A new scheme aimed at encouraging land lords to install solar power is predicted to save tenants up to 20 per cent a year on their electricity bills.

The scheme, called Digital Solar, allows landlords to sell solar energy to their tenants.

It has been launched by tech company, Matter.

Simon Barnes, of Matter, said landlords who installed solar panels on their rental properties under the scheme could run it like a “micro-utility’’.

The landlord would earn back the cost of installation through charging the tenants for electricity but the tenant would also benefit as the charges would be much cheaper than the normal power network annually.

Mr Barnes said one in three Australian households lived in rented accommodation which did not have solar power.

Solar energy use can be monitored in real time by the landlord or the tenant.Source:Supplied

He said until now it had been difficult for landlords to justify the cost of installing solar power when the whole financial benefit went to the tenant.

Power generated by the solar system and consumed by the household is measured and made available to both owner and tenant through Matter’s portal with the company billing the tenant and forwarding that payment - less a monthly $9 fee - to the landlord.

Mr Barnes said they were doing their first installation in December.

“It’s a totally new concept,’’ he said.

He said the technology could also be used on homes which already had solar power installed.

“It is same technology with a new install or a retrofit, we can support either market,’’ Mr Barnes said.

“The landlord is actually making money by selling solar electricity to the tenant, it is not about feed in tariffs.’’