Why Commercial Solar Prices Vary So Much —
And How to Avoid Getting Ripped Off

Commercial solar power has never been more affordable, and that's great news for Australian businesses. But if you've requested quotes recently, you might have noticed something strange: huge price differences for seemingly similar systems.

In fact, it's not uncommon to see up to 35% variation in pricing for a standard 100 kW commercial solar PV system. That’s not just a small margin—it's tens of thousands of dollars. Yet, the price difference in the PV panels and inverters are minimum, provided that they are tier-1 (but not very high-end) brands.
So, what's going on?

We talk to many organisations who have gone solar or the ones who are about to go solar on a daily basis. We collected some valuable data and feedback explaining this anomaly. If your organisation is considering to go solar, then you would regret overlooking these facts.

This article breaks down:

• The real reasons behind the pricing gap
• How to spot hidden traps, and
• How your business can choose the right solar partner — without overpaying or sacrificing quality.

How Big Is the Variation in Commercial Solar Pricing?

Here’s a quick snapshot for a standard 100 kW solar installation in Melbourne (before STC discounts):

1. Installation Labour: Don’t Let Cost-Cutting Lead to Corners Cut

Some solar companies reduce costs by relying heavily on apprentices and underqualified labour, often with minimal supervision from licensed electricians.

⚠️ There were fines issued by the regulator where the accredited electrician wasn’t on site at all, when the paperwork was signed off — a clear breach of regulations and a risk to your business.

Another factor to consider is solar installation is a heavily manual process. AI or technology have not been able to make one installer much more efficient than others. If qualified workers have been given unrealistic schedules to finish the job, forcing them to take shortcuts, then poor workmanship is also likely.

What to check:

• Ask who will be on-site and their level of experience.

2. Project Management: One Person Can’t Do Everything

It’s common for smaller installers to have one person acting as owner, project manager, site supervisor, and liaison. That’s too many hats — and quality suffers.

Even top-tier electricians can’t manage drawings, safety compliance, supplier coordination, grid applications, and customer communications all at once.

What to check:

• Request to speak to the actual project manager before signing.
• Ask how much dedicated PM time has been included in the quote.

 3. Design and Engineering: Offshore Isn’t Always the Answer

Some companies outsource system design to offshore engineers. While cheaper, these engineers may lack familiarity with Australian standards and site-specific issues.

We've seen:

• Roofs collapse from miscalculated loading.
• Panels ripped off due to wind uplift.
• Electrical non-compliance that puts you at risk.

What to check:

• Insist on a local engineer (hopefully in-house) to oversee or verify the design.
• Ask to speak with the engineer responsible before approving the quote.

4. Grid Connection: The Hidden Roadblock

Similar to the above, some companies use offshore engineers or non-engineers to handle the grid connection process with the DNSP (electricity distributors). The DNSP’s engineers won’t like it if they receive poor or inaccurate drawings or submissions. Poor submissions to the DNSP (like Ergon or AusNet) can lead to delays or no approval at all. Worse, we’ve come across systems installed and paid for — but never actually connected or without grid connection approval!

5. After-Sale Support: Don't Be Left in the Dark

A flashy brochure, dedicated after-sale contact and a performance guarantee mean nothing if no one answers your call when issues arise.

If no budget is set aside for after-sales (i.e. low price), then you won’t get help when it matters — especially years down the line.

6. Scope Exclusions: The Hidden Costs Waiting to Bite

Some solar quotes leave out critical (and expensive) items just to appear cheaper:

• Roof access and edge protection
• Structural assessments
• Switchboard works
• Special mounting for certain roofs, such as Kliplok or Kingspan 
• Emergency backstop requirements from DNSP

These often show up as costly “variations” later, when it’s too late to back out.

What to check:

• Ask for a full scope breakdown, including what’s excluded.

Bottom Line: Cheap Is Often not Cheerful

We understand cost is no doubt a valid decision-making factor. However, the old saying of ‘you get what you pay for’ still holds true in business today and smart business leaders appreciate this.

Solar is a long-term investment. You don’t need a gold-plated system — but you do need one that’s safe, compliant, and well-supported.

Businesses that chase the lowest quote often pay more later through poor workmanship, system downtime, rework, or legal risks.

We believe this content adds value to you and has equipped you to make better decisions and avoid regretting the wrong decisions.

How to Choose the Right Commercial Solar Provider

1. Ask the right questions (see above).
2. Insist on transparency around scope and support.
3. Meet the key people — the engineer, the project manager, and the lead installer.
4. Understand what’s included, what’s not, and why.

Want Help With Your Solar or Battery Project?

At Free Engineer, we make commercial solar simple, affordable, and stress-free — without cutting corners. Whether you're exploring solar for the first time or comparing quotes for the best solution, we can guide you through it.

 Contact Eric at [email protected]
We’re here to help you make smart, informed energy decisions.