What are The Top Challenges Faced by Commercial Clients in Solar Industry in Australia?

The light and heat from the sun are converted into electricity with the help of semiconductor cells or solar photovoltaic cells. The solar PV cells are encased in a frame to create a solar PV panel generating electricity.

Nowadays, solar PV applications have been increasing with each passing day. The solar PV panels can be installed on the roof of residential buildings to generate electricity or on top of commercial buildings generating megawatts of electricity.

The benefits of solar panel installation are not only limited to making a greener planet, but also it saves a lot of money to customers and is termed as an investment. Governments and organizations are pushing their ideas and policies to spread the word, but the operation to turn a nation into a solar city is not matching the numbers as per the research.

There are thousands of industries taking advantage of solar power by installing PV panels either on the roof or on empty grounds with unused spaces. Industries having all these vacant spaces does not mean solar will work for everyone. There are a lot of challenges faced by industries or commercial clients to take advantage of the sunlight. Some of the challenges are listed below:

1. Landlord-Tenant Agreement

Usually, there are no complications with the landlord installing the commercial solar panels as there are no concerns if some roof repairing work needs to go down or the payment arrangement with the government regarding rebates and bills needs some discussion. The owner will get all the benefits they are looking for through solar installation.

But, in many cases, the commercial buildings are leased to tenants, and the unclear expectations set in landlord and tenant agreements may raise a lot of conflicts. For example: If the landlord wants to install solar panels at their property, but the electricity connection is in the name of the tenant, and they are paying the electricity bill. In this case, the owner does not get any benefit based on their previous rent agreement with the tenant. In some cases, if the tenant is leasing the commercial property for more extended periods, say 20-25 years, which is usually the life of panels given by the manufacturers.

There are lot of cases when the same building accommodates 9-10 tenants, and all tenants have their respective connections. These are the situations that pull owners apart from installing solar at their properties.

2. Capital Investment

Commercial projects range between 20kW for small business owners, between 50kW – 80kW for medium business owners, and large-scale clients can range up to 300kW sometimes as well or maybe larger in some cases.

The lack of information presents out there for business owners is very limited, and it does not provide the finance options businesses can seek to lower down their electricity bills and save up in the long term on energy consumption. Research has shown that installing solar panels could be an investment for the businesses and then return on their investment.

There are various finance options available out there in the market these days for businesses to explore. One of them is Sustainable Australia Fund, which offers finance options only to commercial clients. They offer the benefit of putting the finance on the property instead of owners or tenants. Also, this solves the previous problem of the landlord-tenant agreement.

3. Storing the Electricity

One of the main challenges for commercial clients is to store the energy in batteries. The large amount of electricity being generated can go waste if not used. Or the clients can send the power directly to national grids, and the energy company pays a Feed-in-Tariff (FiT) to the customer.

But the best possible way for the clients is to store the excess energy into batteries for later use. In this case, they do not have to worry about getting Feed-in-Tariff, and the electricity generated by them can be used at a later stage in case of excess need.

The challenges listed above have hindered commercial customers’ experience, and it has barred them from moving towards renewable energy.

How can Sunburn Solar Pty Ltd. can help companies out there who wish to make this planet a better place to live while saving money on their energy bills?

We at Sunburn Solar have faced the above challenges, and through our experiences, we have developed strategies for our future commercial clients. Our experienced team of experts and engineers will take care of our client’s journey through the smooth experience of installing solar. Our partnership with financial firms offers our client a wide range of financial options to offer our clients through detailed reports and giving insights. Switching to solar is undoubtedly an investment for the business.