Solar for business: payback and PRCs
Businesses use power during the day, which is exactly when solar produces. What affects payback, and the incentives available in NSW.
Solar often suits businesses even better than homes. Most businesses use power during the day, when solar is producing, so more of what the panels make is used on site instead of exported. Here's what affects payback, and the incentives NSW businesses can access.
What drives payback
Payback is how long the energy savings take to cover the system cost. It depends on:
- How much solar you use on site. The higher your daytime use, the better. Weekend-closed businesses export more.
- Your electricity tariff. Business tariffs often include demand charges, based on your highest power draw. Solar can reduce energy charges, and a battery can help reduce demand peaks.
- System cost and size. Larger systems usually cost less per kW.
- Incentives. These reduce the upfront cost.
- Tax treatment. Talk to your accountant about depreciation and any tax incentives that apply to your business.
We model payback from your actual interval data, not generic averages. Ask your retailer or network for your 30-minute interval data.
Federal STCs for solar
Business solar systems up to 100 kW can receive small-scale technology certificates (STCs), applied as a discount on the quote. The amount depends on system size, location and installation year, and it steps down each year, with the next reduction on 1 January 2027.
From 1 October 2026, the scheme was expanded to include mid-scale solar systems from 100 kW up to 1 MW, with a fixed five-year deeming period. The Clean Energy Regulator has advised that applications for these systems open from mid to late November 2026.
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Battery incentives: battery STCs and NSW PRCs
Businesses can access two incentives for batteries:
- Federal battery STCs under the Cheaper Home Batteries Program, which applies to residential and non-residential premises, for eligible batteries connected to solar.
- NSW Peak Reduction Certificates (PRCs). Since 1 September 2026, the NSW Government's Peak Demand Reduction Scheme offers a battery discount for businesses, generally for batteries from 20 kWh. The NSW Government estimates about 20 to 30 per cent off the battery installation, or about 30 to 40 per cent when new or additional solar is installed within 90 days. The discount is provided through an Accredited Certificate Provider and usually appears on your quote.
Eligibility and the exact discount depend on the battery, site and installation details. We'll check what applies and show it clearly on the quote.
Commercial EV charging
If your business has fleet vehicles or staff and customer parking, EV charging can be planned with your solar and battery. See our EV charger page.
Why it matters who installs it
Commercial systems involve larger switchboards, network approvals and sometimes engineering or council requirements. Our in-house electricians have more than 20 years' experience and over 4,000 installs across Sydney and regional NSW, from small shops to larger sites.
See our commercial electrical page or get a free quote.
Frequently asked questions
What is a PRC?
A Peak Reduction Certificate is created under the NSW Peak Demand Reduction Scheme for activities that reduce peak electricity demand, like installing a battery. Certificate providers sell PRCs to fund a discount for you.
Can a business get both battery STCs and PRCs?
The NSW Government says businesses may also be able to get the federal Cheaper Home Batteries incentive. We'll confirm what applies to your installation.
How long is payback for commercial solar?
It varies too much to quote a typical figure. It depends on how much solar you use on site, your tariff and the system cost. We'll model it from your data.
Do I need my interval data?
It helps a lot. It shows exactly when you use power, which lets us size the system properly.
Sources
- Batteries for businesses incentive (NSW Climate and Energy Action)
- Battery incentives fact sheet for businesses (IPART)
- Peak Demand Reduction Scheme Rule changes (NSW Climate and Energy Action)
- Small-scale Renewable Energy Scheme (Clean Energy Regulator)
- Cheaper Home Batteries Program eligibility information (DCCEEW)
Government programs and incentives change. Always check the official pages for the latest details.