Solar For Small Businesses Just Makes Sense


Average Cost of a Solar Panels

Solar For Small Businesses

In recent years the uptake of residential solar in Australia has thoroughly increased and benefited many households with reduced electricity bills through generating their own energy and having less reliance on the grid or energy retailers. As well as Australian’s noticing the long term benefits of installing solar, the steep increase is partially thanks to the rebates and incentives that the Federal and State Government’s provide which assist in reducing the initial upfront costs when installing.

But what you might not of known is small businesses also have access to installing solar at reduce costs through not only the Federal Government Solar Rebate but the Instant Asset Write-Off Scheme, which enables small businesses to immediately fully depreciate eligible asset purchases, such as solar systems if they are no more than $30,000.

Commercial Solar Rebates and Incentives Available

Federal Government Solar Rebate

The Federal Government Solar Rebate, officially known as the Small-scale Renewable Energy Scheme (SRES), entitles small businesses large subsidies when installing eligible small-scale renewable energy systems (under 100kW) such as solar PV systems and solar water heater systems. The amount that is deducted from the systems cost is determined by the size system you decide to install. The larger the solar systems size the greater the rebate. The Federal Solar Rebate can save you thousands when choosing to install, however the rebate amount decreases each year until 2030 when it will be eliminated.

Instant Asset Write-Off

The Instant Asset Tax Write Off

The $30,000 Instant Asset Write-Off provides small businesses with an asset write-off of up to $30,000 for assets costing less than the threshold and are purchased and used in the year that the write-off is claimed.

To be able to claim the Instant Asset Write-Off, businesses must be recognised as a small business by the ATO.

Why Solar For Small Businesses Makes Sense

For Australian small business owners a major priority to ensure profitability in a business is to minimise overheads and operating expenses. A huge contributor to these costs is the power usage a business consumes and is charged for by energy retailers. Due to continued electricity price rises this charge shown on your power bill will fluctuate and can cause businesses that require a substantial amount of energy to be burdened with excessively high electricity bills.

It is for this reason many businesses have turned to installing a solar system and relieve themselves from excessively high electricity bills or fluctuating rates.

Business Hours Make the Most Of A Solar Systems Energy Output

While solar for residential homes provides great benefits, one hurdle most solar homeowners have to overcome is altering their energy consumption habits so that they utilise the energy their solar system is generating during the day. Fortunately for businesses who operate during sunlight hours this is not factor you would have to consider as the energy generated by a solar system would directly be used by your business’ daily operations.

Roof With Solar Panels

When installing solar as a small business not only would you find your operating costs and electricity bills be substantially lowered but you’ll also;

As solar systems continue to decrease in price and the Government is providing rebates and incentives, solar truly is the best way for business owners to reduce the stress of ever-increasing power prices and get back to doing what they do best – running a business!

Interested in commercial solar for your small business?
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Beginners Guide to Solar Power

If you’re considering solar for your property or just looking to maximise the savings for your solar system, download a FREE copy of our "Ultimate Guide to Solar Power in Australia - 2021 Edition".

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Understanding Batteries

Off-Grid Systems

For some households a battery system can be of great benefit and minimise a home’s reliance on the grid. However, it’s important to understand for a battery to be useful your solar system needs to be generating excess energy for the battery to store, which you can then use at night or when the sun is not out.

When selecting a battery, you’ll want to invest in a system that is most suited to your home and can drive the best return on investment (ROI). Despite a larger upfront cost, a higher quality battery may significantly increase your ROI.

    Battery systems start from $6,000 and costs can vary greatly based on the following factors:

  1. Cycle Life-Time

    The number of times a battery can fully charge and discharge.

  2. Battery Power (kW)

    How fast it can be charged or discharged.

  3. Storage Capacity (kWh)

    The maximum amount of energy a battery system can store.

  4. Battery Management System (BMS)

    An electronic ‘smart’ system that gathers data and manages the battery ensuring it does not overload or operate outside of its safe functioning zone..

  5. Inverter

    Battery systems require their own inverter if your solar system does not have a hybrid inverter.

  6. 'All-In-One Unit’

    A system which includes the battery, BMS and an inverter all in one unit.

  7. Warranty

    Length of time or cycles the battery system is under guarantee.

  8. Blackout Protection/Backup

    It’s important to note this is not a common feature of a battery system and could cost thousands of dollars to include. Blackout protection not only requires additional components but also a specialised installation and rewiring. For grid-connected homes, the cost for blackout protection can outweigh the benefit.

Additionally, if your purpose for adding battery is to go Off-Grid and become completely independent from the grid you will need to ensure your solar system can generate enough energy to power your home and your battery system is large enough to store this energy. For homes in metro areas going Off-grid is not cost effective and is only recommended for those in remote areas with limited access to the grid. Off-grid solar systems with battery start at approximately $30,000.

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