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Australian Commercial Solar: A Comprehensive Guide to Benefits and Installation

Australia is rapidly becoming a global leader in the renewable energy sector, and the emergence of Australian commercial solar power systems is one of the most significant developments. These systems provide businesses with pure, sustainable energy while lowering operating expenses and enhancing the environment. Commercial solar power systems range in scale and complexity, but they all aim to facilitate the transition of businesses to renewable energy sources and improve their return on investment.

Understanding commercial solar power begins with identifying the essential components of a solar energy system, which are typically solar panels, inverters, mounting equipment, and monitoring systems. Inverters convert direct current (DC) electricity generated by solar panel arrays into alternating current (AC) electricity that can be used. Monitoring systems provide performance data and allow the user to trace energy production, consumption, and savings. mounting equipment ensures the solar panels are securely attached.

Investing in commercial solar power has acquired popularity in Australia due to its numerous benefits, such as lowering energy costs, reducing greenhouse gas emissions, and increasing businesses' energy independence. Additionally, the installation process has become more streamlined, and a variety of financing options are available to meet the specific requirements of various industries.

Key Takeaways

  • Commercial solar energy plays a significant role in the renewable energy landscape of Australia.
  • Commercial solar systems include solar panels, inverters, mounting equipment, and monitoring systems as essential components.
  • Reduced energy costs, decreased greenhouse gas emissions, and increased energy independence are all advantages of commercial solar systems.

Understanding Commercial Solar

Solar PV Technology

Solar photovoltaic (PV) technology is a powerful way for both homes and businesses to use solar energy. It includes putting up solar panels that can turn the energy from the sun into power. In the past few years, the use of solar PV systems has grown a lot, making them a more cheap and useful choice for businesses that want to save money on energy costs and help keep the environment cleaner.

Commercial solar systems are usually bigger and can make more energy than household ones. For instance, a normal home solar power system in 2023 will be around 6.6 kW, which means it will have about 18 cells. On the other hand, business solar systems can be divided into three different types.

Types of Business Solar Systems

  • Less than 30 kW (up to about 100 panels)
  • Above 39 kW and below 60 kW
  • Larger systems that exceed 60 kW

Because business solar systems are bigger, they can have more panels, which means they can make more energy. This is especially helpful for companies that need a lot of energy or have a lot of room on their roofs to put solar panels.

Commercial solar systems are also subject to additional costs and engineering requirements when compared to residential systems. This is mainly because of the grid connection process and the need for grid protection units when a system exceeds 30 kW of connected inverter capacity.

Recent advancements in solar PV technology have also significantly improved the efficiency of commercial solar cells. Australian commercial solar companies, for example, have created some of the world's most efficient commercial solar cells, boasting an efficiency rating of approximately 14 to 16 percent just ten years ago. This enhanced efficiency allows businesses to generate even more energy from their commercial solar systems.

In summary, understanding commercial solar involves familiarising oneself with solar PV technology and the differences between residential and commercial solar systems. By considering the size, energy generation capacity, and advancements in solar cell efficiency, businesses can better equip themselves to make informed decisions about adopting solar energy as part of their sustainability and cost-saving measures.

Key Components of Commercial Solar Systems

Solar Panels

Commercial solar power systems can't work without solar panels. The solar effect is how they turn light into power. Monocrystalline and polycrystalline panels are the two major types of solar panels used in business. Both types have pros and cons that depend on things like where they are installed, how much energy they need, and how much money they have. To get the most energy out of a business solar system and save money in the long run, it is important to choose the right solar cells.


Inverters play a critical role in transforming the direct current (DC) electricity generated by solar panels into alternating current (AC) that can be utilised by appliances and fed into the grid. There are two types of inverters commonly used in commercial solar systems: string inverters and microinverters. String inverters are generally more cost-effective and better suited for larger installations with uniform sun exposure. Microinverters, on the other hand, have higher efficiency and are ideal for installations with variable shading or orientation, as they optimise the performance of each solar panel individually.

Battery Storage

Battery storage is an optional component of a commercial solar system, but it can significantly enhance its overall efficiency and energy independence. By storing the excess energy generated by solar panels, a battery storage system can provide power during peak demand periods or when the sun is not shining. This can help businesses reduce electricity costs by avoiding higher energy tariffs during peak hours. There are many battery storage options available in the market, and it is essential for businesses to carefully evaluate their energy requirements, budget, and the available warranty when choosing the right battery storage system.

Commercial solar systems can provide substantial benefits to businesses, including reduced energy costs, lower carbon footprint, and potentially increased property value. However, it is imperative to select the appropriate components and work with a reliable solar installer to ensure the system's long-term performance and reliability.

Benefits of Commercial Solar Power

Energy Savings

Commercial solar power systems offer significant energy savings for businesses. By generating their own electricity using solar panels, companies can reduce their reliance on grid-supplied energy and therefore lower their energy bills. With the increasing energy prices in Australia, investing in a solar power system can be a smart way to mitigate costs and improve a business's financial stability. Furthermore, solar power systems help in stabilising energy usage throughout the day, ensuring a more efficient distribution of electricity.

Environmental Impact

Utilising commercial solar power plays a significant role in reducing a business's carbon footprint. Solar energy is a renewable energy source that, unlike fossil fuels, does not contribute to greenhouse gas emissions or air pollution. By switching to solar power, businesses can substantially decrease their environmental impact and contribute to the overall sustainability of the Australian energy sector. This move towards cleaner and greener energy sources also facilitates Australia's transition to a low-carbon economy and supports national efforts to combat climate change.

Improved Business Image

Adopting commercial solar power not only provides financial benefits and reduces environmental impact, but it also helps in creating a positive brand image for a business. Companies that proactively invest in sustainable practices and renewable energy are often perceived as being forward-thinking, responsible, and socially conscious. By demonstrating a commitment to environmental preservation, businesses can attract eco-conscious customers, boost employee morale, and strengthen their reputation within the market. In addition, green credentials can enhance a company's competitive edge and open up new opportunities for growth and expansion.

Installation Process

Site Assessment

The first step in the installation process for commercial solar systems is the site assessment. A qualified engineer or solar expert will visit the business location and evaluate the suitability of the site for a solar installation. This includes assessing roof structure, shading, orientation, and available space. The results of the site assessment determine the solar system's size, configuration, and optimal positioning to maximise solar energy production.

System Design

Once the site assessment is complete, a solar engineer designs the commercial solar system. The design process involves selecting the appropriate solar panels, inverters, racking, and other components to ensure optimal performance, efficiency, and lifespan. The system design also considers the electrical infrastructure and allows for any necessary upgrades to the power network to accommodate the increased electrical capacity. Moreover, bespoke solutions are developed for businesses with specific requirements, such as optimising space or incorporating energy storage systems.

Approvals and Permissions

Before installation, businesses must obtain the necessary approvals and permissions from relevant authorities, such as utility companies and local councils. This process varies depending on the size of the system and local regulations. Typically, commercial solar installations require connection approvals from the power network operator to ensure the grid can support the new solar system. In some cases, planning permission may also be needed, particularly for large or visually prominent installations.

Installation and Commissioning

Once the site assessment, system design, and approvals are in place, the installation of the commercial solar system begins. Trained technicians and licensed electricians install the solar panels, racking, and other components according to the approved design. Safety measures, such as appropriate fall protection and electrical isolation, are taken to ensure the wellbeing of the installation team and the site's occupants.

Following the physical installation, the commercial solar system undergoes a commissioning process. This involves testing and verifying that the system is functioning correctly and safely, in accordance with the design specifications and relevant regulations. After successful commissioning, the solar system will be generating clean, renewable energy for the business, helping to reduce energy costs and promote sustainability.

Investment and Financing Options

Government Incentives

The Australian government offers various financial incentives for businesses looking to invest in commercial solar systems. Two primary schemes are the Small-scale Technology Certificates (STCs) and the Large-scale Generation Certificates (LGCs).

STCs provide an upfront discount for small-scale solar systems (up to 100kW), reducing the initial capital required for installation. LGCs, on the other hand, are created annually based on the actual amount of renewable energy generated by large-scale solar systems (over 100kW) and can be sold to electricity retailers, providing an ongoing revenue stream for investors.

Power Purchase Agreements (PPAs)

A Power Purchase Agreement (PPA) is a long-term contract between a solar system provider and a customer, whereby the customer agrees to purchase the electricity generated by the solar system at a predetermined rate. PPAs enable businesses to benefit from commercial solar systems without the upfront capital investment, as the solar provider takes responsibility for system installation, operations and maintenance. This option is particularly beneficial for businesses that may not have the available capital for an outright solar system purchase.

Environmental Upgrade Agreements (EUAs)

An Environmental Upgrade Agreement (EUA) is a financing arrangement between a building owner, a financier, and a local government. Under an EUA, building owners can access long-term, low-interest loans for renewable energy upgrades, such as commercial solar installations. The loans are typically repaid via council rates, making them more accessible and affordable than traditional financing options. EUAs help businesses improve their environmental performance and potentially lower their operational costs.

Loans and Leasing

Commercial solar systems can also be financed through loans or leasing options. Many financial institutions offer loans specifically designed for renewable energy investments, featuring competitive interest rates and flexible repayment terms. These loans allow businesses to invest in solar systems without the need for substantial upfront capital.

Leasing, on the other hand, provides businesses with a chance to utilise solar energy without owning the system. A leasing company owns and instals the solar equipment, while the business pays a fixed monthly amount to use the system. Depending on the leasing terms, the system may be bought out at the end of the lease or upgraded to a newer system, providing flexibility and continuous access to the latest technology.

Industry Applications


Australian commercial solar has become increasingly popular within the manufacturing sector. Businesses are leveraging solar power to reduce energy costs and minimise their carbon footprint. The cost of large-scale solar projects has significantly decreased between 2015 and 2020, making it more appealing to various industries, including manufacturing.

  • Solar power helps manufacturing companies to:
    • Save money on energy bills
    • Reduce dependence on fossil fuels
    • Maintain a stable and reliable energy supply
    • Enhance their corporate social responsibility credentials


The healthcare industry can significantly benefit from commercial solar installations, as these facilities often require a substantial amount of electricity to support medical equipment, heating and cooling systems. Adopting solar energy can provide hospitals and other healthcare facilities with:

  • Reduced energy costs
  • Enhanced environmental stewardship
  • Improved emergency power support during power outages
  • Increased resiliency in the face of fluctuating electricity costs

By integrating solar energy, the healthcare sector can allocate funds saved from utility bills towards improving patient care.


Many schools across Australia are turning to commercial solar energy as an effective way to lower operational costs, promote sustainability, and educate students on the importance of renewable energy. Solar power initiatives in educational institutions can include:

  • Rooftop solar installations on school buildings
  • Ground-mounted solar panels on available land
  • Solar shade structures in parking areas or playgrounds
  • Incorporating solar energy into the curriculum

By investing in solar energy, schools can substantially reduce energy costs, minimise environmental impact, and set a positive example for future generations.


The industrial sector in Australia is increasingly adopting commercial solar power as a means of reducing costs and environmental footprints. Industrial businesses with large power demands can benefit from installing solar panels on factory rooftops or developing solar farms.

  • Key benefits for the industrial sector:
    • Lower energy costs, supporting long-term profitability
    • Reduction of greenhouse gas emissions
    • Greater energy security and independence
    • Enhanced corporate environment-friendly image

In summary, Australian commercial solar energy is making a significant impact across various sectors, including manufacturing, healthcare, schools, and industrial businesses. By harnessing solar power, these entities can achieve cost savings, contribute to sustainability efforts and bolster their corporate social responsibility credentials.

Commercial Solar in Australia

The solar industry in Australia is a significant player in the country's renewable energy sector. With the goal of achieving the Australian Government's mandated renewable energy target, the commercial solar market has been growing steadily in recent years. Various states in the country have developed their own strategies and policies to support the growth of commercial solar projects.

New South Wales

New South Wales (NSW) has been investing heavily in solar power, including large-scale solar farms and commercial solar installations. Sydney, the largest city in NSW, has seen a significant increase in commercial solar projects. These projects range from small-scale rooftop installations to large solar farms, supporting the local economy and providing clean energy to businesses and industries throughout the region. The state is also home to Sundrive, an Australian company that created the world's most efficient solar cell with 25.54 per cent efficiency.


In Victoria, the demand for commercial solar installations is also rising. Melbourne, the capital city, has experienced a steady growth in businesses adopting solar power. Victorian commercial solar systems usually include a 10-kilowatt (kW) capacity or more, while the average household rooftop system size is between five and six kilowatts. Choosing the right solar system for commercial properties in Victoria depends on the business's usage habits and needs.


Queensland, another Australian state leading in commercial solar projects, is leveraging its sunny climate to generate clean energy. Commercial solar installations in Queensland include rooftop solar systems, solar farms, and large-scale projects that power businesses across multiple industries. The state is known for its strong support and commitment to renewable energy, including solar power, as part of its long-term economic strategy.

South Australia

South Australia has been a frontrunner in the Australian commercial solar market for some years. The state's commitment to renewable energy has led to a decrease in the capital cost of large-scale solar (LSS) projects by 25% between 2015 and the end of 2020 according to the Clean Energy Regulator. This cost reduction is a result of increased investment in solar technology, as well as improved efficiency and operational processes. Commercial solar systems in South Australia often have a capacity of less than 30 kW, with up to 100 panels contributing to the state's efforts to meet its renewable energy targets.

Evaluating Return on Investment

System Performance

To assess the return on investment (ROI) of a commercial solar installation in Australia, one must first evaluate the system's performance. This includes assessing energy output potential, efficiency, and operational lifespan. Determining these factors allows for a more accurate prediction of savings generated by the solar installation over its lifetime. The quality of solar components and the location of the panels play crucial roles in maximising system performance. It is essential to choose a reputable solar installer as they can help you optimise energy production.

Break-Even Calculation

The next step in evaluating ROI is to calculate the break-even point. This can be done by taking into account the upfront installation costs, any possible government incentives or grants, the expected annual energy savings, and the export limit for excess energy fed back into the grid. Australian commercial solar power ROI can be calculated as follows: Total Investment / Yearly Savings. This will give you an estimate of the time it will take for your business to recover the initial investment.

Maintenance and Warranties

Finally, consider maintenance costs and warranties when assessing the ROI for a commercial solar installation. Proper maintenance is key in ensuring that solar panels operate efficiently, minimising any unexpected repairs or downtime, and prolonging the system's life, all of which contribute to better financial returns. Make sure to factor in ongoing maintenance costs in your ROI calculation.

When it comes to warranties, most solar panels come with a manufacturer's warranty to guarantee performance. It is essential to understand the specific warranties available for your solar installation, as these can impact the overall ROI. Make sure to choose a company that provides comprehensive warranty coverage to protect your investment in the long run.

By evaluating system performance, break-even calculation, maintenance, and warranties, you can confidently and accurately assess the return on investment for a commercial solar installation in Australia.

Frequently Asked Questions

What are the costs involved in commercial solar systems?

The cost of a commercial solar system in Australia depends on factors such as system size, location and type of PV panel. For premium quality systems ranging between 30kW and 100kW, the cost is approximately £590 - £765 ($1,000 - $1,300) per kW. It's important to consider both the upfront investment and potential maintenance costs.

How can businesses benefit from solar rebates?

Businesses can take advantage of governmental incentives through Small Technology Certificates (STCs). Owners of solar systems under 100kW are eligible to receive STCs, which can be sold for cash, often used to reduce the initial cost of solar system installation.

Which are the top commercial solar installers in Australia?

There are numerous reputable commercial solar installers in Australia. One well-established provider is Smart Commercial Solar. It's essential to research and compare the different offerings to find the best fit for your business needs.

What factors determine the best solar panels for commercial use?

Several factors contribute to determining the most suitable solar panels for commercial use. These include panel efficiency, cost, durability, and warranty. Businesses should also consider the system's overall performance under various weather conditions, as well as the manufacturer's reputation and expertise within the industry.

How is the commercial solar market expanding in major cities like Sydney and Melbourne?

The commercial solar market is experiencing significant growth in major Australian cities, including Sydney and Melbourne. This is due to increased awareness of the environmental and cost-saving benefits of commercial solar systems. Many businesses are adopting solar energy solutions as a crucial component of their sustainability and energy-efficiency strategies.

What is the process for commercial solar installation and maintenance?

The process for commercial solar installation typically involves an initial consultation with a reputable provider, followed by site assessment, customised solar system design, and installation by certified professionals. After installation, regular maintenance is vital to ensure optimal system performance; this can include periodic cleaning, monitoring, and inspection to address any potential issues.

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