As most residences consume their electricity before 9 am and after 5 pm, it makes sense that the commercial solar power system cost is feasible when considering that most electricity usage will typically be between these times while the sun is shining.
The savings that are accrued after the installation is where most offset occurs from the initial commercial solar power system cost, as energy efficiency is being more favoured and lucrative for businesses in recent years.
You may be wondering what contributes to the overall commercial solar power system cost, or how enterprises are reaping the benefits and savings from these setups afterwards – that is what this blog piece will be exploring.
If you’re already interested in having one of our resident experts get in touch with you – get in touch here.
Influencing Factors
There are a number of intricate factors that contribute to the overall commercial solar power system cost, not the least of which is the region your business resides in and whether or not it will be a rooftop or ground-mounted installation.
Some other pressing factors include:
- Brand of the panels/equipment (inverters, cabling etc.) being used in your setup
- The number of panels (aka the size of your intended setup)
- Framing equipment (if needed)
- Any additional metering equipment associated with tracking the usage and generated energy*
* If your setup is above 100kW you’ll be eligible for a Large-Scale Generation Certificate which is a rebate based on annual energy generation and requires special metering equipment to report for the rebate claim.
It can be a little confusing, and every enterprise will have its own set of variables that we’ll always take into account when discussing the commercial solar power system cost. You can rest assured that 13 KUGA offers competitive pricing on all our services and will endeavour to provide your business with the optimal price.
Offsetting The Commercial Solar Power System Cost
Now, let’s talk about offsetting the initial commercial solar power system cost by discussing the savings that will impact your business positively in the time following the installation. The overall savings will be noticeable quickly with less dependency on grid electricity reducing the long-term strain your business would otherwise be held hostage to.
Other considerations are:
Rebates & Feed-In Tariffs
If your commercial solar power system is aiming to be under 100kW, then most businesses will be considering offsetting the installation price with STCs. STCs or Small-Scale Technology Certificates are rebates that are designed to incentivise businesses to invest in renewable energy setups, these rebates are usually applied at the installation stage to offset the expenditures of the overall installation.
The number of STCs a setup is eligible for is based on the ‘expected’ generation of the setup over a set amount of time. This is perfect for smaller-scale setups as offsetting the commercial solar power system installation cost allows businesses to focus more aptly on growing their enterprise potential while still reaping the benefits of renewables.
Another way businesses have garnered excess profit after the initial cost of the commercial solar power system is from Feed-In Tariff agreements and rates. The fundamental attraction for feed-in tariffs is the simplicity of how it all works.
Essentially, excess electricity generated by the setup can be exported back to the local grid for a profit which can add up over the long term.
PPAs
PPA’s or Power Purchase Agreements are also a popular way of offsetting the initial financial brunt of a commercial solar power system’s cost. It’s essentially an agreement made between your business and 13KUGA at a below-market rate for electricity generated from the panels. We also take care of the installation and maintenance for the life of the agreement.
Businesses tend to favour PPAs in situations where they wish to be part of the renewable solution without wanting the hassle of handling the minutiae of finances associated.
How We Can Help You
13 KUGA can assist you in determining the optimal setup for your enterprise’s property, handle the installation, and answer any pertinent questions you may have about your commercial solar power system.
We’re experienced and experts in our field and will endeavour to provide you with an optimal solution for a renewable future.
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