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.
There’s a lot that goes into running a business. There’s the office set-up, client relations, office location, even what accounting software you use, with all areas carefully weighed against the impact on the bottom line. But one area that’s worth giving a bit more time and attention to is your roof, and specifically if you can — and should — install solar panels.
Solar power for residential properties gets plenty of attention, but what about those looking to turn their commercial property into something a bit more environmentally friendly and cost-effective? Find out all you need to know about commercial solar power with this Canstar Blue guide.
On this page:
- Commercial solar power
- What is a commercial solar system?
- What size is a commercial solar panel system?
- What is the difference between residential and commercial solar?
- What rebates are available on a commercial solar system?
- How much does a commercial solar system cost?
- Financing a commercial solar system
- What commercial solar installer options are there?
- Is it worth getting solar power for my business?
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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 contributor as to whether your premises is suitable for solar panels, other factors such as the upfront installation costs and the structural integrity of your roof 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?
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.
What size is a commercial solar panel system?
But what is considered a commercial solar 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 the usage habits and 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 on 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.
The larger the system chosen, the more work that may need to be done to get it installed. This may be because of specialised installers, additional grid protection or permissions from electricity network providers and local councils.
Anything above 30kW will need the assistance of a commercial solar specialist to be installed. This is because you need special permission from your local network distributor and council to connect to the grid. There may also be a daily export limit for the system, which will help you understand your system’s cost-efficiency.
Consult with a licensed solar professional first to discuss your business’ energy requirements before making any purchase decisions.
What is the difference between residential and commercial solar panels?
While both residential and commercial solar panels harness the power of the sun, key differences exist in their size, efficiency and mounting.
Quick comparison
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Source: https://www.energy.gov.au/solar/solar-system-design/size-your-solar-system
Commercial solar panels are physically larger than residential solar panels and include more cells to accommodate the increased energy output. Most commercial solar panels are available as either a 96 or 72-cell model. This is compared to the 60-cell panels used on residential properties.
According to energymakeovers, for a commercial property, using commercial-grade solar panels, a system of 100kW capacity will typically require around 400 panels to be installed. Systems with 30kW capacity require about 100 panels. The actual number of panels needed for your system’s intended output however, may vary depending on the products used, placement of the solar panels and weather conditions of your premises.
You may also need to consider whether rooftop solar panels will be the best fit for your premises. In some cases, a ground-mounted system may be better suited to the design and shading of your premises. This decision should be discussed with your installer or commercial specialist during the quoting process.
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.
What rebates are available 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. These rebates include: Small-Scale Technology Certificates (STCs) and Large-Scale Generation Certificates (LGCs).
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. 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 in order to be payable to a property — similar to a tax claim. To start claiming a LGC however, businesses or commercial properties will need to register their premises correctly with the Clean Energy Regulator. A commercial solar installer should be able to assist you with this process.
How much does a commercial solar panel system cost?
The overall cost of a commercial solar system will vary depending on the size of the system, products used, the state or territory your premises is located in and any eligible discounts or STCs that may be awarded off the system price. However, you can generally expect this to be a hefty expense for your business.
According to Solar Choice’s latest Commercial Solar PV Price index, the average cost of a 100kW solar power system in Australia, including GST and any eligible STCs, is $87,890. Smaller systems, unsurprisingly, were found to cost significantly less than this, with 30kW systems sitting at an average of $28,670 and 50kW about $50,480 on average.
Financing a commercial solar power system
There are a number of ways to finance a commercial solar system install 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 designs, builds, services and owns a solar panel system but houses it on the property owner’s rooftop or elsewhere on the property. This comes at no upfront cost to the property owner as the provider absorbs the costs of the installation and solar products. The solar provider then charges the property owner for all the energy generated from that system as a means to pay off the system.
A PPA can be a great way for commercial properties to gain access to solar energy generation without the financial hurdle or upfront installation costs. It can also be a way for the property to access cheaper electricity, as the solar provider sells the solar energy generated back to the property owner 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 on the premises, but this will depend on the contract.
Contract lengths may vary for commercial solar power purchase agreements and some may be more inclusive than others so it’s important to do your research and compare a range of quotes and agreements first 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 quantify environmentally friendly causes differently though so it’s important to understand what your options are from the get-go.
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 to 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
- Solarhart.
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 it worth getting solar power for my business?
The short answer is: maybe. Whether solar is beneficial for your commercial property will be entirely dependent on your individual circumstances, such as location, sun exposure, the slant, size and strength of your roof, council requirements and your budget. However, 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.
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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