Large commercial solar power systems are the secret to many Australian businesses cutting their expenses and boosting their profits. Switching your business to solar provides a range of financial, environmental and marketing benefits. The falling cost of solar installations combined with the changing energy market means that there has never been a better time to invest in commercial solar.Installing a 200kW solar system (200 kilowatt solar system) is an investment that will reduce your energy expenses over the long term. High quality 200kW systems have an expected lifespan of 25 years to 30 years. Once your solar power system has completed its payback period, your solar panels will continue to generate electricity and profit for your company.
Before you invest in a commercial solar panel system, it is important to do your research. In recent years many new manufacturers and products have entered the solar market. This has led to a rise in the amount of choices available and falling costs. However, it also means there are more products than ever that do not meet industry standards and should be avoided.
The cost of your commercial solar installation will vary depending on a number of variables. The state you’re in and the quality of the components you choose are major factors. Then there are the installation elements. These include the tilt of the panels necessary for your roof, the location of the inverter, the length of the cable needed and the type of roof.
For a general guide to the prices of solar installations, we have provided the starting prices for 200kW solar installations in each state.
| State | Solar PV System Cost |
|---|---|
| Queensland | $260,000 – $280,000 |
| South Australia | $260,000 – $280,000 |
| Western Australia | $260,000 – $280,000 |
| New South Wales | $260,000 – $280,000 |
| ACT | $260,000 – $280,000 |
| Victoria | $270,000 – $290,000 |
| Tasmania | $285,000 – $305,000 |
Solar installations over 100kW in size are eligible to receive Large-scale Generation Certificates (LGCs). These LGCs are a part of the government’s Renewable Energy Target and thus are a form of rebate. This type of solar subsidy differs from STCs in that they are awarded over the lifetime of the system rather than an upfront discount. LGCs are given each year based off the amount of solar energy your system generated.
Estimates are hard to provide for the exact amount that a 200kW solar system can earn through LGCs. This is because the value of LGCs fluctuates and the amount of certificates that your system earns each year will vary depending on the amount of energy it produces.
The amount of space you will need to install your solar arrays for your 200kW system will depend on a number of factors. These include the type of solar panels you choose, the space available on your roof and the way that your installer sets up the panels.
First you will need to understand the size of a solar panel. As far as its dimensions, generally speaking most solar panels are 1.6 metres x 1 metre. Then you will need to figure out how many panels you’ll need to power your 200kW system. Most solar panels are between 275 watts and 350 watts in power.
Below we have provided approximate calculations of surface area needed for the most common types of solar panels.
A 200kW system can produce somewhere between 150,000kWh (kilowatt hours) and 310,000kWh each year. This works out to be around 410kWh – 850kWh per day. This figure will largely depend on your geographic location and the quality of components in your system.
Systems located in areas with low solar irradiation levels should expect to be at the lower end of this spectrum. This includes states like Tasmania and Victoria.
Systems in states with higher solar irradiation, like Queensland and New South Wales, will generate levels closer to 800kWh/day to 850kWh/day.
On average, businesses in Australia with commercial solar installations of 200kW in size can expect annual energy savings between $30,000 and $60,000.
This figure will depend on the electricity rate you pay with your energy provider and the amount of solar energy that you self-consume. Companies that predominantly self consume the solar energy they generate could significantly outperform this estimate.
The payback period of your solar installation is the amount of time it takes for the savings your system creates to cover the initial investment. After your solar panels have paid for themselves, all of the savings they create are net profit for your business.
This payback period will be determined by the amount you paid upfront, where you are located and the quality of the components in your system. Further factors such as your feed-in tariff (FIT) rate and the amount of energy you self-consume will also dictate the length of this period.
On average, Australian businesses that have been appropriately fitted for a 200kW commercial solar system will complete their payback period in 4 to 5 years.
There are many steps that you can take to maximise the ROI for your commercial solar system. Below we have listed three of the most effective means of increasing the value of your solar system.
For more information on any of the following topics, check out our other articles to go into more depth. To speak with an expert, contact our specialists on 1300 076 527 or through our website.
The solar inverter is one of the most important components of the solar system. The inverter is responsible for converting the energy produced by your solar panels into electricity that can be used by your business. The higher the quality of your inverter, the higher the efficiency of this conversion and the more electricity you’ll reap from your system.
Storing your excess electricity through a solar battery is a smart investment for any company. This process allows you to keep more of your energy for self-consumption rather than feeding it back into the grid. Self-consumption has the highest ROI for your electricity and thus will increase the value of your system in the long term.
If you don’t have a solar battery then it is important to understand your feed-in tariff rates. Each energy provider has different rates and means of measuring, whether that’s through a minimum rate or a time-varying rate. Check out our tariff article for more information.
The next step to making the switch to solar is to request a quote.
We offer free quotes which you can get by filling out our online request form or calling us on 1300 076 527.
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