In Australia, the cost recovery of a commercial solar panel system depends on several factors, including the size and type of system installed, local climate conditions, electricity rates, and energy usage patterns. Generally speaking, a commercial solar panel installation can provide an average payback period of between three to seven years – depending on these factors.
Size and System Type
The size and type of system installed will have a significant effect on payback time. A larger system is more expensive to install, but it generates more power, making the cost recovery period shorter. Similarly, installing fewer top-of-the-range solar panels can also shorten the cost recovery period because they are more efficient than standard panels.
Financial Incentives
Tax credits and other financial incentives can reduce the cost of purchasing solar panels for commercial use. In Australia, for example, businesses can access a tax depreciation deduction of up to 30%. This means that businesses that install solar panels can recuperate their cost much faster.
Location and Climate
The climate in a business’s location also affects how quickly it can recuperate the cost of commercial solar panels. In sunny, warm climates, panels produce more energy, which means businesses can recover their costs more quickly. In colder climates or with low levels of sunlight, the cost recovery period may be longer because the business will be relying on the grid more.
Maintenance and Upkeep
To maximise the potential of solar panels and reduce the cost of running them, they should be properly maintained and kept in good condition. This includes regularly clearing dust and grime from the panels and checking for any damage. Doing so ensures that they remain efficient, meaning businesses can get more energy from them and reduce their costs over time.
Energy Usage
The cost of running commercial solar panels depends on how much energy a business is using. Commercial establishments that use more energy will generally have higher costs than those that use less. Therefore, businesses should consider ways to reduce their electricity consumption to lower their overall expenses.
Overall, the cost of commercial solar panels depends on a variety of factors including location, climate, maintenance, and upkeep. Generally speaking, businesses in sunny climates will find their solar panels to be more cost-effective, as the sun’s rays are stronger and more consistent. Furthermore, businesses should consider the cost of installation, maintenance, and any taxes or incentives associated with installing solar panels.
As a commercial solar installation specialist will tell you, the average payback period for commercial solar panel installations is between 3-7 years, depending on the aforementioned factors. Business owners should factor in the upfront costs and potential savings when determining the overall financial benefit of investing in commercial solar panels.
If you have plans to be around for many decades, this short payback period could be worth the investment. Of course, businesses should also consider the environmental benefits of solar energy in addition to the financial returns. Most commercial solar panel systems last 25-30 years, so they could provide significant savings over the life of the system.
Over time, consumers will appreciate the fact that you have taken this step to reduce the company’s carbon footprint. This could give you a competitive edge over other companies in your field, who may not be taking similar steps. In addition, with the cost of solar energy dropping significantly in recent years, you can expect to recuperate the costs of solar panels much faster!
