With rising electricity costs in Australia, businesses are increasingly looking at renewable energy solutions like commercial solar to protect themselves against future price hikes and to improve their bottom line. Investing in solar offers long-term savings, a strong ROI, and demonstrates environmental leadership. However, for businesses looking to save on energy costs now, there’s another powerful option—working with an energy broker. Brokers can help reduce energy bills immediately without upfront costs and, in many cases, assist in financing solar projects through tailored deals.
Solar as a Long-Term Investment
Commercial solar installations are a long-term investment, offering businesses the opportunity to generate their own electricity and lower dependence on the grid. Here’s how solar can benefit your business:
- Return on Investment (ROI): While the upfront cost of solar can be significant, the ROI over time is compelling. Depending on the system size and energy consumption, businesses can typically expect a payback period of 3 to 7 years. After that, the electricity produced is essentially free. Solar systems have a lifespan of around 25 years, offering decades of reduced energy costs.
- Protection Against Price Rises: Australian electricity prices have been volatile, with regular increases due to network upgrades and rising wholesale costs. For example, wholesale electricity prices surged by 141% from Q2 2022 to Q2 2023 in some states . By generating their own electricity, businesses with solar can insulate themselves from future price hikes planned in 2025 and beyond.
- Sustainability Credentials: Installing commercial solar demonstrates a commitment to sustainability, which can improve a company’s reputation and attract environmentally-conscious clients. Additionally, businesses can potentially sell excess energy back to the grid, providing an extra revenue stream.
The Immediate Savings from Energy Brokering
While solar provides long-term savings, energy brokers offer immediate reductions in electricity costs. An energy broker can negotiate better electricity rates tailored to your specific business needs, without any upfront capital investment. Here’s why engaging an energy broker is a smart choice:
- No Upfront Costs: Unlike solar, which requires an initial financial outlay, working with an energy broker doesn’t cost anything upfront. Energy brokers work by analysing the energy market, identifying the best deals, and negotiating contracts that save you money immediately.
- Fast Results: While a commercial solar system might take months to install, a broker can start saving you money on your next energy bill. The right deal could cut your electricity costs by up to 20%, depending on market conditions .
- Energy Market Expertise: Energy brokers stay updated on current market trends and have established relationships with energy retailers. They know when to lock in contracts to avoid price spikes, helping your business benefit from lower rates without the complexity of managing the process yourself.
Bridging the Gap: Funding Your Solar Project with the Right Energy Deal
For businesses wanting to go solar but concerned about the upfront costs, an energy broker can help bridge the gap. With the right energy contract, businesses can fund their solar installations without the need for immediate capital. Here’s how:
- Bundling Solar Financing into Energy Contracts: Some energy retailers offer solar power purchase agreements (PPAs) or green energy deals that allow you to integrate solar into your energy supply agreement. By working with an energy broker, businesses can find deals that spread the cost of solar over time, using the savings from energy efficiency to fund the project.
- Offsetting Solar Investment with Energy Savings: By negotiating a lower energy rate, an energy broker can help your business save enough on electricity to cover a significant portion of solar installation costs. In some cases, the savings from a well-negotiated deal can pay for solar within a few years, reducing the financial burden of upfront investment.
Solar Incentives and Government Support
Australia offers a range of incentives and rebates to help businesses transition to solar. These can further improve the ROI of commercial solar installations. Some key programs include:
- Small-scale Technology Certificates (STCs): Available for systems under 100kW, STCs can be sold to energy providers, providing an immediate rebate on solar installation costs.
- Large-scale Generation Certificates (LGCs): For larger systems, LGCs provide ongoing revenue for businesses that generate renewable energy.
- State-based Grants and Rebates: Various state-level initiatives, such as the Victorian Government’s Solar for Business Program, offer rebates and low-interest loans to make solar more affordable for SMEs.
An energy broker can assist businesses in navigating these incentives, ensuring you maximise savings both on your energy bill and your solar investment.
Why Now is the Time to Act
With electricity prices in Australia projected to rise further, now is the perfect time for businesses to act. According to the Australian Energy Regulator, electricity prices could increase by as much as 30% in the coming years . Waiting for these price hikes could put your business under financial strain, while early action, either through solar investment or energy brokering, can safeguard your bottom line.
Working with an energy broker allows you to see savings immediately while planning for future-proofing your energy costs. Whether your ultimate goal is to transition to renewable energy or simply reduce your operational expenses, the combined approach of brokering and solar is a winning strategy.
Maximising Energy Savings
Commercial solar offers substantial long-term benefits to Australian businesses, from strong ROI and price protection to enhanced sustainability credentials. However, the upfront cost can be a hurdle for many. This is where an energy broker comes in—providing immediate savings without the capital outlay and even helping to fund solar installations through strategic deals. By acting now, businesses can protect themselves from future electricity price increases while reaping financial rewards today.
Fund your future solar project by exploring how your business can reduce energy costs today. Upload your electricity bill for a free consultation with one of our expert energy brokers.
