Managing Electrical Capacity Issues and EV Charging Readiness in NSW Strata: Legal Guide + Free Checker Tool

Introduction

Managing electrical capacity is a growing concern for strata buildings in New South Wales, as many existing systems were not designed for the demands of modern living and the increasing need for electric vehicle (EV) charging. The challenges of aging infrastructure and rising energy consumption can impact safety, compliance, and the ability to support new technologies within strata communities.

This guide is designed to help strata owners, owners corporations, and committees understand, assess, and proactively manage their building’s electrical capacity. By addressing these issues, strata schemes can better prepare for EV charging readiness, protect property value, and ensure resident satisfaction.

Interactive Tool: Check Your Strata Building’s Electrical Capacity & EV Readiness

Why Electrical Capacity is a Critical Issue for NSW Strata Buildings

The Impact of Aging Electrical Infrastructure

Many strata buildings in NSW, especially those built several decades ago, are equipped with aging electrical infrastructure. These systems were designed to meet the energy needs and safety standards of their time, which are considerably lower than today's requirements.

Over the years, these older systems develop significant issues that can compromise safety and functionality. Common problems include:

• Degraded Components: Wiring insulation can become brittle or damaged over time, which substantially increases the risk of electrical faults.
• Outdated Switchboards: Older switchboards often lack the physical space or capacity to add new circuits required for modern appliances and technologies.
• Missing Safety Features: Many original installations lack essential safety devices like Residual Current Devices (RCDs) on all circuits, which are now standard for protecting against electric shock.
• Insufficient Wiring: The original wiring may have an insufficient gauge, meaning it is too thin to safely handle the cumulative electrical load of a contemporary household.

Rising Energy Demands & the EV Charging Factor

The challenge of aging infrastructure is intensified by the dramatic increase in electricity consumption in modern homes. Lifestyles today depend on a greater number and variety of power-intensive devices than when many strata buildings were first constructed.

This increased demand comes from the widespread use of various appliances that contribute to a building's total electrical load. The cumulative impact of the following is significant:

• Air conditioning units, which have become standard in many apartments.
• Multiple large-screen televisions, computers, and other personal electronics in each household.
• High-wattage kitchen appliances such as modern ovens, cooktops, and range hoods.
• The integration of smart home technology, including security systems and other automated devices.

The growing popularity of electric vehicles (EVs) introduces a particularly large and sudden strain on strata electrical systems, which is why your NSW strata building needs an electric vehicle charging by-law to manage the process.

An individual EV charger can draw an amount of power equivalent to several major household appliances operating at once. When multiple residents charge their vehicles, particularly during peak evening hours, the combined demand can quickly overwhelm a building’s available electrical capacity. This makes accommodating EV charging a primary reason that strata committees must address their building's underlying electrical limitations.

How to Assess Your Strata Building’s Electrical Health

Recognising the Common Warning Signs of Electrical Strain

Identifying the symptoms of an overloaded electrical system early is essential for preventing more significant issues within your strata building. Both residents and strata committees should be alert to several common indicators that suggest the building's electrical infrastructure is struggling to meet demand.

These warning signs are often the first indication that a professional assessment is needed:

• Frequent Tripped Circuit Breakers: While occasional trips can occur, regular tripping of circuit breakers—especially at the main switchboard—is a primary sign that circuits are overloaded from drawing too much power.
• Flickering or Dimming Lights: If lights noticeably flicker or dim when large appliances such as lifts, air conditioners, or ovens are activated, it can point to voltage drops caused by an inadequate or strained electrical system.
• Buzzing Sounds or Burning Smells: Any unusual noises like buzzing from power outlets, or distinct burning odours near the switchboard, are serious red flags that require immediate investigation by a licensed electrician, as they may indicate overheating or arcing.
• Warm Outlets or Switch Plates: Electrical outlets that feel warm to the touch can suggest overloading or faulty connections, posing a significant safety hazard that needs urgent professional inspection.
• Inability to Install New Appliances: If electricians advise against installing new high-power items like modern air conditioners or an EV charger due to insufficient capacity, it is a clear sign the system has reached its limit.

Conducting Professional Electrical Audits & Energy Assessments

To understand the true state of your strata building’s electrical system, it is crucial to commission a professional assessment. Relying on assumptions can lead to safety risks and expensive emergency repairs, whereas a formal audit provides the objective data needed for informed decision-making. These assessments determine if a building is EV ready, EV capable, or has insufficient capacity for future needs.

A comprehensive assessment by a licensed electrician or energy auditor is the necessary first step and typically includes:

• EV Feasibility Studies: Building upon an energy assessment, these studies specifically evaluate the building’s readiness for EV charging by considering existing capacity, potential infrastructure models, and the need for load management systems.
• Electrical Safety and Condition Reports: These focus on identifying immediate safety hazards, assessing the condition of switchboards and wiring, and ensuring compliance with current standards like AS/NZS 3000:2018 Wiring Rules.
• Energy Audits and Assessments: This type of audit provides a broader analysis of the building's energy consumption patterns, identifies historical peak electrical loads, and calculates the available spare capacity to accommodate new installations like EV chargers.

Key Strategies for Managing & Upgrading Strata Electrical Capacity

Prioritising Energy Efficiency & Implementing Load Management Systems

Before considering expensive infrastructure upgrades, strata schemes should first focus on reducing the building's total electricity consumption. Implementing energy efficiency measures can free up existing electrical capacity, potentially delaying or reducing the need for major works.

Common energy efficiency actions for a strata building include:

• Upgrading Common Area Lighting: Replacing older lighting in corridors, car parks, and lobbies with modern LED technology can significantly lower energy use.
• Optimising Common Loads: Reviewing the operational schedules and efficiency of shared equipment, such as pool pumps and ventilation systems, can lead to substantial savings.
• Encouraging Resident Efficiency: Promoting awareness among residents about using energy-efficient appliances can help lower the building’s overall peak electrical load.

When efficiency measures are not enough, especially with the addition of multiple EV chargers, a Load Management System (LMS) offers a smart solution. These systems monitor the building’s total electricity usage in real-time and intelligently distribute the available power.

If demand nears the building's maximum capacity, the LMS can automatically reduce power to flexible loads like EV chargers to prevent overloads. This technology allows more chargers to operate on existing infrastructure, thereby maximising its use and ensuring system stability.

Planning & Executing Physical Infrastructure Upgrades

When energy efficiency and load management are insufficient to meet demand, physical upgrades to the strata building’s electrical infrastructure become necessary. These projects require careful planning and must be carried out by licensed professionals to ensure safety and compliance.

Common infrastructure upgrades may involve:

• Switchboard Modernisation: Replacing old main switchboards and sub-boards with modern units that have higher capacity and essential safety features like Residual Current Devices (RCDs).
• Wiring and Cable Upgrades: Installing larger-gauge main feeder cables or sub-circuit wiring to safely handle higher electrical loads.
• Network Augmentation: Liaising with the local electricity network provider, such as Ausgrid or Endeavour Energy, to request an upgrade to the external supply if the limitation is outside the building.

All upgrade work must comply with Australian Standards, including AS/NZS 3000:2018 Wiring Rules, and the NSW Service and Installation Rules. It is crucial for the Owners Corporation to obtain multiple quotes and ensure compliance certificates are issued for all completed work.

Integrating Upgrades into the Capital Works Fund Plan

The findings from professional electrical assessments are critical for a strata scheme’s long-term financial planning. Under the Strata Schemes Management Act 2015 (NSW), Owners Corporations must prepare a 10-year Capital Works Fund (CWF) plan to forecast and budget for major expenditures on common property.

Integrating electrical upgrade recommendations into the CWF plan is a vital step. This process ensures that necessary maintenance and upgrades, such as switchboard replacements, are proactively budgeted for over time through regular levies.

It shifts the management of electrical infrastructure from a reactive approach, which often requires disruptive special levies after a failure, to a strategic and sustainable asset management process. This proactive budgeting minimises the risk of unexpected costs and helps maintain the safety and value of the strata property.

A Guide to EV Charger Installations in Strata Properties

Understanding Different EV Charging Infrastructure Models

Owners Corporations in a strata scheme have several models to consider when planning for EV charging infrastructure. The most suitable approach depends on the building's size, budget, and expected demand.

Common infrastructure models include:

• Individual Approach (No Existing Infrastructure): This model is often used for the first few requests in smaller buildings. An owner installs their own EV supply equipment (EVSE), connecting it to their lot’s meter where possible. The owner bears the cost, but this approach does not scale well and requires individual OC approval for each installation.
• Individual Approach (Using Existing Circuits): In apartments or townhouses with individual distribution boards, owners may be able to add or reuse a circuit for their EV charger. This simplifies billing as the usage is captured on their existing meter, though OC approval is still needed to manage the building's overall electrical load.
• Shared Use on Common Property: The Owners Corporation installs one or more chargers in a common area, such as visitor parking. This is suitable when individual installations are impractical, but it requires the OC to manage access and establish a method for cost recovery.
• Modular (Phased) Approach: The OC installs a foundational ‘EV charging backbone,’ which includes dedicated wiring and distribution boards. This allows owners to connect their individual EVSE to the backbone as needed. It is a scalable, future-proofing solution that suits small to medium buildings with limited initial budgets.
• Whole-of-Building Approach: This comprehensive solution involves installing an EV charging backbone to service every car space from the outset. While it has the highest upfront cost, it completely future-proofs the building for high EV adoption and is ideal for large buildings or new developments.

Navigating the Legal Requirements & Approval Processes

Installing EV charging infrastructure in NSW strata properties requires following specific legal and approval processes governed by the Strata Schemes Management Act 2015 (NSW).

Recent legislative changes have streamlined this process. Key considerations include:

• Sustainability Infrastructure Amendments: The Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021 (NSW) classifies EV charging as 'sustainability infrastructure'. This lowers the approval threshold, meaning a resolution passes if less than 50% of unit entitlements vote against it, rather than requiring a special resolution.
• Owners Corporation Approval: An owner must get approval from the Owners Corporation before installing any EV charging equipment, as it often involves altering common property.
• Capital Works Fund Consideration: To use the simplified sustainability infrastructure approval pathway, the Owners Corporation must have first considered the infrastructure in its 10-year Capital Works Fund plan.
• By-laws: Establishing clear by-laws is essential for managing installations and usage. These by-laws, approved by the OC, should outline the application process, technical standards, responsibilities for costs, and rules for using shared facilities. The NSW Government provides template motions and by-laws to assist strata schemes.

Exploring Funding & Cost Recovery Options for EV Charging

Financing the initial installation and managing ongoing electricity costs are major considerations for any strata scheme. The Owners Corporation must decide on a funding model and a fair method for recovering electricity costs from users.

Funding options for the infrastructure include:

• Capital Works Fund (CWF): The CWF is a primary source for funding common property upgrades like shared or whole-of-building EV charging systems.
• Special Levies: If CWF funds are insufficient, the OC can raise a special levy from all owners, which requires approval at a general meeting.
• Owner Funding: In individual installation models, the owner typically pays for their EVSE and connection. For modular systems, the OC may fund the backbone while owners pay for the final connection.
• Government Grants: Programs like the NSW EV Ready Buildings Grant offer co-funding for feasibility studies and infrastructure upgrades in eligible strata buildings, significantly reducing the financial burden.

To ensure fairness, electricity consumption must be managed. Cost recovery options include:

• Usage Billing (Metered Rate): This is the fairest method, using sub-metering to track and bill individual consumption based on kWh usage.
• Flat Fee: A simpler option where users pay a fixed amount per day, quarter, or year. It is easier to administer but less accurate.
• Use Existing Meter: If a charger is connected to an owner’s lot meter, the costs are automatically included in their regular electricity bill.

Understanding Legal & Compliance Duties for NSW Strata Schemes

The Owners Corporation's Responsibilities Under Strata Law

The Owners Corporation has a legal duty to manage and maintain all common property within a NSW strata scheme, a responsibility that often requires specialised legal advice for an owners corporation. This obligation is outlined in Section 106(1) of the Strata Schemes Management Act 2015 (NSW), which requires the common property to be kept in a state of good and serviceable repair.

This statutory responsibility specifically covers essential electrical infrastructure that is considered common property. Key components under the Owners Corporation's care include:

• Main switchboards and any distribution sub-boards that service common areas or multiple lots.
• All electrical wiring and cables situated within common property boundaries that supply power to more than one lot.
• Associated fixtures and fittings that form part of the common electrical system.

If an Owners Corporation fails to meet this duty, it can face serious consequences. The NSW Civil & Administrative Tribunal (NCAT) may issue orders compelling the strata scheme to perform necessary repairs or pay damages to lot owners who have suffered a loss due to the inaction.

Ensuring Adherence to Safety Standards & Regulations

All electrical work conducted within a strata scheme must comply with strict safety standards and regulations to ensure the safety of all residents. This is a critical responsibility of the Owners Corporation when authorising any repairs, maintenance, or upgrades.

Key safety and compliance requirements include:

• Australian Standards: All electrical work must adhere to the AS/NZS 3000:2018 Wiring Rules, which provides the benchmark for safe electrical installations. This includes specific guidelines for EV charging stations.
• Licensed Professionals: It is a legal requirement in NSW that any electrical wiring work is carried out exclusively by appropriately licensed electricians.
• Safety Switches (RCDs): Current standards mandate the installation of Residual Current Devices (RCDs) on power point and lighting circuits to protect against electric shock.
• Compliance Certification: The Owners Corporation must obtain and keep a Certificate of Compliance for Electrical Work (CCEW) for all electrical tasks performed on common property.
• Fire Safety: When installing new systems, particularly EV chargers, fire safety must be a key consideration, following guidance from bodies like the Australian Building Codes Board (ABCB).

Conclusion

Effectively managing electrical capacity is essential for NSW strata buildings to handle aging infrastructure and the rising energy demands from modern living and EV charging. Proactive assessment, strategic financial planning, and understanding legal duties under the Strata Schemes Management Act 2015 (NSW) are crucial for ensuring safety, compliance, and future-readiness.

Navigating the complexities of electrical upgrades, EV charging integration, and strata regulations requires specialised legal knowledge. Contact our expert strata lawyers at PBL Law Group for trusted expertise to ensure your building effectively manages its electrical capacity and meets all its legal requirements.

Frequently Asked Questions (FAQ)