How much does a Commercial Solar System Really Cost?
Blog | August 15th, 2023
It’s one of the first questions someone wants to know when considering solar for their business: how much does solar cost?
While it’s essential to understand the cost of solar, it’s important to consider the cost in conjunction with the savings generated. For example, while a 30kW system may cost between $30,000 to $50,000 upfront, the payback period can be as little as 3 – 5 years thanks to energy savings of around $10,950 per year.
At Solar Energy Enterprises we only offer quality solar components from Tier 1 brands – we refuse to offer cheaper, bottom Tier products to our customers, so while you may find commercial solar system’s that cost less than the prices listed in this blog post, we would encourage you to independently research the quality of the products and installation services being offered.
Please note, the prices listed below are an indication only and include a fully installed system and associated warranties.
The Cost of Solar for Your Business
The solar pricing below details the up-front costs for the installation of commercial solar systems, and includes the STC discount for systems 100kW and below in size.
There are a variety of financing methods available that you may wish to consider, including PPAs and Solar Leasing, which allow businesses to install a solar system without the need for capital outlay.
Solar Energy Enterprises work with a variety of business, some with relatively low energy demands and others with much higher energy demands. As a result, we have installed a wide range of commercial solar systems sizes, the most common of which are listed below:
10kW Solar Cost
A 10kW solar PV system with quality components costs between $10,000 – $17,000 depending on the brands selected. A 10kW system is considered a ‘small’ commercial system and would suit those businesses with low energy usage, for example a small office building.
20kW Solar Cost
A 20kW solar system costs in the range of $20,000 – $35,000.
30-40kW Solar Cost
One of the most common commercial solar system sizes is around 30kW. A 30kW system, with 30kW of inverter capacity, costs around $30,000 – $55,000. Many customers decide to increase the panel capacity to 40kW, whilst keeping the inverter capacity at 30kW. This option costs between $40,000 – $65,000.
100kW Solar Cost
For a business that is more energy intensive, for example a manufacturing facility or a large office building, a 100kW system may be suitable. A 100kW solar system costs between $100,000 – $200,000.
100kW+ Commercial Solar Systems
For system’s above 100kW in size, they are subject to the Large-scale Renewable Energy Target scheme and eligible for LGCs rather than STCs. The key difference between STCs and LGCs is that LGCs are produced on an ongoing basis instead of STCs created upfront. Hence, your business receives a yearly “rebate” instead of an upfront discount on the system’s total cost.
For example, a 200kW system would produce an average annual solar output of 320,000kWh or 320MWh. Therefore, it would create 320 LGCS per year. Using the average 2023 price of LGCs as a guide, a 200kW system would receive around $17,280 per year in government incentives, rather than a set amount off the upfront cost that a 100kW system would be eligible for.
120kW Solar Cost
A 120kW solar system costs between $162,000 – $230,000 out of pocket, and you would also be eligible to receive the annual LGC government incentive rebate.
150kW Solar Cost
A 150kW solar system costs between $205,000 – $280,000 out of pocket, and you would also be eligible to receive the annual LGC government incentive rebate.
|
Solar System Size |
Estimated Solar System Cost |
|
10kW |
$10,000 – $17,000 |
|
20kW |
$20,000 – $35,000 |
|
30kW |
$30,000 – $55,000 |
|
40kW |
$40,000 – $65,000 |
|
100kW |
$100,000 – $200,00 |
|
120kW |
$162,000 – $230,000 |
|
150kW |
$205,00 – $230,000 |
Factors to Consider
The variation in prices is partly due to the range of products available on the market (e.g. Solar Panel and Inverter brands), but also due to factors specific to your premise that can influence cost.
These can include:
Roof Type and Structure – The type of roof (flat, sloped, metal, tile, etc.) and its structural integrity affects installation complexity and cost.
Available Space – The amount of available roof space determines the system’s size and capacity. Limited space may require more efficient panel models or higher-cost technologies to meet energy requirements.
Electrical Infrastructure – The state of the existing electrical infrastructure can impact installation complexity and cost. Upgrades or modifications to the electrical system might be needed to accommodate the solar installation.
Regulations and Permits – Local regulations, zoning requirements, and permit processes can vary widely. Obtaining necessary permits and adhering to regulatory standards can add to project costs.
Accessibility – The ease of accessing the installation site for equipment and personnel can influence labour costs and project timelines.
Monitoring Costs
Commercial systems also have the option to be Monitored, which allows you to check your system is performing in line with expectations.
Some inverters come with inbuilt Wi-Fi monitoring and typically, no extra costs are associated with this. The cost of monitoring for inverters that don’t have this functionality is approximately an extra $250 per inverter.
As electricity costs increase we are finding many businesses are becoming more aware of their energy usage. As well as monitoring the production of your solar system, it’s possible to monitoring your building’s overall energy usage, including the amount of solar production consumed on site and the amount of electricity drawn from the grid. This is an optional extra and the price is dependent on the system size.
At Solar Energy Enterprises we understand that solar is a substantial investment and aim to provide all the necessary information you need to make an informed decision.
We’ve tried to include as much detail as possible in this article, however it should be noted the pricing given is a general guide only.
For a price that is specific to your business, simply contact us for a no obligation quote: https://www.solarenergyenterprises.com.au/contact-us/
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