A new policy aims to harness Australia’s commercial and industrial rooftops to generate clean energy, turning them into a network of mini solar power stations. This innovative approach could significantly support the nation’s renewable energy goals by tapping into underutilised rooftop space, reducing the need for costly new infrastructure and helping phase out coal-fired power.
The "Business Power" Initiative
The proposal, outlined by the Victoria Energy Policy Centre (VEPC), envisions large-scale rooftop solar systems integrated with battery storage across commercial and industrial sites. The goal is to enable these businesses to not only generate their own energy but also sell excess power back to the grid during peak demand periods. According to the VEPC, this strategy could potentially meet up to 25% of Australia’s total electricity needs, without requiring extensive new transmission lines.
Unlocking Rooftop Solar’s Potential
Professor Bruce Mountain, Director of VEPC, sees tremendous untapped potential in the rooftops of commercial properties. He argues that a properly structured policy—kept distinct from current energy regulations—could unlock vast amounts of solar power for the grid. By using existing buildings instead of dedicating new land for solar farms, the proposal avoids lengthy approval processes and social licensing issues.
Additionally, the initiative would utilise up to 10 gigawatts (GW) of currently underused distribution networks, as identified in a recent study. This approach makes efficient use of existing infrastructure, minimising costs and accelerating the transition to clean energy.
Meeting a Quarter of Australia’s Energy Needs
The VEPC estimates that if implemented correctly, the Business Power initiative could supply at least 25% of Australia’s electricity annually. Professor Mountain notes, “Rooftop solar is becoming our largest clean energy source, and commercial properties have the potential to double its impact.” The proposal aims to turn business rooftops into mini power stations, allowing businesses to self-supply energy and feed surplus power back into the grid, especially during high-demand periods.
New Pricing Model for Solar and Battery Integration
To incentivise adoption, the VEPC suggests a clear pricing structure:
- A solar feed-in floor price of $100 per megawatt-hour (MWh) before 11 am and after 2 pm.
- A battery discharge floor price of $200/MWh during evening peaks (6 pm to 9 pm).
This model encourages businesses to export power during off-peak solar periods, store surplus energy in batteries, and release it when demand is highest, ensuring a consistent supply of clean energy to the grid.
Overcoming Challenges and Seizing Opportunities
The proposal does face challenges, including potential resistance from energy network operators worried about increased competition. However, Professor Mountain believes these concerns can be mitigated through government intervention and strategic policy adjustments.
He highlights South Australia’s successful transition to renewable energy following the closure of coal-fired plants as a model. The state’s reliance on gas and quick shift to solar has resulted in a substantial share of Renewable Energy Target payments, showcasing the benefits of embracing clean energy solutions.
A Scalable, Cost-Effective Solution
The Business Power model offers a scalable, cost-effective alternative to traditional energy projects, potentially lowering both wholesale and retail electricity prices. It also provides a more focused incentive for commercial solar installations compared to the federal Small-scale Renewable Energy Scheme, which is being phased out.
With residential solar installations growing rapidly, the commercial sector has lagged behind, adding only a fraction of the capacity. The Business Power proposal aims to bridge this gap, driving broader adoption of solar power and battery storage across the commercial and industrial landscape.
Partner with Rethink Renewables
Rethink Renewables is ready to help businesses take advantage of this transformative opportunity. Contact us today to learn how we can support your transition to clean energy and help you turn your rooftop into a valuable asset, driving sustainability and long-term savings.
