What Are the Financial Incentives for Using Solar in Commercial Properties?

Regardless of the size and turnover of your business, it is always a good idea to move solar. This smart move will not only save the earth but also a great commercially viable idea.

Experts say that if it is a properly designed commercial solar power system, then you might get positive cash flow from the very first day of installation.

Moreover, there are various commercial solar rebates that will boost the payback time.

Today a plethora of smart commercial solar systems are available that can make installation and power generation simple.

Financial incentives available for solar installation on commercial properties are Feed-in tariffs, commercial rebates offered by the state government, and commercial rebates offered by the federal government, and so on.

Let’s understand them in detail.

Federal Government Solar Rebates

As far as the rebates given by the federal government are concerned, you can find two legislated schemes related to the installation of commercial solar power generation systems:

• LRET or Large-scale Renewable Energy Target
• SRES or Small-scale Renewable Energy Scheme

The purpose of these schemes is to provide businesses with an incentive to invest in renewable energy. The certificates offered by these two schemes are respectively called LGC and STC. Both of them have been proven to be one of the best initiatives of the government to boost the use of solar power in Australia.

The efforts made by the government has made Australia one of the highest installed solar PV capacity per capita in the world.

The difference between LGC and STC

Businesses that install solar power systems that is less than 100kW is eligible for STC. Businesses that install large systems are eligible for LGC.

Both STC and LGC are excellent ways of reducing the cost of solar. Hence, it is one of the top benefits of commercial solar installation.

If you want to minimize the upfront system cost, then you should prefer STC. It is because whatever value of STCs is received, it is an immediate benefit in the form of a point-of-sale discount on the sales invoice.

On the other hand, the benefits of LGC are paid over several years.

If you get the installation done by a renowned and reliable solar installation company, then you may get the expected LGC revenue upfront, provided it is preferable for your business. When you receive an upfront revenue, you reduce the capital cost of the system.

Businesses that have very restricted budgets for solar power get tremendously benefited by this rebate.

As per the guidelines and norms of the federal government, the value of STC is going to be reduced by six to seven percent every year. And in the next seven to eight years, this scheme will be phased out fully.

As far as the eligibility of your business for financial incentives is concerned, you need to get in touch with a commercial solar team. If you meet an experienced company that has installed thousands or more solar projects successfully, then you get the best rebates and maximize the return on investment.