How solar helps businesses save
Australia is known to have some of the most expensive electricity prices in the world. In fact, South Australia has higher energy rates than the USA or UK. For commercial businesses, electricity bills are taking up and increasing proportion of the monthly expenses with no reprieve in sight despite efforts to reduce consumption. The good news is that there is an option that can genuinely save you money.
Say hello to Solar Energy From Aztech Solar
Did you know that Australia is among the top five countries with the highest Direct Normal Irradiance (DNI) values? DNI is a measure of solar energy arriving at the earth’s surface from the direct beams of the sun. In some Australian regions, the sun is capable of generating 7.75kWh/m2 per day, which is impressive considering the average daily consumption of energy in an Australian home is around 19KWh.
Combine this incredible solar resource with the astronomical electricity rates in Australia and you can see why solar energy could be the best thing to ever happen to your commercial business.
Why is Commercial solar energy a great business investment?
Commercial Solar energy, installed by the excellent team at Aztech Solar, is a fantastic solution for your business for several reasons:
- The cost of conventional electricity continues to rise
- The cost of rooftop solar power continues to fall
- Feed-in tariffs are available for surplus solar electricity
- Commercial solar is tax-deductible
Many businesses eligible for discounts
If you have an Australian Business Number (ABN), your property may be eligible for commercial solar, no matter what industry you are in. Solar power not only delivers huge cost savings but also boosts your green credentials to make your company more attractive to customers and the environment alike.
While solar systems were considered too expensive for businesses in the past, the price of commercial solar has dropped by around 13 per cent over the past six years. And thanks to technological advancements in solar battery storage, the industry continues to grow at a rapid rate.
Should Australian businesses use Solar?
Solar panels generate electricity during the day when the sun is shining – which is when most businesses are also consuming the greatest amount of electricity. Unlike households which tend to use more energy at night, a majority of companies will be consuming the energy their PV panels are producing during the daytime.
How can your business benefit from Solar?
1. Solar storage can help reduce your electricity bill
Commercial-scale battery storage is set to change Australian industries the same way it has done in the US. Let’s give you an idea of how you can enjoy massive economic gains from solar power.
Based on the most recent Energy Consumers Australia report, a small business consumes an average of 40MWh per year. If the current electricity rate in your region is 28c/kWh and you install a 15kW solar system where the cost per watt is around $1.17, then we obtain the following results:
- Total annual cost on electricity – $11,200
- Total annual yield of the solar system – 20,826 kWh
- Estimated annual savings – $5,832
- Estimated savings over a period of 25 years – $145,800
- Total cost of PV installation – $17,550
- Estimated net savings in energy – $128,250
In this example, your 15-kW solar system could supply nearly half of your energy needs while saving you over $120,000 in the entire life of your panels!
2. Independence from the Grid
With a solar system in place, you already increase your independence from the main grid. However, there is an even better way to do this – by installing a backup battery system.
Your battery, which is connected to the business electricity grid, provides you with backup power in case the grid is down due to system failure or a natural disaster.
3. Ensure adequate power supply
Solar Power can be stored in Batteries in the instance of an emergency, so if the grid goes down, your solar power does not. This creates a resilient power backup.
4. Return on Investment
In addition to saving money on electricity bills by reducing peak demand charges and shifting energy consumption profiles, your business may be able to get back the initial cost of solar installation in just a few years. This will help your bottom line in the long run with those savings now channelling to other areas of your business.
5. Financial Stability
Commercial solar power can also help insulate your business from seasonal swings in utility rates and unpredictable price increases. Solar energy is 100% renewable so you can access it all year round and only generate power when you need it. This minimises your need to draw from the grid and ensures that your energy source never runs out.
6. Show your commitment to the environment.
As consumers become more conscious about the environment, they are likely to choose a brand that values corporate responsibility. Switching to solar puts your business in a better position to attract consumers by showing them your willingness to contribute to environmental sustainability and reduce your company’s carbon footprint.
7. Low maintenance and high reliability
Solar panels that are installed by reputable providers are designed to deliver optimum performance throughout their lifetime with very little maintenance required. While internal solar cells may be fragile, they are encased in tempered glass and framed in non-corrosive aluminium, which makes them extremely durable even when exposed to rain, hail, and other elements. Also, with no moving parts, there is minimal wear and tear, saving you money on maintenance fees.
Solar panels often come with a warranty of up to 25 years. At the end of their working life, you would have already saved thousands of dollars before it needs to be replaced.
8. Solar Power is now more affordable
Prices continue to drop for rooftop solar systems. The smallest commercial PV system ranges from 1.5 to 10 kW, with a 10-kW system generating approximately 40 Kwh per day. The cost for a 10-kW solar installation is only around $13,000 today compared to $15,000 two years ago.
For large-sized commercial buildings, the cost of a 100-kW solar system has gone down to $111,000 compared to $150,700 only three years ago.
As the scale of the solar installation goes up, the amount of savings also increases.
Take advantage of Government renewable energy incentives
Australia is one of the most attractive countries for solar installations, thanks to the many incentives that the federal government offers. Feed-in tariffs and rebates are available, although they vary from state to state. And on the federal level, you can access the Small Technology Certificates (STC) and Large-Scale Renewable Energy Target (LGC) programs.
STC vs LGC
The key difference between Small Technology Certificates (STC) and Large-Scale Renewable Energy Target (LGC) programs is that STCs are created upfront while LGCs are on an ongoing basis.
STC upfront rebates or LGC revenue can help pay for the installation of your rooftop solar system. You may even be eligible for tax incentives in some instances. Meanwhile, local feed-in tariffs pay you for any surplus electricity that your system generates but does not consume.
Why Choose Aztech Solar?
The Aztech Solar team is comprised of accredited and experienced solar installers and electricians who work with local business owners in Newcastle. We source only the best solar products and offer industry-leading warranties to guarantee that your solar installation will keep working for your business for decades.