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Cost of Commercial Solar Panels

Commercial Solar Panels

Some of the world’s largest businesses have made the decision to adopt renewable energy sources for all their operations.

There is still a lot of haziness and confusion about the solar energy industry, and lots of business owners are undecided about switching energy sources. Cost is the major reason for the reluctance of businesspeople and other owners of commercial buildings when it comes to going solar.

If you are already paying for your electricity, however, chances are you’ll be able to afford the change to solar energy sources in the long term. This article will enable you to learn how much commercial solar panels cost and the implications for your business.

Should You Take Your Business Solar?

Before you make the jump from traditional energy sources to solar, you first have to determine that your site is suitable for a solar panel installation. The surface area of your building’s roof, the size of your parking lot, the angle and shading of the sun towards your building, and power grid interconnections, are factors to consider when going for the solar option. Experienced solar energy consultants will provide you with all the information you’ll require to determine whether your location is suited for solar installations.

How Much Do Commercial Solar Panels Cost?

Solar panels for commercial buildings are often marketed as good for the environment, and not necessarily for a company’s bottom line. Businesses of all sizes are now waking up to the truth that commercial solar panels can also be good for their balance sheets. Let’s crunch the numbers that validate this assertion.

The cost of solar panels for your building will depend on how much electricity your business consumes. Electricity use is measured in kilowatt-hour, and you first have to determine how much electricity your commercial building consumes from your utility company. Your average monthly electricity usage will be found on the bill you receive from your provider. The cost of commercial solar panels is measured in dollars per watt.

The average cost of a commercial solar panel in California is $2.87/watt as of February 2021. A 330-watt panel would therefore cost $947.1. A small-sized commercial building will require about 25 kilowatts (1000 watts = 1 kilowatt) of power for their operations. Thus, you will need to install 25,000/330 = 75 of such panels on your commercial building.

The estimated cost of installing a 25-kilowatt commercial solar panel would therefore be $947.1 X 75 = $71,032.5.

The solar panels take the chunk of the cost as they account for about 45-52% of total expenditure. The solar inverters regulate the source of the building’s energy, and they account for 35-40% of expenses. Labor costs take up about 10-15%, while miscellaneous expenses like filing paperwork and obtaining permits make up the rest.

The following factors can affect how much you pay for your commercial solar panels.

Location and Size of Your Solar Energy System

The size and geographic location of your roof determine how much sunlight your building receives. The more sunlight your building receives, the lower you’ll spend on commercial solar panels.

Building Occupancy Type

Owning the building on which you intend to install commercial solar panels provide tax benefits, reduced operating costs, lower occupancy costs, and higher rent potential.

Amount of Direct Sunlight You Receive Per Day

Inadequate direct sunlight can increase the amount you’ll have to spend on commercial solar panels. The angle and orientation of your roof also impact how much energy you’ll generate and how much you’ll need to meet your commercial solar energy demands.

Tax Incentives

The solar Investment Tax Credit (ITC) offers investors in commercial solar projects tax credit on 26% of the amount invested in their projects. However, this figure will drop to 10% after 2021. Some state and local authorities also support commercial solar investments with rebates and policies that provide ways of cutting down on cost. The State of California however does not provide tax credit for commercial or domestic solar installations.

Our commercial solar panel cost calculator will help you figure out how much you’ll be saving when you make the move to commercial solar panels.

Advantages of Opting for Commercial Solar Panels

Helps in Protecting the Environment

You do your part in fighting climate change, reducing pollution, and keeping the planet green when you make the switch to solar commercial panels. This move can also be good for public relations and marketing your business. An eco-friendly image is always a magnet for potential customers.

Protection Against Fluctuating Utility Rates

Sudden spikes in your electricity bill can put undue pressure on your business. Installing commercial solar panels will insulate your business from rising utility bills helping you save money in the long term.

Reduced Operating and Maintenance Costs

It is easy to cut down on operating costs when you’ve got your solar system up and running. You can totally eliminate operating costs by selling any excess energy you produce with available net metering programs. Continuous improvements in solar energy technology have led to the production of durable panels that require little maintenance. You may need to perform routine checkups and cleaning to discover breakdowns and parts in need of replacement.

Energy Security and Reliability

Installing commercial solar panels will help prevent power cuts that can interfere with your business. Most manufactures of commercial solar panels offer a warranty of 20 to 30 years on their products, making them viable for long-term business projections.

The Future of Commercial Solar Panels

Renewable energy is undoubtedly the future of global energy production and use. The cost of commercial solar panels has plummeted significantly within the past decade making them a viable option for businesses everywhere. Solar energy is a solution to one of the major challenges facing the world. The sun provides enough power to meet global energy demand without harming the environment. However, we still have to figure out how to affordably and efficiently convert this unlimited energy source to electricity.

The production of more efficient solar modules that generate more power than existing modules of the same size will significantly reduce costs in the coming years. Also, advances in solar panel technology will reduce the number of expensive materials, like silicon employed in the manufacture of solar panels. These innovations will reduce the cost of commercial and domestic solar panels. Thus, solar electricity use will continue to rise in the coming years, with positive impacts on the planet and businesses worldwide.