At a paint factory tucked away on Sydney's northern beaches, David Stuart plugs in his electric van.
The silver minivan is part of his electric fleet, efficiently powered by the sun's energy.
"We are driving five EVs all powered entirely off the roof, and that's saving us thousands on fuel each year," he said.
A long-time sustainability enthusiast, Stuart has transformed his operation to run almost entirely on renewable energy. The factory is powered by a 100-kilowatt rooftop solar array, backed by a custom-built battery designed to store excess energy for later use.
"Our big battery is Australian-designed and built. It can take the surplus solar that we produce during the course of the day, store it overnight, then we can run all of our morning production with it," Stuart said.
David Stuart has transformed his business operation to run almost entirely on renewable energy. Source: SBS / Sandra Fulloon
It's a positive move, as small businesses across Australia grapple with soaring energy costs.
According to the Australian Bureau of Statistics, electricity prices jumped 9 per cent in the September 2025 quarter. The rise was sharper because energy rebates ended, with the ABS saying prices would have increased 4.8 per cent otherwise.
The surge has been a major driver of inflation, with the consumer price index up 3.2 per cent over the year.
The rise has added to cost of living pressures and renewed calls for greater energy independence through renewable sources.
Before the solar transformation, Stuart said his factory was spending about $24,000 a year on electricity.
"We took the plunge, we went solar and took a bank loan to do it. That bank loan is now paid off and our power bills are now negative," he said.
"Had you told me six years ago we'd be where we are now, I would never ever have believed you."
Energy bills threaten survival of small businesses
Electricity remains a significant expense for most small businesses, particularly those in the manufacturing and hospitality sectors.
This week, the Australian Chamber of Commerce and Industry (ACCI) released its Small Business Conditions Report 2025, revealing mounting pressure on Australia's 2.5 million small business owners.
"Around 44 per cent of those surveyed report high levels of stress," said ACCI CEO Andrew McKellar, citing rising operating costs as a big source of strain.
"Soaring energy bills have taken a toll on businesses across NSW, Victoria and Queensland, and for many owners, those costs have gone up 200 per cent in recent years," McKellar said.
The report found 28 per cent of the 1,100 small business owners surveyed across the country had considered closing in the past year, and 30 per cent worried they might close within the next 12 months.
Cutting costs with solar and efficiency
Solar power is just one way Stuart has reduced operating expenses.
"We also brought in an energy efficiency engineer. He did an audit of the entire site and found that 26 per cent of our electricity was being used to make compressed air and one third of that was being wasted," he said.
"So, we bought a new compressor and over 12 months that led to a 23 per cent drop in our energy usage."
David Stuart has implemented sustainable changes to his paint business, including the installation of a mega-shredder. Source: SBS / Sandra Fulloon
He said switching to LED lighting is "something that any company can do at surprisingly little cost".
"We're now saving somewhere between $35,000 and $50,000 a year every year. That's baked in!" he said.
Not a one-size-fits-all solution
However, going solar isn't feasible for every small business, according to Matthew Addison, chair of the Council of Small Business Organisations Australia (COSBOA).
"If a business is in the right situation, they can look at putting solar panels and a battery in," he said.
"Of the 2.5 million small businesses in Australia, 1.5 million are sole traders."
"They don't necessarily have the time or the financial capacity to invest in solar panels or a big battery.
"So for them [power] bill comparison may be a better option."
Colormaker Industries rooftop solar array. COSBOA says solar may not suit all businesses. Source: SBS / Spencer Austad
COSBOA's recent report, conducted in collaboration with Commonwealth Bank Australia, surveyed 841 small business owners and found some improvement in business confidence.
However, it also revealed that many owners are working harder than ever to keep up with rising costs.
The report found 25 per cent are regularly dipping into their personal savings to stay afloat, while 64 per cent report lower profits than last year.
"Almost three-quarters of those surveyed also expect costs to increase again over the next 12 months," Addison said.
Turning a profit amid rising costs
Small businesses are eligible for $150 in energy bill relief through two $75 quarterly instalments, automatically applied to electricity bills from mid-2025 to the end of the year.
But with profits under pressure, Stuart urged small business owners to innovate and save.
"As an Australian manufacturer, we were trying hard to compete on a world stage. However, rising power prices were taking money out of the bottom line, making our company far less competitive," he said.
His Sydney factory has improved both profits and sustainability, he said, by investing in battery storage.
"Our big battery is a game changer. It's an Australian innovation at its finest, and I'm absolutely passionate about it," he said.
David Stuart said his paint business has improved both profits and sustainability by investing in battery storage. Source: SBS / Spencer Austad
Climate Council's Greg Bourne said: "Initially, the cost of batteries was too high and the payback period didn't really work."
"However, that crossover point has passed and there are many more batteries available, whether it be at the residential level or at the small business level."
Battery storage capacity has also increased over the past three years to more than three gigawatts, Bourne said.
"Australians can collectively save more than $4 billion on their power bills every year if we install two million more batteries in our homes and businesses by 2030," he said.
"Pairing a battery with rooftop solar almost doubles savings, up to $2,300 less per year on power bills for the average household, compared to $1,500 in savings with solar only."
Despite this potential, Bourne said only 8 per cent of the four million Australian households with solar currently use a battery to store excess energy.
A battery has helped Stuart to cut running costs.
With business failure rates forecast to remain above 5 per cent over the next year, he offers this advice:
"You don't need a big budget to innovate.
"You just start where you can, measure the impact and go from there."
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