04 Jul 2024
Can we go green and remain affordable?
Ahead of his Housing Community Summit session in September, Darren Huitema shares insight into the groundbreaking work Believe Housing Australia and its partners have been doing to slash the cost of energy for tenants while helping them go green.
Picture the anxiety of waiting every two weeks for your pension, uncertain if you'll have enough to cover rent, put food on the table, and keep the lights on. In Australia, a single person's pension barely crosses $500 per week (£260), including a modest $7 energy supplement.
When factoring in Commonwealth rental assistance for social housing tenants, the rent for a single pensioner hovers around $125 per week. Groceries for a single adult add up to approximately $135 weekly.
Add rising electricity rates (South Australia has the second highest in the country), increasing transportation expenses due to rising fuel prices, clothing costs, and mounting medical bills, and it becomes clear that making ends meet is challenging.
Electricity, once taken for granted as a basic necessity, has become unaffordable for many tenants living in social and affordable housing. This is why we are witnessing an increasing number of South Australian households opting to install solar panels to alleviate the burden of energy bills.
Comparative cost analyses by Canstar reveal that a South Australian household can anticipate investing anywhere from $3,300 to $8,600 (£1740 to £4,530) for the installation of a new solar system. However, these energy-saving measures that have the potential to lower energy costs are regrettably out of reach for those who are most affected by the soaring electricity prices.
In Australia, a quarter of all households are occupied by tenants, and it is disheartening to see the majority have been excluded from the renewable energy market. Meanwhile, their energy costs continue to mount leaving them with limited options for relief.
Changing the game
Believe Housing Australia, together with 369Labs and CORENA, has installed 132 smart solar systems across community housing properties, reducing living costs for our tenants. Access to rooftop solar energy has been a first for many of our tenants.
The free smart solar systems have provided significant cost relief for our tenants, with one of our pensioner tenants reporting a quarterly bill cut from $400 to $90. That’s an extra $930 (£490) in his pocket each year – or a month of income, or seven-weeks’ worth of groceries.
Alternatively, it could be the extra savings needed to help repair or replace a broken appliance, or it might be to pay for an urgent medical bill. It makes a big difference.
The game-changer came in the form of 369Labs, which designed and patented innovative software and hardware solutions. These innovations allowed Believe Housing Australia to install solar panels on our properties and share the financial benefits of solar energy use with our tenants.
Electricity, once taken for granted as a basic necessity, has become unaffordable for many tenants living in social and affordable housing
Additionally, Believe Housing Australia receives a solar feed-in tariff for any surplus solar energy that goes unused. These combined income streams help to repay the investment in the solar panels.
This breakthrough isn't just a win for the tenant; it's a win for the landlord and a win for the environment. Collaborating with climate action charity CORENA and local energy provider Beat Energy, Believe Housing Australia and 369Labs embarked on the mission to equip tenants across Adelaide's northern and north-western suburbs with these intelligent solar systems and panels.
These solar systems are completely financed, maintained, and owned by Believe Housing Australia, meaning our tenants incur no installation expenses and enjoy an annual reduction in their electricity bills of approximately 30 per cent or more. The income from tenant solar power usage and feed-in tariffs ensures that the initial investment is fully paid off within five years.
Beyond making energy more affordable for our community housing tenants, this solar program provides ongoing education and genuine learning on how to minimise energy costs and reduce the environmental footprint of our tenants.
This approach not only fosters financial stability but also promotes sustainable living for a greener future.
Main image: Darren Huitema (Cr: Darren Huitema)
Darren will be sharing further groundbreaking insights on this topic at the Housing Community Summit in September, our first joint conference with the National Housing Federation and the first major housing event to take place post election.
CIH members will be able to attend Darren’s session free of charge on Monday 9 September (14:50) at the Asset Management and Decarbonisation stage (Housing in Practice).
Darren Huitema is the senior manager (housing operations) at Believe Housing Australia (BHA) and chair of PowerHousing Australia’s National Compliance Committee.
With a passion for innovation and a drive to see tangible improvements to the community housing sector, Darren has led the implementation of projects that have enhanced the lives of the 4,000-plus tenants of BHA.
With more than 20 years of experience in the sector, his expertise and knowledge of community housing has been integral to the rapid growth of BHA, a leading social and affordable housing provider.
His most recent work on BHA’s collaborative solar energy project has seen tenants reap the benefits of rooftop solar systems, with reduced bills and no out-of-pocket expenses.
Creating sustainable communities while helping to reduce cost of living pressures in the long term is at the heart of Darren’s work.
