1. Why Commercial Solar? How it Will Power Your Business for a Brighter Future

Commercial solar energy is the only feasible way to achieve your electricity needs sustainably and economically. Here’s why commercial solar is an increasingly popular choice for businesses

Financial Advantages:

• Cost Savings: Businesses can significantly reduce their electricity bills by harnessing solar energy. Solar panels generate power from sunlight, lowering reliance on traditional energy sources and providing substantial long-term savings.
• Predictable Costs: Unlike ever-fluctuating grid prices, solar provides predictable energy costs. It allows for better budgeting and future planning.
• Increased ROI: Investing in solar demonstrates your commitment to sustainability, a factor that can attract new customers and environmentally conscious investors, potentially leading to increased return on investment.

Environmental and Brand Benefits:

• Sustainability Champion: By using clean and renewable energy, businesses can significantly reduce greenhouse gas emissions. This transition supports corporate sustainability goals and demonstrates environmental responsibility to customers and stakeholders.
• Future-Proof Your Business: Solar power positions your company as a leader in adopting sustainable practices, preparing you for a future focused on clean energy.
• Social and Environmental Responsibility: As a business, you have some responsibility towards the environment and society. By helping nature remain pollution-free by using solar panels for electricity generation instead of traditional methods, you show others that you care about your responsibility for the environment and society.

Practical Considerations:

• Scalable Solutions: Commercial solar systems can be customised to fit your energy needs and budget. Whether you run a small office or a large warehouse, there’s a solar solution.
• Low Maintenance: Modern solar panels require minimal maintenance, ensuring long-term reliability and a hassle-free experience.
• Government Incentives: Governments worldwide provide financial benefits to businesses that adopt solar power systems. The Australian government also offers several incentives, such as tax credits, rebates, and feed-in tariffs. These rebates help businesses reduce the cost of solar installations and get a quick return on investment by shortening the payback period.

Boost Your Business:

• Energy Independence: Relying on solar energy makes businesses less dependent on external suppliers. This stability ensures an uninterrupted power supply, even during grid outages.

• Energy for Remote Locations: Solar power is an affordable and reliable energy solution for companies located in remote areas. It eliminates the need for costly grid extensions and reduces dependence on generator fuels.
• Technological Advancements: The solar industry has made significant technological advancements, resulting in more efficient and cost-effective solar solutions. These advancements have allowed businesses to achieve higher energy output from smaller installations, which makes solar power accessible to a broader range of companies.

2. What is the ROI of commercial solar?

The exact return on investment (ROI) for commercial solar installations can vary based on several factors, so it is tough to calculate the precise ROI you will get for your business. While every project is unique, here are some insights:

Average ROI Range of Commercial Solar:

Commercial solar installations have an average ROI of 8% to 12%. This metric indicates the financial viability and long-term benefits of embracing solar energy solutions for commercial purposes.

Calculating ROI:

To calculate the ROI of your commercial solar system, follow this formula:

• Divide the total savings (including energy savings, feed-in tariff income, and rebates) by the total investment cost.

• Multiply the result by 100 to get a percentage.

Investing in commercial solar is a wise choice that helps you preserve the environment while earning good financial returns. Solar energy can reduce your carbon emissions and benefit from government incentives. Solar power systems have a long lifespan, with an average of 25 years, and require minimal maintenance, which ensures steady returns on your investment. In short, commercial solar is a win-win situation where you can help the environment and secure your financial future.

3. What is the payback period for a commercial solar system?

The payback period of a commercial solar system is influenced by various factors, such as the size of the system, its location, and the energy consumption patterns. Usually, businesses can anticipate a payback period of 3 to 5 years for their investment in solar energy. Let me explain how this works.

Offsetting Electricity Costs:

• Solar panels generate electricity during daylight hours.

• By using this self-generated energy, businesses reduce their reliance on grid electricity.

• The higher your electricity rate from the retailer, the more sense solar makes financially.

• The more solar energy produced during business hours, the less electricity you need to purchase from the grid at the total rate.

Signifying payback periods and internal rate of return (IRR) for solar systems less than 100kW.

• ACT: 3.4 years with an IRR of 33%

• NSW: 4.8 years with an IRR of 25%

• NT: 2.5 years with an IRR of 40%

• QLD: 4.6 years with an IRR of 29%

• SA: 3.4 years with an IRR of 37%

• TAS: 5.1 years with an IRR of 22%

• VIC: 5.3 years with an IRR of 24%

• WA: 3.3 years with an IRR of 34%.

When you pay off the system, your organisation can benefit from solar energy produced by the system without any extra costs for the rest of the system’s lifespan. Incentives like net metering or SRECs can also provide ongoing revenue streams. Investing in commercial solar can save costs and contribute to a sustainable future.