Commercial Solar Melbourne
Free commercial solar ROI analysis for Melbourne businesses. System sizing, LGC eligibility, tax depreciation, and payback calculation in 90 seconds.
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LAST UPDATED: MARCH 2026 · DATA: CLEAN ENERGY REGULATOR & STATE SOURCES
KEY TAKEAWAYS — MELBOURNE
• 100 kW system: $105,000–$120,000 installed — saving $24,200/year
• 200 kW system: $180,000–$210,000 — saving $48,399/year + $9,566 LGC revenue
• Peak sun hours: 4.0h/day — very good commercial solar potential
• Commercial electricity rate: 28c/kWh — every self-consumed kWh avoids this cost
• LGC-eligible (≥100 kW) — earning ~$9,566/yr extra at 200 kW
In This Guide
Commercial Solar in Melbourne
Melbourne businesses are increasingly turning to commercial solar to control electricity costs, generate LGC revenue, and improve sustainability credentials. With 4.0 peak sun hours per day and commercial electricity rates averaging 28c/kWh, the economics have never been more compelling for Melbourne businesses investing in 50 kW to 500 kW+ rooftop solar systems.
Local Insight
Melbourne's industrial precincts in the west and north — Sunshine, Laverton, Campbellfield, and Thomastown — have significant commercial solar potential. Despite lower peak sun hours than QLD and WA, large system sizes and high commercial electricity rates in Victoria still produce strong 4–6 year paybacks.
Commercial Solar Costs & System Sizes — Melbourne
Costs shown are estimated installed costs before STCs or LGC-related considerations. Annual savings assume 70% self-consumption at 28c/kWh.
| System Size | Installed Cost | Annual Savings | Incentive | Payback |
|---|---|---|---|---|
| 50 kW | $60,000–$67,500 | $12,100/yr | STCs | 4.5 years |
| 100 kW | $105,000–$120,000 | $24,200/yr | STCs | 3.3 years |
| 200 kW | $180,000–$210,000 | $48,399/yr + $9,566 LGC | LGCs * | 3.1 years |
| 500 kW | $450,000–$525,000 | $120,998/yr + $23,915 LGC | LGCs * | 3–5 years |
* LGC = Large-scale Generation Certificates. Additional revenue for systems >=100 kW, ~$42/MWh at current market.
LGCs & INCENTIVES — VIC
Government incentives for Melbourne businesses
LARGE-SCALE GENERATION CERTIFICATES
$42/MWh
For systems >=100 kW. Every MWh generated earns one LGC sold into the market as additional revenue.
SMALL-SCALE TECHNOLOGY CERTIFICATES
Up to $35k
For systems under 100 kW. Applied as a point-of-sale discount — reduces upfront installation cost immediately.
TAX DEPRECIATION
25–30%
Effective cost reduction through capital allowances or instant asset write-off. Consult your accountant.
STATE — VIC
Varies
Additional state-level programs may apply. Your installer can advise on current VIC commercial opportunities.
Is Commercial Solar Worth It in Melbourne?
In short, yes — and the business case is strong. With 4.0 peak sun hours and commercial electricity at 28c/kWh, a 200 kW Melbourne commercial solar system saves approximately $48,399/year in electricity costs plus $9,566 in LGC revenue — totalling around $57,965/year in annual benefit. At installed costs of $180,000–$210,000, payback is approximately 3.1 years, after which the system produces near-free electricity for 15–20 more years.
3.3yr
TYPICAL PAYBACK
$579k+
10-YEAR BENEFIT
25yr
PANEL WARRANTY
With commercial electricity prices rising 3–5% annually across VIC, these savings increase every year. A commercial solar system also improves your business's sustainability credentials, reduces exposure to energy price volatility, and may add to the value of your commercial property.
Best Business Types for Commercial Solar in Melbourne
Warehouses & Logistics
Large roof areas, high daytime loads. Often LGC-eligible at 100–500 kW.
Best ROI candidate
Schools & Institutions
Daytime-only operation — perfect solar load alignment. Typical 3–5 year payback.
Excellent match
Manufacturing & Industrial
High electricity consumption and large roof areas make for compelling ROI at scale.
Strong candidate
Retail & Shopping Centres
High HVAC loads align with solar generation. Flat roofs enable efficient large-array layouts.
Good candidate
Not sure if your business qualifies? Use our commercial scorecard — enter your electricity bill and business type to get a personalised ROI analysis in 90 seconds.
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Frequently Asked Questions — Commercial Solar Melbourne
How much does commercial solar cost in Melbourne?
Commercial solar in Melbourne typically costs $900–$1,200 per kW installed for systems above 50 kW. A 100 kW system runs approximately $95,000–$115,000 before incentives, while a 200 kW installation is around $170,000–$210,000. After STCs or LGC revenue, net costs drop substantially.
Is commercial solar worth it in Melbourne despite lower sun hours?
Yes. While Melbourne's 4.0 peak sun hours is lower than Queensland or WA, high commercial electricity rates in Victoria (averaging 28c/kWh and rising) and large available roof areas in Melbourne's industrial precincts still produce 4–6 year paybacks. The maths still work strongly at scale.
Which Melbourne suburbs are best for commercial solar?
Western and northern industrial precincts see the strongest ROI — Sunshine, Laverton, Campbellfield, Thomastown, Dandenong South, and Truganina all have large warehouse and manufacturing facilities with substantial roof areas and high electricity consumption perfectly suited to large commercial systems.
Does Victoria have additional commercial solar incentives?
Victoria's Solar Homes program focuses on residential. For commercial, businesses access federal STCs (systems under 100 kW) or LGCs (100 kW+). The Victorian government also runs various business energy efficiency programs — your installer or accountant can advise on current eligibility.
How long does commercial solar approval take in Melbourne?
DNSP connection approval in Victoria (through AusNet, CitiPower, Powercor, or United Energy) typically takes 6–12 weeks for larger systems. Physical installation of a 100–200 kW system takes 5–10 business days. Full energisation usually completes within 4 weeks of installation.
What's the LGC revenue potential for Melbourne commercial solar?
A 200 kW Melbourne system generating approximately 240 MWh/year earns around $10,000–$11,000 in LGC revenue at current prices (~$42/MWh), in addition to approximately $34,000–$40,000 in annual electricity savings.