Important Information Before Buying Your Commercial Solar System

Electricity prices have increased over the last few years, resulting in increased operational expenses for businesses. On the other hand, the cost of solar photovoltaic (PV) systems has declined, making solar an increasingly affordable option for businesses. By installing a PV system, you will be able to offset your electricity consumption and hedge against future price rises. Although systems may require a large up-front capital cost, payback periods are typically around 5 to 10 years. This guide details the key steps you will need to undertake to install solar PV at your business.

The use of solar photovoltaic (PV) panel systems has grown significantly in Australia this decade, and is now an increasingly affordable option for Australian businesses looking to hedge against the rising cost of electricity. Solar PV systems generate power by converting the energy in sunlight to electricity. This conversion takes place within modules of specially fabricated materials that make up the solar panels. In most cases solar PV panels are connected to the mains power supply through a device called an inverter. With a wide range of products and suppliers on the market, being an informed consumer has never been more important. This guide, intended for businesses and industry wanting to install a solar PV system, provides an introduction to the technology and navigates the process for commercial-scale solar system installation.

STAND-ALONE SOLAR PV SYSTEMS
Depending on where your business is located, you may wish to install a stand-alone solar PV system. Stand-alone systems are not connected to the electricity grid and are typically installed in remote areas where there is limited connection to the grid, or areas of low electricity demand. Unlike grid-connected systems, stand-alone systems must have batteries or back-up generation to provide supply at night. In many cases, stand-alone systems will also be backed up by a diesel or petrol generator to supplement energy supply.

GRID-CONNECTED SOLAR PV SYSTEMS
Solar PV systems that are connected to the grid operate by transforming the electricity generated by the solar system (which is direct current (DC)) into alternating current (AC) electricity using an inverter, so that the power generated is compatible with the grid and ordinary business needs. Businesses with solar PV systems use solar power first before sourcing electricity from the grid. When the panels are not producing enough power to meet load requirements, the balance is drawn from the grid. This would be the case at night or on an overcast day.
According to Australian Safety Standards, if the grid is down, for example during a blackout, the inverter will shut down and the solar system will not produce any energy. For systems with a battery backup, the inverter regulates the charge of batteries. The electricity stored in the batteries can be used at night or during blackouts.