Commercial Solar Power Cheaper than Grid Electricity
In residential circumstances, it is well known that drawing power from the grid is more expensive than installing a solar power system. In news this week, drawing electricity from the grid is said to be more expensive than installing a commercial solar power system – without subsidies.
Commercial solar power systems, or solar systems above 10kWs, are being installed at triple the rate this first quarter as that of the first quarter of last year. Only 558 commercial systems were installed between January and April 2012 compared to 1460 for the same period in 2013, according to AGL Energy figures.
Businesses will benefit from sol
ar power systems as they are mostly operational during daylight times when a solar system would be generating electricity. They will therefore use most of its generation and export little back to the grid. A commercial solar energy system these days will generally have a payback period of 5-7 years, after which time the system with be generating clean, green energy free for the next 20 years or so. With prices of solar power falling and the cost of grid electricity soaring, (even unsubsidised) installing a commercial solar power system is a wise, economically sound business decision.
“The cost of buying solar is now cheaper than buying from the grid, even with zero subsidies,” UBS utilities analyst David Leitch said. UBS estimates that in central Europe, where there are greater solar subsidies, corporate coal gas and nuclear power earnings will halve from 2012 levels by 2020. “We’re seeing some of the things that happened in Europe happening in Australia,” Mr Leitch said. “We’ve seen a number of coal-fired generators in Queensland and NSW and Victoria and South Australia operating less and those guys are all seeing much fewer profits.”
Commercial solar power is a significant investment and should be done properly. It is not worth cutting corners in the beginning as the system will suffer as a result later – either in the form of decreased generation, unsafe installations, warranty issues or even fire hazards that could be life threatening. Know your solar company and know the solar products and installers used in your commercial solar installation.
Call Evolution Solar Sunshine Coast today on 07 5477 5590
07 5477 5590 for more on commercial solar power systems.