How Businesses Can Benefit from Solar Power?
Benefits of Installing Solar for Business Premises/Commercial Solar
Electricity prices in Australia are among the highest in the world. Actually, South Australia has maybe the highest electricity rates when compared to other industrialized countries like the US, Spain or Great Britain. Therefore, commercial businesses need to struggle against high electricity bills at the end of every month without any solution, but to try to reduce consumption.
However, there is another option that can actually save you money and give you a market advantage unlike any other, we are talking about solar energy.
The advantages of going solar
But, how exactly is it that solar energy can help you solve this problem?
The answer lies in the extraordinary solar resource of Australia. Did you know that Australia is among the top 5 countries with the highest Direct Normal Irradiance (DNI) values in the world? Along with Algeria, Chad and some regions of Argentina and Chile. Australia has the capability to provide over 7.75kWh/m2/day in some regions.
When we mix this amazing natural resource with the high electricity rates of Australian states, then you realize that solar energy is the best choice to harness the electricity you need for your commercial business.
To give you an idea of the great economic benefit that you can obtain from solar, we can make a simple calculation using the tool PVWatts.
According to the Energy Consumers Australia 2017 report, a small commercial business can consume an average of 40MWh per year. If you decide to install a 15kW PV plant in the state of Victoria where the electricity rate can reach 28c/kWh (according to AEMC) and where estimated cost per watt is nearly $1.17 (market value estimations), then we obtain the following results.
State - Victoria
Average Electricity Rate ($/kWh) - 0.28
Energy consumption per year (MWh) - 40
Total Annual cost on electricity - $11,200
Energy yields of PV system (kWh/year) - 20,826
Estimated Annual savings - $5,832
25-year period savings - $145,800
Average Cost per watt - $1.17
Total PV system costs - $17,550
Estimated Net Savings in energy - $128,250
As you can see, with a 15kW solar PV system you will cover nearly half of your annual electricity needs and you will save over $120,000 in the entire life of the PV system. Very good deal!
Environmentally Friendly – The Market Value
Moreover, the Australian government has put in motion an initiative to move towards a decarbonized economy. By installing a solar power system, you are contributing to make Australia a greener and energy conservative country, since solar power produces zero carbon emissions during the generation of electricity.
Besides, the renewable energy transition is a very popular trend in Australia. By installing a solar power system you show that you care about the environment and you are also more likely to attract more clients that feel motivated in working with you or that purchase products from your commercial business.
Independence from the grid
By installing a solar power system, you are already increasing your independence from the power grid. However, there is a way to increase it even more by installing an energy storage system.
Having a grid-tied with battery backup solar PV system will give you backup power when the grid is down due to a failure in the system or due to a natural disaster.
Access to Subsidy Schemes
Australia is also one of the most attractive countries for solar energy because there are a lot of government incentives. Feed-in tariffs, rebates, grants and interest-free loans that vary from State to State. You can also access the Small Technology Certificates (STCs) and Large scale Generation Certificates (LGCs) granted at Federal level.