Solar panels continue to be of growing interest, not just to homeowners but to commercial properties as well. However, the energy considerations of a commercial property are often much 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 (SEIA), commercial solar installations broke the record in 2023 with a 19% increase from 2022. While each building using these panels will be different, some common considerations should be examined before any commercial property adds itself to the growing number of solar-powered businesses.
Here is what property owners need to know about solar, from long-term savings to the reduced carbon footprint and energy independence they can offer.

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
Solar panels can reduce energy bills by up to 70%, depending on system size and energy consumption. Some of this comes from “peak shaving,” where commercial solar systems can reduce energy costs by offsetting high-demand periods. By drawing from a solar system and connected battery during peak use, businesses can avoid paying for energy when the building is in its most energy-intensive operations.
Corporate Sustainability and Public Image
Solar energy helps businesses meet sustainability goals and reduce their carbon footprint. Worldwide, utility-scale solar systems typically offset 125 million metric tons of CO2 emissions annually, equivalent to removing more than 25 million cars from roads.
Attractive Return on Investment (ROI)
With savings on electricity and available incentives, commercial solar installations may have an ROI of over 15-20%. While residential installations can take between five and seven years to pay back, commercial buildings with larger arrays should expect a slightly longer horizon: often around 10 years, though it varies significantly based on location and array size.
Factors to Consider When Selecting Solar Panels for Your Commercial Property
Many commercial properties are solar-viable. However, it is not as simple as going to the home improvement store, picking any solar panel from the shelf, and handing it to an installer. Different panel sizes, orientations, and efficiency ratings should all be factored into the decision for any commercial building, which is why an installer typically supplies the panels.
Roof Space and Energy Needs
Analyze your property’s roof space (is it flat or sloped?). Is there open land adjacent to the building that could be used to determine the type and number of panels suitable for installation? The average commercial building in the U.S. requires between 30 to 100solar panels, depending on consumption.
Efficiency Ratings
Review the efficiency ratings of the panels. Commercial solar installations should aim for panels with an efficiency rating of at least 17% to 22%. Higher efficiency means that the panels are more effective at converting the radiation from the sun into energy. In other words, commercial buildings get more energy from less solar panel space. This is especially important when roof space is limited.
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, and 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. Tier 1 solar panels typically offer better durability.
Financial Considerations for Commercial Solar
While going green might be motivated primarily by a business’ interest in reducing energy bills or positively impacting the environment, any commercial property must also consider how its budget aligns with a solar installation.
Upfront Costs and Long-Term Savings
The average cost for a commercial solar installation ranges between $50,000 and $500,000, depending on the size and energy needs of the property. A 100 kW system is roughly the midpoint of this range, costing around $250,000 to $350,000 on average. Businesses with intensive energy needs may consider something as high as 500 kW, which can reach around a million dollars in expenses (before any incentives that may reduce the final cost).
Financing Options: Solar Loans, Leases, and PPAs
While some commercial properties might purchase a solar installation outright if the budget allows, other options exist for funding the conversion to green energy. Power purchase agreements (PPAs) partner the installer with the business to own and manage the panels collaboratively, with the installer handling maintenance.
However, after a set period, the commercial building becomes the owner of the panels. This reduces the upfront cost and the burden of maintenance. These advantages are essentially why over 70% of commercial solar installations are financed through PPAs or solar leases.
Federal and Local Incentives
The Business Investment Tax Credit (ITC) offers a 30% federal tax credit for solar systems installed before 2033. Alternatively, the Production Tax Credit provides a tax credit for the electricity a commercial system generates for its first 10 years. Businesses cannot claim both at the same time.
Federal incentives are not the only option for businesses to adjust their financing. State and local incentives, such as net metering and accelerated depreciation (MACRS), can help companies recover solar investment costs (either through selling their excess energy or recovering the depreciated cost of the new system). Similarly, the C-PACE program provides resources businesses can use to access financing for solar panels.

Solar Panel Technology and Equipment Choices
Check with your installer to ensure they’re utilizing modern solar technology. Some considerations include:
Microinverters vs. String Inverters
An inverter is an element of the solar system that converts the DC energy gathered from the sun to the AC energy usable for electrical needs. String inverters are set up in a row, attaching to the entire array. Conversely, microinverters are all individually connected to panels. Microinverters are more efficient for large commercial arrays because each panel can function independently, reducing the impact of shading or individual panels’ underperformance.
Battery Storage Solutions
Solar battery storage is invaluable for commercial properties, particularly as a backup system for power outages or to store excess energy for nighttime use or peak demand periods. FranklinWH is our trusted partner for solar batteries because they are affordable, easy to install, and safer than the competition due to the use of lithium iron phosphate.
Choosing the Right Solar Installer
Once a commercial building owner is confident that solar panels are the right next step, 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 (NABCEP). Be sure to request project portfolios and references from previous commercial clients.
Any reputable installer should be happy to provide evidence of past successes. Before committing to any company, check that they are licensed and insured so that, if accidents happen, their insurance will pay for the event.
Installation Process Timeline
Commercial structures are business hubs; keeping projects on track during solar installation is essential. Expect the timeline from initial consultation, design, and permitting to final installation to take six months or more (depending on project scope and how long the utility company takes to provide project approvals).
Maintenance Considerations for Commercial Solar Systems
The commercial solar system is now installed. Congratulations! However, the process does not entirely stop here. Commercial owners must establish a maintenance plan to keep the solar array in good condition and functioning efficiently.
Commercial systems are relatively low maintenance. However, keeping panels clean and free of debris will maximize energy production. Real-time energy monitoring enables immediate detection of performance issues, reducing downtime and operational losses.

Making the Smart Choice for Your Commercial Solar Panel System
Any commercial structure looking to save on energy costs, reduce its carbon footprint, and transition away from grid reliance can benefit from a solar installation. However, before making the leap, it is essential to consider the available financial incentives, energy savings, technology choices, and installers.
Solar energy is an investment in long-term sustainability and cost savings, with benefits that extend beyond your business to the entire planet. So, approaching this decision with care is the smart thing to do. Ready to install a commercial solar system? Contact Uprise Solar today for a custom consultation and find the perfect solar solution for your business.