Top 5 Financial Benefits of Installing Commercial Solar in Australia

1. Major Savings on Energy Bills & Protection Against Electricity Price Hikes

Reducing Electricity Bills

• One of the most immediate and obvious financial benefits of commercial solar is a reduction in ongoing electricity expenses.



By generating your own power during daylight hours, your business draws less from the grid. Remember! The greater the solar system’s size, the greater the portion of your electricity load it can offset.

• In Australia, some businesses have reported up to a 75% reduction in their monthly electricity costs after installing an appropriately sized system.

Protection from Rising Energy Prices

• Electricity prices in Australia have been climbing over the past years. However, by investing in solar power, businesspeople can now protect themselves from rising fuel costs and potential supply chain disruptions.
 
• Over the lifespan of solar panels, which averages 20 to 25+ years, these savings compound significantly.



For many businesses, the payback period typically ranges from 3 to 7 years, depending on factors such as usage, system size, and available incentives.

2. Government Incentives, Rebates & Tax Advantages on  Commercial Solar

In most parts of Australia, a big financial benefit comes from the support government and regulatory schemes offer.

These ultimately help reduce the upfront investment and improve return on investment (ROI).

Small‑scale Renewable Energy Scheme (SRES) & Small‑scale Technology Certificates (STCs)

• • For any systems under 100 kW, the SRES provides Small‑scale Technology Certificates (STCs), which work like upfront rebates by offsetting part of the cost.

The number of certificates depends on system capacity, location, and several other factors.

However, please note that the STCs are being phased down toward 2030, with the number of certificates/value per STC declining gradually each year.

So, acting fast and installing a solar PV system with STC sooner can yield greater benefits.

Large‑scale Renewable Energy Target (LRET) & Large‑scale Generation Certificates (LGCs)

• For larger commercial systems that are greater than 100 kW, LGCs are awarded under the LRET scheme based on how much renewable electricity is generated.
• These certificates can be either sold or traded, providing an ongoing financial return over multiple years.

Accelerated Depreciation & Tax Write‑Offs

• Businesses can often claim depreciation for their solar assets, which means a company can reduce its taxable income by accounting for the solar system’s decline in value, which yields tax savings.

Local Grants & State-Based Incentives

• • Apart from federal schemes, many Australian states, local governments, and councils offer additional grants or low‑interest financing for commercial solar installations.

In VIC and NSW, these rebates further reduce up-front costs, improving cash flow.

3. Strong Return on Investment & Short Pay‑Back Period

Due to the combination of energy savings, incentives, and lower operating costs, commercial solar systems tend to offer substantial financial returns. How?

Let’s move forward and see!

Typical Payback Periods

For many commercial solar projects in Australia, payback periods fall in the 3‑7 year range, depending on system size, orientation, energy consumption profile, electricity costs, and incentive availability. 

Moreover, after the solar panel payback period in Australia, the electricity generated is effectively “free,” which increases profitability over the system’s lifetime.

Low Operating & Maintenance Costs

• After installation, solar PV systems require relatively low ongoing maintenance. These costs are usually negligible when compared with the savings achieved.
• The warranties from the provider often cover 20 to 25+ years for panels and 5 to 10 years for inverters, which helps in planning for costs.

4. Additional Revenue Streams & Financial Incentives

Beyond direct savings, installing commercial solar can generate additional income or financial benefits through various indirect means. This fosters economic growth while bringing financial stability.

Feed‑in Tariffs: Sell the Excess Energy

• • Suppose your system generates more electricity than you use during times of low demand.

Wondering what you should do?

In such a case, some states and energy retailers allow you to export the extra power to the grid, earning credits or payments through feed‑in tariffs.

Even though in recent years commercial feed‑in tariff rates have often been lower, they still add financial value.

• This process can also help reduce grid demand and save costs when using electricity during expensive peak periods.

Certifiable Renewable Energy Certificates & Carbon Credits

• As more companies commit to net‑zero or emissions reduction, having your own renewable assets may allow you to claim or trade carbon credits, or at least account for less in your emissions footprint.

Increase Property Value

• Commercial property with solar installations is generally more attractive to tenants and buyers due to lower operating costs and green credentials. This ultimately led to higher rental income, faster leasing, or selling at premium prices.

5. Improve Sustainability & Enhance Business Reputation

Adopting sustainable practices not only reduces environmental impact but also strengthens a company’s brand image.

Businesses that prioritize sustainability demonstrate corporate responsibility, appeal to eco-conscious consumers, and differentiate themselves in competitive markets.

Risk Reduction & Energy Security

• Solar panels combined with solar batteries can offer backup during outages or grid instability.
• Moreover, it lets you operate during peak demand times without asking for huge peak‑tariff charges. This reduces the risk of business interruption, ensuring greater energy freedom.

Enhanced Brand & Market Position

Being able to show you’ve invested in clean energy can improve your company’s reputation. This might bring more business, attract better staff, qualify for other sustainability programs, and energy efficiency schemes.

Additionally, in Australia, regulatory trends are moving toward stricter emissions and renewable energy targets.

Therefore, all the early adopters can avoid any future cost issues or penalties.