Commercial Solar Melbourne

Commercial Solar Power Systems Melbourne

In this article, we discuss all the important facts you need to consider when installing commercial solar power systems in Melbourne. We cover:

• The cost of a solar installation for a business located in Metro Melbourne
• Potential extra costs for your commercial solar power system installation
• Savings calculator and Return on Investment examples for recent commercial solar installations in Melbourne
• Commercial solar output calculator and production figures from real solar panels installation in Melbourne
• Funding options for business installation commercial solar (Cash / Finance / Power Purchasing Agreements)
• How many solar rebates you can get for your Melbourne Installation
• Case studies on commercial solar projects Kuga Electrical have delivered in Melbourne

We have provided a detailed buying guide for businesses looking at commercial solar power system cost because its a large investment and knowledge is power. Kuga also offers a detailed feasibility report at no cost, so you can clearly understand what your return on investment is after commercial solar installation in Melbourne.

Commercial solar power system cost guide for businesses in Melbourne

What businesses need to consider is that not all commercial solar installations are the same. We have developed a cost guide for businesses looking to install solar in the metro area of Melbourne. Kuga has competitive pricing as we are manufacturer direct and have internal electricians that do most of our commercial solar installations across Melbourne. Our office and warehouse are located in Keyborough, Melbourne, and we service businesses across Victoria. The size of the solar system impacts the cost per kW. The large the solar system size the more equipment is required to ensure the solar installation is compliant to commercial standard. Here is a guide to 3 different commercial solar projects:

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Potential extra costs

The smaller solar power systems are typically lower cost per kW. As you will see we have outlined key factors which will affect the pricing of your commercial solar installation.

Network protection is a requirement for all commercial solar inverters over 30kW

In the earlier table above, you may note the 30kW system is the cheapest cost per kW than any other size. This is due to the legal requirement for Network Protection above this 30kW size. Network protection ensures the solar panels shut down if there is an issue with the network, protecting anyone working on the lines.

Solar panel orientation and extra charges for installation of a tilt system on commercial solar panels

Here are 2 examples located in Bayswater and Scoresby in Melbourne. Both solar power systems are 99kW. The solar panel installation on the left has the solar panels orientation of 50kW to the east and 50kW installed on the west. The savings of the East/West solar system are 4.5% less than the North facing system.

Depending on the orientation of your building, some or all of your commercial solar panels may need to be put on tilt.

East/West rooflines may not need any tilt on their solar panels. However, if you have a North-South roof, the Southern part may need panel tilt.

Adding tilt to a solar system increases its price at a rate of $50 per panel. For a 100kW system, this may increase the system price by $16,000!

More information on panel tilt can be found in KUGA’s optimum panel tilt guide

Does your switchboard need to be upgraded for your commercial solar installation?

Many businesses progressively add on to their switchboard, leaving no extra room for additional electrical components. This can often add several thousand dollars to the price of your solar power system.

Many solar installers will quote a price based on system size without even looking at the switchboard. Below are examples of a full switchboard, and one with available space.

TIP: ensure your solar installer ALWAYS checks your switchboard before quoting.

How to calculate your return on investment

Calculating the return on any commercial investment is essential. With solar power systems, you first need to know the annual savings provided. To calculate the Kilowatt-hour savings in Melbourne, a rule of thumb is to follow the basic formula:

Annual Savings (kWh) = 3.6 x solar size (kW) x 365

Annual savings ($) = Annual Savings (kWh) x $/kWh (found on your electricity bill)

ROI (years) = solar price/annual savings

KUGA Electrical has put together the following guide as an estimate. Note that smaller energy users are typically charged more for electricity, so solar gives a faster ROI.

Commercial solar installation projects are large, so how can you fund your project?

There are four main methods of financing a commercial solar energy project in Melbourne.

Considering buying your Melbourne Commercial Solar Panels outright?

Melbourne business owners need to consider the capital cost of the commercial solar power system, their available cash vs. where they can best invest their money. We have found the pros and cons of businesses paying cash for solar are:

Pros for paying cash for your solar installation

• No paperwork or conditions
• Ability to write off an asset in 12 month period (if under $30,000)
• Not paying any additional interest costs

Cons of paying cash for your solar system

• Often requires deposit
• Requires upfront investment of cash
• Low-interest rates can mean your cash is better spent elsewhere

Why business owners finance their Melbourne Solar Installation

Pros of leasing your solar installation

• $0 upfront investment
• Cashflow positive
• All repayments are tax-deductible

Cons of leasing your solar installation

• Subject to finance conditions
• Repayments include interest

Why Melbourne Businesses consider power purchasing agreements for solar

Pros of a PPA for your solar installation

• $0 upfront investment
• Cashflow positive
• The system is ensured and maintained by a third party

Cons of a PPA for your solar installation

• The highest amount of fees
• Requires longer terms to be cashflow positive (7-10 years)

Environment Upgrade Agreement (EUA)

Pros of an EUA for your solar installation

• $0 upfront investment
• Cashflow positive
• All repayments are tax-deductible
• Transferable ownership with the property title

Cons of an EUA for your solar installation

• Subject to finance conditions
• Repayments include interest
• Not currently offered by all Councils

In 2002, Sustainable Australia Fund (formally Sustainable Melbourne Fund) was founded by the City of Melbourne Council. This allowed renewable energy projects to be funded by attaching a loan to a property title. The repayments are collected through council rates, and terms can be up to 20 years.

Commercial solar systems in Melbourne can be funded in this way, provided the business is located in a participating Council.

Environment Upgrade Agreements (EUAs) are available in:

Baw Baw Shire Council, Brimbank City Council, Campase Shire Council, Cardinia Shire Council, Central Goldfields Shire, City of Greater Bendigo Council, City of Greater Geelong Council, City of Kingston, City of Melbourne, City of Monash Council, City of Port Phillip, Darebin City Council, Greater Dandenong Council, Greater Shepparton Council, Hepburn Shire Council, Hobsons Bay City Council, Horsham Rural City Council, Hume City Council, Indigo Shire Council, Knox City Council, Macedon Ranges Shire Council, Maribyrnong City Council, Mildura Rural City Council, Mitchell Shire Council, Moira Shire Council, Moonee Valley Council, Moreland City Council, Mornington Peninsula Shire, Mount Alexander Shire Council, South Gippsland Shire Council, Wangaratta Rural City, Warrnambool City Council, Wellington Shire Council, Wyndham City Council, Yarra Ranges Council

KUGA Electrical is an approved installer and has completed several solar installations using this finance offer. The latest EUA was completed for the Railway Hotel, located in the Baw Baw Council.