‘Should our business transition to renewable energy and what are the catches?'
We’re constantly told to “go renewable”: solar, batteries, electrification, rebates.
But we’re also busy running a business. Is it actually worth it and what’s the catch?
Short answer: usually yes, but only if you treat it as a cashflow and risk decision, not a “green project.”
When it’s worth doing
A renewable energy transition is often a strong move if several of the following apply:
- You use a lot of power during the day, so solar can replace electricity you’d otherwise buy from the grid.
Common daytime-heavy businesses include factories (day shift), schools and TAFEs, childcare centres, medical clinics, retail shops, cafés and bakeries, supermarkets, shopping centres, and offices. - Your bill is driven by peak or demand charges, where a brief spike can create a disproportionate share of total costs.
- You run large electrical loads, such as HVAC, refrigeration, hot water systems, compressors, ovens, or industrial machinery.
- Installation is actually feasible, with no major blockers like poor roof condition, limited switchboard capacity, landlord constraints, or strict export limits.
If several of these boxes are ticked, renewables can materially reduce operating costs and help insulate your business from future energy price rises.
The catches (and where businesses get caught out)
1. Your bill is about timing, not just usage
Cutting kilowatt-hours doesn’t always cut dollars. Many commercial bills are shaped by when electricity is used, particularly demand and peak charges.
2. Solar only pays well when you use it
Exporting excess solar at midday often delivers limited value due to low feed-in tariffs and export caps. Oversizing systems without a clear onsite-use plan is the most common mistake.
3. Batteries aren’t automatic ROI
Batteries usually make sense only when they have a defined job, such as peak shaving or resilience/backup. Rebates alone don’t change the underlying economics.
4. Savings drift if you don’t lock them in
Over time, schedules creep, staff override controls, and maintenance slips. Without basic monitoring and governance, savings quietly erode.
One rule to stay out of trouble
Before you start getting quotes, make sure you can confidently answer:
- What tariff are we on and do we pay demand or peak charges?
- Are we primarily daytime or after-hours energy users?
- What are our top three electrical loads and our top three peak events?
If you can’t answer these, the next step isn’t more quotes — it’s getting clarity.
What to do next
We help businesses approach renewables as an investment decision, not a leap of faith. That means auditing energy use and tariffs, identifying peak cost drivers, and modelling conservative, evidence-based savings, so owners can decide whether “going renewable” makes sense for their cashflow, operations, and risk profile before committing to hardware.
By South Australian based Family Business Accredited Advisor
Jason Huang
Co-Founder and Partner, CJAA
