Expert Insights: A Comprehensive Guide to Industrial Solar
Electricity bills have gone up a lot lately, making it harder for businesses to pay operational expenses. But solar panels have become cheaper, so more businesses can afford them now.
If you get an industrial solar system installed at your business, you'll use less electricity from the power company and protect yourself from future price increases. It costs a lot to buy the solar system initially, but on average, payback periods are typically around 2 to 5 years.
There are many different solar panel systems and companies to choose from, so it's important to know what you're doing. This guide is for businesses and industries that want to install solar panels. We explain the basics of industrial solar power and help you understand factors involved when looking to invest in a solar system for your business.
Introduction to Industrial Solar
What is Industrial Solar?
Industrial solar refers to large scale solar power systems designed to meet the significant energy consumption of factories, manufacturing plants, and other industrial facilities. These solar systems typically need vast arrays of solar panels installed on rooftops, open land, or a combination of both, to meet substantial energy demands.
This clean energy can be used to power machinery, lighting, heating, cooling, and other essential operations, reducing reliance on fossil fuels and lowering operating costs.
Industrial Solar vs. Commercial Solar
While both industrial and commercial utilise solar systems, there are key differences:
- Commercial systems are usually in the 10 kW to 100 kW whereas industrial solar systems are substantially larger, often above 100 kW.
- Industrial facilities have much higher energy demands to run heavy machinery continuously.
- Commercial properties have limited space, which can impact the size of the system installed. Industrial solar systems can space across large roof spaces or vast open land for solar panel installations.
The Industrial Solar Market in Australia
Australia's plentiful sunshine and commitment to renewable energy have fueled significant growth in the industrial solar market.
Solar Industry Resources
There are several organisations at present to provide valuable resources and support for businesses looking for advice with regards to industrial solar options. There are:
- Clean Energy Council (CEC): The CEC is the top body for the clean energy industry in Australia. They offer accreditation for installers, product listings, and an abundance of information on solar technology and policies. Their website is an essential resource for businesses considering solar.
- Australian Energy Council (AEC): The AEC represents major electricity and gas businesses in Australia. They provide insights into energy market trends, policy developments, and the integration of renewable energy sources like solar.
- State renewable energy agencies: Each state and territory has its own agency dedicated to promoting and supporting renewable energy. These agencies provide valuable resources, including information on local incentives, regulations, and case studies of successful industrial solar projects.
Government Incentives & Rebates
The Australian government, at both federal and state levels, offers incentives to encourage transitioning to industrial solar. The most applicable for industrial solar systems are:
- Large scale Renewable Energy Target (LRET) scheme provides a financial incentive for large scale industrial solar systems.
- Instant Asset Write Off asset write-off for eligible businesses allows businesses to claim an immediate discount for the business part of the cost of eligible assets, including solar power systems. This can significantly reduce the upfront cost.
It's crucial to research the specific incentives available in your state or territory to maximise the financial benefits of going solar.
Future Trends in the Industrial Solar Industry
The industrial solar market is expected to continue its strong growth trajectory in the coming years, guided by the drop in technology costs, increasing electricity prices, and growing corporate sustainability commitments.
Weexpect to see a greater take up of more efficient solar panel technologies, such as PERC panels, which can produce more electricity from the same amount of sunlight.
Battery storage is also becoming increasingly important for industrial solar, allowing businesses to store excess solar energy for use during peak demand periods or when the sun isn't shining.
Industrial facilities are incorporating solar power into microgrids and Virtual Power Plants (VPPs) more and more, to enhance their energy independence and grid stability.
Corporate Power Purchase Agreements (PPAs) are becoming a popular way for companies to get renewable energy. These agreements allow companies to purchase solar power from large scale solar farms at a fixed price over a long term.
By staying informed about these trends and leveraging available resources, your business can confidently adopt industrial solar as a key component of your energy strategy.
Components of an Industrial Solar System
Understanding the key components of solar systems and how they work together is crucial for making informed decisions about your solar investment. Here’s a breakdown of the essential components:
- Industrial solar panels
- Inverters for industrial systems
- Battery storage options
- Mounting systems for industrial roofs or open land
- Cables and connectors
- Monitoring system for real time performance data
By understanding these key components and working with a qualified solar installer, you can design an industrial solar system that meets your specific energy needs and helps your business achieve its sustainability goals.
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Types of Industrial Solar Panels
When planning an industrial solar installation, choosing the right type of solar panel is vital for maximum efficiency and return on investment. The most common types of solar panels used in industrial facilities, and their specific pros and cons, are:
Monocrystalline Solar Panels
✅ High efficiency rates (~20%)
✅ Sleek aesthetic appearance
✅ Require less space due to higher efficiency
❌ More expensive upfront cost
➡️ Best for limited space or if maximum energy production is your primary concern
Polycrystalline Solar Panels
✅ Less expensive than monocrystalline panels
✅ Perform better in low light conditions and higher temperatures
❌ Efficiency is circa 5% lower than monocrystalline
➡️ Best for if you have plenty of space and cost effectiveness is key
PERC Solar Panels (Passivated Emitter and Rear Cell)
✅ Highest maximum efficiency of ~23%
✅ Perform better in low light conditions and higher temperatures
❌ Greater initial outlay
➡️ Best for the middle ground balance between efficiency and affordability in all weather
Thin Film Solar Panels
✅ Lightweight and flexible for increased versatility in their application
✅ Lowest cost for panels but more are required due to low efficiency
❌ Lowest efficiency in the 10-12% range
➡️ Best for specialised industrial applications where standard panels aren’t suitable or if you have ample space for a large scale solar system.
It’s always advised to talk with a qualified solar installer to discuss your specific needs and determine the most suitable panel type for your industrial solar project.
Benefits of Industrial Solar Power for Businesses
Investing in industrial solar power offers a strong proposition for businesses across Australia. As well as the obvious environmental advantages, solar energy provides a range of financial and operational benefits that can significantly increase your bottom line and boost your brand reputation.
- Financial benefits of industrial solar
- Environmental sustainability benefits
- Brand image and corporate social responsibility
- Operational advantages of being energy independent
- Long term value with low maintenance costs
Key Factors to Consider Before Going Solar Power
Going solar is a smart move for industrial businesses, but careful planning is key. Start by understanding your energy needs, analyse past electricity use to determine the right system size.
Next, assess your site including your roof space, orientation, and shading, which are crucial for maximising your solar energy capturing ability.
Financially, explore loans, leases, or PPAs, and weigh upfront costs against long term savings and incentives.
Choosing a reputable installer is critical, so research their experience and certifications.
Finally, consider the long term picture, understand warranties, maintenance needs, and potential upgrades.
By carefully assessing these factors with expert guidance, you can confidently invest in solar and enjoy the benefits of clean energy for your business.
If you would like more information on industrial solar power contact our friendly team on 1300 512 325 or complete our online enquiry form for expert advice.
References:
CEC Guide to Installing Solar PV for Business & Industry
Government Rebates & Loans for Solar
Australian Energy Council
Renewable Energy Target Scheme
Solar and Battery Calculator
Guide to PERC Solar Panels
Monocrystalline vs Polycrystalline Solar Panels