Introduction

Modern living in New South Wales (NSW) increasingly involves both strata title properties and the shift towards electric vehicles (EVs). As EVs become more common, integrating them into strata schemes like apartment buildings presents unique challenges, particularly concerning the installation and management of EV charging infrastructure on common property.

Standard strata by-laws often fail to address the complexities of EV charging, leading to uncertainty and potential disputes for the Owners Corporation, strata committee, and residents. This guide explores why a dedicated EV charging by-law is essential for your NSW strata building, providing practical insights for navigating this transition fairly and safely.

The Rise of Electric Vehicles and the Strata Challenge in NSW

Growing EV Ownership Trends in NSW

EV ownership is rapidly increasing across Australia, and particularly in NSW. Sales figures demonstrate a significant upward trend, with EVs capturing a growing share of the new car market each year.

Consider these impressive statistics:

• National EV sales nearly tripled in 2021
• EV market share reached 8.45% of new cars in 2023
• This figure further increased to nearly 9.7% in 2024
• In NSW specifically, EVs represented 9.0% of new vehicle sales in 2023

Early 2024 data showed NSW leading sales volume nationally, highlighting the accelerating adoption within the state. Projections indicate this growth will continue, potentially reaching 1 million EVs on Australian roads by 2027, making it essential for strata schemes to prepare for this shift.

The Home Charging Imperative for EV Owners

A key driver for strata adaptation is the strong preference among EV owners for charging their vehicles at home. Research suggests that the vast majority of EV charging, between 70% and over 90%, occurs at the owner’s residence. This preference underscores a significant challenge for residents living in strata title properties like apartment buildings.

While homeowners in detached houses can often install an EV charger relatively easily, strata residents face considerable hurdles, including:

• Navigating approvals for modifications to common property
• Dealing with shared electrical systems
• Addressing potential limitations in building infrastructure

This disparity creates an equity issue, potentially excluding apartment dwellers from the convenience and cost benefits of home EV charging.

Unique Challenges for NSW Strata Schemes

Strata schemes in NSW face distinct challenges when integrating EV charging infrastructure due to their inherent structure and governance. Managing installations involves complexities related to shared spaces and common property electrical infrastructure. Any work affecting common property, such as running cables or connecting to shared switchboards, requires approval from the Owners Corporation.

Furthermore, the existing electrical capacity of many strata buildings, especially older ones, may not be sufficient to handle the additional load from multiple EV chargers. This necessitates:

• Careful planning
• Potential costly upgrades
• Robust governance frameworks, often lacking in standard by-laws

These frameworks are essential to manage installations, allocate costs fairly, and ensure safety within the shared environment of the strata building. The need to navigate these issues through the Owners Corporation adds layers of complexity compared to individual dwellings.

Why Are Standard Strata By-laws Insufficient for EV Charging?

Ambiguity Over Common Property Alterations and Approvals

Standard strata by-laws, often designed for general renovations, typically lack the specific detail needed to manage EV charging installations effectively. This creates significant ambiguity when owners seek approval for installing an EV charger.

A key issue is the classification of the work; it’s often unclear whether installing an EV charger constitutes a minor renovation or major work under existing rules, leading to inconsistent approval processes.

Furthermore, generic renovation by-laws rarely address the unique technical requirements of EV charging infrastructure. They may not specify:

• The need for dedicated circuits
• Compatibility with load management systems
• Adherence to particular safety standards
• The potential need for significant ‘backbone’ electrical upgrades to support multiple EV chargers

This lack of technical specificity makes assessing applications difficult for the Owners Corporation.

Unlike typical renovations, EV charging involves ongoing electricity consumption and long-term maintenance responsibilities. Standard by-laws are generally not equipped to handle these continuous aspects. Relying on ad-hoc approvals for each EV charger request becomes inefficient and burdensome for the strata committee as demand grows, often resulting in inconsistent decisions and potential disputes among residents.

Difficulties in Fair Cost Allocation for EV Infrastructure and Usage

A major shortcoming of standard strata by-laws is their inability to establish a clear and equitable method for allocating the costs associated with EV charging. This presents challenges across several areas:

• Infrastructure Upgrades: Installing EV chargers, especially in older strata buildings or when planning for multiple users, frequently requires costly upgrades to common property electrical infrastructure like switchboards and distribution boards. Standard by-laws usually fund common property works through levies based on unit entitlement, which may be perceived as unfair for funding infrastructure primarily benefiting EV owners.
• Electricity Consumption: Ensuring EV users pay for the electricity their chargers consume is vital for fairness. If chargers are connected to common property power without separate metering or a defined cost-recovery mechanism, the Owners Corporation ends up paying, effectively subsidising individual use. Standard levy structures are not designed for such variable, usage-based costs.
• Maintenance: Standard maintenance by-laws often lack clarity on who is responsible for maintaining individual EV chargers versus any shared electrical backbone or load management systems installed by the Owners Corporation.

Without a specific EV charging by-law outlining a fair cost allocation methodology, such as a user-pays principle supported by metering, strata schemes struggle to manage these financial aspects transparently and equitably.

Inability to Manage Electrical Load and Ensure Building Safety

Standard strata rules fail to address the significant electrical load imposed by EV charging, potentially compromising building safety and infrastructure integrity. EVs draw substantial power, especially when multiple vehicles charge simultaneously, placing considerable strain on existing electrical systems.

This oversight creates several risks:

• Infrastructure Overload: Unmanaged charging can easily overload circuits or the building’s main electrical supply. This can lead to:
  • Power outages
  • Damage to electrical equipment
  • Increased fire risks, particularly in enclosed spaces like underground car parks where heat can accumulate
• Lack of Load Management: Standard by-laws do not provide the framework or authority for implementing essential Load Management Systems (LMS). An LMS is crucial for preventing overloads by dynamically adjusting power allocation to EV chargers based on the building’s total electricity demand, ensuring stability and fair power distribution.
• Inadequate Safety Protocols: While general safety rules exist, EV charging installations have specific electrical safety standards and potential fire risks that require tailored protocols. Standard by-laws typically do not incorporate these specific requirements, such as mandating certain types of certified equipment or installation practices to mitigate risks like thermal runaway in lithium-ion batteries.

What are the Key Benefits of Implementing a Dedicated EV Charging By-law?

Ensure Safety and Mitigating Fire Risks

A dedicated EV charging by-law plays a crucial role in enhancing safety within a strata building, particularly concerning fire risks. Enclosed spaces like underground car parks can trap heat and fumes, potentially intensifying fires associated with EV charging stations. Lithium-ion batteries in EVs pose a risk of thermal runaway, leading to intense fires that are challenging to manage.

Implementing a specific by-law allows the Owners Corporation to mandate critical safety measures, including:

• Designated Charging Areas: Specifying well-ventilated locations for EV charging installation, away from flammable materials.
• Approved Equipment: Permitting only certified, safety-compliant EV charging equipment and chargers within the strata scheme.
• Mandatory Inspections: Requiring regular checks of EV charging infrastructure to ensure ongoing compliance and safety.
• Emergency Plans: Establishing clear emergency response and evacuation protocols specifically addressing EV charging station incidents.

Establish Fair Cost Allocation and Billing Systems

One of the primary advantages of an EV charging by-law is establishing a clear and equitable framework for managing costs. Installing EV chargers and potentially upgrading common property electrical infrastructure involves significant expense, and a by-law provides transparency on how these costs are distributed.

The by-law can formally detail agreed-upon methods for allocating expenses, such as:

• Installation Costs: Defining whether the individual lot owner or the Owners Corporation bears the cost of installing an EV charger and any necessary common property upgrades.
• Electricity Usage: Mandating a ‘user pays’ principle, typically requiring separate metering or an approved cost-recovery system to ensure owners only pay for the electricity their EV charger consumes.
• Maintenance Expenses: Clearly assigning responsibility for the upkeep of individual EV chargers versus shared infrastructure components.

This structured approach prevents disputes arising from ambiguous financial responsibilities and ensures fairness across the strata scheme.

Manage Electrical Infrastructure and Capacity Effectively

EV chargers place an additional load on a building’s electrical system. A dedicated by-law empowers the Owners Corporation to manage this effectively and prevent potential issues, allowing for proactive planning regarding the building’s electrical capacity.

Key management aspects enabled by a by-law include:

• Planned Upgrades: Facilitating a strategic approach to upgrading common property electrical infrastructure, such as switchboards or installing backbone cabling, as EV adoption increases.
• Technical Standards: Mandating specific technical requirements for EV chargers and installations to ensure compatibility with the building’s systems and safety standards.
• Load Management Systems: Providing the authority for the Owners Corporation to implement and operate an LMS, which dynamically manages power distribution to EV chargers to prevent overloading the building’s supply.

This ensures the electrical infrastructure can safely accommodate EV charging needs without compromising power supply to the rest of the building.

Provide Clarity, Consistency and Reducing Disputes

Ambiguity in rules often leads to conflict in strata living. A specific EV charging by-law provides essential clarity and consistency, significantly reducing the potential for disputes between residents and the Owners Corporation. Instead of relying on ad-hoc decisions, the by-law establishes a documented, standardised process.

The by-law achieves this by:

• Defining Procedures: Clearly outlining the steps and requirements for owners seeking to install an EV charger.
• Setting Expectations: Establishing upfront the rights and responsibilities of both individual owners and the Owners Corporation regarding EV charging installation, usage, and costs.
• Ensuring Uniformity: Guaranteeing that all applications and situations related to EV charging are assessed against the same set of pre-agreed rules.

This clear framework minimises misunderstandings and streamlines the management of EV charging requests, promoting fair treatment for everyone in the strata scheme.

Future-Proof the Building and Enhancing Property Value

Implementing an EV charging by-law is a forward-thinking measure that enhances the long-term value and appeal of a strata property. As EV ownership grows, access to convenient home charging is becoming increasingly important to potential buyers and renters.

Facilitating EV charging through a by-law contributes to:

• Increased Marketability: Making the building more attractive to the growing number of EV owners, potentially commanding higher resale or rental values.
• Supporting EV Adoption: Removing barriers for residents who wish to switch to EVs, aligning the building with modern transport trends.
• Preventing Obsolescence: Ensuring the property keeps pace with market expectations and avoids becoming outdated compared to EV-ready buildings.

Studies suggest residents favour installing charging stations now, indicating that EV readiness is becoming a key factor in property desirability.

Facilitate Access to Government Grants and Support

Governments periodically offer financial incentives and grants to encourage the installation of EV charging infrastructure in residential buildings. Having a formal EV charging by-law in place can significantly improve a strata scheme’s ability to access such support.

A by-law demonstrates readiness by:

• Showing Formal Approval: Providing evidence of the Owners Corporation’s formal decision and plan to accommodate EV charging, often a prerequisite for grant applications.
• Streamlining Applications: Having clear rules and potentially a feasibility assessment completed makes the grant application process smoother and demonstrates organisational preparedness.
• Aligning with Policy: Positioning the strata scheme as proactive and aligned with government strategies aimed at boosting EV infrastructure and adoption.

This readiness can unlock funding opportunities, helping to offset the costs associated with making the building EV ready.

Legal Framework and Requirements for EV By-laws in NSW

The Strata Schemes Management Act 2015 (NSW) and Common Property

The Strata Schemes Management Act 2015 (NSW) provides the primary legal framework governing strata schemes in NSW, including how common property is managed. Common property encompasses shared areas such as:

• Driveways
• Gardens
• Foyers
• Shared electrical wiring and switchboards outside individual lots

Any work that involves altering or adding to common property generally requires the approval of the Owners Corporation.

Section 108 of the Strata Schemes Management Act 2015 (NSW) typically requires a special resolution for works that involve additions or alterations to common property. This applies to many EV charging installations, as they often necessitate connecting to common power supplies or running cables through common areas.

The Owners Corporation holds the responsibility for controlling and managing common property, making its approval essential before any EV charging infrastructure affecting these areas can be installed.

Sustainability Infrastructure Resolutions

Recent amendments to NSW strata legislation specifically address installations like EV charging infrastructure. The Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021 (NSW) introduced the concept of ‘sustainability infrastructure’. EV charging infrastructure falls under this definition, which includes changes to common property aimed at reducing energy consumption or greenhouse gas emissions.

This classification is significant because it alters the approval requirements. While alterations to common property usually need a standard special resolution, Section 132B of the Strata Schemes Management Act 2015 (NSW) outlines specific considerations for sustainability infrastructure. Before approving such works, the Owners Corporation must consider factors such as:

• Costs (installation, running, maintenance)
• Ownership
• Installation responsibility
• Maintenance responsibility
• The extent to which the infrastructure will be available to lot owners

Crucially, resolutions approving sustainability infrastructure works, including the necessary by-laws, currently have a modified voting threshold. Instead of the standard 75% majority required for a special resolution, a sustainability infrastructure resolution passes if less than 25% of the value of votes cast are against it. This potentially lower threshold aims to facilitate the adoption of sustainable technologies like EV charging in strata buildings.

Passing and Registering Your EV By-law

To formally regulate the installation and use of EV charging stations, a specific by-law is necessary. Passing this by-law requires a formal process at a general meeting of the Owners Corporation. A motion proposing the by-law must be included on the meeting agenda.

As EV charging installations often qualify as sustainability infrastructure, the motion to adopt the relevant by-law is typically passed via the special resolution mechanism with the lower threshold: it succeeds if not more than 25% of the value of votes cast are against it. This reflects the legislative intent to make adopting such measures easier for strata schemes.

Once the special resolution is successfully passed, the Owners Corporation has a critical final step: registering the new or amended by-law with NSW Land Registry Services. This registration must occur within six months of the resolution being passed. Failure to register within this timeframe renders the resolution, and therefore the by-law, legally ineffective. Registration ensures the by-law becomes part of the official strata plan documentation and is enforceable.

Essential Components of an Effective Strata EV Charging By-law

Clear Approval Process and Technical Standards

An effective EV charging by-law must establish a clear and transparent process for owners seeking approval to install EV charging equipment. This process should detail the required application steps, including:

• The submission of technical specifications for the proposed EV charger
• Information about the licensed electrician performing the work

The by-law needs to outline objective criteria the Owners Corporation or strata committee will use to assess these applications.

Furthermore, the by-law must mandate strict adherence to technical and safety standards to protect residents and common property. Key requirements should include:

• Compliance with relevant Australian Standards, particularly AS/NZS 3000 for electrical installations
• The exclusive use of qualified and licensed electricians for all installation, modification, and maintenance work related to EV charging infrastructure
• Potentially specifying permitted types of EV charging equipment (EVSE), such as requiring ‘smart’ chargers compatible with LMS
• Confirmation that the installation considers the building’s existing electrical capacity and any potential impact on common property

Comprehensive Cost Allocation Methodology

Fairness in cost allocation is crucial for the acceptance and smooth operation of an EV charging system within a strata scheme. The by-law must explicitly define how various costs associated with EV charging infrastructure are managed.

Installation Costs: Typically, the lot owner applying for the EV charger is responsible for the cost of the unit and its direct installation within their car space or garage. However, the by-law must clearly state how costs for necessary upgrades to common property electrical infrastructure will be funded. Options might involve:

• User-pays models
• Special levies
• Allocations from the Capital Works Fund, subject to owner approval

Electricity Usage: A fundamental principle should be ‘user pays’. The by-law must mandate that electricity consumed by private EV chargers is paid for by the respective user. This necessitates either:

• Connecting the charger to the individual lot’s meter, or
• Installing accurate sub-metering if drawing power from common property circuits, often integrated with billing software

Maintenance Expenses: Responsibility should be clearly assigned. Generally, the lot owner maintains their EV charger, while the Owners Corporation maintains shared infrastructure like backbone cabling or LMS, with costs recovered appropriately.

Provisions for Load Management and Usage Rules

Managing the building’s overall electrical load is essential as more EVs require charging. The by-law should incorporate provisions for effective load management, including:

• Requiring that any installed EVSE is compatible with the building’s existing or planned LMS
• Granting the Owners Corporation the authority to actively manage charging loads through the LMS

This might involve scheduling charging times or adjusting charging speeds during peak periods to prevent overloading the building’s electrical supply and ensure fair power distribution.

If shared EV chargers are installed on common property (e.g., visitor parking), the by-law must set clear rules for:

• Access and booking procedures
• Usage fees
• Time limits to ensure equitable use

Maintenance Repair Removal and Insurance Requirements

The by-law needs to address the long-term responsibilities associated with EV chargers. This involves outlining requirements for maintenance, repair, potential removal, and insurance.

Key aspects include:

• Defining the lot owner’s ongoing responsibility to maintain their EV charger in a safe, operational condition and comply with any inspection requirements
• Detailing the Owners Corporation’s powers to enforce repairs or require the removal of faulty, unsafe, or non-compliant EVSE at the owner’s expense
• Specifying the process for removing the EV charger and reinstating any affected common property when the lot is sold or the equipment is no longer needed, potentially including provisions for successors in title
• Requiring owners who install EV chargers to maintain adequate public liability insurance and provide proof to the Owners Corporation

The Owners Corporation should also review its strata insurance coverage to ensure adequate protection for common property infrastructure related to EV charging.

Conclusion

Integrating EV charging into NSW strata schemes requires navigating common property rules and infrastructure limits, making standard by-laws insufficient and highlighting the need for a dedicated EV charging by-law to ensure safety, fairness, effective management, and legal compliance. Adopting such a by-law provides numerous benefits, from managing electrical capacity and costs transparently to future-proofing the strata building and enhancing property value for EV owners and the Owners Corporation alike.

To successfully implement these necessary changes and navigate the complexities of strata legislation for EV charging infrastructure, seek trusted expertise from the specialists at PBL Law Group. Contact our team today for tailored guidance on drafting and implementing an effective EV charging by-law, ensuring your strata scheme is prepared for an electric future.

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