20kW Commercial Solar Systems | Renewable Energy Guide
If you’re still paying full price on electricity bills for your business then you’re losing money. Commercial solar is the way that Australian businesses are harnessing renewable energy to lower expenses and boost profits. A 20 kilowatt solar pv system (20 kW) is ideal for small to medium sized businesses.
A 20kW system will produce enough solar energy to power your business, payoff the system cost and become a profitable investment in just a few years. Before you rush out to create your own solar farm, you should understand the role of each of the components of a commercial pv system. This is important to understanding how to get the most value out of your solar power system.
System prices vary greatly depending on the state you’re in, the manufacturer of the product and the solar installer you choose. For this reason you should choose an installer that has been pre-vetted by the Clean Energy Council (CEC) for quality assurance.
20kW Commercial Solar FAQs
It is important to do your research and have a good understanding of the renewable energy product market before making an investment into commercial solar. This is made difficult by all the conflicting information online. To make things simpler, we’ve created this comprehensive buyer’s guide to 20 kW solar pv systems for businesses.
In this guide we will answer your most frequently asked questions about 20 kW solar systems:
- What is the cost of a 20 kw commercial solar PV system?
- How much roof space is needed for 20 kW solar panels?
- How much electricity will a 20kW solar pv system generate?
- How much value can a 20kW solar pv system bring my business?
- What is the payback period for a 20kW solar pv system?
- How can I improve the Return on Investment for my 20 kilowatt solar system?
- Solar Rebates & Subsidies
- Solar Inverters
- Solar Battery Storage
- Feed-in Tariff Rates (minimum feed-in tariff & time varying tariff)
What is the cost of a 20kW solar PV system?
The Changing Solar Market
There has never been a better time to make the switch to solar energy for your business. The last decade has seen the price of commercial solar installations fall dramatically. As solar costs have been plunging, the power of solar technology has been rising exponentially.
Solar pv systems are far more powerful, efficient and durable now than we could have imagined a decade ago. Solar panels lasting longer and generating more electricity all translates to more value for your solar investment.
The cost of solar PV systems vary significantly depending on a number of factors. Location is one of these influencing factors. The state you’re in will determine the starting price of solar products. In order to reach the national renewable energy targets, the government created rebates in order to incentivise the use of solar products.
The size of these subsidies is based on the amount of solar radiation in different parts of the country. For these reasons the prices vary for solar systems around the nation.
Solar Product Prices
Prices for solar products also depend on the quality of product you choose, the manufacturer who produces them and the solar installer who fits them for you. Installation costs can then fluctuate based on the type and condition of your roof, the demand for installation at the time and the quality of panels being fitted.
Each of the above elements factor into the cost of solar systems. For this reason you will not find highly specific prices for solar products and installation that will be tailored for you. A rough guide for the cost of a 20kW solar PV system in Australia is anywhere between $20,000 – $35,000.
For a customised quote based on your situation, contact our specialists who can provide you with a free quote.
How much roof space is needed for 20kW solar panels?
The amount of roof space you will need will be dependent on the type of solar panels that you power your system with, the angle of your roof and other factors like the layout and condition of your roof. However as a general rule, the surface area of the average solar panel is 1.6 metres x 1 metre.
The more powerful the solar panels you choose, the more efficient they are and therefore the less you will need to generate 20 kilowatts. Solar panels generally range between 275 watts and 350 watts per panel. For a rough idea of the amount of roof space you will need to fit solar panels to your business, we have provided calculations for the most common types of panels.
Roof space needed to power a 20kW solar PV system with:
- 275-watt panels would require 73 solar panels = approximately 117 m2
- 300-watt panels would require 67 solar panels = approximately 108m2
- 350-watt panels would require 58 solar panels = approximately 93m2
How much electricity will a 20kW solar pv system generate?
The amount of electricity produced by a 20kW system is influenced by your location and the time of year. Where you live in the country to a large extent dictates the amount of solar irradiation that your panels will have access to.
Evidence of this can be seen in the average solar production across our capital cities. Hobart has the lowest rates of production while Darwin has the highest. This is a clear result of their geographic location.
Further factors like the angle of the panels and whether there is any shade over the roof will have an effect on the production rates. For this reason it is vital to use experienced, CEC-accredited installers who know how to maximise the efficiency of your system.
Broadly speaking, throughout the year across Australia a 20kW solar system will generate somewhere between 60 kilowatt hours (kWh) and 90kWh.
Businesses in most parts of the country can expect their 20 kW commercial solar PV system to produce approximately 80kWh per day.
How much value can a 20kW solar pv system bring my business?
The amount of savings that your business could reap from the installation of a 20kW solar pv system will depend on the amount you pay for electricity and the amount of electricity that you use.
Most installations of 20kw solar for businesses self-consume 80-85% of the electricity they generate. These commercial installations report savings around $8,000 annually. This figure comes from a combination of reduced electricity costs from using solar and the discounts offered by energy providers through feed-in tariffs (FIT).
Therefore businesses who self-consume more than this amount, or with great FIT rates have the potential to save even more.For information on the rates of feed in tariffs across the different states and the minimum tariffs available, read our article on feed-in tariffs .
What is the payback period for a 20kW solar pv system?
Completing the payback period of your commercial 20 kw solar system is a key milestone in your path to bringing profit to your business through renewable energy. Once the savings your solar system has brought you outweigh the upfront costs, you can enjoy many years of sustainable savings thanks to your initial investment.
The average payback period for commercial 20kw solar pv systems in Australia is between 3 and 5 years. When you take into consideration the 25-30 year lifespan of a quality solar pv system, this leaves you with 20-25 years of positive cash flow to your business.
How can I improve the Return on Investment for my 20kW solar system?
There are numerous ways to boost the efficiency and value of your system to ensure you’re getting the highest return on your investment. Ensuring you buy quality components with reliable warranties is one way to protect your investments. Each of the following elements can help you to stretch your solar dollar further.
Solar Rebates & Subsidies
Ensuring you take advantage of the federal and state rebates on offer is a simple way to lower the upfront cost of your system and shorten the payback period. Speak with our specialists or visit our rebate page to learn more.
High quality solar inverters are the key to improving the efficiency of power conversion within your system. The better your inverter, the more electricity you will reap from the solar energy you generate.
Solar Battery Storage
Solar battery storage is a smart investment for those who want to maximise their investment by self-consuming most of their energy. Self-consumption has the highest rate of return, so rather than feeding the excess back into the grid, hold onto it for a rainy day.
Feed-in Tariff Rates (minimum feed-in tariff & time varying tariff)
If you are going to send your excess electricity back into the grid, make sure you’re getting a good rate for it. Check out our feed-in tariff page or give us a call to learn more.
To learn more you can always speak with our friendly specialists. Give us a call on 1300 076 527 .
If you’d like a free quote on your solar installation, request a quote through our online form.