Investing in Commercial Solar: Key Things To Know

Investing in commercial solar energy systems presents a lucrative opportunity for businesses aiming to reduce operational costs and minimize their carbon footprint in an era where energy efficiency and sustainability are increasingly pivotal. Transitioning to solar energy signifies a commitment to environmental responsibility and provides substantial long-term financial advantages.

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By harnessing solar power, companies can significantly cut down on electricity expenses while benefiting from government incentives and tax breaks. The value of integrating renewable energy resources into business models becomes an essential strategy for companies seeking to boost their eco-friendly credentials and drive profitability as energy demands continue to rise. Check out our guide to investing in commercial solar and learn the key things to know about making the switch.

Unlocking Financial Savings With Commercial Solar Investments

Investing in commercial solar panels can lead to substantial financial savings for businesses over time. One of the primary benefits is the reduction in electricity bills, as solar panels allow companies to generate their own energy rather than rely solely on the grid. This reduced reliance on the grid can significantly decrease monthly energy expenses and insulate businesses against future price fluctuations. Additionally, companies can often sell excess power back to the grid through net metering programs, creating a new revenue stream. Therefore, producing renewable energy offsets installation costs and enhances long-term profitability.

Furthermore, businesses investing in commercial solar panels may be eligible for various financial incentives, such as tax credits and rebates. The federal Investment Tax Credit (ITC) in the United States allows companies to deduct a significant percentage of solar installation costs from their taxes, while some states offer additional incentives, such as property tax exemptions and sales tax reductions. These financial incentives can substantially lower the initial investment hurdle and expedite the return on investment. By leveraging these opportunities, companies can make a more feasible and economically beneficial transition to solar energy, ultimately leading to more robust financial health and a competitive edge in their industry.

Beyond cost savings and revenue generation, transitioning to commercial solar energy can enhance a business’s overall financial stability and market reputation. Companies may gain a competitive advantage by showcasing a commitment to sustainability, attracting eco-conscious consumers and clients who value corporate responsibility. This dedication to green energy can bolster brand image, thereby potentially increasing market share and customer loyalty. Furthermore, businesses with solar installations may experience an increase in property value, as buildings equipped with renewable energy systems are often more appealing to buyers and tenants. This appreciation in asset value can serve as a long-term investment, contributing to an organization’s financial resilience.

Going Green: The Environmental Impact of Solar Energy

One of the most notable benefits of solar energy is the reduction of greenhouse gas emissions. Unlike coal, oil, or natural gas, solar power generates electricity without emitting carbon dioxide or other harmful pollutants into the atmosphere. This reduction in emissions mitigates the effects of climate change, improving air quality and promoting a healthier environment for all living beings. Companies can lower their carbon footprint by transitioning to solar energy, aligning themselves with global efforts to combat environmental degradation.

Moreover, solar energy production requires minimal water usage compared to conventional power generation methods, which are often water-intensive processes. Traditional power plants typically utilize large quantities of water for cooling purposes, contributing to water scarcity issues in some regions. In contrast, solar panel systems require little to no water to operate, making them an environmentally sustainable choice in water-stressed areas. This conservation of water resources supports ecosystems and communities that rely on water for survival and agriculture.

Cutting-Edge Technology: Innovations in Solar Power

Innovations in commercial solar power technology have rapidly advanced, providing businesses with more efficient and cost-effective solutions. One significant development is the advent of bifacial solar panels. Unlike traditional panels that only capture sunlight on one side, bifacial panels harness solar energy from both sides, increasing energy yield. This increased yield is particularly beneficial in settings where reflective surfaces, such as snow or water, are present, enhancing the overall efficiency of solar installations. Additionally, advancements in photovoltaic cell materials, such as the use of perovskite, promise to boost conversion efficiency and lower production costs, making solar energy even more accessible to commercial enterprises.

Another cutting-edge innovation is the integration of smart solar systems equipped with artificial intelligence (AI). These systems can track and adjust solar panel positions to maximize sunlight capture throughout the day, known as solar tracking or sun tracking systems. AI algorithms also enable predictive maintenance by identifying potential issues before they lead to significant downtime, optimizing performance, and reducing operational costs. Moreover, the combination of solar power with energy storage solutions, such as advanced lithium-ion batteries, allowing businesses to store excess energy generated during peak sunlight and use it when needed. This capability ensures a consistent and reliable energy supply, empowering companies to become more self-sufficient and energy-resilient.

Overcoming Challenges: Tackling Initial Costs and More

High upfront expenses often deter companies from making the switch to renewable energy, as they need substantial capital investment for equipment, installation, and labor. However, businesses can overcome this hurdle by taking advantage of financial solutions, such as solar leasing and power purchase agreements (PPAs). These options allow companies to adopt solar technology without bearing the full upfront costs, instead of paying for the energy generated or leasing the equipment over a set period. This approach minimizes the financial risk associated with solar installation and enables businesses to enjoy immediate energy savings with minimal impact on their cash flow.

Another challenge companies might face is the issue of spatial requirements for installing solar panels. Businesses in highly populated environments may have limited roof space or shading issues due to surrounding buildings, which can impede optimal solar panel placement. Therefore, companies must conduct thorough site assessments to determine the best configuration for maximum exposure to sunlight. Partnering with a talented solar installation team is one of the best ways to optimize your solar panel configuration.

Partnering With the Pros: How Atlasta Can Help

Investing in commercial solar solutions, with the help of this guide on the key things to know, is a strategic decision with plenty of benefits. Businesses that choose to incorporate solar energy solutions stand to gain substantial financial rewards, enhance their sustainability credentials, and contribute positively to the environment. By reducing reliance on non-renewable energy sources and mitigating greenhouse gas emissions, companies can align with global sustainability goals, thus fostering a positive brand image and driving customer loyalty.

For commercial solar projects, solar technology choices are critical. For example, using a tracker mount for your solar panels can produce more energy than any other mounting system. These trackers follow the sun all day, ensuring you get the most out of your solar array and allowing you to make more accurate predictions about your solar energy production. If you have a flat rooftop on your commercial building, Point Load Power offers PV Booster , a tracking mount meant for rooftop installation that can produce significantly more energy with your solar panels than a fixed tilt rack.

Bifacial solar panels are another solar technology factor that can help you make the most out of a snowy day. Bifacial solar panels produce energy from both sides of the solar panel and generate energy from sunlight reflected off the backside panel. If using bifacial solar panels, weather events like snow can be a benefit and can help reflect more sunlight onto your solar panels.

If interested in learning more about how climate and weather affect solar energy production, check out Energy Information Administration’s website.

Do I have to go off the grid when I switch to solar? 

Unless you’re utilizing solar batteries, which store your excess solar energy, it is unlikely you will be able to go entirely off the grid when you install your commercial solar energy system. In fact, almost all commercial buildings using solar energy still utilize the grid but with significantly reduced energy costs.

Solar energy systems for commercial buildings are not meant to completely eliminate your need for the grid, but to replace the majority of your electricity usage with renewable sources, creating a more sustainable energy solution and allowing you to take advantage of the solar tax incentives in your state.

As a commercial building owner, how do I bill my tenants for their solar energy usage? 

Now more than ever, commercial building owners are profiting off their solar energy systems. As a building owner utilizing a solar energy solution, you will need to sell solar power to your tenants. This is simpler than it sounds. By using an electric meter, you can record how much solar energy your tenant is using and bill them accordingly. To learn more about your options as a building owner for billing your tenant for solar energy, see Energy Sage’s Solar for Landlords Guide.

Installing solar on your commercial building will also allow you to take advantage of net metering (NEM), a solar incentive that allows you to store excess solar energy on the grid. It is unlikely that you will use all the solar energy produced by your solar panels on a daily basis, so net metering sends excess energy back to the grid, and in return, your utility company will give you credits that further lower your electricity bill. To learn more about net metering in your state and how it can help you see a faster return on your solar investment see DSIRE Clean Energy’s website.

How much will I save on my electricity bills every month after switching to solar? 

For commercial building owners, going solar is a strategic decision that almost guarantees a significant financial return for your business. EnergySage market data shows the average commercial building owner in the U.S can reduce their electricity bill by up to 75% after switching to solar power. Switching to solar energy will also lock you into a low electricity rate for the life of your solar panels, usually 25-30 years.

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There are many tools that can be used for estimating how much you stand to save from switching to solar. Check out our webinar, Unlocking Idle Assets , to see a demonstration of our favorite energy bill estimator, Energy Toolbase. This demonstration uses PV Booster , Point Load Power’s rooftop tracker, to show how building owners can generate up to 70% more revenue per panel when using a rooftop tracking mount on their commercial building.

What tax credits, rebates, or incentives help to lower the cost of switching to solar? 

The cost of solar energy has dropped by about 90% in the last decade, and prices are continuing to drop. This is due to a combination of consumer preference for corporate sustainability and government mandates meant to reduce the effects of climate change. 

On top of already historically low costs, commercial building owners can further increase their return on investment by taking advantage of government incentives in their states. Check out DSIRE database to see what incentives are available in your state. 

When do I see the ROI for my solar panel investment? 

The amount of money you save by investing in a commercial solar energy system varies based on multiple factors including: 

1. The solar incentives you utilize 

2. The type of solar technology you use

3. Your solar energy usage/the number of solar panels you choose to install

Solar panels have low maintenance costs and can last up to 30 years. Most commercial buildings have significant rooftop space and will profit the most from solar panels. We call this rooftop space your biggest idle asset, which is potential revenue generating square footage that commercial property owners should put into use. In our experience, commercial building owners usually see their ROI in 5 years or less. To determine you’re ROI for a commercial solar power system , contact your preferred solar panel contractor and check out Renewable Energy Hub’s Business and Commercial Solar Panel ROI .

What solar solutions are available to me as a commercial building owner? 

For commercial building owners looking to install solar panels, you have a few options. Solar panels built on top of parking lots, carports, or mounted on poles or building facades send a great message but may not significantly reduces your electricity bills. These solutions do somewhat reduce energy costs but mostly are a great way to let your customers know you support renewable energy. For more information on these solar power options check out Lets Go Solar’s page .

If you have a large flat rooftop or ground space near your commercial building, you can install larger solar power systems that will greatly reduce your energy costs and increase the value of your property. Using a tracker mount for your solar panels, as opposed to fixed solar panels, will ensure your panels face the sun all day, making your solar energy production more predictable. 70% of ground mount projects use tracking panels and that technology is starting to take over the rooftops of commercial buildings too. Point Load Power offers PV Booster, a rooftop tracking mount designed for commercial buildings that increase energy production significantly.

How will solar panels affect my business' property value?

Installing solar panels on your commercial building will undoubtedly increase your building’s value. Having a solar energy system could improve your company image as a green company, ensures low energy costs, and updates a building’s physical appearance. These factors increase your profits margin and the value of your building.

How do I know if my building is a good candidate for solar panels? 

The best buildings for commercial solar are buildings with large, flat rooftops in good condition. Solar projects will last many decades and it is best that you make sure your rooftop lasts just as long. At Point Load Power we call these rooftops “idle assets” because of the lost opportunity commercial building owners face by not investing in a solar power system. Technologies, like rooftop tracking systems, provide additional solar production with a smaller overall investment, freeing up additional capital for rooftop replacement or refurbishment.

Check out our webinar, Unlocking Idle Assets with Highly Profitable Solar Projects to see what kinds of rooftops are best for tracking solar panels.

What are the benefits of using solar over standard electricity? 

1.      Save money every year

2.      Increase your property value

3.      Lock in your electricity rate

4.      Earn big tax incentives

5.      Double Digit ROI quickly

6.      Demonstrate commitment to sustainability and social responsibility

To learn more about how solar can financially benefit your commercial building, see Benefits of Commercial Solar for Business.