Soaring electricity bills can eat up anyone’s budget. Since businesses require more energy than regular households, business owners look to commercial solar installations to reduce costs and provide a more sustainable option for their enterprise. Solar energy is a highly effective, clean, and renewable energy source that helps reduce costs in the long term.
In this guide, you’ll learn what a commercial solar installation is, where these can be installed, related costs, and installation timelines. We’ll cover the installation details of installing these energy systems on your property.
What is Commercial Solar?
The installation of solar panel systems on commercial properties, including businesses, industries, and institutions, generates electricity for on-site consumption. Unlike solar installations for residential properties, which focus on individual homes, commercial systems are designed to meet the higher energy demands of larger entities.
If you install these systems in your place of business, expect the process to involve the installation of larger solar panel arrays and higher-capacity inverters. These components can accommodate the increased energy requirements of your commercial operations.
The main difference between residential and commercial installations is their scale and purpose. These installations provide significant cost savings and incorporate social responsibility by reducing your carbon footprint. These systems also reduce your business’ dependence on energy provided by the national grid.
Benefits and Incentives for Solar Panel Installation
There are several compelling reasons why many businesses today opt for installing solar panel systems. Government and non-profit organizations are also joining in the effort, switching to this renewable energy source. Here are some of the incentives you may enjoy when you make the switch:
- Clean Energy Credit: According to the Energy Department, companies switching to solar energy can get a solar tax credit, equivalent to 30% of the total cost of installing the system on your premises.
- Electric Bill Offset: When you have solar systems installed on-site, they can offset up to 100% of your electricity bill. In the long run, these systems can protect you against future utility rate hikes. It can also be a positive cash flow since the repayment costs of financed solar panels tend to be lower than the bill you have to pay for a grid-tied system.
- Modified Accelerated Cost Recovery System (MACRS): Another incentive comes from the MACRS depreciation, which can be used with the solar tax credit you have gained. Businesses benefit from a huge reduction in their tax liabilities, which can reduce your cost basis by up to 85%.
- Increased Property Value: Residential and commercial property values increase with solar installation, allowing you to resell the property with an added premium.
- Low Maintenance Costs: Solar installations can last for over 20 years. They are very durable systems that require little maintenance.
These are only some of the potential benefits and incentives if your enterprise chooses to have a commercial solar installation. Consider these benefits and their long-term impact on your organization.
What is a Commercial Solar Panel?
Several commercial solar panels are available, including monocrystalline, polycrystalline, and thin-film panels. Each type has advantages and disadvantages regarding efficiency, cost, and performance in different conditions.
When selecting commercial solar panels, important factors to consider include efficiency, durability, warranty, and compatibility with the specific requirements of the installation site.
Where Can Commercial Solar Systems Be Installed?
Commercial solar installations can be placed on various properties if there is suitable space and enough sunlight exposure in your location. Some ideal locations to install these systems on-site include rooftops, parking lots, open fields, and unused land adjacent to your commercial building.
Note that the orientation and tilt angle of the solar panels should be optimized to capture as much sunlight throughout the day as possible.
Here are some of the facilities that can greatly benefit from these installations:<
- Manufacturing sites
- Office buildings
- Warehouses
- Retail stores
- Schools and universities
- Hospitals and healthcare facilities
- Farms and agricultural operations
Legal and Regulatory Considerations For Commercial Solar Installation
Before installing commercial solar panels, businesses must consider various legal and regulatory aspects. A seasoned commercial solar installation provider can help you navigate these regulatory requirements through their comprehensive solar installation services.
They can help you with the following:
- Ensure compliance with local building codes and zoning ordinances.
- Obtain necessary permits for installation and electrical work.
- Establish agreements with utility companies for grid interconnection.
- Research available incentives, tax credits, and rebates for commercial solar installations.
- Understand net metering policies to sell excess electricity back to the grid.
- Secure property rights and obtain necessary approvals if installing solar panels on leased or shared properties.
By addressing these considerations, seasoned contractors like Trinity Roofing & Construction can help you navigate the legal and regulatory landscape to ensure successful commercial solar installations.
Installation Timeline
Commercial solar installation involves a process from site assessment to commissioning. Project size, complexity, weather, equipment availability, and local permits affect installation time.
The typical timeline ranges from weeks to months. Larger and more complex projects may take longer. Contact your trusted solar system installers for more information.
How Much Does Solar Panel Installation Cost?
According to national estimates, commercial panel installation costs vary from $50,000 to $600,000. The cost will vary depending on how many kilowatts your business needs for its operations and your location.
Several factors also influence the cost of commercial solar installations, including:
- System Size: The size of the solar PV system is a primary cost determinant. Larger systems typically cost more due to increased material and labor requirements.
- Solar Panel Quality: Higher quality solar panels often come with a higher price tag but may offer better efficiency and durability, leading to long-term savings.
- Site-specific Factors: Site characteristics such as roof condition, shading, orientation, and tilt angle can affect installation complexity and cost.
- Labor Costs vary depending on location, installer experience, and project complexity.
- Inverter Type: The type and number of inverters needed influence costs. String inverters are typically cheaper but may require more maintenance. At the same time, microinverters offer higher efficiency but come at a higher cost.
Specialists can help you estimate installation costs. At Trinity Roofing, we offer free roof inspections to provide more accurate estimates for your business.
Solar Panel System Installation Experts
Trinity Roofing & Construction is the trusted name for reliable and high-quality solar installation for your business. We provide industry-leading warranties, high-quality systems, and a seamless installation process. Call (866) 465-9530 for free consultation or fill out our online contact form for a free estimate.