'Finally', mid-sized businesses empowered to go solar

An upcoming policy tweak is set to unlock millions in upfront solar subsidies for Australia's mid-sized businesses. From 1 October, subject to required regulations, the Federal Government intends to expand its Small-scale Renewable Energy Scheme tenfold, lifting the eligibility cap for upfront Small-scale Technology Certificates (STCs) from 100 kilowatts to 1 megawatt. The expansion eliminates a long-standing 'cap' that one expert says forced medium-sized operations to settle for undersized solar setups. 'The original Small-scale Renewable Energy Scheme provided an upfront incentive based on the renewable energy a system was expected to generate and the resulting emissions abatement, but it was only for smaller commercial sites,' Huglo Solar director Tim Sturgiss said. 'Businesses that needed systems even slightly over 100 kilowatts went through a scheme with no upfront discount, annual paperwork to prove energy generation and fluctuating yearly payouts that carried financial risk if equipment failed or certificate market prices dropped. 'That might be something larger businesses can absorb, but there was this 'missing middle' that felt forced to artificially limit installations to 99.99 kilowatts, so they could remain eligible for the STC scheme, and avoid the cost, risk and burden of the Large-scale Renewable Energy Target scheme.' Mr Sturgiss pointed to a Queanbeyan-based client whose electricity consumption supported a solar system of about 150 kilowatts, but who opted for a 99.9 kilowatt system. 'Going from 100 kilowatts to a megawatt would finally allow businesses like that to get the system they need now and into the future, but under a scheme with a much higher incentive upfront and much lower risk and administration burden.' The expansion is expected to fuel a surge in installations, according to Mr Sturgiss, who hoped a spike in solar systems across existing infrastructure would come with a fringe benefit – less need for rural solar farms. 'Australia could make much better use of the roof space and existing electrical infrastructure across warehouses and industrial sites,' he said. 'It won't eliminate the need for large-scale renewables or network investment, but it can reduce pressure on the grid while generating energy close to where it is consumed. 'Obviously there are limits; you can only push through as much energy as the system can handle. But it could save billions in building costs for transmission lines that aren't great for regional communities anyway.' Mr Sturgiss said that, with a few exceptions, commercial solar installations work similarly to residential ones. Commercial systems tend to rely more on tilt frames due to the often flat nature of commercial roofs. While the underlying technology is similar, commercial installations require more extensive engineering, grid-connection work and safety planning because of their size, roof conditions and integration with a business's electrical infrastructure. On the flip side, the payback is notably superior. 'Unlike typical residential usage, a commercial premises ramps up its usage at a time that aligns with its most prolific solar generation. That means typically, the payback periods are much better for commercial premises,' Mr Sturgiss said. A separate NSW scheme sweetens the deal by offering large rebates for commercial batteries, helping businesses protect themselves against future power price spikes. 'Energy is a huge cost input for businesses. If your cost input is going up by 20 per cent over a few years, imagine the impact,' Mr Sturgiss said. But a surge in demand is not without risks, with some industry experts concerned about quality control. Mr Sturgiss said commercial solar installations involved more complex issues around grid approvals and connections, making in-house expertise a must. 'Rapid growth will attract businesses focused more on selling systems than delivering infrastructure,' Mr Sturgiss said. 'Businesses should partner with local installers who are invested in doing a proper job. Ask them, 'Do you actually build this, and can you show me what you've built?'' While the Small-scale Renewable Energy Scheme isn't expected to expand until 1 October, eligibility is based on the installation date, marked by the Certificate of Electrical Safety at the end of the build. Businesses considering a larger solar installation can begin feasibility studies, load analysis and network applications now, but should confirm the final scheme requirements before committing to an installation date.