The changing face of commercial solar

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Without an optimiser, a partially shaded panel brings down the output of all other panels

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FOR ILLUSTRATIVE PURPOSE ONLY Optimisers reduce this issue and allow panels to act independently

If you’re a savvy olive grower looking to cut costs and better your bottom line, you will no doubt have looked into solar energy.

But like so many tech-driven, high demand industries, solar has continued to change and adapt at a record pace. So what you may have considered only five years ago may be a relic in comparison to the options you have today.

There are four key drivers allowing solar to be more viable for businesses than ever before:

1. A competitive market separates the good from the bad.

As a result of commercial solar energy’s growing popularity, we have seen more solar manufacturers come to the party, offering a range of budget to premium options.

But like all machinery and appliances, you get what you pay for. And while cheaper components are available, and may knock a few hundred dollars off your system, the past five years has proven where the real quality lies.

A commercial solar system is designed to last 20-25 years, making it a long game investment when it comes to saving significant money on your energy bills. So rather than see your low quality system failing within a few year, it’s worth ensuring you’re investing in the right brands for a positive return on that investment.

According to the Sunny Side Up report from the Consumer Action Law Centre, close to 700 solar companies have gone out of business since 2011. This leaves around 650,000 Australians with no ongoing support, and no assistance or recourse if their systems fail.

2. Technology solutions for maximum output.

Like all fast-growing tech, solar panel output had some issues in the past, which have been resolved with clever and increasingly affordable options. One critical advancement is optimisers.

Optimisers allow your solar panel system to overcome previously common issues with underperforming cells or panels. Once, a panel in a semi-shaded spot would compromise the output of the entire system, whereas now Panel Level Optimisers (PLO) effectively reduce this block. Solar panel optimisation means your new system can work harder and more effectively, pushing up output and potentially cutting your costs even further.

3. Government support is at hand.

Investing in green, clean solar energy has gained support from the government for some time, and recent initiatives have made solar even more affordable. Currently the Australian government’s Renewable Energy Target (RET) offers two types of Technology Certificates, which act as a rebate on a solar system for an immediate discount.

With this is the Instant Asset Tax Write Off (IATWO) scheme, adding further affordability to solar not seen five years ago. The IATWO allows businesses to write-off the full cost of a commercial solar system installed and operating by June 2022 (recently extended to June 2023).

4. Affordability in the face of rising electricity costs.

As solar prices have dropped, electricity costs have climbed - and at an alarming rate. Like most volatile markets, there are moments of relief - like the recent drop in the price of wholesale electricity during the initial stages of the COVID-19 pandemic - but the trend is unrelentingly upwards.

In contrast, the cost of commercial solar has lowered dramatically in the last five years thanks to a more competitive market, technology updates and manufacturing innovation. When coupled with current government incentives, this is seeing businesses across Australia turning to solar as a feasible investment to dramatically decrease operating costs.