How Do Commercial Solar Panels Work

How does commercial solar work

The use of energy is one of the main contributors to climate change. It results in greenhouse gas emissions, as human activities like burning fossil fuels for energy pollute the environment. Being aware of this impact, many Australian businesses are shifting towards a more environmentally-friendly approach.

Commercial solar panels are one way for companies in Australia to generate energy without having bad consequences on climate change. They’re not only easy to use, but they’re also one of the best solutions against pollution.

Still, not everyone knows about commercial solar panels and their benefits. So, how do commercial solar panels work? Keep on reading to find out more about this type of solar energy.

What Is Commercial Solar?

“Commercial solar” refers to an energy system that is installed for a business in order to be able to generate energy using solar power. Although it seems similar to residential solar systems, which are energy systems installed on people’s houses in order to produce electricity, commercial solar is slightly different.

Unlike residential solar, commercial solar is considered by a business interested in implementing commercial solar solutions. It can be a comprehensive project with various forms. It can be influenced by the nature and size of the firm interested in solar energy.

How Does Commercial Solar Work?

To an extent, a commercial solar system works the same way as a residential solar panel system.

When you decide on investing in commercial solar, you agree to install photovoltaic power systems that are based on solar panels on the company’s roof. In order to be effective, the panels are placed in such a way that there is enough sunlight touching them.

Once solar panels are hit by sunlight, they can take it and turn it into DC current which then goes to an inverter. The inverter converts it into AC current.

With AC current, you can keep the firm’s operations going. The energy should be enough to power all the machines and devices. In Australia, this is a very reliable and steady process.

What Is a Commercial-Sized Solar System?

Commercial-sized solar systems are specifically made for companies and institutions. To get a better understanding, we can take a look at them compared to residential-sized solar panels.

Residential-sized solar panels are installed on the roofs of residential houses. There is less available space for the panels, so due to the restricted surface available, residential-sized solar systems are smaller. Solar panels in this category are usually 60-cell ones.

Now, commercial-sized solar systems are in a league of their own. There are generally no concerns about available space, as companies have a larger usable surface for solar panels. In this case, commercial-sized roofs can take advantage of 72-cell solar panels.

Not only does this mean that more panels can be installed, but also more solar energy can naturally be captured.

Why Should You Consider Commercial Solar?

Commercial solar is used by many businesses, but should you invest in it too? Here are a few reasons why you should consider commercial solar systems:

Lower Costs for Energy Bills

Perhaps one of the greatest benefits of commercial solar is its effect on energy bills. Over time, commercial solar panels can significantly decrease your energy bills.

Sure, the initial cost of installing the system might be quite high, but it’s worth it in the long run. Instead of relying on a different energy provider to provide you with the necessary energy, a business can generate its own through commercial solar.

No More Carbon Emissions

Traditional energy systems are not the most environmentally-friendly choices, but commercial solar can make a difference.

Because it can generate energy without causing any greenhouse gases and water pollution, it can lead to reduced carbon emissions. This means that you can still generate enough energy for your business while protecting the Australian environment and not contributing to world pollution.

Low Maintenance

Commercial solar installations require little maintenance. If you opt for panels made by experienced and highly-rated companies, your business can enjoy a durable energy system.

Many commercial solar panel systems are backed by lengthy warranties which ensure your investment if protected for years to come.

Reduced Maintenance Costs

Since commercial solar panels need such low maintenance, you can save a lot of money on maintenance costs. If anything, you will only need to clean the installation twice a year.

This is enough to ensure that the panels are still in good condition and that they can provide your business with as much energy as necessary.

A Renewable and Reliable Source of Energy

An advantage of solar power is that it is a renewable type of energy. For this reason, it is often a better option compared to wind energy production, which can only generate energy from powerful, consistent wind.

Solar power is more reliable than wind power. So, with solar panels, you never have to worry that your company will run out of energy.

How Much Does It Cost to Install a Commercial Solar System?

Commercial solar systems can be a bit pricey. The final cost is influenced by the products used for the installation, the system’s size, and where your company is located.

Although discounts can apply sometimes, you must be prepared to spend a considerable amount of money on this project.

On average, in Australia, you can expect to spend around $89,000 for a 100kW solar power system. If you go for smaller systems instead, costs may be around $50,000 for 50kW systems and around $28,000 for 30kW systems.

Commercial Solar Rebates in Australia

In Australia, all commercial solar systems that have a capacity of 100kW or less qualify for what is known as the “STC program”. Depending on the anticipated generation of a system for the following 9 years, you can get paid as much as $447 per kW of solar.

It’s important to keep in mind that this commercial solar rebate in Australia only applies to systems that remain below 100kW. Those that exceed this amount will not be able to claim Small-scale Technology Certificates anymore. Instead, they will have to claim Large-scale Generation Certificates.

Rebates are applied to commercial solar quotes as point-of-sale premiums. This means that if you had your company quote a system of 30kW for $30,000, you would end up with the $13,400 STC rebate.

An STC rebate offers you money in advance, serving as a discount for a system’s upfront cost. Meanwhile, the LGC rebate must be monitored and then claimed annually.

Bear in mind that a company has to become an “accredited power station” with Australia’s Clean Energy Regulator to have the right to claim the LGC. To accurately track your generator, you can have your solar installer add metering that is up to the standards of the National Electricity Market.

The Bottom Line

As you can see, commercial solar panels can help your business save money on energy bills while staying environmentally friendly. They come with various other benefits and could even be included in the STC program. So, don’t hesitate to install them on the premises of your Australian business.

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