Commercial Solar System Cost: A Comprehensive Breakdown
Understanding a commercial solar system cost breakdown helps businesses reduce energy expenses and plan sustainable operations effectively. These systems vary widely in price depending on capacity, location, and installation complexity. Choosing the right system size requires evaluating both current energy use and long-term goals. This guide breaks down the expenses, influencing factors, and how to get a custom estimate.
How Much Does It Cost to Install a Commercial Solar System?
The cost of commercial solar installation depends largely on the size of the system and the specific requirements of your business premises. From small retail shops to large industrial operations, solar systems can be customised to meet different energy demands. Pricing also considers equipment quality, available roof space, and government incentives. Below is a breakdown of the average cost based on system size:
| System Size | Estimated Cost Range | Suitable For | Approx. Roof Area Needed |
| 20kW – 30kW | $20,000 – $35,000 | Small businesses, retail outlets, clinics | 100 – 200 m² |
| 50kW | $55,000 – $70,000 | Medium to large businesses | 400 m² |
| 70kW – 100kW+ | $70,000 – $120,000+ | Large facilities, warehouses, agricultural use | 500 m² and above |
These price ranges include system components, standard installation, and basic electrical work. Additional customisations or engineering requirements may raise the final cost.
Factors Influencing Commercial Solar System Price
Several elements can impact the total commercial solar system price, and understanding them can help you make more informed decisions:
1. System Components and Equipment Quality
One of the primary contributors to cost is the quality of the solar panels, inverters, and mounting systems. Higher-grade equipment tends to be more efficient and durable, often backed by longer warranties. While these systems may require a larger upfront investment, they typically deliver better long-term savings and lower maintenance expenses. On the other hand, budget-friendly options may reduce initial costs but come with trade-offs in performance and lifespan.
2. Installation Complexity
The complexity of the installation process can significantly impact the overall price. Factors such as roof structure, height, tilt angle, and material can affect how easily the system can be installed. Additional considerations like crane hire, switchboard upgrades, or the need for ground-mounted systems can increase labour and material expenses. Some buildings may also require structural reinforcements or extra safety protocols, which add to the project scope.
3. Geographical Location
The business location can influence pricing due to differences in labour costs, material availability, and climate conditions. For instance, installation costs in remote areas may be higher due to transportation and logistics. Additionally, certain locations may have access to local solar programs or feed-in schemes that can reduce the final expense, while others may not offer the same level of financial support.
4. Government Rebates and Incentives
Government support plays a vital role in reducing solar system prices. Businesses may be eligible for schemes such as the Large-scale Generation Certificates (LGCs), which lower upfront costs based on expected system output. These incentives vary by region and can make a substantial difference in the final investment required. It’s essential to verify eligibility and apply for available subsidies during the planning stage.
5. Exporting Excess Energy from Commercial Solar Systems
Commercial properties in Western Australia are generally not eligible for Synergy’s standard feed-in tariff, known as the Distributed Energy Buyback Scheme (DEBS). This program is primarily available to residential customers, not-for-profit organisations, and educational institutions with systems up to 5kW in capacity.
Although commercial solar systems can export excess energy to the grid, they typically do not receive compensation under the DEBS scheme. Instead, commercial businesses may explore alternative arrangements, such as:
- Custom buyback agreements with electricity retailers.
- Participation in wholesale electricity markets or large-scale energy trading schemes.
- Private Power Purchase Agreements (PPAs) with third-party consumers.
It’s also important to note that export limits may apply, as defined by Western Power, the network operator. These constraints can affect how much solar energy a business can feed into the grid at any given time.
Businesses interested in exporting energy should consult their electricity retailer to understand available options, potential revenue models, and any technical or regulatory limitations that may apply.
6. Energy Consumption Patterns
The specific energy usage habits of a business influence the optimal system size and, in turn, the cost. Operations that consume energy mostly during daylight hours can benefit more directly from solar power. An accurate analysis of consumption trends, peak demand, and seasonal variations helps tailor a system that meets operational needs without overinvestment. Custom-sized systems prevent both energy waste and unnecessary expenses.
Get a Quote for Commercial Solar System
Commercial solar system pricing depends on your site, energy needs, and the components selected. To determine your ideal setup and return on investment, we recommend getting a solar quote tailored to your business. We’ll assess your property, analyse your energy use, and deliver a detailed quote outlining pricing, potential savings, and system performance.