving this benefit:

                    If using renewable energy is your main motive for installing solar, you could purchase GreenPower through your retailer or contribute to a community energy project: 

                    • Many energy retailers currently offer a GreenPower option, which allows you to purchase electricity supplied from renewable sources.
                    • A number of renewable energy investment schemes are open to contributions to support the establishment of new renewables systems (see ClearSky Solar Investments) or revolving investment funds (see CORENA). However, most of these projects are located outside of the City of Melbourne.

                    If reducing your emissions is your main motive for installing solar, you could purchase carbon neutral electricity:

                    • Some retailers currently offer carbon neutral electricity, where the carbon emissions from generating your electricity are offset by carbon reduction projects.

                    Depending on your roof suitability, and the electricity network within your apartment building, you may be able to install solar to service common areas and/or individual apartments.

                    Please also refer to the Planning Guidance Note for information on overshadowing risk for apartments.

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