Commercial solar is a fantastic choice for establishments of all kinds since it provides several advantages, including lower electricity costs, increased property value, a better reputation, and government incentives and rebates.
With their solar system, businesses can save substantial amounts of money on their monthly electricity bills, and the panels provide a return on investment. Additionally, installing a solar system on a commercial property increases its value and can improve the business’ reputation through social responsibility and sustainability.
Furthermore, each state in Australia has different incentives and rebates, making the initial purchase price more affordable. When looking for a commercial solar provider, it is essential to understand your electricity bill and choose a provider with retail experience, trusted equipment and suppliers, and a sufficient length warranty.
Commercial solar – What are the benefits?
A commercial solar system is an excellent option for businesses of all sizes. However, many businesses hesitate to jump due to the initial cost. Instead, they would rather keep paying their increasing monthly or quarterly electricity bills and spend a lot more money over time…this doesn’t make sense to us! So, along with saving money, this FAQ will describe commercial solar’s benefits.
Commercial solar systems can differ widely in quality, sophistication and future performance resulting in a wide range of financial and environmental outcomes. When considering a commercial solar system, keep in mind these guiding goals:
- Achieve the highest financial savings possible;
- Improve overall asset value with a strongly backed system;
- Lower the risk of future energy price escalation;
- Create an environmentally positive impact by purchasing a system that lasts as long as possible, maximising both the generation of renewable energy and CO2 abatement over the system’s life.
1. Reduce your electricity bills
We have found that the initial cost is the most significant factor that turns businesses away from commercial solar. However, if you look into the returns and savings you get from it and look at the purchase as an investment, you will realise how good of a deal it is.
Electricity prices have increased significantly over recent years and are expected to increase considerably over the coming years. Many businesses have seen a 40-50% increase in monthly electricity bills over the past few years.
With your solar system, you do not have to buy as much electricity from the grid. Instead, your electricity is generated, reducing the need to pay high grid power rates. The result of this investment is that you save noticeably on your electricity bills for many years, leaving you with spare cash for other parts of your business.
This is why benefit number one of commercial solar is increasing the viability of your business by taking more control over your electricity costs and insulating you from the risks of spiralling electricity costs from the grid in future years.
2. Increase the value of your business premises
Like residential properties, installing a solar system on commercial properties increases the value. The value is increased due to commercial solar allowing businesses to operate with operational costs and reduced exposure to electricity costs from the grid.
If the time comes when the business moves location, having commercial solar can add some value on top of your current building value. This will allow you to pocket extra cash or have a bigger budget for your next office.
3. Improve the business reputation regarding sustainability
As the shift to renewable energy becomes more popular and gains more momentum, having solar on your commercial building will improve your business’ reputation. This will have several positive effects, such as fostering employee pride in the environmental leadership of the business and gaining attention from essential customers.
Showing your green credentials by installing solar on your business and presenting this as a strategy to reduce your carbon footprint can attract increasingly popular environmentally conscious consumers, increasing your client base, revenue and profitability!
Additionally, you were to purchase this from a local solar company that also installs this for you. In that case, you support the local economy and create a business network that can lead to further referrals and improve your business profile.
4. Look for available Government incentives and rebates
Much like residential solar, there are incentives and rebates for businesses that install solar. These offers are usually discounts, money-back schemes, or low-interest/interest-free loans, making the initial purchase price or monthly repayments much more affordable.
One particular scheme that some councils around Australia support is called the Environmental Upgrade Agreement. In these situations, you can apply for finance for solar or other Environmentally friendly investments, and the Council becomes the guarantor for the loan.
The loan is repaid to the financier via the Council, who charges you via the business council rates. The added security of this process creates a finance agreement with attractive interest rates on the finance.
As you know, commercial solar has many benefits for all types of businesses. It provides the business various benefits if it is newly established or the biggest business on the market. Therefore, all business owners should be looking into commercial solar.
5. Who should I go to for my commercial solar installer?
The company you choose to install your solar system needs to be more than a good installer. They will also need to be able to analyse your consumption patterns and tariffs to suggest the best solutions.
Most important is to understand your electricity bill and how solar power can impact it. For example, some businesses have “unbundled” tariffs that charge separately for energy consumption and peak demand. In these cases, solar power may only sometimes lead to significant reductions in peak demand, which means the bill reductions could be lower than expected.
It is important to let the solar installation company know your electricity habits. For example, a business with mostly night-time consumption may not be a good candidate for solar power. Then again, a business with lots of power consumption between 9 am and 1 pm would be a great candidate for an east-facing panel system.
In addition, choosing a solar provider with great commercial installation experience is important, as installing commercial solar power is more complex than installing household solar.
What job does my solar provider do?
The provider should be able to perform a detailed roof structural assessment, negotiate grid connection, and custom design a high-performance system. So, please always ask commercial solar installers to highlight their past projects. If you want to find a solar installer for commercial projects, many of the companies listed in the city areas in our company finder have installed many commercial systems.
In regional areas, many installers stick to a size of 100 kW or 500 kW as the maximum system size they will supply. However, you can contact a commercial solar specialist like Smart Commercial Solar and Autonomous Energy for large-scale MW commercial solar installations.
Lastly, it is important to choose trusted equipment and suppliers. Solar power systems should last over 20 years, so choosing more prominent equipment manufacturers with a proven track record and an honoured local warranty is crucial. Selecting a solar provider with a long operation history is also essential to ensure that help is available.