Energy is one of the largest operating costs for South Australian businesses. With commercial electricity rates often exceeding 28 to 35 cents per kWh — and demand charges adding a further layer of expense — switching to commercial solar is no longer just an environmental statement. It is a sound financial strategy. Here is what every SA business owner needs to understand before signing a contract.

How commercial solar differs from residential

Commercial solar systems are larger (typically 20kW to 100kW or more), often use three-phase power connections, and require more complex design and engineering to match the site’s demand profile. Unlike homes, businesses tend to consume most of their energy during the day — which is precisely when solar generates peak output. This makes commercial solar exceptionally effective: self-consumption rates of 70–90% are achievable for many businesses without any battery storage.

System sizing: how big do you need to go?

The right system size depends on your annual electricity consumption, available roof space, and whether you want to eliminate most of your bill or target a specific payback period. As a guide:

• Small offices or retail shops: 10–20kW system
• Medium warehouses or factories: 30–60kW system
• Large industrial or agricultural sites: 100kW+

A credible installer will analyse at least 12 months of your interval meter data — not just your total annual consumption — to understand when your business uses power and size the system accordingly.

Financial incentives for SA businesses

Commercial solar systems qualify for Large-scale Generation Certificates (LGCs) under the federal Renewable Energy Target. These certificates have monetary value and are typically assigned to the installer in exchange for a lower system price — make sure this arrangement is clearly stated in any contract.

Additionally, businesses can claim the instant asset write-off or use depreciation schedules under the Australian tax system to reduce the effective cost of a solar investment. In 2025, the temporary full expensing rules allow eligible businesses to deduct the full cost of qualifying assets in the year of purchase. Consult your accountant about the specific benefit for your business structure.

SA businesses may also access interest-free finance or low-rate green loans through programs designed to accelerate commercial renewable uptake. These can significantly improve cash flow during the payback period.

What to look for in a commercial installer proposal

Commercial solar proposals vary enormously in quality. A trustworthy proposal will include:

• A system performance model based on your actual interval meter data
• Clear product specifications (panel brand, wattage, inverter brand and model)
• Engineering sign-off and relevant SA Power Networks connection approval
• Separate workmanship and product warranties
• An honest payback calculation that does not assume unrealistic energy prices

Be cautious of any installer who provides a generic quote without visiting your site, or who cannot clearly explain how the LGC benefit is passed to you.

The return on investment

For most South Australian businesses, a well-designed commercial solar system delivers a payback period of 3 to 6 years and an internal rate of return between 15 and 25%. Systems are typically warranted for 25 years, meaning two decades of significantly reduced operating costs after payback. For a business spending $60,000 per year on electricity, solar can realistically cut that to $15,000 to $20,000 — a saving that compounds year after year.

Commercial solar is not a commodity purchase. The quality of the design, the equipment, and the installer determines the real-world outcome. Choose a team with verified commercial experience and references you can actually call.

Ready to take the next step? Get your free solar quote from Clean & Green Solutions today — call 1300 810 140 or visit cleanandgreensolutions.com.au