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Chartered Electrical Engineer, former CSIRO and SolarQuotes® founder
A printable version of the following guide is available here.
The bottom line is: If your business can afford to pay for electricity, it can afford the cost of commercial solar.
Unlike homes, which tend to use more energy before 9 am and after 5 pm, most businesses operate between 9 am and 5 pm (and therefore use most of the electricity).
This makes Australian commercial enterprises an ideal choice for solar systems.
Our residential solar 101 guide takes only about 10 minutes to read and contains all the information we think you need to know about the basics of solar energy, such as which solar panel brands and inverter models to consider, and whether the battery is worth it.
However, commercial-scale solar systems (10 kW and above) have some unique design challenges and considerations, which are summarized in the following short corporate guide.
If you are already confident in your photovoltaic system and you just want to get a price from a pre-reviewed quality Australian installer I trust, please click here for a commercial solar quote.
Otherwise, before getting a solar quote for your business, you should know the following:
If you have any unresolved questions after reading this short guide, please feel free to contact me directly:
Email: [Email Protection] Tel: 08 7200 0177 PO Box 470, Brighton, SA 5048 Australia
(From the point of view of a commercial-scale solar system, the average scale of a residential solar power system in 2021 is 6.6kW, or about 18 panels)
These systems use the same hardware as residential systems and fall under the same grid connection rules-this means that installers performing residential-scale installations can usually handle enterprise-scale installations up to this level without any "professional" commercial solar knowledge.
A 30-kilowatt system can generate about 120 kilowatt-hours of electricity per day on average within a year. If 100% self-consumption (which is possible in a commercial situation), it will save about $2,000 per month.
Commercial solar arrays of this scale require special systems to protect the grid from all the electricity they can generate, and require special permission from the local grid (DNSP) to connect to the grid. For commercial systems of this size (and larger), it is recommended to use commercial solar system experts.
Commercial solar systems within this scale are usually installed in medium-sized office buildings, local clubs and small retail enterprises.
If you exceed 100 kW, you will no longer be eligible to apply for STC "rebates". But don't panic! You can still get a subsidy called "LGC" (described in more detail in point 5 below). This is paid annually and is based on the actual energy produced by the system. This adds some complexity and paperwork to your business, because you have to install a special meter and report your generation annually to receive your "rebate".
These are usually installed in hotels, large offices, wineries and small and medium-sized factories.
These systems are very large, and I recommend a professional installer who understands the specific engineering requirements of such large commercial systems. They usually go to large shopping malls or solar farms. If you need a recommendation, please email me.
When installing a system with a capacity of 30 kW and above in Australia, it is important to review the network's approval for the system in writing. Every solar power system connected to the grid must be approved.
For larger commercial scale systems, most, if not all, approvals are conditional. For example, "The 55 kW system has been approved, but the system's export restriction device is set to 10 kW".
It is important to understand this because it involves a lot of costs and equipment to meet these conditions-and export restrictions on your system may affect its projected savings.
Some less well-known commercial solar installers may not disclose this because they may not include it in cost accounting.
Their logic is that if they have to revise the offer upwards after considering additional network compliance work, they may lose your business-but if they ignore it and move on, they may hope that the system will not be checked by the network Or its colleagues.
For this reason-if possible, obtain a formal approved copy and seek the opinion of an independent consultant. Investing in large commercial solar panel arrays requires a lot of capital, and you want to avoid any annoying surprises to your business.
Add another layer of bureaucracy-most councils need their approval to install systems over 10 kW.
Please be sure to communicate with the selected solar company and confirm with the local council. Most good commercial solar companies will have an architect and private certification agency to speed up the approval process.
High-quality commercial solar—more than 30 kilowatts and less than 100 kilowatts—costs approximately US$1,000 to US$1,300 per kilowatt installed in Australia. Compared with the use of string (or central) inverter systems, the use of micro-inverters or power optimizers will increase the final total cost by about 15-20%.
A good 20-30kW commercial solar system can be obtained from around US$700 per kilowatt. This is because they require less network protection and related engineering costs.
The important thing to note is that some commercial establishments have signed long-term electricity price contracts with their electricity retailers. This will affect the return/savings of using solar energy in the future. You need to dig into the terms you agree to and understand them. What is particularly important is when your contract expires and the expected increase in tariffs.
Efforts to track down the matter, because you may pass from one department to another. Many commercial solar companies will be able to use their own knowledge to educate you on how installing solar panels will affect your tariffs.
It should be noted that the cost of "original consumption" is often lower for the electricity bills of enterprises. Most of the electricity costs are in other fees and charges, and you need to confirm that you can reduce or offset it by installing a solar power system.
Do some research yourself to make sure the "tone" is as good as it looks. You will be surprised!
Do not purchase commercial solar systems that cannot monitor solar power generation and power consumption at the same time. If there is no joint monitoring of power generation and consumption, you will not be able to obtain the information needed to reduce the post-solar electricity bill as much as possible.
For enterprises, it is a good idea to assign someone in the organization to be responsible for monitoring the weekly generation of the system.
In the commercial solar field of Australia, it is often seen that a company only sells simple solar power monitoring (the "monitoring" version of the cheap salesman version) and thinks that the building consumes a considerable amount of this energy to generate electricity. See, be persuaded by cowboy salesmen , "Analyzed their load situation."
The salesperson’s logic is “Well, the system conservatively generates 200 kWh a day, and your daily consumption is about 150 kWh, which means that this is enough to meet most of your load.”
However, solar energy is a form of power factor correction, so this generation may "get into the abyss" and you will not see the kind of way that promises to reduce electricity bills for your business.
Any good monitoring solution will allow you to check total consumption-this means you will be able to see the "before and after" solar energy contribution to your business at any given time. One brand I can recommend is Solar Analytics.
It is important to adopt a maintenance plan. According to the requirements of CEC, the installer must provide the customer with a maintenance plan. For larger commercial systems, the installer will provide a very comprehensive and tailor-made timetable for their own operation or a third party to arrange business.
Generally, installers will conduct inspections every 6 months for the first 2 years and will have their preferred high-pressure cleaning company. If/when dirt and other materials start to affect system performance, they can recommend this company.
Panel cleaning should be carried out according to the specific situation, not as planned. Solar panels are usually self-cleaning, but manual intervention may be required in areas with high pollution/dust.
Note: If the maintenance is done by a third party, some installers will try to not fulfill the warranty-this is a sneaky way for them to earn more dollars. Avoid these guys.
Commercial solar systems of 99 kilowatts and below are eligible for financial incentives called the "STC Program" in Australia. A simple explanation for this is that you will be paid based on the expected power generation of the system in the next 10 years, which will cost approximately $500 per kilowatt of solar installed (depending on market conditions and installation location).
This "rebate" is almost always applied to commercial solar quotes as a point-of-sale discount-so if your business is quoting a 30 kW system at a price of $30,000, then an STC "rebate" of approximately $15,000 has already been applied.
However, once your system reaches 100 kW and above, you are no longer eligible to apply for STC (Small Technology Certificate), but must apply for LGC (Large Power Generation Certificate).
The main difference is that although STC's "rebates" are paid in advance and are essentially an upfront discount of system costs, LGC's "rebates" are things that must be accurately tracked, reported, and declared every year.
To obtain LGC, you first need to register your business with a clean energy regulatory agency to make it a "recognized power station." Your solar installer will assist you in this process. Then they need to ensure that your metering complies with the national electricity market standards so that you can track your electricity generation correctly.
Ultimately, this means that large-scale (over 100 kW) commercial solar installations in Australia will not attract upfront discounts like installations below 100 kW-this is an important consideration when calculating the return on solar installations, as well as your business’ cash Stream related issues.
Please note that as of September 2019, the renewable energy target for large-scale renewable energy has been achieved. This means that the price of LGC has fallen (hence the value of the "rebate") and is expected to fall further.
When installing commercial solar arrays on corporate roofs, weight is one of the biggest factors
It is vital that the structural engineering certificate is produced and the engineer has performed a physical inspection of the site.
Make sure to show you a detailed roof plan before installation.
Compared to inclined frame installation, flat panel arrays are usually more common. They are cost-effective (tilting the frame adds additional costs) and can be easily changed to accommodate last-minute changes.
If the roof is not suitable for solar energy, ground-mounted systems are an option, but they represent a niche type of commercial installation that requires more planning (and cost!) compared to rooftop installations.
There are four main ways of financing the business system in Australia:
Technically not financial-but still a common way to buy a system.
The cash price of commercial solar systems is always the lowest (resulting in the shortest payback period for your business), because the fees and charges involved in financing or leasing will increase the overall cost of the system.
As a potential disadvantage, larger commercial solar systems represent a considerable expenditure and may be used for other aspects of the business.
PPA is a solar leasing arrangement.
The core idea is that a third-party retailer installs a commercial system on your property (meaning it legally owns it and is obligated to maintain it), and signs an agreement with your business to sell you a certain amount of electricity for a long time.
The main benefit is that your company's electricity costs are generally lower, because the electricity price under PPA will be cheaper than the price you currently pay to retailers, and there is no upfront cost for installing the system.
The downside is that your business will be obliged to purchase all the electricity generated by the system, regardless of whether the energy is used by your business or sent to the grid to collect electricity bills.
Since self-use solar energy is far more valuable than solar power that is exported to the grid to collect electricity bills, it is very important to adjust the system to the best size for maximum self-use if you are considering PPA.
PPA stipulates the price of solar energy during the PPA period. Although the low prices in the first year are clearly a good start, it is important to read the fine print of how prices will adjust over time.
The best PPA is a PPA that raises prices at a slower rate (or not at all) within its time limit, rather than a PPA that has the lowest starting price and then expands at a rate of 5% per year (a composite index is unjustified) !)
Commercial/green loans will allow you to negotiate pricing with commercial solar installers as if you were a cash buyer. If the savings of the new commercial solar system exceed the interest you pay on the loan-you will understand why this would be a wise financing option to avoid using cash/capital expenditures to avoid significant cash flow losses to your business. Buy a Solar system.
Some states in Australia now offer so-called "building upgrade financing". To quote the South Australian government's website:
"Building upgrade financing (previously called environmental upgrade financing) is a mechanism that helps building owners obtain loans to improve the energy, water, and environmental efficiency of existing commercial buildings."
These measures help to resolve barriers to building upgrades, such as obtaining funding and issues related to the payment of upgrade costs by commercial building owners, while tenants gain benefits, such as lower electricity bills.
As these are relatively new financial products, it is best to check with your state government (if you are in South Australia, Victoria, or New South Wales) for more detailed information about eligibility.
Any competent Australian commercial solar installer will conduct an energy profile analysis of your property.
The main things they will look for are:
IRR (Internal Rate of Return) is a better indicator than ROI, because the capital invested in solar power systems is basically gone after its 25-year life cycle.
Good commercial solar installers should provide a very comprehensive cash flow model in their quotes. Since this is from a salesperson, it is best to ask your accountant to check it.
Even omnipotent lads rarely add fake numbers in their analysis (numbers don’t lie, even a downright cowboy will realize that if they write fake numbers on paper, it may be troubled again They), but the devil is just assuming (power purchase agreements and leases have different emphasis on the assumption of future interest rate and electricity price increases, but these are the basis for the calculations they provide you).
Since residential roofs are usually more restricted in terms of available roof space (compared to factories), residential-sized solar panels are usually "60" panels.
Commercial-sized roofs usually do not need to worry about any close spaces, so larger and more powerful 72-cell solar panels are used. This also reduces installation costs because you need fewer panels overall.
Broadly speaking, there are three options when choosing a solar inverter setup for commercial-scale work.
Cost is the key to business systems. The price of micro-inverters and optimizers is usually 20% higher than that of traditional string inverters, but they have a variety of safety and performance advantages.
When dealing with commercial-scale solar installations in Australia, it is difficult to prove that your business needs to pay an additional $50,000 for micro-inverters (for example) compared to string inverter systems that can efficiently produce almost the same power.
String inverters are a more cost-effective option-but based on our experience, most commercial installers tend to chain together residential-sized inverters instead of using a large centralized inverter Device.
There are multiple reasons for this industry preference:
In the end, solar installers make their suggestions based on your unique situation, and you decide whether you want to install a "simple" system on the roof or electrical engineering works of art.
The Australian Consumer Law provides consumers with legal protection and recourse against low-quality solar installations (whether they realize it or not), but it only applies to goods and services worth less than US$40,000.
Generally speaking, this means that only commercial systems of approximately 40kW and below will be protected by Australian Consumer Law.
However, it is speculated (we are not lawyers!) that Australian contract law will cover large systems of $40,000 and above.
This means that it is important to understand the contract you are signing and that both parties are aware of their responsibilities.
Most importantly-a commercial-scale solar system is a huge investment for your business. We strongly recommend that you have a lawyer check it before signing any contract.
Although it always depends on the unique needs of companies, considering the consumption of commercial buildings, battery storage in commercial facilities is less attractive than residential facilities.
Unless your business has some kind of urgent need for energy storage and backup power, it is better to save money (or use it for a larger solar array) than to buy battery storage.
So far, the solar "101" guide I have provided for your business-with this information and advice, you can now get a better commercial solar quote.
If you have any questions about burning commercial solar systems that are not covered in this guide, my contact information is:
Email: [Email Protection] Tel: 08 7200 0177 PO Box 470, Brighton, SA 5048 Australia
If you are considering installing solar panels for your business, SolarQuotes® can help you quickly and easily obtain quotes from high-quality, pre-reviewed Australian installers:
I am a chartered electrical engineer, solar and energy efficiency expert, father and founder of SolarQuotes.com.au. My last "real job" was in the renewable energy department of CSIRO. Since 2009, more than 577,000 Australians have used my website to obtain quotes for high-quality photovoltaic systems from pre-reviewed solar installers.
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