Solar panels continue to be of growing interest, not just for homeowners but commercial properties as well. However, a commercial property’s energy considerations are often far more significant than those of a residential home, and businesses must consider their solar installation choice with this in mind.
According to the Solar Energy Industries Association, commercial solar installations broke the record in 2023 with a 19% increase from 2022. While each commercial solar installation will be different, there are some common considerations before any commercial property owner adds their building to the growing number of solar-powered businesses. Here’s what you need to know about going solar, from long-term savings to a reduced carbon footprint and energy independence.
Fundamental Benefits Of Solar Power For Commercial Properties
Solar is growing in popularity for many reasons. For businesses specifically, some of the most appealing factors include:
Significant Energy Savings
Perhaps most obviously, solar panels reduce energy bills. Some of this can come from peak shaving, where commercial solar systems lower energy costs by offsetting high-demand periods. By drawing from a solar system and connected battery during peak use, businesses can avoid paying so much for energy during energy-intensive operations.
Corporate Sustainability And Public Image
Solar energy helps businesses meet sustainability goals. Worldwide, utility-scale solar systems offset 125 million metric tons of carbon dioxide emissions each year, which is the equivalent of removing over 28 million cars from roads.
Attractive Return On Investment
With savings on electricity and available incentives, commercial solar installations may have a return on investment of over 10%, and a payback period of roughly around 10 years, varying by location and array size.
Factors To Consider When Selecting Solar Panels For Your Commercial Property
Many commercial properties are solar-viable. However, going solar is not as simple as dashing to a home improvement store and grabbing any solar panel off the shelf. Professional installers will factor different panel sizes, orientations, and efficiency ratings into the decision for a commercial building, drawing on their expertise to optimize your solar array.
Roof Space And Energy Needs
Analyze your property’s roof space, and assess open land adjacent to the building for a potential ground mount installation.
Efficiency Ratings
Review the efficiency ratings of the panels. Commercial solar installations should aim for panels with an efficiency rating of 20% to 22%. A higher efficiency rating means the panels are more effective at converting sunlight into energy.
Durability And Warranty
Confirm that the panels and associated equipment come with long-term warranties. Standard commercial solar panels come with 25 to 30 years of performance warranty. Inverters often have 10 to 15 years of coverage. Don’t forget to evaluate panels for durability against extreme weather conditions such as high winds, heavy snowfall, or hail. Uprise installs Tier 1 solar panels.
Financial Considerations For Commercial Solar
Any commercial property owner must consider how their budget aligns with a solar installation.
Upfront Costs
The cost for a commercial solar installation varies widely. For example, a 100 kilowatt system (such as on a school) might cost $73,000 to $146,000, while a 500 kilowatt system (like on a shopping mall) might cost $730,000 or more. It will depend on your energy needs and the size of your property.
Financing Options: Solar Loans And PPAs
While some commercial properties might purchase a solar installation outright, other options exist for funding the conversion to green energy. Power purchase agreements (PPAs) allow a business to partner with an installer to provide roof space while the installer receives financial incentives and handles maintenance. After a set period, the commercial building owner typically becomes the owner of the panels. This reduces the upfront cost and the burden of maintenance. Loans can also allow business owners to go solar without shelling out a large amount of money at installation time.
Federal And Local Incentives
The Investment Tax Credit offers a one-time 30% federal tax credit for solar systems. Alternatively, the Production Tax Credit provides a tax credit per kilowatt-hour for the electricity a commercial system generates for its first 10 years. (Businesses cannot claim both at the same time.)
State and local incentives, such as net metering (selling excess energy) or accelerated depreciation (recovering the depreciated cost of the new system) can also help companies recover investment costs. Similarly, the C-PACE program provides resources businesses can use to help finance solar panels.
Choosing The Right Solar Installer
Once you’re confident that solar panels are the right next step for your business, it’s time to choose an installer.
Evaluating Installer Experience In Commercial Projects
Check for experience with commercial installations and certifications, such as ones from the North American Board of Certified Energy Practitioners, or NABCEP. Be sure to request project portfolios and references from previous clients. Any reputable installer should be happy to provide evidence of past successes. Also, before committing to any company, check that they’re licensed and insured.
Installation Process Timeline
Expect the timeline from initial consultation, design, and permitting to final installation to take six months or more, depending on the project scope and how long the utility company takes to provide project approvals (which can take longer with large installations).
Maintenance Considerations
Think ahead to the future, too, and establish a maintenance plan to keep the solar array functioning efficiently. Commercial systems are relatively low maintenance, but check with your installer about real-time monitoring to enable immediate detection of performance issues. Will your installer partner with you for the lifetime of the installation? Are they experienced in providing maintenance if necessary?
Making The Smart Choice For Your Commercial Solar Panel System
Commercial structure owners looking to save on energy costs, reduce their carbon footprint, and transition away from grid reliance can benefit from solar. Clean energy is an investment in long-term sustainability and cost savings, with benefits that extend beyond your business to the entire planet. Ready to install a commercial solar system? Contact Uprise Solar today for a custom consultation and find the perfect solar solution for your business.