Understanding Shared Savings: A Win-Win Clean Energy Model for Tenants and Landlords

Introduction

For renters wanting clean energy but facing barriers like no roof ownership or landlord hesitancy, the shared savings model is a game-changer.

This innovative approach creates win-win partnerships where both tenants and landlords benefit financially from solar panels or energy upgrades—even if the renter doesn’t own the property.

Across Canada, these models are gaining momentum, making it easier than ever to plug into net-zero living in rental housing.

In this article, we’ll explain how shared savings work, why landlords are onboard, and how renters can get involved—all while saving money and reducing emissions without upfront costs or installations on their own unit.

What Is the Shared Savings Model?

The shared savings model is a collaborative agreement between landlords and tenants to share the financial benefits of clean energy upgrades.

How it works:

Landlord invests in solar panels, heat pumps, or energy efficiency upgrades on the building.

Tenant pays reduced utility bills based on energy savings generated by the upgrades.

Landlord recovers investment over time through lease terms, tax incentives, or rent adjustments.

Both parties financially benefit without the tenant needing to pay upfront or own equipment.

Benefits for tenants:

Lower utility costs without upfront investment.

Access to cleaner energy and modern technology.

No need to negotiate individual contracts or install panels.

Benefits for landlords:

Higher property value and rental appeal.

Possible tax credits and rebates on upgrades.

Longer tenant retention due to lower bills and improved comfort.

Canadian Context: In provinces like Ontario and BC, shared savings models are increasingly common in multi-unit buildings and affordable housing projects.

Different Types of Shared Savings Agreements

Shared savings arrangements vary based on building ownership and local regulations.

Here are the main models:

Model Type	Description	Tenant Role	Landlord Role
Solar Lease Agreement	Landlord leases solar panels to tenant	Pays fixed lease fee	Owns & maintains panels
Energy Service Agreement (ESA)	Third-party installs and maintains system; savings split	Pays reduced bills based on savings	Facilitates agreement with tenant
Utility Shared Savings	Utility offers savings incentives shared with both parties	Benefit from lower bills	Coordinates upgrades with utility

Example: Toronto’s Green Communities Canada supports Energy Service Agreements where savings are shared in social housing projects.

How to Pitch Shared Savings to Your Landlord

Many tenants don’t bring up solar or energy upgrades because they assume landlords won’t be interested.

Here’s how to make the case:

Highlight financial benefits:

Reduced operating costs through lower utility bills.

Potential for increased property value and marketability.

Emphasize tenant satisfaction:

Improved comfort and air quality.

Longer tenancy and lower turnover.

Address upfront cost concerns:

Shared savings means no out-of-pocket costs for landlords.

Rebates and government programs can subsidize the investment.

Offer examples:

Share local success stories or community solar projects nearby.

Suggest a pilot program or phased approach.

Bring in experts:

Propose consulting an NRCan energy advisor or a clean energy contractor for assessment.

Tip: Use Solenery Insights to prepare a personalized savings report for your building based on postal code.