Commercial Solar Sydney
Free commercial solar ROI analysis for Sydney businesses. System sizing, LGC eligibility, tax depreciation, and payback calculation in 90 seconds.
Get My Sydney Business ScoreHome / Commercial / Sydney
LAST UPDATED: MARCH 2026 · DATA: CLEAN ENERGY REGULATOR & STATE SOURCES
KEY TAKEAWAYS — SYDNEY
• 100 kW system: $105,000–$120,000 installed — saving $29,663/year
• 200 kW system: $180,000–$210,000 — saving $59,326/year + $11,001 LGC revenue
• Peak sun hours: 4.6h/day — very good commercial solar potential
• Commercial electricity rate: 30c/kWh — every self-consumed kWh avoids this cost
• LGC-eligible (≥100 kW) — earning ~$11,001/yr extra at 200 kW
In This Guide
Commercial Solar in Sydney
Sydney businesses are increasingly turning to commercial solar to control electricity costs, generate LGC revenue, and improve sustainability credentials. With 4.6 peak sun hours per day and commercial electricity rates averaging 30c/kWh, the economics have never been more compelling for Sydney businesses investing in 50 kW to 500 kW+ rooftop solar systems.
Local Insight
Sydney's industrial precincts in Western Sydney — Parramatta, Blacktown, and Liverpool — have some of the largest commercial roof areas in Australia, making them ideal for large-scale solar installations above 200 kW.
Commercial Solar Costs & System Sizes — Sydney
Costs shown are estimated installed costs before STCs or LGC-related considerations. Annual savings assume 70% self-consumption at 30c/kWh.
| System Size | Installed Cost | Annual Savings | Incentive | Payback |
|---|---|---|---|---|
| 50 kW | $60,000–$67,500 | $14,831/yr | STCs | 3.7 years |
| 100 kW | $105,000–$120,000 | $29,663/yr | STCs | 2.7 years |
| 200 kW | $180,000–$210,000 | $59,326/yr + $11,001 LGC | LGCs * | 2.6 years |
| 500 kW | $450,000–$525,000 | $148,314/yr + $27,502 LGC | LGCs * | 3–5 years |
* LGC = Large-scale Generation Certificates. Additional revenue for systems >=100 kW, ~$42/MWh at current market.
LGCs & INCENTIVES — NSW
Government incentives for Sydney 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 — NSW
Varies
Additional state-level programs may apply. Your installer can advise on current NSW commercial opportunities.
Is Commercial Solar Worth It in Sydney?
In short, yes — and the business case is strong. With 4.6 peak sun hours and commercial electricity at 30c/kWh, a 200 kW Sydney commercial solar system saves approximately $59,326/year in electricity costs plus $11,001 in LGC revenue — totalling around $70,327/year in annual benefit. At installed costs of $180,000–$210,000, payback is approximately 2.6 years, after which the system produces near-free electricity for 15–20 more years.
2.7yr
TYPICAL PAYBACK
$703k+
10-YEAR BENEFIT
25yr
PANEL WARRANTY
With commercial electricity prices rising 3–5% annually across NSW, 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 Sydney
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.
Ready to see your Sydney business solar ROI?
Free · 90 seconds · No obligation · Commercial grade analysis
Get My Business ScoreCommercial Solar in Nearby Areas
Frequently Asked Questions — Commercial Solar Sydney
How much does commercial solar cost in Sydney?
A commercial solar system in Sydney ranges from around $55,000 for a 50 kW installation to $450,000+ for a 500 kW system before incentives. After STCs (for systems under 100 kW) or LGC revenue (for systems 100 kW+), the effective cost drops significantly. Western Sydney's industrial precincts typically see installed costs of $900–$1,100 per kW at scale.
Is commercial solar worth it for Sydney businesses?
Yes — particularly in Western Sydney where large roof areas and high industrial electricity consumption make payback periods as short as 3–4 years. With NSW electricity rates averaging 30c/kWh for commercial users, a 100 kW system typically saves $35,000–$45,000 per year in electricity costs, plus LGC revenue.
What are LGCs and does my Sydney business qualify?
Large-scale Generation Certificates are government-backed certificates created for every MWh your system generates. If your system is 100 kW or larger, you're eligible. At current prices of ~$42/MWh, a 200 kW Sydney system generating ~280 MWh/year earns approximately $11,000–$12,000 in LGC revenue annually on top of electricity savings.
Can Sydney businesses claim tax depreciation on solar?
Yes. Commercial solar installations in Australia are eligible for depreciation under the ATO's capital allowances rules. Depending on your turnover, the instant asset write-off scheme may allow full deduction in year one. Consult your accountant — this can reduce your effective system cost by 25–30%.
How long does commercial solar installation take in Sydney?
Design and approvals typically take 6–10 weeks in NSW (DNSP connection approval adds time for larger systems). Physical installation of a 100 kW system takes 3–5 days. Full energisation including metering changes typically completes 2–4 weeks after installation.
What business types get the best commercial solar ROI in Sydney?
Warehouses and distribution centres in Western Sydney (large roof, high daytime loads), manufacturing facilities in industrial areas like Wetherill Park and Ingleburn, and schools (excellent load-generation alignment) consistently achieve the strongest ROI. Offices in the CBD have limited roof space but strong demand profiles.