15 Mar 2021

Cherry Energy Solutions

Solar Systems

How To Cut Costs: Electricity vs. Solar Panels

solar panels to cut costs

Electricity vs. Solar – What’s the Difference?

When you are running a business with high power requirements, you will inevitably ask at some point: “is solar power cheaper than electricity from the grid?” Solar power can be a good investment, saving you significant money over the life of the system.



For a true comparison between solar energy and electricity from the grid, it is important to understand where both power sources come from.

Electricity from the grid is the default option, generated by different types of power stations across Australia, carried across a network of power lines and transformers until eventually reaching your business.

Massive power stations provide entire cities with electricity and are usually located near an energy source, such as a coal mine, a hydro-electric plant or a natural gas production plant.


One of the biggest downsides of relying on electricity from the grid however, is that your bills are in the hands of an electricity retailer—with their rates often changing—resulting in hefty operational costs to your business.

Another downside is that for all that spend, there is no real return on investment.



The best way to put money back into your business is to install solar. When it comes to solar energy vs electricity from the grid, solar can save you significant money in the long term. By installing a commercial solar system, you can significantly reduce your electricity bills.

Solar panels work by absorbing sunlight and converting it into electricity. This energy can be used during the day or excess can be fed back into the grid to generate savings or stored.

It is a common misconception that heat is just as important as light in the process. In reality, it is just the sunlight alone that solar systems generate energy from. On a clear day, your solar panels will work just as well in winter as they would in summer.

Fortunately, solar systems can be combined with advanced methods of storing energy for use during days when the sun isn’t out and at night if your business doesn’t stop at 5pm. Commercial battery storage involves storing excess or off peak energy to be used at a later time.

 You could use stored energy during peak times to reduce consumption of high cost electricity, on cloudy days, at night and continue to operate your business even if the rest of your region experiences a power blackout. This, of course, is dependent on the size of your commercial battery.

Another benefit of solar power is that it is environmentally friendly and can help your business significantly reduce your carbon emissions. Many standard methods of generating electricity produce significant emissions and other pollutants.

With many brands locally and internationally implementing various sustainability practices, it won’t be long until a majority of businesses will be powered by renewable energy.

By switching to solar, your business will be helping the environment and save money.

solar panels save money

Cost Cutting

Immediate Cost

When considering the solar panels vs grid electricity debate, it is essential to understand that solar panels are an investment.

The cost of installing solar panels will depend on your energy usage, which system you purchase and the size of your business’s roof.

Although a larger system will cost you more upfront, the investment could save you more money going forward as there is greater potential for increased energy generation.

Long-Term Savings

Where solar energy performs best is in the long-term savings you will benefit from. Depending on the size of your system and your battery storage, you may still need to use some electricity from the grid, but it will be less. 

Many businesses find that they are saving hundreds of thousands of dollars a year on their electricity bills. Often, solar PV systems can pay for themselves in a matter of years, especially if financed through an Environmental Upgrade Finance or other financing options

As well as the environmental benefits, solar energy can cut down dependence on electricity from the grid and give you control of your business’s energy.

Reimagine Savings Today

There are clear advantages for switching to solar energy, especially when it comes to long-term savings and the environmental benefits. With conventional methods of electricity production, your business could be paying hefty bills regularly. When you make the switch to solar, however, you can minimise operational expenditure.

If you are ready to make the switch to solar energy, get in contact with Cherry Energy Solutions on 1300 570 886 or complete the form below.