Solar and batteries for small business

Why solar suits most businesses

A home is often empty at midday, so much of its solar goes to the grid for a small feed-in payment. Most businesses are the opposite: the lights, computers, fridges and air conditioning run while the sun is up.

That matters because of self-consumption, which just means using your solar power on site instead of sending it to the grid. Every kWh (kilowatt hour, the unit on your bill) you use yourself is a kWh you do not buy at your full business rate. Every kWh you export earns a feed-in tariff, which is usually far less. We explain why in Why solar feed-in tariffs keep falling.

For some businesses the export side is even weaker. The government's Solar Consumer Guide points out that some high-use businesses may not be able to get a plan that pays a feed-in tariff at all. For those businesses, its SunSPOT calculator suggests the biggest system that still lets at least 80% of the solar be used on site.

Your trading hours change everything

Solar makes power from early morning to late afternoon, strongest around the middle of the day. How much of that lines up with your opening hours is the single biggest question.

Weekends count too. An office closed on Saturday and Sunday will export most of two days of solar every week.

Certificates: the 100 kW line, and what changes on 1 October 2026

The upfront discount on solar comes from certificates called STCs (small-scale technology certificates). Your installer or retailer usually claims them and takes their value off the invoice.

The Clean Energy Regulator has used 100 kW of solar as the dividing line. Systems up to that size have created STCs. Systems over 100 kW have not been eligible for STCs. Instead they could be accredited as a power station under the large-scale scheme and create LGCs (large-scale generation certificates).

That line is moving. The regulations have been amended so that solar PV systems from 100 kW up to 1 MW installed from 1 October 2026 can create STCs. The regulator says applications will not open until mid to late November 2026, once its systems are in place. If you are planning a system over 100 kW, ask whoever quotes it which scheme it will fall under and how the timing affects the discount.

For most small businesses, a system under 100 kW is plenty. For larger sites, see our commercial solar page.

Does the battery rebate apply to businesses?

Yes. It is called the Cheaper Home Batteries Program, but the Clean Energy Regulator says it supports households and small businesses. A business battery follows the same rules as a home one:

• Between 5 and 100 kWh nominal capacity, with certificates on the first 50 kWh of usable capacity only.
• On the approved battery list, and technically able to join a virtual power plant.
• Installed with new or existing solar of no more than 100 kW.
• One battery per premises: for a grid-connected site, one per meter (NMI) or commercial sub-meter.
• Installed by a Solar Accreditation Australia accredited installer with a battery endorsement.

The discount also tapers as the battery gets bigger, which we break down in The 2026 home battery rebate, explained.

Demand charges, in plain English

Some business electricity plans include a demand charge. Most of your bill is based on how many kWh you use over the month. A demand charge is different: it is based on your single busiest half hour.

Ausgrid, which runs the poles and wires across much of Sydney, explains it like this. Demand is how hard you are pulling on the network at one moment, measured in kW. The charge is usually worked out from the highest 30-minute period in the peak window during the month, and that figure is multiplied by the number of days in the month. For small businesses, Ausgrid's peak window is 3pm to 9pm on working weekdays from June to August and November to March. Other networks and retailers set their own windows, so check yours.

An illustrative example: a cafe normally draws about 15 kW in the afternoon. One hot weekday at 4pm the oven, dishwasher, coffee machine and air conditioning all run at once and the meter records 30 kW for half an hour. On a demand plan, that one half hour can set the charge for the whole month.

A battery can shave that peak. It is set to discharge when the site's draw climbs, so the grid only sees part of the spike. The energy.gov.au business guide lists this as one of the ways a battery can earn its keep. Two cautions:

• The battery needs enough power (kW), not just storage (kWh), and it has to be charged and ready at the right moment. Miss one busy half hour and that sets the charge.
• The cheapest fix is often free. Ausgrid's first suggestion is to take turns with big appliances rather than running them all at once.

If your bill has no demand line charged in kW, this section may not apply to you.

Tax: ask your accountant

We are not tax advisers, so this is only what the ATO publishes. The $20,000 instant asset write-off is now permanent from 1 July 2026 for small businesses with an aggregated turnover under $10 million. It applies to eligible depreciating assets costing less than $20,000, per asset, first used or installed ready for use in that income year. Assets costing $20,000 or more can go into the small business depreciation pool, at 15% in the first year and 30% a year after that.

Whether your system qualifies, and how, is a question for your accountant. Take your quote to them before you sign.

Renting your premises

If you lease your shop, office or shed, you probably do not own the roof, so you need the owner's permission. In a multi-occupancy strata property you also need the body corporate. The government's guide suggests writing the deal into the lease, with legal advice on both sides, covering who pays, who owns the system, who maintains it, and what happens when the lease ends.

A battery raises one extra point. To keep its certificates, the regulator says a rebated battery should stay at the property for its warranty period or until the end of 2030, whichever is later. If you move it to another premises, it is no longer eligible, so plan on leaving it behind.

When it does not stack up

Solar is not right for every business:

• Closed during the day. A bar that opens at 5pm exports most of its solar. A battery can shift it, but on a small roof it may not be worth the cost.
• Very small usage. A small bill means a small saving, while install costs do not shrink much.
• A short lease. With only a year or two left and no deal with the landlord, you may leave before it earns back its cost.
• The roof. Heavy shade, a roof due for replacement, or a strata body that will not agree can end the conversation.
• No usable data. Without interval meter data it is guesswork. You can ask your distributor for it in a format called NEM12.

A good quote should tell you when not to buy.

Next step

The savings calculator gives a quick first look. For a proper design, check your eligibility: we look at when your business actually uses power, then design and quote solar and battery to suit, with the certificates itemised on the quote and installation arranged through accredited installers. If your vehicles are part of the picture, see Charging an EV with solar and a battery. Savings figures are modelled estimates, not guarantees.