But the city may take the idea a step further than other councils, adding insulation and double-glazing to the scheme to fit local conditions.
Council staff are investigating the idea, and Cr Kate Wilson said yesterday there was a will at the council table to give it serious consideration.
Interest in the idea took a step forward in April, when Dunedin City Council strategy and development general manager Sue Bidrose organised a meeting with Nelson deputy mayor Ali Boswijk and Solar City chief executive Andy Booth.
The aim of the meeting was to discuss the Solar Saver solar hotwater scheme, which had been successfully implemented in Nelson, and was being considered by other councils, including Auckland.
The average cost in Nelson for installations was about $7000, though the Government's Energy Efficiency and Conservation Authority (EECA) subsidised the cost by $1000.
Dr Bidrose said a similar arrangement was expected in Dunedin, if the council picked up on the idea, though it was one of many details to be worked through as the council investigated the scheme.
One benefit was the council could offer lower interest rates, which it was able to secure.
In Nelson, the Solar Saver Scheme allows residents to choose a system they like from one of four suppliers, and have it installed.
The cost is initially met by the council, but residents pay back both the cost and the interest as a targeted rate on their property over 10 years.
If owners sold their house during the 10-year payback period, the rate remained with the property, not the homeowner.
Owners could pay off the loan at any time, including as part of the house sale process.
Ms Boswijk said from Nelson yesterday the scheme had proved to be popular, and residents were "really positive" about it.
Asked if there was a set-up cost, she said apart from underwriting the scheme, there was no cost to the council, or ratepayers who did not use it.
In Nelson, about 200 people have used the scheme since a pilot programme was put in place in 2009.
A Nelson City Council spokesman said recent changes to EECA meant some subsidies were less than $1000.
Cr Wilson said there was "definitely" a will at the council to consider the scheme.
There were some hurdles to be overcome for Dunedin implementation, including deciding which areas of the city, and which houses in those areas, would be suitable for solar energy.
The council may consider widening the scheme so it could pay for double glazing or insulation to suit local conditions, and may look at variations of the four-provider system used in Nelson.
"I think it's very exciting," Cr Wilson said.
It was also "cost neutral" for rates, as the money was paid back with interest.
Dr Bidrose said a report would go back to the council with the result of investigations into the scheme.
That report was expected in the next few months.
