Utilizer\u2019s Adem Ali breaks down the new commercial solar rebate and the five things he checks before any client signs a contract.<\/p>\n
This week\u2019s announcement by Climate and Energy Minister Chris Bowen to expand the Small-scale Renewable Energy Scheme to commercial buildings is the most significant change to the economics of commercial rooftop solar in years.<\/p>\n
The expansion of the scheme \u2013 which has been hugely successful for residential buildings since being established in 2011 \u2013 will increase eligibility for Small-scale Technology Certificates from 100 kilowatt to 1 MW, a 10-fold increase. It comes into effect on 1 October.<\/p>\n
For the majority of commercial buildings, the 100 kilowatt cap barely scratched the surface of their available roof space. The increase to 1 MW will solve that problem.<\/p>\n
The government says that based on its numbers the expansion could reduce the upfront cost of commercial solar installations by around 20% making renewable energy more affordable for manufacturing facilities, distribution centres, shopping centres, agricultural buildings, schools and universities, commercial office buildings, cold storage facilities and logistics warehouses.<\/p>\n
Many of these facilities consume most of their electricity during daylight hours, making solar particularly effective in reducing power costs.<\/p>\n
The government\u2019s own estimates are that a 250 kilowatt commercial solar system will save around $68,000 on installation and going forward they would be generating about 345 megawatt hours of electricity annually, a potential saving of $50,000 in electricity costs.<\/p>\n
An 850 kilowatt installation, says the government, could reduce upfront costs by more than $230,000.<\/p>\n
There are roughly eight weeks until the start date and several details have not been published such as whether certificates apply across the full system size or only a portion of it, the deeming schedule at the new scale, and what happens to projects already quoted or contracted before the start date.<\/p>\n
If you\u2019re being asked to sign an installation contract in the next few weeks, that last one matters a great deal. Check the eligibility timing before you commit, not after.<\/p>\n
These are our recommendations, in this order, drawn from how we assess sites for clients.<\/p>\n
This is a good change, and it\u2019s aimed at a group that has been consistently missed. Industry has absorbed the price rises and the inflation while most consumer-facing energy support went to households. A rebate pointed at factories, warehouses, farms and community facilities is overdue.<\/p>\n
Keep up to date with our stories on\u00a0LinkedIn,\u00a0Twitter,\u00a0Facebook\u00a0and\u00a0Instagram.<\/p>\n
Adem Ali, Founder and Managing Director, Utilizer<\/p>\n
How telematics and fleet technology help businesses cut costs, reduce downtime, improve productivity, and make smarter operational decisions.<\/p>\n