Commercial Solar Panels: Everything You Need To Know

If you are interested in commercial solar panels, our guide has you covered. The costs, consideration, pro’s and con’s, are all here in one great resource.

commercial solar panel system.

Phot by: Roofjockey
CC BY-SA 4.0, via Wikimedia Commons

Key Takeaways

  • Commercial solar panels can differ from residential solar panels in size, permitting requirements, and financial incentives available.
  • The main benefits of commercial solar panels are decreased monthly bills, reduction of green house emissions, and green business marketing potential.
  • The cost of commercial solar panels will vary greatly depending on location and energy needs.

Welcome to our article on commercial solar panels! Are you a business owner looking to reduce your electricity costs and carbon footprint? Or perhaps you’re just curious about the benefits of switching to solar energy? Either way, you’ve come to the right place.

Solar energy is on the rise, and for good reason. It’s a clean, renewable source of energy that can save businesses money on their electricity bills while also helping to protect the environment. Commercial solar panels are a popular choice for businesses of all sizes, and in this blog, we’ll explore everything you need to know about them.

You’ll learn about the different types of commercial solar panels available, the benefits of using them, and how to choose the right system for your business. We’ll also delve into the financing options available, the cost of installation, and answer some frequently asked questions about commercial solar panels.

So sit back, relax, and get ready to soak up some knowledge (pun intended). Together, we’ll explore the bright (okay, we’ll stop with the puns now) world of commercial solar panels and how they can benefit your business.

What Are Commercial Solar Panels?

Commercial solar panels, also known as photovoltaic (PV) panels, are a type of solar energy technology used by businesses, governments, schools, universities, and nonprofits to generate electricity from sunlight. They are installed on the roof or grounds of a commercial building and convert sunlight into electricity through a process called photovoltaics.

But how exactly do they work? PV panels contain layers of silicone cells that are sandwiched between two layers of protective material. When sunlight hits the panels, the energy is absorbed by the silicone cells, which causes electrons to become excited and move around. This movement of electrons creates an electric current, which can be captured and converted into usable electricity.

Now, you may be wondering how commercial solar panels differ from residential solar panels. Essentially, the main difference is in the size and capacity of the solar panel system. Commercial solar panel systems are typically larger and more powerful than residential systems, as they are designed to meet the energy needs of a business or organization.

In addition to PV panels, a commercial solar panel system includes several other components, such as inverters and mounting systems. The inverters convert the direct current (DC) electricity generated by the PV panels into alternating current (AC) electricity, which is the type of electricity that is used in buildings. The mounting system is used to secure the PV panels to the roof or ground.

There are several different types of commercial solar panels available on the market, including monocrystalline, polycrystalline, and thin-film. Monocrystalline solar panels are made from a single crystal of silicone and are known for their high efficiency and sleek appearance. Polycrystalline solar panels are made from multiple crystals of silicone and are generally less expensive than monocrystalline panels. Thin-film solar panels are made from a thin layer of photovoltaic material and are the least efficient type of solar panel.

Benefits Of Using Commercial Solar Panels

Financial Benefits

  • Reduced electricity costs
  • Potential to take advantage of incentives offered by governments or utility companies

Environmental Benefits

  • Clean, renewable source of energy that does not produce greenhouse gas emissions or air pollution
  • Potential to reduce carbon footprint and combat climate change

Increased Energy Independence and Security

  • Ability to generate your own electricity and potentially reduce reliance on the grid
  • Can be especially important in areas prone to power outages or natural disasters

Green Marketing

There are few better ways for companies to demonstrate their commitment to corporate responsibility and the people and communities they serve than investing in solar energy. In addition to the financial and energy security benefits mentioned earlier, the use of commercial solar panels can also help businesses to demonstrate their dedication to reducing greenhouse gas emissions and pollution.

This can not only help to protect the environment, but it can also support positive PR and marketing efforts. By choosing to adopt clean, renewable energy, businesses can show their customers and stakeholders that they are committed to making a positive impact on the world.

As a business owner, you know that saving money is always a top priority. One of the main benefits of using commercial solar panels is the potential to reduce electricity costs. By generating your own electricity through solar panels, you can potentially offset a significant portion of your electricity bill, depending on the size of your solar panel system and your energy usage.

In some cases, businesses may also be able to take advantage of incentives offered by governments or utility companies for using solar energy, which can help to offset the initial cost of installing a solar panel system.

In addition to financial savings, commercial solar panels can provide a number of environmental benefits. Solar energy is a clean, renewable source of energy that does not produce greenhouse gas emissions or air pollution. By switching to solar, businesses can play a role in reducing their carbon footprint and helping to combat climate change.

Using commercial solar panels can also increase a business’s energy independence and security. Depending on where you are located, you may be at the mercy of the local utility company when it comes to your electricity supply. With a commercial solar panel system, you can generate your own electricity and potentially reduce your reliance on the grid. This can be especially important in areas prone to power outages or natural disasters.

If you are more of a visual learner, check out the video below for a breakdown of commercial solar 101:

Choosing the Right Commercial Solar Panel System

Ready to make the switch to solar and save some green while being green? Great decision! But with all the different options out there, how do you choose the best solar panel system for your business? No need to stress, we’ve got you covered with these key factors to consider.

Size and Location

The size and location of your solar panel system will have a major impact on its performance and efficiency. It’s important to choose a system that is appropriately sized for the energy needs of your business and that is positioned in a location that receives plenty of sunlight. An experienced solar panel provider or installer can help assess the specific needs and constraints of your business and recommend a system that is well-suited to your unique circumstances. Just remember, bigger isn’t always better – you don’t want to waste your hard-earned cash on a system that’s too large for your needs.

Budget

The cost of a commercial solar panel system can vary widely depending on the size, location, and technology used. It’s important to have a clear understanding of your budget and to work with a provider or installer who can help identify options that fit within that budget. Don’t forget to look into any financial incentives or subsidies that may be available to help offset the cost of solar energy.

Solar Panel Technologies

There are several different types of solar panel technologies available, each with its own advantages and disadvantages. Some of the most common types include monocrystalline, polycrystalline, and thin-film.

Monocrystalline panels are made from a single crystal of silicon and are known for their high efficiency and performance, but they can also be more expensive. Polycrystalline panels are made from multiple crystals of silicon and are typically less efficient but also less expensive.

Thin-film panels are made from a thin layer of photovoltaic material and are the least efficient but also the most flexible and lightweight. It’s important to consider the specific needs and goals of your business when deciding on the right solar panel technology. An experienced solar panel provider or installer can help recommend the best option for you.

Don’t Let These Roadblocks Stand in the Way

So you’re ready to go solar, but you’re worried about potential roadblocks that could prevent you from making the switch? No need to worry, we’ve got you covered with this list of common challenges and solutions for overcoming them.

Building Limitations

One potential roadblock for businesses considering solar energy is the condition or orientation of their building. Maybe your roof is too old or too shaded to support a solar panel system. Maybe your building is not oriented in a way that maximizes the potential for solar energy.

Don’t let these challenges stand in your way! There are options available, such as ground-mounted solar panel systems or solar carports, that can help you go solar even if your building has limitations.

An experienced solar panel provider or installer can help assess the specific needs and constraints of your building and recommend the best solution.

Zoning Restrictions

Another potential roadblock for businesses considering solar energy is local zoning regulations. Depending on where you are located, there may be restrictions on the size or placement of solar panel systems.

Don’t let these regulations stand in your way! It may be possible to work with your local zoning board to get the necessary approvals or to find a solution that meets the requirements.

An experienced solar panel provider or installer can help navigate the process and advocate for your solar goals.

Financing Challenges

For some businesses, the upfront cost of a solar panel system may be a roadblock. But don’t let that stand in your way! There are a variety of financing options available, including leases, power purchase agreements, and loans, that can help make solar energy more affordable.

With the right financing solution, you can go solar without breaking the bank.

Step-By-Step Guide To Commercial Solar Panels

Getting commercial solar panels on your business can seem like a daunting task, but just take it step by step. Here are the steps needed:

  1. A site audit: Before you do anything else, it’s important to plan a site audit to assess the feasibility and potential return on investment of a solar panel system for your business. A site audit typically includes an evaluation of your building’s structure, orientation, and energy usage, as well as an assessment of local zoning regulations and incentives. An experienced solar panel provider or installer can help you plan and conduct a site audit, and provide you with a detailed report on the potential benefits and challenges of going solar.
  2. Review the Engineer’s Plan: Once you’ve conducted a site audit and determined that solar energy is a viable option for your business, it’s time to review the engineer’s plan for your solar panel system. This plan should include detailed information on the size and layout of your solar panel system, as well as any necessary modifications to your building or electrical system. Make sure to review the plan carefully and ask any questions you may have before moving forward.
  3. Permitting: Before you can install your solar panel system, you’ll need to obtain the necessary approvals and permits, such as building permits and interconnection agreements. This process can vary depending on your location, so it’s important to work with a reputable solar panel provider or installer who is familiar with the permitting process in your area.
  4. Install Panels: Once you have all the necessary approvals and permits, it’s time to install your solar panels! This typically involves coordinating with contractors and utilities to ensure that everything goes smoothly. Make sure to follow all safety guidelines and instructions during the installation process.
  5. Schedule Inspection: After your solar panel system is installed, it’s important to schedule an inspection to ensure that everything has been installed correctly and meets all safety standards. Your solar panel provider or installer should be able to help you schedule an inspection with the appropriate authorities.
  6. Submit Utility Connection Request: Finally, once your solar panel system passes inspection, it’s time to submit a request to connect to the utility grid. This typically involves filling out some paperwork and coordinating with your local utility company. Again, your solar panel provider or installer should be able to help you with this process.

And that’s it! Once you’ve completed these steps, you’ll be able to generate your own electricity, reduce your energy costs, and do your part for the environment. It’s a win-win-win!

Difference Between Residential and Commercial Solar Systems

Although they both use the same type of solar panels and basically the same components, there are a few differences between the two. Here are the main differences:

Size

One of the main differences between residential and commercial solar panel systems is size. Commercial solar panel systems are typically larger and more complex than residential systems, due to the greater energy needs of businesses. This means that commercial solar panel systems may require more panels, more equipment, and more installation time.

Cost Difference

Another difference between residential and commercial solar panel systems is cost. Because commercial systems are typically larger and more complex, they tend to be more expensive to install and maintain. However, the higher upfront costs of commercial solar panel systems may be offset by the greater energy savings and incentives available to businesses. It’s important to carefully consider the costs and benefits of both residential and commercial solar panel systems before making a decision.

Incentives and Tax Credits

Finally, there are often different incentives and tax credits available for residential and commercial solar panel systems. For example, some states offer higher rebates or credits for commercial solar panel systems, while others may have more favorable policies for residential systems. It’s worth researching the incentives available in your area to help you make the most cost-effective decision for your business.

Cost Of Commercial Solar Panels

Understandably, cost is a major concern for businesses considering switching to solar energy. There are several factors that can affect the overall cost of a commercial solar panel system, including the size of the system, the type of installation, and the components used.

Size Of The System

The size of the commercial solar panel system will have a significant impact on the overall cost. Larger systems will generally cost more due to the increased number of solar panels and other components required.

Type Of Installation

The type of installation will also affect the cost of a commercial solar panel system. Rooftop solar is the most common type of installation, with several different options to choose from, including standard roof mount, single-tilt flat roof mount, and dual-tilt flat roof mount. Other options include carport solar, which can be used to cover a large on-site parking lot, and ground solutions, which are suitable for large-scale energy needs.

Components

The components of a commercial solar power system, such as the solar panels, inverter power station, cable management system, and monitoring and energy management software, will also affect the cost. Higher quality components will generally have a higher price tag, but may also have a longer lifespan and be more efficient, resulting in long-term cost savings.

Financing For Commercial Solar Panels

Depending on your needs, obtaining commercial solar panels can be quite expensive. Luckily, there are many financing options available. Here are some of the creative financing options for your commercial solar project:

Loans

One way to finance your commercial solar panel system is through a loan. This option allows you to borrow the funds upfront and pay them back over time, with interest. There are various types of loans available, including traditional bank loans, SBA loans, and solar loans specifically designed for solar panel financing. One advantage of loans is that they typically offer competitive interest rates, which can make solar panel ownership more affordable in the long run.

Leases

Another option to consider is leasing your solar panel system. This allows you to use the system without owning it, typically in exchange for monthly payments. Leases can be a good choice for businesses that don’t have the upfront capital to invest in a solar panel system outright, or for those who want to test out solar energy without committing to ownership. However, it’s important to carefully review the terms of a lease agreement, as you may not be able to take advantage of certain incentives and credits.

Power Purchase Agreements (PPAs)

A power purchase agreement (PPA) is a type of financing in which a third party owns and installs the solar panel system, and the business agrees to purchase the electricity generated by the system at a fixed rate. This can be a good option for businesses that want to go solar without a large upfront investment, as the third party assumes the costs of installation and maintenance. However, it’s important to carefully review the terms of a PPA, as you may not have as much control over the solar panel system and its performance.

FAQ’S

How long does it take to install commercial solar panels?

The installation process usually takes only one to three days and is completed by a highly skilled team of installers. The permitting process can take a bit longer. After submitting all the completed documentation to your utility company and city planning agency, it can take two to six weeks to approve them.

Are commercial solar panels worth it?

Commercial solar panels are definitely worth it! They will pay for themselves in 6-10 years, and they give your business the marketing advantage of being eco-friendly.

When did solar panels become commercially available?

In 1956, the first solar array became commercially available, however, at $300/watt the expense was far beyond the means of civilians.

By 1975, the cost had reduced to around $100 per watt, and it continues to fall by at least 10% each year since then. Today solar energy is more affordable than ever before and has become a popular choice for homeowners and businesses.

Conclusion

Switching to commercial solar energy can provide a number of benefits for businesses, including cost savings, improved corporate responsibility, and increased energy independence and security.

While there may be some initial challenges and costs associated with transitioning to solar, the long-term benefits are well worth it. By carefully considering factors such as location, size, budget, and financing options, businesses can choose the solar panel system that is right for them and make the switch to clean, renewable energy.

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