What to Know About Commercial Solar Panels

The time has never been better for businesses to invest in solar. With the 30% federal investment tax credit and solar technologies being more efficient and affordable than ever, more and more companies are switching to this clean, renewable, non-grid energy. Considering that solar power can add to your bottom line, improve your company’s reputation, and help the planet, it’s surely a no-brainer. 

If you’re considering a commercial solar installation, read on to learn about the financial benefits of commercial solar projects, different types of commercial solar panel systems, and things to consider when installing solar panels for your business. 

Financial benefits of commercial solar power

As a business, it's important to understand how installing solar power can improve your bottom line. The great news is that investing in solar power offers significant financial advantages for businesses of all sizes. Let's look at some of these benefits. 

Reduce energy costs

One of the main benefits of a commercial solar power system is reduced energy costs. Generating your own power means your business will purchase less electricity from the grid, translating to significant savings on monthly energy costs, especially for companies with high energy consumption. Over time, these savings pay back the costs of your initial solar investment and more. 

Access tax incentives and rebates

Businesses that invest in solar power can take advantage of various tax incentives and rebates. For example, the solar Investment Tax Credit (ITC) provides a 30% federal tax credit when adding solar systems to commercial properties. This allows businesses to deduct a significant portion of the installation costs from r federal taxes. Depending on where you live, you may also be eligible for state or local government incentives that will further reduce upfront costs and accelerate return on investment. 

Levelized Cost of Energy

Once installed, solar power generation is fairly predictable. The only real variables are system failures - a fairly rare occurrence - or weather. Since Arizona weather is pretty consistent, businesses that go solar are able to lock in a lower and much more predictable energy expense. This makes your company less vulnerable to fluctuating utility rates. If your business, like most, relies on budget stability, going solar is a fantastic stabilizing agent. 

Improve cash flow

The money your business saves on energy bills each month can be reinvested into the company, used to pay down debt, or allocated to other strategic initiatives. With time, you can grow your business and enjoy better financial wellbeing. 

Types of commercial solar panel systems

There are three main types of commercial solar panel systems: rooftop, ground-mounted, and carport systems. The type of solar energy system best suited to your business will depend on your building’s layout, property size, preferences, energy goals, and budget. 

Below, we look at each of these solar system types in detail, including pros and cons. 

Rooftop solar systems

Rooftop, or roof-mounted, solar power systems are one of the most common installations for commercial buildings. These systems involve attaching solar panels to a racking system that’s then installed to the roof of your building. You can install solar panels on virtually any roof type and the exact process will depend on your business’s specific roof materials (i.e. metal or shingles). 

Pros of rooftop solar systems: 

• Affordable: Roof-mounted commercial solar systems are usually the most cost-effective because they don’t require the construction of dedicated structures. 

• Space-efficient: Rooftop solar panels make use of an otherwise unused space. 
• Secure: Being mounted on the roof makes your solar panels harder to access or vandalize. 

Cons of rooftop solar systems: 

• Limited: The size of your solar power system will be limited by the size of your roof.

• Roof-dependent: Your roof needs to be structurally sound and durable enough to withstand the weight and lifespan of solar panels.

• Shading & orientation issues: Your roof may be partially shaded or not angled in the ideal orientation, reducing the amount of solar energy that can be produced.

Ground-mounted systems

Ground-mounted solar panel systems are installed on a dedicated, free-standing structure usually located in a field or parcel of land that’s protected against unauthorized access. These systems are ideal for businesses with a limited rooftop area or structural constraints but have abundant ground space. 

Ground-mounted installations provide flexibility when it comes to tilting and orienting your commercial solar panels for maximum solar exposure and energy production. They’re often used for large-scale commercial projects where rooftop installations might not be feasible or are too limited to meet energy demands. 

Pros of ground-mounted solar systems: 

• Optimal orientation: Ground-mounted solar panels can easily be tilted and oriented to avoid shade and get maximum sun exposure, increasing energy production.

• No structural issues: Unlike rooftop installations, you don’t have to worry about the added weight of solar panels on your roof and any potential structural issues.
• Accessible: Ground-mounted solar systems can easily be accessed for maintenance.

Cons of ground-mounted solar systems: 

• Costly: These systems cost more than roof-mounted systems of a similar size because of the additional construction costs associated with a dedicated support structure. 

• Takes up space: Solar panels installed on the ground take up space and limit your use of the land surrounding your commercial property. For this reason, solar carports are often a good compromise since they serve a dual role by providing both shaded parking and solar energy production. 

• Security issues: Being installed on the ground can make these solar systems easier to access by unauthorized visitors. You may need to take additional security measures, like installing fencing or CCTV.

• Upkeep: You’ll need to maintain the area around the solar panels, i.e. by mowing around posts or under low clearances.

Solar carports & canopies

Solar carports are more expensive than a rooftop solar system, but offer the additional benefit of providing shaded parking for employees and customers. Solar carports and canopies are mounted on specialized structures that need to be tall enough to allow vehicles to pass under. The exact cost of a solar carport system will depend on its height, size, and need for additional features, such as gutters, snow guards, and lighting. 

Pros of solar carports & canopies: 

• Vehicle protection: They provide additional infrastructure to protect vehicles from the elements.

• Tilt & orientation: Solar panels can be tilted and oriented for maximum sun exposure and energy production.
• Space-efficient: Solar carports serve a dual purpose by providing your employees and customers with shaded parking, while also generating clean energy to run your business.

Cons of solar carports & canopies: 

• Higher costs: Solar carport systems are more expensive to install due to the more complicated construction process. 

• Extra consideration: They require extra consideration for things like water run-off and lighting.

• Complexity: These types of commercial solar systems are more complex, time-consuming, and labor-intensive to install than other types. 

Things to consider when choosing commercial solar panels

Investing in commercial solar systems is a big decision that requires careful consideration and an understanding of how commercial solar works. Below, we outline some important things to consider when choosing commercial solar panels. 

Energy needs

Before investing in a commercial solar panel system, take the time to thoroughly assess your business’s current and anticipated energy needs. To do this, you can analyze your past energy bills and project future energy demands based on business growth. Understanding your energy needs and consumption habits will help you determine an appropriate size for your solar system and estimate ROI. 

A good, reputable commercial solar installer will know how to help you with this process and do the calculations on your behalf. The objective should never be a high-pressure sale, but rather an opportunity to learn and make informed decisions that are best for your business. Contact Sun Valley Solar Solutions to get a free, no-obligation quote and ROI estimate for your commercial solar panel installation. 

As a bonus tip, we recommend your business begins implementing energy-saving measures as much as possible before installing a solar power system. This improves your building’s energy efficiency and might ultimately mean needing a smaller and less expensive solar system. After all, it’s much harder to fill a bucket when it’s full of holes. 

Cost vs quality

It may be tempting to choose the most cost-effective solar panels for your commercial installation, but it’s important to remember that upfront costs are just part of the solar panel equation. To evaluate the overall value of a solar panel, you’ll need to go beyond cost and consider things like efficiency, reliability, and warranty coverage.

Cheap commercial solar panels might save your business money in the beginning, but they could cost you more in the long run if they don’t produce enough energy or require constant maintenance and repairs. On the other hand, investing in higher-quality solar panels might cost more upfront but save you more by generating more solar power per panel, offering a better warranty, or lasting longer. 

When choosing commercial solar panels, be sure to weigh up all these factors and take long-term benefits into account. Again, a good commercial solar installer should be able to guide you towards making a purchase that perfectly balances all your needs. 

Durability 

Solar panels, especially those mounted on roofs, are subject to many harsh environmental conditions that can affect their lifetime. For that reason, durability is an essential consideration when choosing commercial solar panels. Durability refers to a panel’s lifespan and how well it can withstand varying weather conditions. 

In places like Arizona, where summers can get piping hot, it’s important to choose solar panels that can withstand high temperatures with minimal long-term efficiency loss. The same considerations should be made if you live in an area with strong winds, snow, or storms. Many solar panels are engineered with high-tech, space-age materials that allow them to easily withstand extreme conditions. 

While solar cells inside a panel are somewhat fragile, the glass layers and metal framework outside the cells help to protect these inner parts. The protective coatings are even tested against international standards to ensure the panel’s durability. In fact, every solar panel goes through this rigorous testing that ensures they can stand up to extreme weather conditions and hail. Here at Sun Valley Solar, we only carry the solar brands that meet our high quality and durability standards.

Warranty period

A solar panel’s warranty period shows that the manufacturer is willing to stand by their product and take care of any repairs or replacement should anything go wrong. Choosing solar panels with a strong warranty period provides a safety net and peace of mind that you’ll be protected if any issues arise. 

Commercial solar panels typically offer warranties up to 25 years. Even after the warranty period expires, high-quality panels still produce energy with minimal reduction in their production efficiency.  In fact, one study by the National Renewable Energy Laboratory (NREL) showed that after the 25-year warranty period, panels still produced energy at about 88% of their original output.

Monitoring & maintenance

The beautiful thing about commercial solar electric systems is that, aside from occasional repairs after an extreme storm or the rare component failure, most will require the bare minimum when it comes to maintenance. That said, to protect your solar energy system and extend its lifespan, it’s essential you choose a commercial solar installer that offers good operations & maintenance (O&M) terms. 

O&M can include annual inspections, warranty repair, performance guarantees and monitoring, and even routine cleanings. Essentially, it ensures you have ongoing support should anything go wrong with your solar installation. Be sure to choose solar providers with proven O&M resources, positive customer reviews, and a reputation for quality in long-term support. 

How to choose a commercial solar installer

Choosing the right solar provider for your commercial system ensures the process goes smoothly, professionally, and to a high standard. Below, we look at some key things to look out for when choosing a commercial solar installer:

• Experience: Look for providers who have experience with commercial solar installations similar in scale and complexity to yours. Experienced providers will understand the nuances of commercial solar projects, including regulatory requirements, site assessments, and system design considerations. 

• Customer reviews: Reading customer reviews and testimonials can help you spot a reliable and trusted company with a good reputation in the local community. 

• Comprehensive services: The best commercial solar companies will offer services beyond just design and installation. This might include advice on financing & purchasing options, eligibility for solar tax credit and incentives, and ongoing customer support. 

Summary: What to know about commercial solar panels

Switching to solar energy will help your business reduce its carbon footprint, save money on energy bills, and be more self-sufficient. By taking advantage of tax incentives and credits, it won’t be long before you’ve paid back your initial investment and start enjoying extra cash that can be invested back into your business. 

If you’re ready to start powering your business with clean energy, Sun Valley Solar Solutions is ready to help. Our commercial solar team has designed, installed, and maintained some of Arizona's highest-producing commercial solar energy systems for groups like PepsiCo and Sub-Zero. To get started with a free, no-obligation quote and ROI estimate, contact our team now, or if you’d like to keep learning, check out our free Commercial Solar Guide.