Things to Know About the Commercial Solar Installation Process

Adding solar to your business is a wise decision for many reasons. Firstly, it can lower your electricity bills and cut operational costs. Secondly, it reduces your carbon footprint and makes your business more environmentally-friendly. Thirdly, you’ll be joining the ranks of successful companies who’ve switched to solar, like Amazon, Apple, and Microsoft, improving your brand’s reputation and fostering pride amongst your employees. 

Once you’ve decided to go solar, it’s natural to want the process done as quickly as possible so you can start reaping the benefits immediately. To help you manage your expectations, we outline things to know about the commercial solar installation process, including the benefits of commercial solar systems, steps in the commercial solar installation process, factors that affect installation timelines, and financing options for your commercial solar project. 

Benefits of installing solar panels for your business

There are so many benefits of installing a commercial solar system, from financial to environmental and reputational. If you’re still undecided whether solar panels are right for your business, let’s go through the benefits of commercial solar.

Cost savings

Installing solar panels can dramatically decrease your operating expenses by helping to reduce the amount of electricity you purchase from the local utility. The result is cheaper energy bills, freeing money that can be used to help grow your business. 

Financial stability

While we’re on the topic of finances, solar energy can promote financial stability by protecting your business from fluctuating energy prices. Energy costs are continuously increasing and this affects the budget of businesses everywhere. By adding solar, businesses can lock-in a predictable, and reduced, monthly energy expense. Once you’ve completed your payback period, you can continue to enjoy free energy production for the lifetime of your commercial solar panels. 

Energy independence

Solar power reduces your reliance on the grid and increases your energy independence. If you invest in solar power storage, such as a solar battery, your business will be shielded from supply outages or grid failures. This means you can continue many critical operations during an outage, when other businesses may need to close.

Reduced carbon footprint

Many consumers and employees today expect businesses to be socially and environmentally responsible. On top of that, there are growing legal obligations and sustainability standards that businesses must abide by as we work collectively as a nation and a global community to hedge against climate change. Investing in a commercial solar allows your business to meet the requirements while demonstrating a strong commitment to the larger global mission. 

Even a small solar panel system can help your business reduce carbon emissions and contribute to a greener future. You can then promote your efforts through social media and literature to demonstrate your business’s commitment to environmental sustainability. 

Improved brand reputation

Going off the previous point, installing solar panels for your business can help improve your brand’s reputation. Many consumers prefer eco-friendly companies that are taking steps to improve the environment and embrace sustainable practices, and installing solar panels can help align your business as forward-thinking and responsible. 

Solar panels can also help you attract employees and boost staff satisfaction. Research shows that employees won’t apply to a company unless its values are aligned with their own personal values. 

Tax incentives

Going solar requires an upfront investment, but there are limited-time tax benefits that can help offset the initial costs. One of the most lucrative is the 30% federal investment tax credit which has been extended through 2032. 

Depending on where you’re installing your commercial project and the materials you use, you might even be eligible for additional savings. To learn more about tax incentives available to your organization, you can contact our friendly team for a free, no-obligation quote and estimated ROI. 

Steps in the commercial solar installation process

Once you’ve decided to add a commercial solar energy system to your business, the process of installing the panels and related equipment will vary depending on the size and type of system you’re installing, the jurisdiction you operate in, your building and other structures, as well as many other factors unique to your project. But no matter which solar path you choose, there are typically five basic steps that most commercial solar projects follow. Let's take a look at each of these steps in detail. 

1. Site evaluation

This is the first step for all commercial solar projects and serves as the foundation for your solar design and installation plans. The site evaluation process includes:

• Reviewing relevant legal documents to ensure you have the right to construct and install a solar energy system on your property
• Determining where and how your solar energy system will connect to the power grid
• Conducting various site assessments, including shade analysis, structural evaluations, and topographical and geological surveys. 

2. Designing the solar energy system

Once the site evaluation is complete, your solar provider will ask about your specific solar energy goals and power needs. With this information, they can begin designing a system that meets your requirements. 

The system design phase begins with conceptual ideas that are formalized with a design drawing. This drawing outlines how the solar panels will be arranged to capture the most amount of sunlight from your site. Depending on your preferences and requirements, the design may include rooftop-mounted, ground-mounted, or solar carports.

This step can also involve outlining construction details and permit drawings, which might be needed to obtain building permits. Once these designs have been approved, they’ll serve as the blueprints for constructing your commercial solar installation. 

3. Constructing the solar panel system

The time it takes to construct your solar panel system will depend on the size and complexity of your solar project. Smaller rooftop systems can take as little as 2-3 weeks while larger, more complex systems can last several months. Your solar installer will provide you with an estimated completion timeframe and a clear project outline to keep you informed throughout the construction process. 

A good solar provider will plan their construction process to have minimal disruption to your normal business operations. That said, it helps to be prepared for minor disruptions, such as finding alternate parking spots or planning for a temporary power shutdown. Most experienced solar installers will work to minimize disruptions to your normal operations. Choosing a reputable and experienced commercial solar  installer is important in this regard, especially if you’re installing a large system that can require months of construction. 

4. Commissioning the completed system

With construction complete, commissioning is the next and final step of the solar installation process. Your solar provider will carefully inspect your solar energy system to ensure it was built according to plan and operating as intended. The utility will then grant you permission to connect and operate your solar energy system with the local power grid. 

Congratulations, you’re now producing your own clean energy!

5. System operations & maintenance

While not technically a step in the installation process, proper maintenance will help ensure maximum efficiency and extend the lifespan of your solar energy system. Your solar contract should include terms that specify your business’s level of involvement in operations & maintenance (O&M). This can include warranty repair, performance monitoring, and even routine inspections. 

O&M is one of the major reasons that you should choose a trusted solar provider as it ensures you’ll have ongoing support should anything go wrong. Be sure to select a solar design and installation team with proven O&M resources, positive reviews, and a reputation for quality in long-term support. It’s also important to consider how long the company has been in business as that’s the best indicator of whether they’re likely to be around for the life of your system. There’s nothing more frustrating than an orphaned commercial solar energy system.  

Factors that affect the timeline of commercial solar panel installation

Several factors can influence how quickly your solar power system will be up and running. While your solar installer will provide you with an expected timeline for installation, there are thousands of “moving parts’ when installing commercial solar panels. A delay at any point, such as a permit backlog at the local authority, can impede progress for the entire project. Below, we look at a few factors that can affect the timeline of commercial solar installations. 

Size and complexity of your system

Larger and more complex solar systems will naturally take longer to design, install, and test than smaller ones. Some commercial solar projects involve thousands of solar panels and this requires more materials, more labor, and an overall longer project duration.

Required permits & approvals

Obtaining necessary permits and approvals from local authorities, utility companies, and relevant agencies can affect your project timeline. Some jurisdictions have more streamlined processes while others have longer waiting periods for approval. Any delay in securing permits will undoubtedly delay the entire installation timeline. 

Preparing the site

Preparing the site involves ensuring your location is safe and ready for installation. Depending on your site and the condition of your roof, this step may take longer than expected. For example, your roof may need repairs or surrounding trees may require trimming to optimize sun exposure. Depending on the scope of work needed, the site preparation process can extend the timeline of your solar project.

Weather conditions

Like any construction project, weather conditions can delay installation. Inclement weather, like rain, snow, storms, high winds, or extreme temperatures, can all cause delays in both site preparation and installation. Postponing installation may be essential for the safety of the solar installation team as well as protecting your new solar panel system from harsh weather conditions.

Interacting with utility companies

One of the final steps of commercial solar installation is connecting your new solar power system to the local utility grid. This process can vary in length depending on the utility’s requirements, procedures, and current workload. In some cases, the utility company might require additional steps that add to the timeline. 

Availability of solar installer

Finally, your commercial solar project’s timeline will ultimately depend on the availability and workload of your solar installer. High demand can sometimes lead to a delay in scheduling, however a reputable solar provider will clearly discuss their availability with you during the initial consultation. 

Financing options for commercial solar installations

There are many ways to finance your commercial solar system and several state and federal tax incentives, grants, and innovative financing models to consider. Working with a well-informed solar consultant, such as the Sun Valley Solar Solutions team, will help you design a financing model that works best for your business and clean energy goals. 

To give you an idea of what’s available, we outline the most common commercial solar financing options below. 

Cash

Paying for commercial solar electric systems with cash means your business fully owns the system and can benefit from all the financial and tax benefits available. That said, not all businesses have enough cash to purchase solar panel systems outright.

Solar loans

A solar loan is exactly what it sounds like: you’ll be lent the money required to install your commercial solar system and pay it back with interest. With this option, you can still benefit from reduced energy bills and tax incentives. The money that you save on electricity can be used to pay back your loan, and once that’s done, you can enjoy free energy for years later. 

We generally recommend low-interest loans or lines of credit with an existing banking relationship to get the fastest and most lucrative return. Our advice is to only finance the necessary portion of the net cost after incentives are applied to achieve the best payback.

PPA or SSA

Power Purchase Agreements, also called Solar Service Agreements, involve permitting another entity to pay for, install, and maintain a solar system on your property. You then agree to buy the solar electricity generated by their system at a specific rate. Unlike the other two financing options, you won’t own the solar panels with a PPA. This means you won’t be able to benefit from any incentives or tax credits, but you will get to save money on your energy bill (and enjoy clean energy!)

PPAs are a common way to finance commercial installations at commercial and institutional facilities in certain states. At Sun Valley Solar, we offer PPA programs exclusively for qualified 501 (c)(3) non-profits, municipalities, and schools.

Upgrade your business with solar energy

Commercial solar power systems require a lot of careful assessment, design, and planning, and installation can take anywhere from weeks to months. By understanding what’s involved in the process, you’ll know what to expect and can prepare for any delays. 

If you’re interested in adding solar to your business, the team at Sun Valley Solar is ready to help. Our commercial solar team designs, installs, and maintains some of Arizona's highest-producing commercial solar energy systems, helping groups like PepsiCo and Sub-Zero turn sunlight into significant financial savings. 

Every commercial system we design is custom-engineered to meet the unique requirements of each business. If you’re ready to take the first step towards a greener future, give us a call on 480-576-5693 or fill in the form on this page and one of our friendly team members will be in touch.