Is Commercial Solar a Good Investment for Australian Businesses?
In Australia, solar technology is one of the most adopted forms of sustainable energy. Previously, the Australian commercial solar market was considered a costly investment. However, in the past decade, due to a consistent surge in electricity rates, the Australian government took solar consumer-friendly initiatives, such as solar rebates, incentives, and feed-in tariffs, to make solar technology an affordable energy alternative for multiple homes and businesses.
Nowadays, numerous Australian businesses go solar to combat increasing energy prices and reduce their overhead cost. The commericial solar panel installation cost is a one-time investment with short payback durations and long-term benefits.
To understand whether these commercial solar panels are a good investment for Australian businesses, read on further.
Do Solar Panels Save Money?
It is a fact that managing businesses with optimal operating costs requires lots of effort. Mostly, commercial enterprises look for saving opportunities with quality output. In this scenario, commercial solar PV systems are helping businesses to save money on their monthly electricity consumption by generating highly affordable and clean power.
Commercial solar panel installations empower many Australian businesses to spend less on expensive grid electricity and improve business operations by disbursing money for other things.
Nowadays, solar technology furnishes an ideal energy alternative for various Australian enterprises to converge onto hybrid power solutions and avoid relying solely on expensive grid energy. Another notable benefit of going solar is the complete return on commercial solar investment within a few years.
Investing in Solar Panels Make Your Business Eco-Friendly
Solar technology not only assists the commercial and domestic sectors in generating affordable power but reduces the overall carbon footprint. Due to a similar reason, several Australian businesses now prefer eco-friendly solutions and alternatives. The Australian government also supports environment-friendly initiatives to reduce the harmful effects of global warming.
So, investing in commercial solar panels will create a positive image of Australian businesses around the globe and reduce their carbon emission percentage by employing sustainable energy sources.
Solar Technology Frees Up More Money to Grow Business
Setting up commercial solar panels facilitates enterprises to generate their energy. The cherry on top is the support of the Australian government in terms of rebate offers and feed-in tariffs. The overall impact of going solar is quite attractive for various Australian businesses and allows them to save money from grid electricity bills and use it to grow their commercial activities.
Several business owners shifted to hybrid energy and invested their saved money back in some high-profit sectors. Thus, the solar investment makes excellent financial sense for Australian businesses – making it a worthy technology to invest on!
How Solar Panels Raise the Value of Commercial Property?
Another notable advantage of commercial solar panel installation is the better property value. Purchasing the solar equipment straightaway gives the land access to solar tax incentives and decreased power expenses, which augment the overall demand for commercial property. In case of emergency power outages, commercial activities will not halt, thanks to affordable hybrid solar PV systems. Since solar technology makes the business site more valuable, many potential clients and investors get attracted to the business, eventually making the enterprises more attractive and self-sufficient.
Gain Solar ROI (Return on Investment)
It is a fact that commercial solar panels start giving significant returns on investments within three to four years of installation. And for every business, returns on investment (ROI) are essential to guarantee profitable decisions. A few solar returns on investment include;
- Significant reduction in business operating expenses.
- Solar feed-in incentives.
- Highly affordable power grid.
- Relaxation in taxes.
- Reduced power bills.
Even after the commercial solar investment has been paid off, businesses will continue to preserve money on traditional grid power bills and operational costs.
The Australian government offers excellent financial incentives to aid companies in their greener and more cost-effective shift to hybrid solar power. STCs (Small Scale Technology Certificates) provide cash incentives for various businesses in Australia. All these public incentives ensure approx. 30% cash rebate deduction cost for Australian businesses.
Rebate and Incentive Offers
Ultimate Solar Energy offers Save Up to 50% rebates that cover 50% cost of commercial rooftop solar systems. Eligible businesses can avail of a maximum rebate of $3,500 and get reduced upfront solar panel installation costs on their business premises. Also, there is an option of an interest-free loan.
It means the total rebate amount will be limited to 50% or $3,500 of the cost of any approved solar system. For instance, if the net cost* of a commercial solar PV system is $10,000, then the $3,500 rebate value will be applied (not $5,000) or if the net cost is $4,000, then the $2,000 rebate value will be applied (not $3,500).
*Net costs are inclusive of GST and any contribution from Small-scale Technology Certificates (STCs).
To further reduce costs, business owners can apply for an interest-free loan. This loan amount will be based on the quote they provide to Ultimate Sola Energy Solar. Loans start from $1,000 up to a maximum amount of $5,000.
All entity types, including NGOs (not-for-profit organizations) and charities, are eligible for the Solar for business rebates* providing they meet the following eligibility measures:
- Be the business owner that employs at least one person other than the business owner, and less than 50 full-time equivalents (FTE) employees
- Operate from non-residential premises
- Operate from individually metered premises
- Have not received a Solar for Business rebate previously
- Have your system installed by a Solar Victoria-approved solar retailer
- Install a solar system with an inverter capacity size of up to 30kW
- Businesses that own their premises and those who rent can apply for the Solar for Business rebate. A rental provider/landlord of the business premises cannot apply for the rebate on a business’s behalf.
*The rebate is only available for installations after the program opens for applications on 28 May 2021. Systems installed prior will not be eligible for commercial rebates.
*If your residence is your prime place of business and you meet the eligibility criteria for the residential program, you may be eligible for a Solar Homes rebate.
Since electricity prices are increasing continuously, embracing solar power can be a bonus for commercial industries operating in Australia. Commercial solar PV systems are the perfect fit for commercial activities as:
- It reduces carbon footprint
- Improve the organization’s sustainable credentials and enhance business reputation
- Protect businesses from the future energy price hike
- Makes commercial business sector energy independent
- Low-risk and reliable investment
- Government incentives and rebates
After evaluation of numerous financial and environmental benefits, we can rightly say commercial solar installation is essential for every business in Australia.
At Ultimate Solar Energy, we make your decision-making process so simple. We design customized solutions based on your requirements, using only the most premium products.
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