We often think about solar as something we install on the roof of our homes, but there’s a massive amount of momentum in the commercial solar industry. When you go to work, the businesses that employees you likely has a power bill, not in the hundreds of dollars per quarter, but tens or even hundreds of thousands of dollars.
One of the largest costs in running a modern business is energy, often second to wages in the balance sheet. This means high there is also a massive opportunity to reduce costs by adding solar.
Typical installations on a commercial solar project are between 30kW or 100kW, a significant increase compared to residential systems of 5-6kW.
With a solar system that size, the upfront cost of the system could be considerable, so it is important to work through how the project will be financed.
Most businesses will be happy to make investments that’ll benefit them in the long-term, as long as they have a clear understanding of the return on the investment.
To calculate the duration of the break-even point, it’s important to appreciate the total cost of buying and installing the solar system. Once you can derive that number, it’s a simple calculation of what you would have spent on power continuing as normal, versus the cumulative savings over a number of years until the purchase price is paid for.
This economic calculation is made far more favourable when you consider rebates available in different states of Australia. These rebates come in the form of Small Scale Technology certificate rebates for smaller commercial solar PV systems (under 100kW).
- 100kW solar system installed in Sydney, Perth, Brisbane, Adelaide – 1,651 STCs – $59,000 STC rebate
- 100kW solar system installed in Melbourne – 1,416 STCs – $50,976 STC rebate
- 30kW Solar system installed in Sydney, Perth, Brisbane, Adelaide – 497 STCs – $17,892 STC rebate
- 30kW Solar system installed in Melbourne – 426 STCs – $15,336 STC rebate
Projects over 100kW have large upfront costs, so financing might be a better option for many businesses. The current pricing per certificate for Large Scale Generation Certificates (LGC) created in 2019 is $45. This price reduces in 2020 to around $24 per certificate.
You can get more information at 13Kuga.