Landlords turn to solar energy for returns in the face of the government's proposed CGT cuts

Australian property investors are scrambling to find new ways to generate income as the Federal Government moves to wind back tax incentives, triggering a sharp rise in enquiries from landlords looking to protect their returns.
 

According to Agile Energy founder and Managing Director Jack Kapoor, both residential and commercial property owners are rapidly shifting their focus to a new model: turning buildings into energy-generating assets.
 

"We are seeing a surge in enquiries from landlords who are deeply concerned about what these changes will mean for their cash flow and long-term wealth," Kapoor said.
 

"For many, the traditional investment model is being shaken. They are actively looking for alternatives."
 

Energy replacing rent as the second income stream
 

Kapoor said a growing number of property owners are now viewing energy as a viable and scalable second income stream.
 

"For decades, landlords relied on rent and tax advantages to make the numbers work," he said.
 

"That model is changing fast."
 

He said energy-as-a-service is emerging as one of the most compelling alternatives.
 

"Your building is no longer just a place people live or work, it can generate and sell energy every single day," Kapoor said.
 

Rooftops becoming revenue generators
 

Large rooftops across warehouses, apartment buildings, shopping centres and commercial sites are increasingly being transformed into solar generation hubs.
 

Rather than leaving these spaces unused, landlords are installing solar and battery systems and selling electricity directly to tenants or back into the grid.
 

"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."
 

He said this model is particularly attractive in an environment where tenants are also under financial pressure.
 

"Tenants are actively looking for ways to reduce energy costs," he said.
 

"If you can offer them lower-cost power, you become a far more attractive landlord."
 

Investor confidence under pressure
 

The shift comes as growing uncertainty around property taxation begins to impact investor sentiment.
 

Kapoor said many landlords are reassessing their strategies as the policy landscape changes.
 

"When confidence is shaken, investors look for control," he said.
 

"Energy gives them that control."
 

He said unlike policy-driven tax benefits, energy generation provides a tangible, ongoing income stream.
 

"You are producing something of real value that people need every day," he said.
 

"That is a very different proposition."
 

Batteries and virtual power unlocking new income
 

Kapoor said the addition of battery storage is further accelerating interest in the model.
 

"Solar is just the beginning," he said.
 

"Batteries allow you to store energy and sell it when prices are higher."
 

He said properties can also participate in virtual power plant networks, creating additional revenue opportunities.
 

"At peak times, electricity prices can surge," Kapoor said.
 

"That stored energy can be dispatched into the grid at a premium."
 

A new era for property investment
 

Kapoor believes the shift marks the beginning of a broader transformation in the property sector.
 

"We are moving into a world where buildings are no longer passive assets," he said.
 

"They are active, income-generating systems."

For landlords with multiple properties, the opportunity is even greater.
 

"Entire portfolios can be optimised to generate energy income," he said.
 

"This is how the next generation of property wealth will be built."
 

A clear message to landlords
 

Kapoor said those who act early will be best positioned to navigate the changing landscape.
 

"The rules are changing," he said.
 

"You can either wait and be impacted, or adapt and take advantage of new opportunities."
 

He said the message from the market is already clear.
 

"Landlords are not standing still," Kapoor said.
 

"They are moving quickly to protect and grow their returns."
 

About Agile Energy
 

Agile Energy is one of Australia's fastest-growing clean-energy companies, delivering large-scale solar, battery and electrification solutions for the commercial, industrial, healthcare and property sectors. The company designs, finances, builds and operates integrated clean-energy systems that help businesses reduce costs, decarbonise operations and participate in virtual power networks. With deep engineering expertise, financial discipline and a long-term ownership mindset, Agile Energy is redefining how organisations generate, store and trade electricity creating measurable financial and environmental performance across Australia's transition to a smarter, more resilient energy future. Further information can be found at: agileenergy.com.au