Transitioning to solar energy in 2024 is environmentally good and financially sensible for many companies. Commercial solar panels price have become cheaper in recent years also allowing firms to harvest solar electricity at reduced costs.
Any company considering installing commercial solar panels in 2024 must understand the prices. The system size, equipment, installation costs, and incentives affect the pricing. Monocrystalline solar panels are more efficient but cost more. Roof configuration as well as shading and connectivity fees affect installation costs. Based on energy use and area power pricing, ROI might vary greatly.
In 2024, firms installing commercial solar panels get incentives. Solar Investment Tax Credit (ITC) enables companies to recover 30% of system installation costs as a federal tax credit. Businesses may save more on taxes by deducting more of the system’s cost in the first year using accelerated depreciation. In the blog, we will discuss commercial solar panels price and costs.
Average Installed Cost of Commercial Solar Panels
Solar panels for businesses usually cost between $1.66 and $2.00 per watt to install. Bigger systems usually cost less per watt because of economies of scale. The exact cost relies on things like the size of the system as well as the type of tools, and how much power the business uses.
For instance,
- 15 kW system for a store or clinic would cost around $24,900
- 75 kW system for a farm or building would cost around $124,500.
- 350 kW system for a workplace, hospital, or school would cost around $581,000.
Even though they cost more upfront, business solar systems save a lot of money in the long run. Through tax credits and rebates, businesses can get back up to 45% of the cost of solar panels in the first year. A typical industrial solar system can also cover a company’s whole energy bill, so it’s a good investment for the long term.
Commercial Solar Panels Price Breakdown
To get a better idea of how much business solar panels cost, it’s important to look at the different parts that make up the total price.
1. Size of the System
One of the main things that affects how much it costs to put solar panels is their size. Facilities that are bigger and use more energy will need bigger systems, which will cost more upfront. On the other hand, smaller businesses may choose solutions that aren’t as thorough, which can save them money.
2. Type of Equipment
The cost is also affected by the type of solar cells that are used. There are three main types of technologies used in solar panels:
- Panels with only one crystal: Most of the time, these panels cost more but work better in smaller spaces because they are more efficient and look better.
- Polycrystalline glass panels: These are usually less expensive than monocrystalline panels. They aren’t as efficient but they can be a good choice for bigger setups where room isn’t an issue.
- Thin-Film Panels: These panels are light and bendable, so they can be used for many things. They may need more room to be installed though, and they tend to be less efficient.
3. Cost of installation
How much it costs to install commercial solar panels depends on where it needs to be done and how experienced the team is. Get a Quote to know which suits you the most.
Tax breaks, rebates, and other Incentives
There are many tax breaks and other financial benefits for companies that buy industrial solar panels.
- 1. Investment Tax Credit (ITC): The ITC lets businesses subtract a big chunk of the cost of installing solar panels from their federal taxes. This credit is 26% right now, but it will go down over the next few years. By taking advantage of this credit you could save a lot of money.
- 2. Incentives from the city and state: To get companies to switch to solar energy, many state and local governments offer extra benefits like tax credits and refunds. These benefits can be very different depending on where a business is located so it is important for them to find out what is offered there.
- 3. Net billing: Net metering is a way of paying that lets businesses get credits for the extra energy their solar panels make. Companies can reduce their energy costs with this method, which can save them a lot of money over time.
Additional Factors Influencing Costs
Besides the main cost factors we’ve talked about, there are a number of other things that can affect the final cost of business solar systems.
1. Location
The site of the business is a very important factor in how much solar costs.
2. Energy Efficiency of the Building
What makes the building energy efficient can also change how big and how much the solar system costs. Energy-efficient buildings may need smaller systems which means they cost less to install.
3. Financing Options
There are many ways for businesses to spread the cost of installation over time. One way is to get a solar loan or lease. These choices can make solar energy easier for businesses that do not have a lot of money to put down at once.
Conclusion
To be honest, commercial solar panels are a smart investment that may pay off for companies. Now is the moment for organizations to use solar energy as prices drop and financial incentives become available. Businesses must understand commercial solar panel pricing aspects to make energy and financial choices. However, company savings from tax credits as well as rebates and net metering may boost profits. Switching to solar energy decreases operating expenses and shows a commitment to environmental sustainability which customers and investors appreciate.
Get a Quote by navigating solar energy investments. Our solar experts can assist organizations in negotiating incentives and customise energy solutions. Now, understand how commercial solar panels may save operating expenses and boost your brand’s environmental responsibility. PowerWithWatts helps you embrace solar energy for a more sustainable and affordable future.