Monocrystalline panels (17%-23% efficiency) offer superior performance and durability but are costly, while polycrystalline panels (15%-18%) are more affordable with lower efficiency.
The drive for net-zero emissions and corporate sustainability is boosting solar demand, influencing prices. Supply chain shifts, raw material costs, and tariffs also impact panel availability and pricing.
Expanding local solar panel production in Australia could lower costs over time. Advances in thin-film and perovskite technologies may also bring more affordable options.
Federal and state rebates (STCs & LGCs) cut solar costs, while large-scale projects may get bulk discounts and performance-based incentives. Businesses can also benefit from instant asset write-offs.
Rising electricity costs make solar a more attractive investment.
Reduce grid reliance and secure long-term energy savings.
Many businesses are adopting solar to meet sustainability targets.
Combining solar with battery storage helps protect against power price hikes.
Some important factors that affect commercial solar system installation costs are mentioned below. Although there are many factors, like the split roof and extra wiring, in the number of stories, I have covered a few important topics here.
The location of your commercial solar installation plays an important role in the calculation of the overall cost. The area of your business’ solar system is a key factor in calculating the total expenses that can occur while installing solar panels. In different areas, rebates like Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs) can differ. Moreover, local labour costs, installation services, and the supply of necessary parts can also be different. Some regions may provide different solar feed-in tariffs for particular system capacities, impacting economic feasibility.
The brand selection and quantity of panels and inverters heavily change the cost of a solar panel system. While premium quality components may require a larger initial investment, and it can be a bit costly compared to mid-range components. Additionally, the system’s design and installation requirements, including the roof’s orientation and type, can drive equipment decisions and potentially add expenses, such as customised mounting solutions for certain roof configurations.
The price of the setup can be substantially affected by how complex the procedure is. The structure’s elevation, the sort of roof covering, and any needed improvements, such as switchboards or architectural improvements, all contribute to the complete cost. In many cases, additional steps like hiring a crane or using ground-mounted systems might be essential, increasing the expenses much more.
The selection of solar sellers or installers directly influences pricing. Costs can fluctuate depending on the source of the solar panels, inverter, and other components, as well as the company’s price framework. If you choose an expert and an experienced installer who offers quality material with trustworthy solutions, the cost can be increased, as this can impact both system efficiency and long-term maintenance requirements.
Government incentives and rebates can help to reduce the cost of a commercial solar system installation. These incentives include various state and federal schemes, which are designed specifically to promote renewable energy adoption. You should explore all available options to maximise your business electricity bill savings.
The size of the solar system is another major determinant of cost. Larger systems generally provide better value for money because they give you more savings in system installation, resulting in a lower cost per watt. However, the system size must align with the business’s energy consumption patterns to ensure optimal efficiency and return on investment.
The terms of warranties and after-sales service agreements are essential considerations. Comprehensive warranties for panels, inverters, and installation can add to the upfront cost but provide peace of mind and reduce long-term maintenance expenses.
Understanding the energy consumption patterns of the business is crucial for determining the optimal system size. Designing the system to meet specific energy needs and be suitable for your roof ensures better efficiency and can lower overall costs by avoiding oversizing or undersizing the system.
The size of a commercial solar system significantly influences its overall cost, with various patterns and exceptions influencing pricing at different thresholds. Here’s a breakdown of how system size impacts costs and the factors businesses should consider when selecting the right system.
When selecting the size of a commercial solar system, businesses should consider their energy consumption, roof space availability, and financial goals. While smaller systems are good options for businesses with moderate amounts of electricity needs, larger systems can provide greater long-term savings.
By carefully evaluating these factors, businesses can choose a solar system that meets their operational needs and maximises efficiency and cost-effectiveness.
Here’s a detailed table of average commercial solar panel costs per watt by city and size:
City | 20kW System | 50kW System | 70kW System | 100kW System | 140kW+ System |
Sydney | $1.10–$1.50 | $1.00–$1.40 | $0.95–$1.35 | $0.90–$1.30 | $0.85–$1.20 |
Melbourne | $1.15–$1.55 | $1.05–$1.45 | $1.00–$1.40 | $0.95–$1.35 | $0.90–$1.25 |
Perth | $1.05–$1.45 | $0.95–$1.35 | $0.90–$1.30 | $0.85–$1.25 | $0.80–$1.15 |
Brisbane | $1.10–$1.50 | $1.00–$1.40 | $0.95–$1.35 | $0.90–$1.30 | $0.85–$1.20 |
Adelaide | $1.12–$1.52 | $1.02–$1.42 | $0.97–$1.37 | $0.92–$1.32 | $0.87–$1.22 |
Canberra | $1.20–$1.60 | $1.10–$1.50 | $1.05–$1.45 | $1.00–$1.40 | $0.95–$1.30 |
Hobart | $1.25–$1.65 | $1.15–$1.55 | $1.10–$1.50 | $1.05–$1.45 | $1.00–$1.35 |
This table offers general estimates for standard installation and is not 100% accurate. Businesses should consult trusted solar providers in their cities for customised and accurate pricing and quotes that meet their needs.
Over the past 10 years, the average cost per watt for commercial solar systems has dropped from $2.50 in 2015 to $1.50 in 2025. This consistent decline is attributed to:
Commercial solar panel installation costs in 2025 will vary significantly across regions, driven by labour rates, local incentives, solar irradiation levels, and logistical considerations. Businesses planning to adopt solar energy should understand these regional differences to make informed decisions about their investment.
Federal government rewards remain to play an important role in reducing costs. Key programs consist of:
Appropriate for systems up to 100kW, these give upfront rebates, substantially lowering preliminary prices.
For systems exceeding 100kW, LGCs offer ongoing benefits, although they require regular data approval.
In 2025, businesses can expect an ROI period of 3–6 years, depending on factors such as energy consumption patterns and system size.
Solar technology in 2025 is more advanced than ever:
The cost of commercial solar panel systems in 2025 reflects years of development, making solar energy an easily accessible and rewarding service for companies. With declining prices, considerable rewards, and advanced modern technology, currently is the ideal time to invest in solar.
Take the first step towards energy independence—consult with solar experts today to design a system tailored to your needs!
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