Are you a company owner or facility manager wanting to economize on electricity expenses using renewable energy? Just consider commercial solar panels cost!
Recently, commercial solar systems have grown in popularity also boosting the U.S. solar sector. Commercial solar currently generates roughly a third of US solar electricity also having risen 15 times between 2009 and 2021. Costs have dropped dramatically also making commercial solar panels more affordable than ever. Since 2010, the average cost of commercial solar panels has reduced by two-thirds owing to solar technology and inverter cost reductions, according to SEIA.
We’ll explore commercial solar panel cost, elements that affect it, typical costs for various system sizes, and possible savings in this post. We’ll also discuss the costs of commercial solar panel and their advantages. This article will help you decide whether to invest in commercial solar electricity whether you’re a tiny retail store as well as a massive warehouse, or everything in between. Let’s explore commercial solar possibilities.
Understanding Commercial Solar Panel Costs
Commercial solar panel prices are usually given in dollars per watt ($/W), making system size comparisons straightforward. According to SEIA, U.S. commercial solar panels cost $1.66 per watt on average in 2023.
However, commercial solar costs depend on various variables, including:
- System size: Economies of scale decrease watt costs for larger systems.
- Location: Labour, permission, and local incentives affect solar installation costs by state and area.
- Mounting system type: Site preparation and infrastructure may make ground-mounted systems more costly than rooftop ones.
- Installation difficulty: Roof type, shading, and accessibility affect installation difficulty and cost.
Incentives and Benefits of Commercial Solar in 2024
One of the best things about engaging in business solar is that there are many perks and benefits that can make the initial cost of the system much lower. Some of these rewards are:
- A business can get a tax credit equal to 26% of the total cost of the solar system through the Federal Solar Investment Tax Credit (ITC).
- With Accelerated Depreciation (MACRS), a business can write off the cost of its solar system over 5 years, which can save it a lot of money on taxes.
- Incentives from the state and city: To get more people to use solar energy, many state and local governments offer extra benefits like refunds, performance awards, and tax breaks.
Besides the financial benefits, companies that go solar can enjoy a number of other advantages, such as:
- Lower electricity bills: When businesses produce their own green energy, they can cut their electricity costs by a lot and protect themselves from future rate hikes.
- Better brand reputation: Going solar shows that you care about the environment and can improve your business’s public image and appeal to people who care about the environment.
- Higher selling values: According to our solar experts, business properties with solar systems are worth more than those without them.
Costs of Commercial Solar Panels in 2024
Commercial solar panel setups can cost a lot of different amounts, based on things like the size of the system, the quality of the equipment, and how hard the installation is. Before any benefits are taken into account, companies can expect to pay between $2.50 and $3.50 per watt for industrial solar cells. This means that the total cost of installation is usually around $100,000 for smaller systems and can be more than $1 million for bigger ones.
Before rewards, the price range was between $2.50 and $3.50 per watt.
The average total cost of installation for commercial solar panels:
- Less expensive systems (around $100,000)
- Bigger systems (more than $1 million)
To give specific examples:
- 15 kW setup (for a store or small clinic): around $24,900
- About $124,500 for a 75-kW setup for a farm or large building.
- 350 kW system (for a workplace, hospital, or school): around $581,000.
These prices only include the initial investment and don’t take into account the money that could be saved through federal tax credits and local rebates, which can make the total cost much lower. When these benefits are used, the real cost can drop to between $1.20 and $1.75 per watt, which makes solar energy easier for people to afford.
After rewards
- The real cost is between $1.20 and $1.75 per watt.
Additional considerations:
- Maintenance costs: Solar panels usually don’t need much care, but they do need to be cleaned regularly and inspected every so often to work at their best.
- Lifespan: Commercial solar panels usually last between 25 and 30 years, and their guarantees usually cover this time, so you know they’ll be useful for a long time.
- Even though industrial solar systems can be expensive at first, the savings on energy bills and environmental benefits over time make them a good investment for many companies.
Calculating the Return on Investment (ROI) of Commercial Solar
I believe it is important to think about the return on investment (ROI) when installing solar panels for commercial. To figure out the ROI, you’ll need to think about things like
- The cost of the solar setup upfront
- There are refunds and bonuses available.
- How much energy the machine is expected to save over its lifetime
- Costs of repairs and maintenance
By thinking about these things, you can figure out how long it will take for your solar investment to pay for itself and how much money it will make your business in the long run.
Conclusion
For those businesses that are looking to minimize energy expenses and improve sustainability should invest in commercial solar panels. The initial cost may seem high but the long-term savings and environmental benefits make it worthwhile. Businesses may make educated energy strategy choices by studying commercial solar panel cost variables and incentives.
Solar energy is ecologically beneficial and profitable. Businesses that install solar panels might save money on power costs and even get tax advantages. Solar becomes more appealing when incentives like the Federal Solar Investment Tax Credit (ITC) cover a large amount of installation expenses. Businesses may handle solar energy adoption with help from a professional solar contractor. An expert can examine energy demands, system size, and incentives to ease the switch to solar power.
Get a Quote now to investigate commercial solar for your company. Our solar professionals will assess your energy needs also create a customized cost estimate and help you through the solar procedure. Take advantage of huge discounts to invest in a sustainable future.