Solar power purchase agreement providers no longer have to hold a retail licence to sell electricity to West Australian consumers.
The companies install rooftop systems at no upfront cost, but the customer signs an agreement to buy all of the power that it generates for a set period at an agreed price.
WA Energy Minister Mike Nahan said the companies could now apply to the Public Utilities Office for exemptions to the licencing requirement, which had been a barrier to entry into the emerging market.
The exemptions will also include consumer protection conditions to ensure customers are aware of their rights and obligations before entering into such contracts.
"This new measure will promote the uptake of even more solar photovoltaic systems by the community," Dr Nahan said.