Rising energy costs have been a significant challenge for Australian businesses. While 2022 saw wholesale electricity prices surge by as much as 300% in some regions, the landscape has since shifted. In 2023, wholesale prices fell by 44% to 64% across the National Electricity Market (NEM) due to increased renewable energy supply, milder weather conditions, and stabilised coal prices. However, as we continue to progress through 2024, electricity costs remain under pressure due to intermittent renewable generation and strong demand during peak periods.
Although prices have softened, commercial solar panels continue to offer businesses an effective way to shield themselves from market fluctuations. By generating your own electricity, you reduce your reliance on traditional electricity retailers and ensure more predictable energy costs moving forward. Solar panels can benefit your business by offering immediate savings, reduced exposure to volatile energy prices, and long-term financial returns.
Lower Your Energy Bills with Commercial Solar
By installing a commercial solar PV system, your business can produce electricity at a much lower cost than purchasing it from an electricity retailer. Businesses that opt for solar power typically save thousands on electricity bills annually, and for larger enterprises with high energy consumption, the savings can be even more substantial.
The benefits of solar power for businesses are clear:
Cost-effective energy production: Solar power systems harness free power from the sun, enabling businesses to cut down on monthly electricity costs.
Protection against energy price volatility: While recent wholesale price drops have provided relief, solar power ensures stability by reducing reliance on the grid and shielding you from future electricity costs.
Quick return on investment (ROI): Many businesses recover their initial solar investment within 3 to 5 years, after which the savings continue to multiply, depending on the installation costs and payback period.
Maximise Savings with Business Solar Rebates
The perceived cost of solar panel installation is often a barrier for many businesses. However, changes to government rebates in 2024 make it important to act swiftly. The Small-scale Technology Certificates (STCs) available for solar installations have been reduced, meaning systems installed this year will receive fewer certificates compared to previous years. For example, a typical 10kW system in Melbourne will receive $444 less in upfront savings compared to 2023.
Despite this reduction, STCs, alongside other incentives, can still offset a significant portion of the installation costs:
Small-scale Technology Certificates (STCs): Available for systems up to 100kW, these government rebates help reduce upfront expenses.
Large-Scale Generation Certificates (LSGCs): Designed for businesses installing solar systems above 100kW, offering additional financial support.
Instant Asset Tax Write-Off: This allows businesses to immediately deduct the full cost of solar power systems.
State-based initiatives: Programs like Victoria's Solar for Business Program and Victorian Energy Efficiency Certificates (VEECs) offer additional rebates and incentives.
While these changes are significant, acting sooner rather than later ensures your business maximises available business solar panel rebates. Choice Energy can guide you through this process, helping you identify the most relevant programs for your business.
Increase Business Value and Sustainability
Installing commercial solar panels not only reduces energy costs but also increases your business’s asset value. For large-scale manufacturing plants, distribution centres, and corporate offices, adding a solar energy system enhances the property’s appeal. Installing solar panels also helps reduce your carbon footprint, showcasing a commitment to sustainability—something that customers, partners, and investors increasingly value.
Solar Power Pays Off Long-Term
For businesses evaluating the long-term financial impact of solar power, a well-installed system can provide benefits for decades. Modern solar panels typically have a lifespan of over 25 years, offering consistent energy savings. Advances in solar technology also allow businesses to eventually integrate battery storage, enhancing self-sufficiency and savings even further when the technology becomes more commercially viable. Installing a solar energy system allows businesses to remain connected to the grid, ensuring continuous energy access during periods when solar production is low.
Choose a Trusted Solar Power Supplier
When considering commercial solar installation, working with a trusted partner like Choice Energy ensures you maximise your financial returns. Our team can help provide a detailed analysis of your current and forecasted electricity usage, identifying the most cost-effective solar solution for your business.
At Choice Energy, we design solar systems based on when, where, and how you use energy, guaranteeing optimal energy generation. In fact, we offer a money-back guarantee if your system’s solar production falls below the agreed minimum threshold, giving you peace of mind that your investment is protected.
Ready to Save with Solar?
With solar energy deals more attractive than ever, now is the time for your business to go solar. The financial benefits are clear: from reducing operational costs and protecting against rising energy prices, to taking advantage of government rebates, solar power is a forward-thinking strategy that pays off.
Did you know 8 out of 10 businesses could save more on energy costs with their own solar system? Request your comprehensive solar savings assessment today through Choice Energy and see how much you could save with the right solar package for your needs.
