The price of electricity has had a significant rise in the past few years and is not looking at slowing down. Australian businesses seeking to lower these costs are turning to commercial solar power solutions. Let’s have a look at some of the reasons why a solar PV system can benefit your business.
Advantages of Commercial Solar Power
Electricity can be an extremely costly expense for businesses. A solar powered business can see huge drops in their power bills, allowing more money to be invested back into the company. Companies use most of their energy during the day. Energy is being used at the same time it’s produced, which is more efficient with less energy wastage and reliance on batteries.
Commercial solar power also increases your property value. If you are looking to sell the property in the future, solar is an attractive, sought-after asset that buyers will be looking out for.
More benefits include the environmentally friendly aspect of solar which can boost your popularity with your clients and expand your clientele. Promoting an eco-friendly status would be highly regarded and gains respect from your customers and, in turn, gain more business and referrals.
How Much Does it Cost and What Size Do I Need?
The average cost of a commercial solar power PV system depends on the size, location, current rebates, number of panels, cost of installation, other components (e.g., tilts), and type of system bought. It can range from around $10,000 to $150,000 inclusive of GST and incentives. For a smaller business, a 10-30kW system is generally recommended and a 30-100kW system is recommended for large businesses which have high energy requirements.
The current rebate available for commercial solar power is the ‘Solar for Business’ program (VIC ONLY). This program is for small businesses looking to install a system up to 30kW. The rebate will cover 50% of the cost with a limit of $3,500. This is available from 2020-2021 with a max of 5,000 rebates on offer. After the 5,000 max is hit, the rebate will go up to $1,750.
You can also take advantage of the ‘STC (small-scale technology certificate) Program’ financial incentive for systems 99kW and under. This is basically a payment made based on the generation of energy expected by your system over the next 10 years. The amount paid varies depending on the location of the system and current market circumstances. If your system is over 99kW then you can claim the ‘LGC (large-scale generation certificate)’ incentive.
How Much Will I Save?
As the size of your system increases, you can expect more savings. This depends on the amount of power that the business uses as well. Since around most companies use around 80% of the energy generated, a high degree of savings can be expected. The majority of Australian businesses report savings from $6,000 to $50,000 per annum!