Key Points:
- Commercial solar systems are suited to businesses in need of larger-scale energy generation, with sizes ranging from less than 30kW to over 250kW.
- Businesses with commercial solar could benefit from reduced energy bills, a solar feed-in tariff and an increased property value.
- However, the dollar value of those benefits is dependent on the cost of purchasing and installing the commercial solar system.
In this guide, Canstar Blue’s energy experts discuss the commercial solar generation options available to businesses in Australia. From system sizing to installers and even some rough cost estimates, we reveal what businesses need to know about commercial solar power.
On this page:
- Commercial solar power
- What is a commercial solar system?
- What size is a commercial solar panel system?
- What are the benefits of commercial solar panels?
- How much do commercial solar panels cost?
- How do I reduce the cost of installing a commercial solar system?
- What commercial solar installer options are there?
- Is commercial solar worth it?
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Commercial solar power
Getting solar power for your business is like getting solar for your house, just on a bigger scale. While your location and exposure to the sun will be the main contributors to your premises’ suitability for solar panels, other factors such as the upfront installation costs and your structural integrity will also come into play. Below is a deeper dive into what businesses should consider when installing commercial solar.
What is a commercial solar system?
A commercial solar system caters to the large-scale generation of renewable energy for small to large businesses.
Commercial solar systems are generally larger than residential systems, as commercial premises often have more space to work with.
This means that a commercial-sized solar system can typically accommodate more solar panels and thus, a larger generational capacity. Here’s a quick rundown of the key differences between them:
Quick comparison
| Commercial solar | Residential solar |
|---|---|
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Source: Energy Gov AU, 2025
What size is a commercial solar panel system?
Systems with a 10-kilowatt (kW) capacity or more are categorised as a ‘commercial’ system. For reference, the average household rooftop system size is usually between five and six kilowatts.
Picking the right-sized solar system for your commercial property will ultimately come down to your usage habits and the needs of your business.
That being said, sizing can be broken into four categories for commercial properties: less than 30kW, less than 100kW, over 100kW and over 250kW.
- Less than 30kW: Systems less than 30kW are usually the easiest to install as they follow the same guidelines and restrictions as residential solar systems.
- Less than 100kW: Most small retail businesses, local clubs and sports groups or small-to-medium office buildings will choose a solar system size between 30 and 100kW.
- More than 100kW: Systems over 100kW are typically installed in small to medium factories, hotels, or larger office spaces.
- More than 250kW: Anything over 250kW is usually reserved for wide-scale locations such as large shopping centres.
Always consult with a licensed solar professional first to discuss your business’ energy requirements before making any purchase decisions.
What are the benefits of commercial solar panels?
Commercial solar can potentially help businesses save money in the long term. However, the dollar value of all potential savings is contingent on how much you spend to purchase and install your preferred system:
Reduction in energy bills
If you have a solar battery, generating and storing your electricity reduces your reliance on grid power, lowering how much you spend on electricity.
Business solar feed-in tariffs
If you’re on a business energy plan with a solar feed-in tariff, you’ll earn a steady credit when excess electricity generated by your solar system is exported back to the grid.
Increased commercial property value
Having solar panels on-site increases the perceived value of your property. This could be a hidden bonus, should you choose to sell or lease your property.
How much do commercial solar panels cost?
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| City and State | 30kW | 50kW | 70kW | 100kW |
| Adelaide, SA | $29,920 | $56,770 | $75,560 | $91,710 |
| Brisbane, QLD | $26,770 | $45,740 | $65,850 | $87,390 |
| Canberra, ACT | $36,980 | $51,410 | $63,590 | $87,780 |
| Hobart, TAS | $25,550 | $45,860 | $62,900 | $77,060 |
| Melbourne, VIC | $26,940 | $47,720 | $63,040 | $84,640 |
| Sydney, NSW | $25,910 | $46,400 | $62,970 | $82,880 |
| Perth, WA | $30,040 | $58,400 | $74,260 | $94,650 |
| All | $28,870 | $50,330 | $66,880 | $86,590 |
Source: Solarchoice, Feb 2025.
According to Solar Choice’s February 2025 Commercial Solar PV Price Index, the average cost of a 100kW solar power system in Australia, including GST and any eligible STCs, is $86,590. Smaller systems, unsurprisingly, were found to cost significantly less than this, with 30kW systems sitting at an average of $28,870 and 50kW about $50,330 on average.
There are many factors negatively influencing the cost of installing and purchasing a commercial solar system such as:
- Size of the system: The larger the system chosen, the more work that may need to be done to get it installed.
- Location of your business: The cost of connecting to the grid is dependent on the state and territory you reside.
- Appropriate approvals: You’ll need special permission from your local network distributor and council to connect to the grid.
- Site inspection and preparation: Site preparation (e.g. tree pruning, roof reinforcing) may take place to facilitate a smooth and safe installation.
However, there are ways to reduce your total spend.
Compare residential solar energy plans
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
How do I reduce the cost of installing a commercial solar system?
Rebates on a commercial solar system
There are currently two ways to obtain a solar rebate on a commercial solar system, but which one you qualify for depends on the size of the system you’re looking to install:
Small-Scale Technology Certificates (STCs)
STCs, which are commonly used for residential properties, are available on solar systems with a capacity under 100kW.
These certificates give you a discount on the initial purchase of a system and are worked out based on the expected output of the solar system over a certain time period.
This kind of rebate is typically already incorporated into the quote for a system.
Large-Scale Generation Certificates (LGCs)
LGCs, however, must be claimed each year by submitting reports to the Renewable Energy Certificates (REC) Registry — these are not automatically deducted during the quote process.
Businesses or commercial properties must also register their premises correctly with the Clean Energy Regulator. A commercial solar installer should be able to assist you with this process.
This kind of rebate is typically eligible on systems above 100kW and the relevant details must be tracked, reported and submitted to the correct bodies to be payable to a property — similar to a tax claim.
Financing a commercial solar power system
There are several ways to finance a commercial solar system installation in Australia, however, the most common option is a commercial solar power purchase agreement.
Power purchase agreement (PPA)
A power purchase agreement, or PPA for short, is an arrangement between a solar provider and property owner whereby the provider pays for, designs, builds, services and owns a solar panel system housed on the property owner’s premises.
The solar provider then charges the property owner for all the energy generated from that system as a means to pay it off.
A PPA can be a great way to gain access to solar energy generation without the upfront installation costs. It can also be a way for the property to access cheaper electricity at a fixed, agreed-upon price.
Once the agreement is over, the system may also be bought outright by the property owner for continued use, but this depends on the contract.
Contract lengths may vary for commercial solar PPAs, so it’s important to do your research and compare a range of quotes and agreements before making a purchase decision.
Green loans
Another way to finance a commercial solar system may be through the use of a green loan. These are loans offered by financial institutions that are intended for a cause that will be ‘environmentally friendly’. Lenders will likely classify eco-friendly causes differently, so it’s important to understand what your options are from the start.
You can compare green loans for free here
Building Upgrade Finance
Building Upgrade Finance is a unique financial product that assists building owners in upgrading commercial buildings for improved energy efficiency and sustainability.
It covers various upgrades, including solar installation. This finance option offers benefits like no additional security requirements, long-term fixed-rate finance, no deposit needed and the ability to share costs with tenants. The finance is attached to the land and can be transferred upon sale.
What commercial solar installer options are there?
As commercial solar needs are slightly different from residential solar needs, not every solar installer will be able to help you with your solar needs, namely due to the size and quantity of panels needed.
Most installers will list whether they can help you with commercial properties, with quotes also available, meaning you can check in with a few installers to get a rough outline of costs and other requirements.
Some of the Australian solar installers that offer commercial solar solutions include:
- Arise Solar
- Fair Solar
- SEM Group
- Solargain
- Solahart.
You might also be interested in:
- Solar installers in Sydney
- Solar installers in Brisbane
- Solar installers in Melbourne
- Solar installers in Adelaide
- Solar installers in Perth
- Tasmanian guide to solar power
- Guide to solar power in Darwin
Is commercial solar worth it?
The short answer is: maybe. Whether solar is beneficial for your commercial property will be entirely dependent on your circumstances, such as location, sun exposure, the slant, size and strength of your roof, council requirements and your budget.
Considering that most businesses operate nine to five — a period when the sun is also working hard — installing solar can help you utilise the sun in real-time, which has the potential to significantly impact your reliance on the power grid, as well as your electricity bill, making it at least worth investigating further.
One way to measure the viability of a commercial solar system is through its payback period – the time it takes to recover the cost of installing it, covered by the cumulative savings on each energy bill.
Below are the average payback periods for solar systems smaller than 100kW in each state and territory:
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| Indicative payback periods & IRR for <100kW solar systems* | ||||||||
| ACT | NSW | NT | QLD | SA | TAS | VIC | WA | |
| Payback period (Years) | 3.4 | 4.8 | 2.5 | 4.6 | 3.4 | 5.1 | 5.3 | 3.3 |
| Internal Rate of Return | 33% | 25% | 40% | 29% | 37% | 22% | 24% | 34% |
Source: Solarchoice, Feb 2025.
If you’re still not sure about solar, but are keen to reduce your business power bills, you may find some relief by switching energy providers. Not sure who to go with?
Canstar Blue’s annual ratings report reveals the business electricity providers that Aussie business owners rated top-notch in areas such as bill and cost clarity, value for money, client service, online tools and advice and overall satisfaction. To see the best-rated brands, click the link below.
Compare Business Electricity Providers
Picture credit: Vaclac Volrab/shutterstock.com
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