Solar system for small and medium businesses in Australia

solar system for business

According to the World Energy Outlook 2022 released by the International Energy Agency, energy generation in the world increased by 22% (179Wh) in 2021 exceeding the threshold of 1000TWh. Revolutionary and disruptive technologies in the field of solar power for business have made net zero emission goals for corporate houses achievable.

The cost of electricity generated from renewable resources has been reduced significantly. Renewable Power Generation Costs 2020 published by International Renewable Energy Agency (IRENA) reported that the Global Levelised Cost of Electricity (LCOE) for large-scale solar has dropped by 85% during 2010-2019. This is one of the reasons why everyone business owner in Australia is looking for the correct solar system size for business.

The golden era of energy independence for businesses can come only when industries switch to solar PV panels for energy. With the right technology and lowered costs, businesses have other advantages as well for upgrading their businesses with commercial solar systems Australia, such as:

·        Freedom from the rising cost of electricity

·        Businesses may take tax benefits provided by the government

·         Emerge as an environment-sensitive brand

·        Rebates and upfront discounts in the form of Small-scale Technology Certificates (STCs) or revenue from Large-scale Generation Certificates (LGCs).

Solar system for small and medium businesses in Australia: 15kW and above 15kW system for small business

Some professionals think if the roof of their office is appropriate for a solar PV panel set-up of solar power for business. A 15kW rooftop solar PV system is enough for businesses with low or middle energy consumption.

How much space does a 15kW rooftop solar power system needs?

Depending on the wattage of the solar panel, a commercial solar system in Australia can have 37-45 solar panels. As a thumb rule, you need a 7 sq meter shade-free area for a 1 kW solar system. Therefore, for a 15kW solar system, you will need 90 sq meters of area. According to this calculation, a 300W solar PV system will have 45 panels and require 75 sq meters of area. Similarly, a 400W rooftop solar system in Australia will require 37 panels but 90 sq meters of area.

As far as 15kW solar system price is concerned, it ranges between $1.04 to $0.76 per watt or $15,600 to $11,400 in Australia depending on the territory.

Rebate for a solar system for business

The Australian government offers rebates to small businesses. For instance, a 50% discount of up to $3,5000 is offered through the Solar for Business Program to small businesses in Victoria if they wish to install an approved small-scale solar PV system with up to 30kW capacity.

To avail this, businesses have to be eligible according to the following criteria:

·        Availability of a business premise, owned or rented.

·        Number of people employed should be more than 1 and less than 20, not including business owner

·        Not availed benefit from the Solar for Business Program earlier

·        The place of business must operate from a non-residential location

·        Solar system to be installed is approved by the authority

·        The place of business premise should be individually metered.

Financing a commercial solar system

There are many financing solutions available to install solar power for business in Australia that are explained as follows:


The cost of the system will be cheap here but it is not cost-effective for businesses as the fees charged for financing makes it expensive overall.

Power Purchasing Agreement (PPA)

Under this system, a third party installs a rooftop solar PV system on your property and maintains it. Here, businesses are obligated to purchase all the electricity on a long-term basis produced by such a system. Therefore, it is imperative to know your solar system size for business.


Reducing carbon footprint as businesses can significantly boost the brand image of a business. A green loan is offered by financial institutions at minimal interest rates to help debtors to switch to environment-friendly products.

Bigger size commercial solar system

A 15kW solar system is enough for small-sized businesses. However, you will require special permission from your Distribution Network Service Provider (DSNP) to connect to the grid as the size of such commercial solar system in Australia will vary between 30-100kW. The payment based on LGCs is paid annually and calculated based on how the system generates electricity.

The STC rebate does not apply for solar installations above 100kW but can take benefit from LGCs. However, you will need a specialized meter, report, and a lot of paperwork to claim the LGCs rebate. Businesses with high energy consumption such as factories and solar farms. Because of the large space and weight, they are ground-mounted. Opting for a flat-lined solar farm is cost-effective for upgrading solar power for business as tilted versions tend to require more expertise and may prove to be a little hard on the pocket.

Sign up for our Newsletter