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Reasons why investing in industrial and commercial solar panels in 2023 is a smart decision

According to Australia’s Clean Energy Regulator Report, a total of 2.984 million solar power systems have been installed on Australian homes and small businesses as of October 2021. Solar installations are growing rapidly across Australia, and for good reason.

Here are some of the factors driving this growth:

  • Abundant sunlight: Australia has some of the highest levels of solar radiation in the world, which makes it an ideal location for solar energy production.
  • Falling costs: The cost of solar panels has fallen dramatically in recent years, making solar energy more affordable for households and businesses.
  • Government incentives: The Australian government offers a range of incentives and rebates to encourage the installation of solar panels, including the Small-scale Renewable Energy Scheme (SRES) and feed-in tariffs.
  • Environmental benefits: Solar energy is a clean and renewable energy source that can help reduce greenhouse gas emissions and mitigate the impacts of climate change.
  • Improved technology: Advances in solar panel technology, including higher efficiency and increased durability, are making solar energy a more attractive option for many households and businesses.
  • Energy independence: Solar energy can provide households and businesses with greater energy independence and resilience during power outages or times of grid instability.

 

As a result of these factors, solar installations in Australia have grown rapidly in recent years. According to the Clean Energy Regulator, there were over 2.6 million small-scale solar installations in Australia as of June 2021, with a total installed capacity of over 18.4 GW. This growth is expected to continue as the cost of solar panels continues to fall and more households and businesses recognize the benefits of solar energy.

 

The growing use of solar power by Australian businesses is also driving the solar industry forward. There are numerous advantages to using solar energy in Australia, and company owners around the country are increasingly recognising these benefits.

 

 

 

 

Solar is one of the smartest investments an Australian company can make, when searching for every opportunity to increase their savings. Solar offers substantial long-term advantages and, in most cases, instant savings on the cost of power to keep the lights on even if financed.

In this article we have discussed the following topics to help you gain a better understanding of why going solar for your business could be worth it in 2023-

  • We have listed the top 6 reasons you should consider investing in solar for your business.
  • What are the incentives for businesses in Australia to install solar panels?
  • Breakdown of how the solar rebate works in 2023

6 Reasons you should consider investing in solar for your business.

There are several reasons why investing in industrial and commercial solar panels in 2023 could be a smart decision:

 

  1. Cost savings: Installing solar panels can help businesses and industrial facilities to save money on electricity bills, which can be a significant cost for many businesses. Solar panels can also provide protection against rising electricity prices, which can be particularly important for energy-intensive industries.

 

  1. Environmental benefits: By using solar energy, businesses and industrial facilities can reduce their carbon footprint and contribute to a more sustainable future. This can help to meet sustainability goals and demonstrate a commitment to corporate social responsibility.

 

  1. Increased property value: Installing solar panels can increase the value of industrial and commercial properties, making them more attractive to potential buyers or tenants.

 

  1. Government incentives: Many countries, including Australia, offer incentives and subsidies for businesses that install solar panels. These incentives can help to reduce the upfront cost of installation and make solar energy a more attractive option for businesses.

 

  1. Improved brand reputation: By investing in solar energy, businesses can improve their brand reputation and appeal to environmentally conscious customers and stakeholders.

 

  1. Energy independence: By generating their own electricity, businesses can reduce their reliance on the grid and ensure that they have a reliable source of energy during power outages or times of grid instability.

 

Overall, investing in industrial and commercial solar panels in 2023 can provide a range of benefits for businesses, including cost savings, environmental benefits, and increased property value. It’s important to work with a reputable solar installer like Solar Power Nation to determine the best system for your specific needs and budget.

 

What are the incentives for businesses in Australia to install solar panels?

There are several incentives for businesses in Australia to install solar panels:

 

  1. Small-scale Renewable Energy Scheme (SRES): The SRES is a federal government program that offers a subsidy to businesses that install solar panels with a capacity of less than 100 kilowatts. The subsidy is based on the amount of renewable energy generated by the system and is calculated in Small-scale Technology Certificates (STCs).

 

  1. Accelerated Depreciation: Under the government’s Accelerated Depreciation scheme, businesses can claim tax deductions for the depreciation of their solar panels and associated equipment at an accelerated rate. This can help to reduce the upfront cost of installation and increase the return on investment.

 

  1. Feed-in Tariffs: Some states and territories in Australia offer feed-in tariffs, which allow businesses to sell excess electricity generated by their solar panels back to the grid. This can help to offset the cost of installation and provide a source of revenue for the business.

 

  1. Net Metering: Net metering allows businesses to offset their electricity bills by using the electricity generated by their solar panels. Any excess electricity generated by the solar system is fed back into the grid, which can be used to offset future electricity bills.

 

  1. Improved brand reputation: By investing in solar energy, businesses can improve their brand reputation and appeal to environmentally conscious customers and stakeholders.

 

  1. Energy Independence: By generating their own electricity, businesses can reduce their reliance on the grid and ensure that they have a reliable source of energy during power outages or times of grid instability.

 

Overall, there are a range of incentives available to businesses in Australia to encourage the installation of solar panels, including subsidies, tax deductions, feed-in tariffs, and net metering. It’s important to work with a reputable solar installer who can help you navigate these incentives and maximize the benefits of solar energy for your business

Breakdown of how the solar rebate works in 2023

As of 2023, the Australian government offers a solar rebate program called the Small-scale Renewable Energy Scheme (SRES) to help homeowners and businesses offset the upfront cost of installing solar panels. The SRES provides a subsidy based on the amount of renewable energy generated by the system, measured in Small-scale Technology Certificates (STCs).

Here’s a breakdown of how the solar rebate works in 2023:

  • Number of STCs: The number of STCs that can be created for a solar system depends on its capacity and location. In 2023, a 6.6 kW solar system installed in a zone 3 location (which includes major cities like Sydney, Melbourne, and Brisbane) is eligible for 94 STCs.
  • Value of STCs: The value of an STC can fluctuate depending on market demand and supply, but in 2023, the value is around $38 per STC according to the Clean Energy Regulator website.
  • Rebate amount: To calculate the rebate amount, you multiply the number of STCs by the value of an STC. Using the example above, a 6.6 kW solar system installed in a zone 3 location would generate 94 STCs, with a total value of $3,572. This amount would be subtracted from the total cost of the system, reducing the upfront cost of installation.

It’s important to note that the SRES rebate amount is subject to change, and the value of STCs can vary depending on market conditions. Additionally, the SRES is a declining rebate, which means that the rebate amount decreases each year as the solar industry grows and becomes more cost-competitive. If you’re considering installing a solar system in 2023, it’s important to work with a reputable installer who can help you navigate the rebate program and maximize your savings.

In conclusion, it is wise to stop stalling and take advantage of the current incentives set in place to get the most out of your solar installation. It is also important to note that the longer your rooftop is without solar panels, the longer your household or business is locked into electricity bills much higher than they would otherwise be.

Call us at Solar Power Nation today to get a quote on a solar panel installation for your business today!

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