Solar and LED Lighting

What is the average ROI for a solar system?

For commercial solar systems the return on investment (ROI) greatly depends on client electricity rates, STC (Small-scale Technology Certificate) or LGC (Large-scaled Generation Certificate) availability, and electricity consumed on site versus electricity exported. The average New South Wales or Victorian business could expect a payback period of between 2.5 and 5 years. Considering the warranty offered by our suppliers on these products, a solar investment can help decrease the dependence on the grid considerably, guaranteeing the client’s peace of mind.

What is the average ROI for LEDs?

LEDs have the shortest average ROI when compared with each of the other Energy Efficiency products offered by SES. The average ROI for a NSW/VIC business is anywhere between 8 and 24 months. LEDs are a very durable method of lighting and last approximately 50 times longer than a typical incandescent bulb, or 20 – 25 times longer than a typical halogen bulb.

What are STCs and LGCs and how do these evolve over time?

STC – A Small-scale Technology Certificate is a federal government incentive designed to encourage homes and businesses to install renewable energy systems. The scheme can offer an up-front discount to those who purchase solar systems for their homes or businesses, to a maximum of 99.9 kW size. The certificates can be traded to an energy retailer or used as a discount from the total cost of the system. STCs are available until 2030 and their value reduces each year until the 2030 deadline. For example, if a solar system is installed before the 31/12/2019 the STC entitlement (value) would be for 12 years. This is an incentive to install a renewable energy system sooner rather than later.

LGC – A Large-scale Generation Certificate is the equivalent of one-megawatt hour (MWh) of net renewable energy generated by a solar PV system sized bigger than 100kW. LGCs are paid to the system owner depending upon the energy generated. Like STCs, their availability expires in 2030 with their value reducing each year.

What kinds of warranties apply to a solar system?

1. Product warranty – The minimum warranty provided by our suppliers on solar panels is 10 years, although warranties can vary between brands. These warranties cover manufacturing defects on the product.

2. Performance warranty – This type of warranty ensures the solar system always performs to the standards it has been designed for, taking into consideration annual degradation and other factors that could affect performance. PV panels installed by our suppliers have a minimum performance warranty of 25 years.

3. Workmanship warranty – This warranty covers defects related to the workmanship of solar installers not following the Clean Energy Council Accreditation Code of Conduct. For example:

·  faulty or poor workmanship such as faulty wiring and labeling, and

·  the use of modules and inverters that do not meet the Australian standards.

What are feed-in tariffs and how do they work?

Ideally, all the energy generated by a solar system should be consumed on site to maximize the savings. However, this is rarely possible (unless batteries are used) due to site operational factors. Any extra energy generated by a solar system can be fed back into the grid, in which case, the system’s owner is paid a per kWh fee from the energy retailer. The price paid for electricity fed into the grid is usually less than the retail price of electricity bought from the grid.

Which payment methods are available for Energy Efficiency products?

As SES works with a wide range of partners, Energy Efficiency products can be purchased via:

1.      CAPEX

2.      Finance option

3.      Power Purchase Agreement (PPA)

4.      On-bill finance

5.      Upfront payment

‎For more Frequently Asked Questions, visit our website

Contact us on 02 9371 4153

About us
Sustainable Energy Solutions is a niche consulting firm specialising in energy procurement.  We help our clients to take control of their energy cost by securing competitive electricity and gas contracts for their business or site anywhere in Australia. Our team of experts can also advise on renewable energy products and energy efficiency technology such as solar, LED lighting and Power Factor Correction.

Our goal is to help businesses reduce their energy use and achieve long term savings.