Solar power is a sustainable and financially savvy solution to cut rising electricity costs for businesses. Transitioning to a commercial solar system can be a game changer. It will help businesses reduce their carbon footprint. As a result, it has a positive environmental effect.
However, you must understand some important aspects of the commercial solar system before its installation. That’s why Solar Medix experts have prepared this guide.
This article covers all the aspects of commercial solar panel installation. You will learn everything about the need for commercial solar panel installation. From its financial and environmental benefits to tax incentives, it will answer all of your relevant queries.
We will also guide you through its maintenance requirements and installation process. This blog covers the 6 essential things everyone should know before getting a Commercial Solar System,
There are several factors to consider before investing in a commercial solar system.
Here is all of the necessary information:
You must be aware of the energy consumption of your business before choosing a commercial solar panel. Reviewing your electricity bills will help you understand your business’s maximum energy usage. Solar power is essentially beneficial for businesses with high energy usage.
Going solar not only reduces your business’s operating costs but also provides long-term savings. Explore the rapid expansion of solar energy in the U.S. with this SEIA graph, showing solar’s increasing share of new electricity-generation capacity from to H1 . This surge illustrates solar’s growing role as a cost-effective energy solution for businesses.
Source: Solar Energy Industries Association (SEIA)
Solar energy is one of the cleanest and most renewable energy sources. The commercial solar system will reduce the environmental impact of your business. As a result, it will lower your carbon footprint.
It’s crucial to evaluate your property’s suitability before installing a commercial solar system. The best approach is to conduct a solar feasibility study by professionals like Solar Medix experts.
Our experts will conduct a detailed analysis of your site’s potential, including assessments of roof conditions, available space, and sun exposure.
Hershey installed a 1 MW solar array at its manufacturing facility in Pennsylvania. It was part of their mission to reduce operations costs and support sustainability initiatives.
Ultimately, they generated enough electricity that they could supply power to 500 homes annually. It helped reduce their energy cost significantly. It also helped them reinforce their commitment to environmental responsibility.
Is your business ready to harness the power of the sun? Let Solar Medix guide you! Contact us today for a comprehensive solar feasibility study and customize your path to sustainable energy savings.
Commercial solar installation comes with compelling financial incentives as well:
Switching to commercial solar can reduce your electricity bills radically. For instance, a business spending $10,000 a month on electricity can make big savings by going solar and generating their own electricity.
You have to make a substantial one-time investment while installing commercial solar systems. It will provide you with an attractive ROI. In most cases, businesses recover their investment in just 3-7 years.
The initial investment in solar can be substantial. Most solar panels come with a lifespan of 25-30 years. It will help you add additional savings to your financial return.
Understanding energy market dynamics is crucial for businesses considering solar investments. The graph below, sourced from data compiled by Ventyx, the Velocity Suite, highlights the significant correlation between energy demand and day-ahead prices in ERCOT regions.
As demand increases, so do prices, underscoring the financial advantages of investing in a commercial solar system to achieve energy independence and shield against price volatility.
Contact us to discuss your requirements of Commercial Solar PV System. Our experienced sales team can help you identify the options that best suit your needs.
Source: Solar Energy Industries Association (SEIA)
Solar energy makes businesses less dependent on fluctuating utility rates. It also helps them avoid the impact of rising energy costs. This is particularly beneficial in areas with an unstable energy supply.
General Motors (GM) has integrated solar energy across its operations. GM has installed a 2.2 MW solar array at its Lordstown Assembly Plant. It provides 1.9 million kWh of electricity annually.
This system has reduced GM’s energy costs significantly. It demonstrates a robust ROI. Moreover, it aligns with their corporate sustainability goals.
Solar power also offers significant environmental advantages in addition to financial savings:
Adopting solar power significantly reduces CO2 emissions. For example, a MW solar installation in the ERCOT region can prevent 323 thousand tons of CO2 emissions, showcasing the substantial environmental and economic value of solar investments.
Investing in solar is a great way for businesses to transition to cleaner energy sources. It will also contribute to a more sustainable future.
Going solar will be a great way for a company to build its reputation as a responsible corporate citizen. It will symbolize a business’s stewardship to its consumers and stakeholders.
Patagonia is an outdoor clothing company. It has installed solar panels at its distribution center in Reno, Nevada. Their 1 MW solar system generates about 1.5 million kWh of energy each year.
It significantly reduces their carbon footprints. It also supports their long-standing commitment to sustainability.
Businesses with commercial solar installations can also avail of substantial tax incentives:
The Federal Investment Tax Credit (ITC) offers a 26% deduction on solar installation costs for commercial and utility-scale projects that commenced construction before December 31, , and are completed and placed into service before January 1, .
This substantial deduction provides a lucrative incentive for businesses to invest in solar energy, contributing significantly to the growth and sustainability of the solar industry in the United States.
Many states and municipalities offer additional incentives. It includes tax credits, rebates, and grants. It further reduces the cost of commercial solar systems.
Accelerated depreciation for solar energy systems under the Modified Accelerated Cost Recovery System (MACRS) benefits businesses. It allows them to recover the investment over five years.
Walmart has been a leader in solar energy adoption. They have installed solar panels at over 360 locations in the U.S. They availed of the federal ITC and various other state incentives.
These installations cut their energy costs. Additionally, it also provides significant tax benefits. All this makes their investment in solar highly advantageous.
Solar systems are mostly low-maintenance. Regular upkeep ensures that they operate efficiently:
Annual inspections are crucial for detecting any damage or issues within the solar system, supporting its infrastructure, and extending its lifespan. These routine checks are a fundamental aspect of preventative maintenance strategies, ensuring the system maintains optimal performance.
Regular inspections also form an essential part of a comprehensive Operations and Maintenance (O&M) plan, which is vital for maximizing the efficiency and reliability of the solar installation.
Dust and debris can accumulate on solar panels. It will reduce their efficiency. Regular cleaning is necessary to keep them operating at peak capacity. Cleaning frequency depends on the location. Most panels need cleaning 2-4 times a year.
Most modern solar systems come with solar monitoring tools. They provide real-time data on energy production and system health. They also help identify and address any performance issues instantly.
Prologis is a global leader in logistics real estate. It has one of the largest commercial solar portfolios in the industry. It has a solar capacity of 200 MW worldwide. Prologis emphasizes efficient maintenance. It ensures optimal performance and longevity of their solar systems.
The installation of a commercial solar system is a multi-step process. It typically involves the following stages:
The first step is a complete evaluation of the installation site. It involves an assessment of its suitability for solar installation. This includes an analysis of the roof condition, orientation, and shading. The structural capacity of the property to support panels is also evaluated.
A customized system design is created based on on-site evaluation and energy needs. This design considers the optimal placement of panels. The type of system (on-grid, off-grid, or hybrid) and the required capacity are also determined.
The next important step is getting the necessary permits and approvals. Its process varies from location to location. Mostly, it includes zoning approvals and building permits. It also ensures compliance with local utility regulations.
Solar experts mount the panels and set up the inverters and batteries (if applicable). Then, the system is connected to the building’s electrical infrastructure. This stage usually takes a few days to several weeks. It mostly depends on the size of the project.
The system undergoes rigorous testing after installation. It ensures that the solar panels function correctly and safely. Testing includes checking the electrical connections and system performance. Solar experts also ensure the adherence of the system to safety standards.
Target Corporation implemented a 3 MW solar system at their Phoenix, Arizona, distribution center. This installation now generates approximately 4.5 million kWh annually. It resulted in a reduction of CO2 emissions equivalent to removing over 700 cars from the road each year.
The initiative underscores Target’s commitment to sustainability. It enhances energy efficiency and operational resilience. Additionally, they are achieving substantial cost savings.
This blog covered almost every aspect of a Commercial Solar System. If you’re interested in getting a Commercial Solar System, call Solar Medix today, our solar experts will be happy to help you out.