How Warehouses in Arizona Can Save with Solar Battery Storage

Warehouses consume massive amounts of electricity to power lighting, HVAC systems, security devices, and many other electrical devices required to sustain business operations. Luckily, warehouses typically have large, flat rooftops that make them perfect for commercial solar panels. 

By generating their own clean, renewable energy through solar power, warehouses can cut operating costs, reduce their carbon footprint, and gain more control over long-term energy expenses. Arizona’s abundant sunshine makes solar an even smarter investment, with more sun hours per year than almost anywhere else in the U.S. For most warehouses in this sunny state, solar energy is a no-brainer.

While solar panels reduce energy costs, adding battery storage takes efficiency and savings even further. Batteries store excess solar energy for use during peak demand hours—typically in the evening when solar production drops—cutting grid reliance and boosting savings. With fluctuating utility rates and growing energy reliability concerns, solar power is becoming an essential strategy for cost control and energy independence. 

In this article, we’ll explore how Arizona warehouses can benefit from going solar, including how it works, the advantages of including solar batteries, and things to consider when shopping for a commercial solar energy system. 

Key takeaways: 

• Solar panels help warehouses reduce electricity costs by generating their own power.
• Solar energy reduces reliance on utility companies and protects against fluctuating energy prices.
• Commercial solar incentives, like the 30% federal investment tax credit (ITC), can offset installation costs and improve return on investment.
• Properly designed solar installations can maximize energy efficiency and long-term savings.

Understanding Commercial Solar and Batteries for Warehouses

Solar panels convert sunlight into electricity, allowing warehouses to power their operations with clean energy. This reduces dependency on the electrical grid and helps businesses avoid high utility costs

When commercial batteries are included, excess solar energy is stored in a solar battery system instead of being sent back to the grid. This stored energy can be used to offset more expensive on-peak or demand fees in the evening hours when solar panels are less productive. Batteries also provide backup power in the event of a grid outage. 

Adding Battery Storage

Solar batteries capture and store excess energy generated by solar panels, allowing warehouses to use it during periods when electricity costs spike or solar production dips. This can help facilities become more energy-efficient, reducing their dependence on the grid while providing a reliable backup during outages. 

With demand charges making up a significant portion of commercial electricity bills, battery storage provides a way for warehouses to control costs and maintain operations without dealing with costly interruptions. 

Solar battery storage is especially useful for warehouses in Arizona, where the sun produces more energy than a facility might need during the day. Instead of sending that excess energy back to the grid, warehouses can store it and draw on it when electricity rates are highest – usually in the late afternoon or early evening. This process, known as peak shaving, helps businesses lower their demand charges and stabilize long-term energy costs. 

Beyond cost savings, battery storage can also improve energy reliability. With power outages becoming more common due to extreme weather and grid instability, having a stored energy reserve ensures that essential warehouse functions – like lighting, refrigeration, and automated systems – keep running without disruption. 

Learn More: Everything You Need to Know About Commercial Solar Battery Storage

Benefits of Solar Panels for Warehouses

Whether it’s keeping lights on, running equipment, or maintaining climate control for inventory, electricity is a major operational cost for warehouses in Arizona. With solar batteries, warehouses can reduce energy costs, increase resilience, and reduce their environmental footprint all at once. 

Here’s a closer look at the biggest benefits of installing solar battery storage in warehouses:

Cutting energy costs

Cost savings is one of the biggest benefits of solar panels. Electricity prices fluctuate throughout the day, with peak demand hours being the most expensive. Solar panels produce electricity at a predictable rate so long as the sun is shining, which is a lot in Arizona. Instead of buying power at increasingly higher rates, warehouses can use solar panels to leval their energy expenses, locking in dramatically cheaper and predictable energy costs. 

Maximizing ROI with Solar Incentives

The upfront cost of a commercial solar panel installation can seem significant, but various incentives are available that can make it more affordable. In Arizona, warehouses are eligible for financial incentives like the federal Investment Tax Credit (ITC) which offsets 30% of a solar purchase. 

In addition, every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS), established in 1986 as a method of depreciation in which a business’s investments are recovered, for tax purposes, over a specified period via annual deductions. Qualifying solar equipment is eligible for a cost recovery period of up to five years.

At the time of this writing there are also USDA REAP grants available for certain types of commercial solar installations. The USDA established the Rural Energy for America Program (REAP) grant to assist agricultural producers with renewable energy investments. This REAP grant is available in select rural towns across the country with a population below a certain threshold and covers 25% of a solar investment up to $500,000 for qualifying businesses. With the new Trump administration this program is currently under review. Check with one of our commercial solar experts for the latest information. 

Finally, Arizona Public Service (APS) offers the Peak Solutions demand response program to its commercial and industrial customers, allowing them to earn revenue for curtailing load on short notice when the grid is stressed. Learn more about the Peak Solutions program here.

When paired with long-term energy savings, these incentives can help shorten the payback period and make the transition to solar storage even more cost-effective. 

Energy Resilience and Sustainability

Solar panels provide warehouses with greater control over their power supply. With a well-designed solar system, businesses can reduce their dependence on the grid and gain more control over their energy expenses.

In addition to cost savings, solar energy helps businesses meet sustainability goals by reducing their carbon footprint. Consumers and investors are increasingly prioritizing sustainability, and businesses that embrace clean energy solutions position themselves as industry leaders. Solar battery storage is an excellent way to demonstrate corporate responsibility and a commitment to environmental stewardship. 

Considerations for Installing Solar Panels in Warehouses

For warehouses, solar panels can lower energy costs and improve sustainability and energy resilience. But before making the investment, it’s important to take into account the following considerations. 

Roof Space and Structural Integrity

The size and condition of a warehouse roof play a crucial role in solar panel installation. It’s essential to get a structural assessment done to ensure that the roof can support the weight of the solar panels. It’s also critical that the roofing material be in good condition. Keep in mind that solar panels have a production lifespan measured in decades. If your roof needs repair or replacement after the solar panels are installed, that expense would have to be covered byt the business. Properly designing the system to optimize energy generation without compromising the building’s integrity is essential.

See More: Are Commercial Solar Panels Worth It?

Energy needs and usage

Understanding your warehouse’s energy consumption is essential when designing a solar panel system. When does your facility use the most energy? Are you paying high demand charges during peak hours? Thinking about these questions will help determine how many solar panels you need, and if a solar battery might also be beneficial. 

Upfront Investment and Payback Period

While the long-term savings from solar energy are substantial, the upfront investment can be a significant factor for businesses to consider. By working with an experienced solar provider, warehouses can evaluate financing options, incentives, and expected ROI to make an informed decision.

Maintenance and lifespan

Like any piece of warehouse equipment, energy systems require routine maintenance to stay in peak condition. Regular inspections and system monitoring can help prevent issues and extend the lifespan of your commercial solar investment.. 

Most commercial solar panels come with warranties of 25 years or more, making them a long-term investment that continues to deliver savings well into the future.

Understanding Commercial Solar Batteries

While solar panels generate electricity during the day, warehouses may still need power when the sun isn’t shining. Solar battery storage provides a solution by storing excess solar energy for use during peak demand hours or power outages.

Battery storage can be particularly beneficial for Arizona warehouses, where electricity rates are highest in the late afternoon and early evening. Instead of drawing expensive power from the grid, stored solar energy can be used to offset costs.

Benefits of Solar Battery Storage

• Peak Shaving: Batteries store excess energy during the day and discharge it when demand is high, reducing peak-time electricity costs.
• Backup Power: In the event of a grid outage, battery storage ensures critical warehouse operations continue without disruption.
• Greater Energy Independence: Batteries reduce reliance on the grid, providing businesses with more control over their energy usage and expenses.

For warehouses interested in enhancing their solar energy strategy, adding battery storage can provide additional cost savings and resilience. However, solar panels alone can still offer significant benefits without battery integration.

Read More: Things to Know About the Commercial Solar Installation Process

Install Solar Panels on your Arizona Warehouse

Installing solar panels in your Arizona warehouse won’t just help you cut energy costs – it will also dramatically reduce your facility's carbon footprint. At Sun Valley Solar Solutions, we’ve helped businesses like Target, PepsiCo, and Sub Zero tap into their rooftop solar potential to meet more than 25% of their total energy requirements.

Whether your goal is environmental or securing long-term energy savings, we design tailored solutions that fit your business’s unique needs and energy habits. Our commercial solar specialists have decades of experience and a track record of successful solar projects across Arizona.

If you’re ready to see what solar battery storage can do for your warehouse, contact us now for a customized assessment.