Solar energy provides a powerful and practical solution for Australian businesses seeking to reduce operational costs. In a country known for its abundance of sunshine, harnessing solar power presents a great opportunity to lower energy bills, boost energy independence, and contribute to a more sustainable future. Cutting down on operational costs is one of the priorities of solar businesses. Here, we will dive deeper into how business owners can do that with commercial solar.
How solar cuts operational costs in business
If you’re still on the fence about going solar for your business then below are some reasons it can help with your operational costs:
Financial benefits
One of the biggest reasons companies adopt solar is the potential for solar energy savings for businesses. Generating power through solar panels reduces reliance on grid power. Hypothetically, if a business starts with an investment of around $5,000 in a solar system, it could see significant annual savings.
In the first year of using solar energy, businesses might save about $5,000 on their energy bills. As they continue to harness solar power, their savings could increase, with projected savings of around $5,250 in the second year, resulting in a cumulative total of around $10,250.
This upward trend continues over the years. For instance, by the third year, businesses might save about $5,513, bringing their overall savings to around $15,763. By the tenth year, annual savings could go up around $8,235, leading to a hypothetical cumulative total of $62,889*.
Also, business owners can sell excess energy back to the grid in exchange for Feed-in Tariffs (FiTs). While these figures are hypothetical and will vary based on several factors, they show the significant economic advantages that investing in solar energy can provide over time.
Government incentives
Unbeknownst to some, commercial solar is actually affordable. Many find the upfront costs of going solar overwhelming. However, government incentives make solar systems more affordable for homes and businesses.
The Australian government continues to support the adoption of renewable energy through incentives and rebates. One of the most well-known programs is the Small-scale Renewable Energy Scheme (SRES), which provides financial assistance through Small-scale Technology Certificates (STCs). STCs offset the upfront costs of solar panel installation.
For bigger businesses, the Large-scale Renewable Energy Target (LRET) is available. Businesses that invest in large-scale solar projects can take advantage of this scheme.
You can also maximise your savings with an instant asset tax write-off that lets businesses deduct the full cost of solar power systems immediately. There are also state-based initiatives, such as Victoria’s Solar for Business Program that provides additional rebates and incentives.
Long-term financial impact
A well-installed solar system has a long-term financial impact that can provide significant solar ROI for companies. Solar panels today usually have a lifespan of over 25 years, which translates to consistent energy savings. In addition to that, solar technology advancements will provide businesses with more opportunities to make the most out of their solar power, such as battery storage that can boost self-sufficiency and savings even further when the technology is more viable.
Commercial solar power success in Australia
Many businesses in Australia have adopted commercial solar. One of them is Sunny Retail Solutions in Melbourne, which embraced solar energy in 2019. The shopping centre has a massive rooftop solar panel system that generates 500kW of clean energy. Sunny Retail Solutions has made significant savings since they installed their solar system, saving over $70,000 every year. Their commitment to sustainable also gained positive attention from eco-conscious shoppers and even gained the “Green Building of the Year” award.
Another one is the GreenTech Business Park in Sydney, which aims to attract eco-conscious tenants while reducing their reliance on the grid. They installed a shared solar infrastructure that allows individual offices to tap into renewable energy sources. All the solar-power officers at GreenTech Business Park experienced a lot of savings that increased tenant retention rates. It also increased the demand for eco-friendly workspaces.
Solar Farms Australia is also working to change the power landscape in the country through large-scale solar projects. They have developed expansive solar farms in various regions, which resulted in bigger renewable energy capacity and supplies to thousands of homes and businesses.
Reducing business operational costs is now possible with solar energy in Australia. Knowing how it can benefit a business allows entrepreneurs to take a step towards renewable energy.
Thinking of going solar? Energy Matters is a top solar quotes provider in Australia. We can provide you with FREE solar quotes from our pre-vetted commercial solar installers.
* These figures are examples only and should be used as a guide and not substituted for professional financial advice. Source: energyaction.com.au
