Solar energy for businesses

Our solar program helps guide business and residents through the process of selecting a quality solar system.

To get started, we advise you to:

• select quality panels and inverters
• buy from trusted, accredited solar retailers
• secure more than one quote.

Select quality panels and inverters

Check the following:

• Do the products meet Australian and industry standards?
• What warranties and performance guarantees come with the products?
• Which warranties are your responsibility and which are the manufacturer's?
• What is the financial strength of the company?

One resource to find certified solar panels is the Australian Solar Council Positive QualityOpens in new tab list of approved products.

Trusted solar retailers

Ensure you choose Clean Energy Council-accredited retailersOpens in new tab.

Secure more than one quote

We recommend that you obtain three quotes from reputable solar retailers. It’s always best to compare products, services and installation companies.

We can connect you with our expert network that can help you secure reliable solar quotes and identify the best value systems.

There’s more than one way to purchase a solar power system and new finance models are making it easier for business to go solar.

The following models are available in the market today and can be used singularly or in combination:

Outright purchase and ownership

This is the traditional way of financing solar. Upfront payment provides independence and low ongoing costs and can make sense for owner-occupier businesses.

Solar leasing

Solar leasing enables you to install a system with zero, or low upfront cost, maintenance is covered by the provider and the savings should exceed lease payments.

However, the cost may work out higher over the long term compared to outright purchase.

Solar power purchase agreements (PPAs)

PPAs are suitable for very large energy consumers and landlords of large commercial or industrial premises. They involve buying energy from a solar panel system for an agreed price and time period.

Victorian legislation limits the availability of PPAs in Melbourne as only electricity retailers can offer them. A PPA may also require a ‘take or pay’ agreement, with the customer exposed if their demand falls.

Environmental upgrade agreements (EUAs)

Through the City of Melbourne’s independent trust, Sustainable Melbourne Fund Solar FinanceOpens in new tab, you can access finance to install solar power systems using an EUA.

Property owners can access funding and pay it back through annual council rates.

Sustainable Melbourne Fund facilitates EUAs and can assist applicants to understand the commercial opportunities of using an EUA.

Sustainable Melbourne Fund can also provide direct loans of up to $500,000 for a six year maximum repayment period. To qualify, the project needs demonstrate that it will minimise impact on the environment and deliver improved economic outcomes.

Please contact the solar team at City of Melbourne if you have questions about models not covered here, or if you require more information to decide which approach to financing most suits you.

The Renewable Energy Target (RET) is a federal government program that provides a financial benefit for the installation of new renewable energy generation technology.

If you install a renewable energy system the RET provides a financial incentive that reduces the overall cost of the installation.

The Australian Government is currently reviewing the future of the RET. This may impact new renewable energy installations.

What does the Renewable Energy Target involve?

The program is divided into two parts – one to encourage large-scale projects (over 100 kW in size), and the other to encourage small-scale projects (under 100 kW).

The RET encourages small-scale projects by awarding small-scale technology certificates which have a set financial value. A project is awarded small scale technology certificates upfront to reduce the cost of the new installation. The number of certificates received depends on the size, type and location of the installation.

The RET encourages large-scale projects by awarding large-scale generation certificates, for every hour of electricity they produce. The certificates are typically purchased by electricity retailers and large entities.

How would changes to the RET impact you?

For small systems (under 100 kW), if changes are made, there are two likely scenarios:

• abolish the small scale part of the RET, which means that new systems will receive no benefit from the RET
• reduce the target of the program, which would see the eligible size of reduced from 100 kW to 10 kW and the benefits awarded reduced.

This means very few new solar installations on Melbourne businesses would be eligible for the small-scale benefit.

For large systems (over 100 kW): projects are rewarded for every hour of renewable energy they produce. New projects greater than 100kW should factor the risk of no support from the RET into their business plans.

When will the changes occur?

The government will require support of cross-bench senators or the opposition to pass legislative changes to the RET. If an agreement is reached, the changes could be passed any time while parliament is sitting or at a date beyond the next federal election.