Solar power is an attractive investment option and great way to save money for businesses in Melbourne and across the rest of Victoria. This article provides an overview of the considerations for commercial solar Melbourne projects. The above image is an example of the aesthetic black panel installation at The National Golf Club on the Mornington Peninsula (developed by Solar Choice).
What are the benefits of commercial solar power in Melbourne?
Looking at long term averages of sunlight irradiance from the Bureau of Meteorology we can see that Melbourne receives roughly 4.18 sun hours per day on average throughout the year. That means that for each kilowatt (kW) of installed solar panels your solar PV system will produce 4.18 kilowatt-hours (kWh) on average per day before typical efficiency losses. Inputting that information into our model we have generated some indicative numbers on what different size solar systems can help your business save.
Note actual energy yields will vary depending on location, orientation & tilt angle and components used.
The above table is an indicative guide only. Solar Choice offers a free service to assess business’ electricity bills independently and make a recommendation on the optimal system size and design. Click the link below to get started.
Request a free solar business case and compare leading commercial installers
Commercial Solar Melbourne Prices
Solar power has never been more affordable in Australia, thanks in part to federal government subsidies available through Australia’s Renewable Energy Target (RET). For solar systems up to 100kW in capacity, the RET provides an up-front incentive in the form of Small-scale Technology Certificates (STCs). For systems larger than 100kW, the RET provides an ongoing incentive (until 2030) in the form of Large-scale Technology Certificates (LGCs). Alternatively in Victoria businesses can elect to receive the VEECs rebate which can considerably reduce the upfront cost.
Solar Choice keeps track of commercial solar system prices for capital cities around Australia. For a full breakdown of cost trends by city and system size – visit our Commercial PV Price Index articles. The data used to create the table is sourced from our installer network database, which includes about 100 installers from across Australia.
Average Commercial Solar Melbourne Costs
10kW
30kW
50kW
70kW
100kW
Melbourne, VIC
$9,560
$26,610
$46,930
$61,980
$83,510
The Solar Choice Price Index which tracks back to 2014 highlights a ~40% decline in the cost of a fully installed commercial solar PV system in the last 5 years as we’ve seen the underlying cost and efficiency of solar products improve significantly.
Compare quotes from leading commercial installers via the Solar Choice online portal
Low maintenance investment
Solar systems generally have few moving parts and require little in the way of regular maintenance. Once installed, the lifespan of a solar system is 25-30 years. Inverters are typically replaced as a matter of course every 10-15 years, while the panels themselves only require a periodic electrical inspection (recommended every 5 years) and are usually self-cleaned during normal rainfall if not installed flat on a roof-space.
Tax benefits for businesses with solar
ABN holders may be able to claim depreciation and GST credit on solar system energy yields. Through financing packages, generally the repayments can be tax deductible meaning that nearly all solar project can be cash flow positive from day one – the loan repayents are less than the savings that are made on your electricity bill.
Financing for Commercial Solar Systems in Melbourne
There are a number of different ways to finance a solar system in Australia which can provide a cash flow positive solution from day one with no upfront costs. The 3 most common options are detailed in the below table.
Type
Description
Typical Terms
Chattel Mortgage
Solar system becomes colateral for loan
Full ownership (and depreciation benefits) from day one
5% to 8%
2 to 10 years
Rent to Own (operating lease)
Solar system is ‘rented’ to business for certain term meaning repayments are deductible
Current tax rules deem that asset is on balance sheet
Business makes an offer to buy at end of term (usually 2 months of repayments) to acquire asset
5% to 8%
2 to 10 years
Solar Power Purchase Agreement
(PPA)
Business pays only for the energy produced by solar at a lower rate than what they are paying their retailer
Responsibility to maintain the asset remains with ppa provider through term of agreement
Only financing method where asset is off balance sheet
Interested in solar power for your business in Melbourne or elsewhere in Victoria?
Solar Choice Commercial has managed tenders for hundreds of medium- to large-scale solar projects since 2009, and is well-positioned to find the best-value solar PV systems for commercial clients in Melbourne and the rest of the state.
Request a free solar business case and compare leading commercial installers
Since 2008 Solar Choice has consulted with over 3,000 businesses around Australia and helped develop over 800MW solar commercial and solar farm projects.
Some of Solar Choice’s Commercial Solar Melbourne Case Studies
You can see a range of photos for a range of commercial-scale solar projects that Solar Choice has brokered or developed on our Commercial Tenders Management page and below.
300kW solar array for West Gippsland Hospital in Gippsland, Victoria (Tender managed by Solar Choice.)
Aesthetic 100kW solar power system for National Golf Club in Mornington Peninsula, Victoria (Tender managed by Solar Choice.)
1,400kW solar array for E-Tex in Melbourne, Vic (Tender managed by Solar Choice.)
100kW solar array across three buildings at Melbourne Zoo (Tender managed by Solar Choice.)
Jeff has consulted on over 20MW of commercial solar projects, ranging from SMEs to ASX top 100 companies. Jeff has also provided independent advice to 100s of residential solar, battery and EV charging customers across every state in Australia. He holds an MBA from the Australian Graduate School of Management and is an expert in business strategy and financial analysis.
