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How much does a commercial solar panel system cost? What should I consider before buying one?
Solar power has become extremely affordable over the last decade. In fact, solar energy now costs less than conventional sources such as coal or natural gas.
This means that businesses and homeowners can save money on their utility bills without sacrificing comfort or convenience.
However, does this mean that solar panels are now more affordable too?
Solar panels sound like a good idea to many businesses, but there is often one big thing in the way of them actually being able to be used – the cost.
A solar panel installation can generate clean, renewable electricity for your business. If you’re interested in installing a solar panel system at your business, here are some things to consider.
The Cost Of Commercial Solar Panels
The cost of a solar panel system depends on how large it needs to be, what type of solar panel you choose, and where you work.
The average price of a commercial solar panel system is around $50,211-$502,113. The average cost of commercial solar panels is $251,162.
However, if you want to install a larger system, you may have to pay more.
To work out how big your solar panel system needs to be, you will need to know the dollar per watt rate of your area.
An average commercial solar system will cost around $2.87 per watt. However, the full range was between $2.50-3.22 per watt.
Commercial solar panel systems are larger than residential, so they will cost more in the long run.
The average commercial system in the United States was $251,162. This was for a 100kW system.
The most common sizes of commercial solar panel systems are 25kW, 50kW, 100kW, and even 250kW.
Using the example that the average cost per watt is just under $3, let’s take a look at the costs you could expect to see with each of these commercial solar panel systems.
- Small system at 25kW: $50,211
- Small-medium at 50kW: $100,423
- Medium system at 100kW: $200,846
- Large system at 250kW: $502,113
Bear in mind that these average prices listed above do include the federal tax relief of 30%, so you won’t get any more money off of these prices.
They are all averages, so you can expect your price to be slightly higher or lower depending on where you live and your price per watt.
How Much Can Commercial Solar Panels Save On Energy Costs?
So, the prices that we have just mentioned above are incredibly steep and you might be wondering if it is really a worthwhile investment.
The answer to that depends on how much you are currently spending on energy and whether you want to reduce your bill or not.
Solar panels always make sense if you’re paying a high price for your energy every month.
Commercial settings are likely to be able to save around 75% on their energy bill thanks to a solar panel system.
If you’re paying an average of $1,000/month on your electric bill, then you’ll probably find that a commercial solar panel system would make sense.
You’d be saving about $750 per month, meaning your energy bill would only be $250.
In 12 months you’d save $9,000. That’s a lot of money, and you’d be able to pay off your solar panel costs within 3-7 years.
On the other hand, if you’re only paying $300/month on your electric bills, then a commercial solar panel system might not make sense.
Your bill would reduce to $75, but it would only save you about $2700 in 12 months. While this is still a good saving, it will take you much longer to pay off your solar panel costs.
Solar Power For Businesses
Solar power is becoming increasingly popular as businesses realize its potential benefits.
Not to mention the tax relief that you can get from the government incentives when using a clean-energy initiative.
Here are some of the tax credits that you could be entitled to, helping you to pay back your solar panel costs much quicker.
Federal Tax Credit
You can claim a 30% Federal Tax credit on your commercial solar panel installation.
This means that you can deduct up to 30% of your total upfront cost for the new solar panel system. If you’re claiming this tax credit, you must use solar panels that generate electricity.
State Tax Credit
In addition to the Federal Tax Credit, many states offer state tax credits that can help you offset the cost of installing solar panels.
These state tax credits vary greatly between states, but they are usually worth anywhere between 1%-20%.
For example, Arizona offers a 10% tax credit on top of the 30% federal tax credit for commercial solar panels.
This means that you’ll be getting 40% off of the initial upfront cost for your solar panels. Considering how expensive these systems are to install, this can be a big help to all businesses!
Commercial businesses have another excellent method of tax relief under their belt, as they can also benefit from accelerated depreciation.
This means that the facility owners are allowed to deduct as much as 85% of the cost of their solar panel system from their company taxes.
This allows them to remove a large portion of the upfront costs for their solar panel systems.
How Much Does It Cost To Install Solar Power Systems?
The cost of installing a commercial solar panel system depends largely on the size of the project.
The larger the system, the more expensive it will be. However, there are ways to keep your costs down.
One way is by choosing a reputable installer who has experience with large scale installations.
Another way is by buying pre-assembled solar panels. They come at a lower price than buying raw materials and assembling them yourself.
Another important factor in determining your solar panel cost is the type of solar panels you choose. There are two main types of solar panels: monocrystalline and polycrystalline.
Monocrystalline panels produce more energy than polycrystalline panels, but they are significantly more expensive.
No matter which type of solar panels you choose, it’s interesting to recall that the price of installation now is considerably cheaper than it ever has been before.
In fact, since 1998, the installation cost of solar panels has decreased between 6-12% every single year.
Since 2019, the yearly decrease in price has been more significant and therefore more enticing.
What Are The Benefits Of Commercial Solar Panels?
If you’ve been thinking about investing in commercial solar panels for your business, then you need to know why you would want to do so.
In fact, if you don’t already know, you may not even be aware of the benefits that you can gain from having a solar panel system installed.
Let’s take a look at some of the most common reasons why businesses invest in solar panels.
One of the biggest advantages of opting for a solar panel system is that it gives you an edge over other companies.
When you go solar, you’re able to reduce your dependence on fossil fuels.
You won’t have to worry about relying on foreign oil or coal anymore, which makes you less vulnerable to natural disasters like hurricanes and earthquakes.
When you install solar panels on your roof, you’ll get access to clean power 24/7. This means that you can use the extra electricity to run any equipment you have in your office.
If you have computers, printers, copiers, fax machines, etc., you can now use them without worrying about running out of power during peak hours.
Reduced Utility Bills
When you install solar panels, you’ll be saving money every month. Your utility bills will decrease because you’ll no longer have to pay for electricity when you aren’t using it.
By doing this, you’ll save money on your monthly electric bill and you’ll be able to spend that money elsewhere.
Solar Energy Is A Great Business Investment
You might think that solar energy is only good for homeowners and small businesses. But, it turns out that it’s actually a great investment for big corporations too!
Companies that install solar panels on their roofs often see their profits increase by 30%.
And, since they’re making money off of something that was free before, they end up paying back their initial investment within just a few years.
So, if you’re looking to make a profit, consider adding solar panels to your company’s roof.
You Can Save Money On Electricity Costs
The average American spends $1,000 per year on electricity. That’s a lot of money, especially considering how much we all rely on electricity these days.
If you’re spending thousands of dollars each year on electricity, you might as well try to save as much as possible.
Luckily, there are many things you can do to cut down on your electricity costs.
One of the best ways to lower your electric bills is to switch to renewable sources of energy. Renewable energy includes solar power and wind power.
Both of these options are completely free, meaning that you won’t have to pay anything to generate electricity with them.
Reduced Carbon Footprint
If you care about the environment, you’ll want to make sure that you’re reducing your carbon footprint wherever you can.
Fortunately, installing solar panels on your home or business can help you achieve this goal. Not only does it help you reduce your carbon emissions, but it also helps protect the planet.
Quick Return On Investments
One thing that most people don’t know about solar energy is that it has a very quick return on investments.
It doesn’t take long at all for solar panels to start generating enough electricity to offset the amount of energy that they consume.
In fact, some studies show that solar panels can begin producing more than 10 times the amount of energy that you originally invested in them.
Lower Maintenance Requirements
Many solar panels don’t need much maintenance so you can use them for years without having to repair or maintain them.
You can even get a professional in to do this for you, so you won’t have to do a single thing.
Some solar panel companies even throw this offer into their deal for free, so you won’t have to spend anything on maintenance for a number of years!
Benefit From Lock-In Power Costs
When you invest in solar panels, you’re not just getting a new source of energy; you’re also locking yourself into a low rate for electricity.
This means that you won’t have any problems paying for electricity in the future.
Even better, you won’t have to worry about rising rates either. Since you’re locked in to a fixed price, you’ll never have to worry about whether or not your electricity prices will go up.
There are several different types of tax rebates available when investing in solar panels.
Some states offer rebates for both residential and commercial installations, while others offer rebates specifically for commercial installations.
The exact details vary from state to state, but you can find out what kind of rebate programs are available in your area by contacting your local utility company.
Make Yourself Look Good
With the current global warming crisis ongoing, many consumers are turning to more eco-friendly companies.
Statistics have shown that more climate-conscious businesses are becoming more favorable to consumers.
So, using solar panels instead of energy from the grid for your business might appeal to more consumers and therefore make you look better, thus spurring them to jump to your business instead of your competitors.
How Much Money Can Be Saved With Commercial Solar Panels?
The savings that you can expect to see depend on a few factors. First, you’ll want to consider how big your property is.
A small commercial building may be able to handle an installation of five or six solar panels, whereas a large building may require dozens of panels.
Second, you’ll want to look at the size of your monthly electric bill. Most people who install solar panels end up saving around 75% off of their total electricity bill.
Finally, you’ll want to determine if there’s any incentive program offered in your area. If so, you’ll be able to save even more money.
Let’s look at an example for a business looking to install a solar panel system.
They will offset their energy usage by 75.3%, therefore reducing their monthly bill by $1,433 – from $1,950 to $517.
With this saving, the business will be able to pay off their solar panel system within 3 to 7 years, meaning they won’t have to pay anything after this.
That means that they will be able to enjoy within 25 to 35 years of energy for free!
With this kind of example, is it any wonder that businesses who can afford to go solar, do purchase their own solar panel system?
Are Commercial Solar Panels Worth The Investment?
If you’re wondering if commercial solar panels are worth the investment, then you should know that the answer is yes.
In fact, according to the U.S. Department of Energy (DOE), installing solar panels will actually reduce your electric bills by as much as 75.3%.
However, if you’re thinking about going solar, you need to keep one thing in mind: You’ll still need to generate enough power to cover all of your needs.
Therefore, you’ll still need to use some form of energy generation, such as natural gas, coal, nuclear, etc.
In addition, you’ll also need to factor in the cost of maintenance. After all, solar panels aren’t perfect.
As time goes on, they will wear down over time and eventually stop working. This means that you’ll have to spend money replacing them every now and again.
However, with all these things taken into consideration, it’s safe to say that commercial solar panels are definitely worth the investment.
Solar panels are a great way to help conserve our environment and cut back on greenhouse gasses.
They can save costs on energy bills up to 75%, and businesses using them can benefit from a number of different tax credits to reduce the upfront cost of your solar panels.
Make sure to do your research before opting for your solar panel system to ensure that you’re getting the best deal.
However, no matter how you look at it, solar panel systems are definitely a great choice for any commercial building.