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Amidst the hype, we’ve forgotten a key piece of the energy transition puzzle

September 9, 2025

The energy sector loves to hype up around the next “big thing.”  Home batteries, big batteries, VPPs, V2X, electrification and hydrogen - to name just a few of the hype cycles that have emerged in recent years. And, like clockwork (or sheep, depending on your perspective!) - investors, policymakers, and trade shows have flocked around the same shiny trends.

Meanwhile, one massive part of the energy market barely gets a mention: the commercial and industry sector (also known as C&I).

According to the IEA, business customers account for 61% of global electricity use - for comparison the residential sector is just 25% - yet somehow it stays out of the headlines, and largely out of the policy and investor spotlight.

I reckon the C&I sector deserves more love in the energy transition - and here are my top 7 reasons why.

7 reasons the C&I sector is the sweet spot for solar and batteries

1. Space, space, space

Ample rooftops, car parks, basements… no land use trade-offs, no angry community members, or power lines over farmland.

Unlike utility-scale projects that compete with agriculture or face community opposition, C&I sites offer abundant, already-developed real estate. According to Nexa Advisory, warehouse rooftops alone could host 28GW of additional solar capacity, more than the entire coal generation capacity of Australia (currently at 21GW).

2. Electricity use actually matches solar generation

Businesses use power when the sun’s shining, so less energy gets exported at low daytime rates.

While residential customers often export 60-80% of their solar generation (earning the square root of diddly squat), businesses typically consume 70-90% directly at retail rates.

3. The economics make sense

Daytime load reductions plus peak demand savings deliver bankable returns, with far less exposure to declining export tariffs or volatile wholesale spot rates.

Solar projects in this sector typically pay back in 5–7 years, sometimes sooner. Batteries are particularly suited to C&I: tariff arbitrage and demand reduction provide a solid revenue base, while riskier plays like wholesale arbitrage or frequency services are just optional cream on top. By contrast, utility-scale batteries often depend on those speculative streams for the entire cake.

4. Quick network approvals

Fewer hoops. Less waiting. Lower risk.

Most C&I projects breeze through approvals because these sites already have strong grid connections, and the solar or battery capacity isn’t oversized relative to demand. Unlike utility-scale projects, they avoid the drawn-out, complex processes which are plaguing developers in Australia and around the world.

5. Helps the grid

C&I projects actually ease pressure on the grid. By reducing peak demand, they can defer or even eliminate the need for costly network upgrades like new substations.

In contrast, residential solar often triggers upgrades in areas with saturated PV, while utility-scale projects typically require expensive - and unpopular - new transmission lines. Economists would call those a negative externality, whereas C&I delivers the positive kind.

6. Companies want to cut emissions

A lots of commercial businesses have sustainability and carbon reduction targets they have to hit.

Hundreds of major companies have committed to RE100 (100% renewable electricity), while thousands more have science-based targets. On-site solar helps meet mandatory reporting requirements and stakeholder expectations beyond just cost savings.

7. It’s good for the economy

Businesses save on power, they can reinvest, grow, hire more people. Everyone wins.

Depending on the sector, energy costs represent 3-15% of operating expenses for most businesses. Unlike residential savings that flow into consumption, business energy savings get reinvested productively- into R&D, equipment upgrades, staff hiring, and expansion.

Have your say!

Take the C&I Solar Industry Census now

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Help us shine a light on the forgotten sector

If the C&I sector ticks almost every box - why is it still on the sidelines of the national energy conversation?

That’s exactly why we’ve launched Australia and New Zealand’s first ever C&I Solar Industry Census - I’d love to get your input.

Take the C&I Solar Industry Census here.

In partnership with SunWiz, the census is designed to capture what’s really happening on the ground. We want your feedback to uncover what’s really working, your take on the emerging trends, and the barriers that are holding this sector back from taking centre stage.

If you complete the survey, we’ll share the insights back to you in a comprehensive report, and you’ll go into the draw to win $500 as an added bonus.

Most importantly though, your input will help shine a light on this “forgotten” part of the energy transition, and ensure the conversation includes the sector that we think is truly moving the needle!

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