In recent years, more businesses worldwide, including in Australia, have switched to sustainable energy solutions like commercial solar energy.
This shift is driven by the falling costs of solar technology and a growing awareness of environmental issues, making solar power more attractive than ever for businesses. Consequently, let’s discuss the financial benefits of solar energy for businesses in Australia.
Embracing solar energy for your business not only saves on energy bills but also significantly reduces your carbon footprint, making it a powerful step toward sustainability.
With the current emphasis on sustainability and the array of financial benefits at your disposal, there’s no better time than now to consider integrating commercial solar and battery storage into your commercial property.
You’ll benefit from government incentives and tax breaks and boost your brand’s image as a leader in eco-friendly practices.
Understanding Commercial Solar Power
Commercial solar power uses solar photovoltaic (PV) technology, which involves installing solar panels to convert sunlight into electricity.
This technology has become more popular recently. It offers a cost-effective way for businesses to cut energy costs and reduce their environmental impact. Commercial solar systems are generally larger than those for homes and can produce more energy.
For example, a typical residential solar system in 2024 is about 6.6 kW, with around 18 panels, whereas commercial systems can be much larger and come in three main sizes:
- Systems under 30 kW (up to about 100 panels)
- Systems between 39 kW and 60 kW
- Systems over 60 kW
Because these systems are larger, they can hold more panels and generate more power, especially for businesses with high energy needs or large rooftops.
However, commercial systems have higher installation costs and require more complex engineering compared to residential systems, mainly due to the grid connection process and the need for special protection units when the system exceeds 30 kW of inverter capacity.
Recent solar PV technology advancements have greatly improved commercial solar cells’ efficiency.
For instance, Australian companies developed some of the world’s most efficient commercial solar cells, with 22% to 25% efficiency rates just ten years ago. This means businesses can now generate even more power from their solar systems.
Understanding commercial solar power means understanding solar PV technology and the differences between residential and commercial systems.
By considering factors like system size, energy output, and improvements in solar cell efficiency, businesses can make well-informed decisions about using solar energy to support their sustainability goals and cut costs.
Commercial solar power offers many benefits for businesses, including significant savings on energy costs, a smaller environmental footprint, and the potential to increase your property’s value, providing a long-term return on your investment.
Selecting the right equipment and working with a reliable solar installer is essential to ensure the system is durable and performs well over time.
Why Should You Install Solar for Your Business?
Low-risk investment and easy maintenance
Solar power helps your business reduce its carbon footprint, as solar systems produce electricity with almost no greenhouse gas emissions. This reduces your impact on climate change and shows your commitment to the environment.
It can also make your business more attractive to eco-conscious employees and customers, as people are more likely to work for and support companies that care about the environment.
This green approach helps the planet and positions your business as a leader in environmental responsibility.
Durability and Sustainability
Solar systems are designed to last, offering your business a long-term, sustainable energy solution. With few moving parts and sturdy materials, solar panels have a long lifespan, providing reliable energy over many years.
This durability protects your business from the unpredictable costs of traditional energy sources. By choosing solar power, you align your business with sustainability goals and demonstrate a commitment to a cleaner, greener future.
Key Considerations When Installing Commercial Solar Panels
Installing commercial solar panels is a smart investment, as sustainable energy solutions are becoming increasingly important.
Solar panels can significantly reduce your business’s greenhouse gas emissions, but there are a few key factors to consider to understand the potential cost savings.
Start by asking yourself these questions:
When does your business use most of its electricity?
Businesses that use most of their electricity daily usually see the most cost savings from solar panels.
Do you understand your electricity bill?
Knowing how much energy your business consumes will help you determine the correct number of solar panels needed to meet your energy needs.
What type of electricity tariff does your business have?
This often depends on whether your business uses more or less than 100 megawatt hours (MWh) of electricity per year. The main types are flat-rate tariffs and demand tariffs.
Have you received approval from your distributor to connect your system to the grid?
You’ll need this approval before installation. The process may vary depending on the size of your solar system and whether you plan to send excess electricity back to the grid.
Is a feed-in tariff suitable for your business size?
Most small to medium-sized businesses benefit more from using their energy than selling it back to the grid. Consider the economic benefits of solar energy to see if this option works best for you.
Financial Benefits of Solar Energy for Your Business
Investing in solar power for your business can offer significant financial benefits, including government incentives and tax deductions.
Australia supports sustainability with various programs that help lower the initial costs of installing solar systems. With Cyanergy, you can set up solar power with an easy, low weekly payment plan and no high upfront fees.
Government incentives and other benefits like joining a Virtual Power Plant (VPP) help businesses see a quicker return on their solar investment.
A VPP allows you to earn money by adjusting your energy usage based on grid demand. It acts as a storage for extra energy produced when demand is low, and you can get credited for your energy when the VPP is used to support the grid.
Additionally, the Australian Taxation Office offers depreciation deductions, letting businesses claim the reduced value of their solar equipment over time.
This mix of government support and tax benefits makes solar installations more financially attractive.
Plus, switching to solar can help lower those high energy bills. Since running a business uses a lot of power, using solar energy can reduce your dependence on the primary power grid.
How does Solar Help your Business’s Sustainability Goals?
Reduces Carbon Footprint
Solar power helps your business reduce its carbon footprint by generating electricity with almost no greenhouse gas emissions, reducing its impact on climate change.
By committing to lowering your carbon footprint, you may attract environmentally conscious employees and customers, as studies show people prefer to work for and support green companies.
This approach helps the planet and positions your business as a leader in environmental responsibility.
Aligns with ESG Goals
Solar power fits Environmental, Social, and Governance (ESG) goals well. It shows your commitment to eco-friendly practices, positively impacts the community, and reflects strong corporate governance.
This alignment meets the expectations of socially responsible investors and boosts your business’s reputation as an ethical and socially aware company.
Meets Renewable Energy Targets
Governments and industries worldwide are focusing on shifting to clean and renewable energy. By adopting solar power, your business takes necessary steps toward meeting these renewable energy targets.
Using solar energy positions your business as a leader in this global transition, showing a proactive effort to reduce reliance on non-renewable resources and contribute to a sustainable energy future.
Charging Electric Vehicles
Offering your employees the option to charge their electric vehicles (EVs) at work using your solar system is another way to show your business is socially and environmentally responsible.
As EVs become more popular, addressing one of their main challenges of charging range can make your business a more attractive place to work.
Workplace charging reduces employees’ need to search for public charging stations, boosting their productivity and loyalty. Adding eco-friendly employee benefits is also a great way to attract top talent who value sustainability.
Government Rebates for Businesses
Various government rebates, subsidies, and loan options are available to help reduce the costs of installing commercial solar panels and batteries.
The Small-scale Renewable Energy Scheme (SRES) is a key program that makes new business rooftop solar systems more affordable.
This program offers tradable certificates called small-scale technology certificates (STCs). Most commercial solar systems qualify for these if the installer is accredited.
The value of the STCs you receive is based on the expected amount of electricity your solar system will generate until 2030, depending on the size of your system and the climate zone of your business location.
Usually, you transfer the ownership of these STCs to your installer in exchange for a discount on your system.
Cost Savings and ROI Analysis| Commercial Solar Saving
Several factors will influence your cost savings and return on investment (ROI) when installing commercial solar panels:
- The size of your solar system and the number of panels
- How much electricity your system generates
- If you have a battery to store extra energy
- Installation and maintenance costs
- How much electricity does your business use, including peak usage times
- Changes in electricity tariffs
- Whether you sell excess electricity back to the grid
To estimate potential savings, consider averaging your business’s electricity usage over the past three years, keeping in mind that commercial rates may change in the future.
Typically, you can see significant savings within about five years. However, the above factors will help you get a more accurate estimate of your savings and payback period.
While the initial cost of installing solar panels can be high, it’s essential to consider the long-term ROI. Solar systems usually last between 25 and 30 years, and the savings generated over this period far exceed the initial investment.
Cyanergy will support you with every step of your solar journey! For a smooth experience, talk to an expert or get a free quote.
