20kW Solar Systems — Pricing And Output | Best #1
With payback periods ranging from three to five years in the majority of the country, 20kW solar systems is becoming an increasingly appealing and worthwhile venture for small to medium businesses (or families with very big energy use) throughout Australia. An overview of the pricing, energy yields (in kWh), and financial returns that a business can anticipate from a standard 20kW solar PV system is given in this article.
What Is The Price Of A 20kw Solar Systems?
Data indicates that, as of July 2023, the cost of a fully completed 20kW system will be between $15,000 and $20,000. These numbers reflect GST in addition to the upfront “discount” or incentive offered under the federal government’s Renewable Energy Target for systems with less than 100kW of output capacity.
Clean and inexpensive energy is well within the reach of SMEs under increasing pressure from rising grid electricity prices, with prices in this range.
What Is The Estimated Energy Output Of A 20kw Solar Systems?
The actual power output of a 20kW solar power system will differ based on several factors. Among these variables are:
- The system’s geographic location, along with the anticipated levels of cloud cover and solar radiation on a daily and annual basis
- Angle of tilt and orientation of the solar panel array
- Whether the panels are shaded in any way
- The panels’ actual working temperature
- Whether the capacity of the solar panel array and the inverter are precisely matched
- The functionality of the separate parts, such as the inverter and the panels
Is A 20kw Solar Systems The Appropriate Size For Your Company?
Finding the ideal solar system size for your company mostly depends on three factors:
Roof space needed: Depending on the panel wattage and whether tilt frames are needed, a 20kW system will need at least 100–136 m2 of space, if not more. [20kw Solar Systems]
Your patterns of energy use: Any solar energy that your system generates that you are unable to consume directly will not benefit you financially because solar feed-in credits are often not awarded for energy transmitted into the grid by solar systems larger than 10kW in capacity in Australia. Because of this, it’s critical to make sure the system you finally decide on fits the energy consumption patterns and levels of your company.
Your spending plan: The question is whether you have the money to purchase a system if you have enough roof space to install the largest solar system size advised.
What Is The Average 20kw Solar System’s Payback Period And Return On Investment?
Our own research (gathered from around 300 business cases in 2023) indicates that, after accounting for the government’s STC refund and the tax advantages offered for solar projects, the average payback period for suitably scaled commercial-scale solar systems in Australia is approximately two years. [20kw Solar Systems]
Depending on the specifics and the owner’s wishes, each instance will be different. Among the important factors influencing ROI are:
- The system cost, including one-time and recurring expenses
- The cost of power on the grid
- The method of payment for the system: cash, financing, solar PPA, etc.
- if it is possible to secure a feed-in tariff to resell excess energy to the grid
These are talked about in the section below:
1) The system’s overall cost
The pricing range for the 20kW solar system (about $15,000-$20,000 inclusive of GST in Sydney as of the end of 2023) is an estimate for installs without substantial additional expenditures for difficulties.
We have installer charges for necessary additions such as micro-inverter systems, ground-mounted systems, tilt frames, switchboard upgrades, and crane rentals through our tender management service. To ensure you receive the best deal possible on your system, we always advise getting multiple quotations from certified installers.
2) Costs of electricity
When purchasing electricity, a single business will not have as much purchasing power as a chain of stores that may negotiate a collective bargaining agreement. Every day, we receive multiple commercial electricity bills, and the prices differ greatly based on geography, buying power, and whether or not you have recently shopped around for a better deal. [20kw Solar Systems]
In general, solar power will be more valuable if you are paying higher prices for grid electricity. Installing solar may have a significantly longer payback period if your rate is really high.
3) Finance for the system
Solar energy can be paid for up front with a payback period of two to five years, but many companies have advanced under finance agreements with positive cash flow. This indicates that the savings from the solar system outweigh the loan repayments.
At the conclusion of a five- to ten-year financing agreement, the business case shows a moderate reduction in operating costs and a saving over the course of the loan. Solar finance rates are typically cheap, ranging from 4% to 6%, contingent on project size and creditworthiness.
4) Tariffs for solar feed-in
For a 20kW solar system, a feed-in tariff is frequently available. Exporting power back to the grid is typically unrestricted if the property is on three phases, while this can happen with larger solar systems.
Consider solar feed-in tariffs as the cherry on top of the benefits of installing solar power-they are but one aspect of the story. Reducing the quantity of power you need to purchase from the grid should be the only factor considered in the business case. [20kw Solar Systems]
Originally published at https://www.goalsolar.com.au on January 8, 2024.