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Commercial Solar for Motels: Is It Worth It in Queensland?

Jun 17
8 min read

Updated: Aug 17

If you run a motel in regional Queensland, you already know where the money goes every quarter. Air conditioning in every room, hot water systems working overtime, a commercial laundry running load after load, the pool pump ticking over from dawn to dusk, reception, security lighting, and if you offer breakfast a kitchen full of appliances. Power is one of the biggest line items on your P&L, and unlike wages or linen, it's a cost you have almost no control over. Until you generate your own.


Commercial solar has become one of the most reliable levers motel operators have to bring that cost back under control. This guide walks through exactly how it works for a motel specifically, not a house, not a farm, not a generic "business", so you can work out whether it stacks up for your property.


Why Motels Are Particularly Well Suited to Solar

Solar works best when your heaviest energy use overlaps with peak sun hours, roughly 9 am to 3pm. For a lot of businesses, that's a mismatch. For a motel, it's often close to a perfect fit.


Think about your daily rhythm: guests check out mid-morning, housekeeping strips and launders linen through the middle of the day, rooms get serviced and re-cooled ahead of afternoon check-in, the pool pump runs continuously, and reception, office equipment, and common areas draw power all day regardless of occupancy. That daytime load is exactly when your panels are producing the most electricity. You're not paying to export it to the grid for a few cents a kilowatt-hour and then buying it back later. You're using it as you make it, at the point where it's worth the most: offsetting electricity you'd otherwise be paying 28 to 35c/kWh for.


Where a Motel's Power Actually Goes

Before sizing a system, it helps to understand what's actually driving the bill. On a typical regional Queensland motel, the rough breakdown looks something like this (exact figures vary property to property; this is illustrative, not a substitute for reading your own bills):

Load

Approx. share of usage

Notes

Room air conditioning

35–45%

Higher in summer; reverse-cycle units in every room add up fast

Hot water

15–20%

Especially high for electric storage or continuous flow systems

Commercial laundry

10–15%

Concentrated in a few daytime hours, ideal solar timing

Pool pump & filtration

5–10%

Runs continuously, a very predictable load, easy to offset

Common areas, reception, security

10–15%

Lighting, office equipment, cameras, Wi-Fi, signage

Kitchen/breakfast room

5–10%

If applicable: fridges, urns, toasters, dishwashers

Notice how much of that is either continuous (pool, common areas) or concentrated in daylight hours (laundry, housekeeping AC use). That's the load a well-designed solar system is built to chase.


What a Commercial Electricity Bill Actually Costs a Motel

Regional Queensland businesses typically pay 28 to 35c per kilowatt-hour for daytime grid electricity, and if you're on a three-phase commercial connection, there's often a demand charge layered on top, billed on your highest half-hour of peak usage each month, regardless of how much you use overall. That's a cost most motel owners don't fully understand until they read their bill line by line, and it's one solar (particularly paired with a battery) can directly reduce, because it lowers both your total consumption from the grid and your peak draw.


For context: a 20-room motel with average occupancy might be looking at an annual electricity bill anywhere from $15,000 to $35,000+, depending on climate, occupancy, and how electricity-hungry the property is (electric hot water and constant AC use push this higher). Every kilowatt-hour your roof generates is one you're not buying at those rates.


Sizing a System for Your Motel

There's no one-size-fits-all number. The right system is based on your actual 12 months of bills, not a rule of thumb. But as a starting guide, here's roughly where most regional Queensland motels land:

Motel size

Typical system size

Best suited to

10–15 rooms

15–30kW

Smaller highway motels, lower daytime common-area load

20–30 rooms

30–50kW

The most common regional motel bracket

40–60 rooms

50–80kW

Larger properties, often with function rooms or bigger laundries

60+ rooms, resorts, motels with pools/restaurants

75–100kW+

Higher continuous and peak loads

A well-sized system is built to cover your daytime consumption first, the hours when AC, laundry, and common areas are running hardest, because that's where the value is greatest. Oversizing beyond what you can use or export sensibly just extends your payback for no benefit, which is why bill-based sizing (not a generic "per room" formula) matters.


What About Overnight Load?

Most motels still draw meaningfully overnight: guests running AC while they sleep, security lighting, fridges, Wi-Fi infrastructure. You've essentially got two paths.

Battery storage. A correctly sized commercial battery bank captures excess solar generated during the day and discharges it in the evening and overnight, reducing what you buy back from the grid at peak rates. For motels on a demand tariff, a battery can also flatten your peak demand charge by discharging during your highest-draw periods, sometimes worth more than the energy savings alone.


Solar without a battery. A well-sized daytime system alone still delivers substantial savings by offsetting your highest-cost consumption window, with overnight draw covered by the grid at standard rates. For many motels, especially those with tighter capital budgets, this is the more straightforward starting point, with a battery added later once the panels have proven themselves.


There's no universally correct answer here. It comes down to your load profile, your tariff structure, and your appetite for upfront spend. We model both scenarios from your actual bills before recommending either.


The ROI Question: What's the Payback Timeline?

According to Solar Choice modelling across nearly 400 Australian business cases, commercial solar typically pays for itself within three to six years, after which you're generating essentially free electricity for the remaining 15–20+ years of the system's working life. Motels sit toward the stronger end of that range because of how well their daytime loads line up with generation.


On Queensland commercial electricity rates, properties with heavy, constant daytime draw (three-phase power, laundries running most of the day, pools, AC-heavy summer occupancy) tend to land closer to the 3–4 year mark. Once payback is reached, the ongoing savings drop straight to the bottom line: typically $10,000 to $40,000 a year depending on system size and your existing power costs.


A note on specific case studies: if you'd like a real example from a Queensland motel we've worked with, including actual savings figures, get in touch. We can share verified numbers with written customer permission rather than approximate figures.


Rebates: The STC Scheme Still Applies to Commercial Systems

The federal Small-scale Technology Certificate (STC) scheme applies to commercial solar installations up to 100kW, and it's applied as a straight discount at the point of sale; you don't need to claim it back separately. Systems larger than 100kW instead access incentives through Large-scale Generation Certificates (LGCs). Either way, the upfront cost of a motel-sized system is meaningfully lower than the sticker price before rebates.

$0-upfront finance is also available through our Plenti partnership, which means you can start offsetting your power bill from day one without tying up capital you'd rather put into the business.


Beyond the Power Bill: Other Reasons Motel Owners Are Going Solar

Cost reduction is the headline reason, but it's rarely the only one operators mention once they've made the switch.

Guest-facing sustainability credentials. More booking platforms, corporate travel policies, and leisure travellers are actively factoring sustainability into where they stay. A visible solar array is a tangible point of difference on the highway strip.


Insulation from further tariff increases. Commercial electricity prices in Queensland have moved in one direction for a decade. Generating your own power is the most direct way to reduce your exposure to whatever happens next.


Reduced demand charge exposure. If you're on a three-phase commercial tariff, solar (and especially solar plus battery) softens the peak demand spikes that quietly inflate your bill.

Property value. A solar system with a strong warranty stack is a tangible asset that adds to the sale value of the property, not just an operating cost saver.


Questions to Ask Before You Sign a Motel Solar Contract

A motel isn't a house. The install has to work around live operations, guest amenity, and sometimes multiple buildings. Before committing, it's worth confirming:

  • Is the installer SAA (Clean Energy Council) accredited, and can they show you commercial installs they've completed on similar properties?

  • Has the system been sized from your actual 12 months of bills, accounting for seasonal occupancy swings, rather than a generic per-room estimate?

  • How will installation be staged to minimise disruption to guests and rooms that stay operational during the work?

  • What's the warranty on panels, inverter, and workmanship, and is there a local team who'll actually turn up if something needs servicing?

  • Does the quote clearly separate the system cost, STC discount, and any switchboard or electrical upgrade work required for a commercial three-phase connection?


Warranty and Long-Term Support

We install Trina Solar panels backed by 25-year product warranties, Sungrow inverters with 10-year warranties, and back our own workmanship with a 5-year warranty. For a commercial operator, that warranty stack isn't just paperwork. It's the difference between a system that quietly performs for two decades and one that becomes a maintenance headache. It also matters that support is local: if something needs attention, you want a team that knows regional Queensland conditions, not a call centre.


Frequently Asked Questions

How much does a motel-sized solar system cost in Queensland? It depends heavily on system size, but after the STC rebate, most 20–50kW motel systems land in a range that pays for itself within 3–6 years through bill savings. We provide exact figures based on your actual bills and site, not a generic quote.


Will installation disrupt guests or take rooms out of service? Installs are staged to minimise disruption. Rooftop work is typically confined to specific sections at a time, and switchboard work is scheduled around your operating hours wherever possible.

Can a motel run entirely on solar? Not typically without a very large battery bank, which usually isn't cost-effective given how cheap overnight grid power is compared to the capital required. Most motels get the best return from a system sized to cover daytime load, with the grid (and optionally a battery) covering the rest.


What size solar system does a 20-room motel need? Most 20-room regional Queensland motels suit a 30–50kW system, though the right number depends on your occupancy, AC and hot water setup, and whether you run a pool or laundry on-site. We size from your bills, not a per-room rule of thumb.

Do motels qualify for the same solar rebates as homes? Motels access the STC scheme up to 100kW, applied as a point-of-sale discount, the same mechanism used residentially but scaled for commercial system sizes. Systems over 100kW use the LGC scheme instead.


Ready to See What It Looks Like for Your Property?

We specialise in commercial solar for motels, farms, and regional operators across Queensland, from Toowoomba to  Roma and everywhere in between. Send through your last 12 months of bills and we'll model your actual numbers: system size, cost after rebates, and realistic payback.


Call William on 0424 030 189 or get a free quote at www.qldoutbacksolar.com


References & Further Reading

All facts in this post are sourced from the following authoritative sources. We recommend bookmarking these for ongoing updates, as government rebate details and tariff rates change regularly.


Solar Choice, Commercial solar payback periods by state (2025) https://www.solarchoice.net.au/blog/commercial-solar-power-payback-periods/ Analysis of nearly 400 Australian business solar cases. Frequently updated. Authoritative commercial solar benchmark.


Clean Energy Council, Guide to commercial solar https://www.cleanenergycouncil.org.au/consumers/solar/commercial-solar Independent guide to commercial solar systems, including accreditation requirements and what to look for in an installer.


Australian Energy Regulator, Default Market Offer (electricity prices) https://www.aer.gov.au/households/default-market-offer Official source for Queensland commercial electricity price determinations. Updated annually.


Clean Energy Regulator, Large-scale Generation Certificates (LGCs) https://www.cleanenergyregulator.gov.au/RET/Scheme-participants-and-industry/Liable-entities/Large-scale-generation-certificates Relevant for commercial systems over 100kW that do not qualify for STCs.


Business Queensland, Solar for small to medium business https://www.business.qld.gov.au/industries/farms-fishing-forestry/agriculture/business/finance/solar State government guidance on commercial solar eligibility, sizing, and Queensland-specific considerations.

 
 
 

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