Most commercial and industrial solar installations are substantially larger than a typical residential solar power system. For perspective, the average size of a residential solar panel system is around 10 kilowatts (kW), while a commercial solar energy system can be up to several megawatts (MW), depending on the electricity needs of your company.
With competitive price and timely delivery, KINGSUN sincerely hope to be your supplier and partner.
Different from utility-scale solar, commercial solar power is “distributed generation,” which means we use the energy the system produces at or near the point of generation. Distributed generation projects, such as rooftop or ground-mounted residential solar, are usually connected to the local electric grid. This allows your business to take advantage of net metering, a policy that enables you to send unused electricity back to the grid in exchange for electricity bill credits (more on this below).
Here’s why so many businesses choose to install solar:
Note: These prices will vary depending on your business’s location, the equipment you select, and the type of system you install.
If you’re still concerned about how to pay for your business’s solar energy system after incentives, don’t worry. Most businesses don’t pay upfront for solar because there are many financing options available. You can finance your system with a solar loan or choose a third-party ownership arrangement like a lease or power purchase agreement (PPA), though you won’t be eligible for the direct benefit of tax incentives if you don’t own your system.
Commercial solar provides a great return on investment. According to the U.S. Energy Information Administration (EIA), in , the average commercial building spent $650.04 on electricity (likely on par with most small-to-mid-sized-businesses). Over a year, this equates to $7,800 in operating expenses. Over 20 years, your business will spend about $156,010 on energy costs.
Based on the same EIA dataset, the average commercial property consumed about 69,540 kWh of electricity in . Let’s assume your business installs a solar panel system that offsets 90% of this electricity consumption. Let’s also assume that your system’s production ratio (the ratio of its estimated energy output over time, in kWh, relative to its actual size, in W) is 1.4 (it typically ranges between 1.1 and 1.7 in the U.S., depending on your location).
How big of a system does your business need? Plugging in our numbers from above, we get:
System size (in W) = Annual consumption (569,540 kWh) * system offset (0.9) / production ratio (1.4)
This gives us a system size of 44,704 W or about 45 kW. According to our table above, a 45 kW system costs about $39,150, including the ITC and five-year depreciation with MACRS.
Over 20 years, your business will save about $101,259 in electricity costs with solar:
20-year savings = 20-year electricity costs ($156,010) * system offset (0.9) - upfront solar energy system cost including incentives ($39,150)
Beyond the direct financial benefits, installing solar panels can also help your business protect itself against electricity price volatility and inflation. In many states, the price of electricity can fluctuate significantly due to demand, creating a headache for business owners who closely manage their cash flow. With solar, your business can lock in electricity prices and reduce reliance on the unpredictable electricity market, making it easier to budget and plan for the future.
If you want to learn more, please visit our website Off Grid Solar System.
When businesses contract with solar companies, workers in the local market complete the installations. Greater demand for solar projects increases the availability of high-quality, well-paying jobs. As of , there are over 250,000 solar jobs nationwide, which represents a 9% increase year-over-year.
Depending on the size and scope of your project, you could provide jobs for multiple crews of contractors for over a month at a time. In the future, these workers could become your customers.
Whether you’re looking to save on electricity bills or build a more sustainable brand, going solar is a great choice for many businesses. Unsure how to get started? EnergySage offers a concierge service for businesses to make installing a solar panel system simple. We’ll provide you with an initial solar benchmarking estimate to show how many solar panels you can fit on your property, how much electricity they’ll produce, and how much you can save with solar. When you’re ready, we’ll gather custom quotes from up to three vetted solar companies in your area and help you choose the best option for you.
A version of this post first appeared on Inc.com.
In the modern business world, sustainability and cost-efficiency have become crucial pillars for success. As the UK grapples with the consequences of climate change, more and more businesses are increasingly turning to renewable energy sources to power their operations. But should your business make the switch? Here are the top five reasons why businesses should make the switch to solar power:
One of the most compelling reasons for any business in Scotland or England to adopt solar energy is its potential for significant cost savings. Many businesses shrug this off because they worry about the initial investment required in fitting solar panels which is why we have MULTIPLE financial options available to suit your business. But however you finance your solar panels, the long-term benefits far outweigh the upfront expenses. Solar energy systems have a relatively low operating cost compared to traditional energy sources like fossil fuels. Once installed, solar panels require minimal maintenance and have a lifespan of 25 years or more. By generating your own electricity, your businesses can also hedge against future utility price hikes, providing greater predictability and stability to their energy expenses.
So if your business energy costs have been going up dramatically in recent years, being able to both substantially reduce them AND protect your business from future price hikes is a savvy business move.
Relying on traditional grid electricity leaves businesses vulnerable to disruptions caused by power outages, natural disasters, and fluctuating energy prices. Solar energy offers a solution to this vulnerability by providing businesses with greater energy independence and resilience. By generating electricity on-site, businesses can reduce their dependence on external energy sources and insulate themselves from grid instability. In remote or off-grid locations, solar power can be particularly advantageous, eliminating the need for costly infrastructure extensions and ensuring reliable access to electricity. With energy storage solutions like batteries becoming increasingly affordable and efficient, businesses can store excess solar energy for use during periods of low sunlight or high demand, further enhancing their energy autonomy.
Investing in solar energy offers businesses a reliable and lucrative long-term investment opportunity. With advancements in solar technology and decreasing costs, solar installations have become increasingly affordable and efficient. As energy prices continue to rise and environmental regulations become more stringent, the value of solar energy assets is expected to appreciate over time. Moreover, solar energy systems can provide a steady stream of savings and returns for decades, offering a stable and predictable return on investment. By capitalising on the growing demand for clean energy solutions, businesses can future-proof their operations and secure a competitive advantage in an evolving energy landscape.
In today’s competitive marketplace, differentiation is key to success. Adopting solar energy can give businesses a distinct competitive advantage by positioning them as innovators and leaders in their industry. Consumers are increasingly favouring companies that prioritise sustainability and environmental responsibility, driving demand for eco-friendly products and services. By visibly demonstrating their commitment to clean energy through solar installations, businesses can attract environmentally conscious customers, investors, and partners. Furthermore, businesses that embrace solar energy may benefit from positive publicity and enhanced brand image, distinguishing themselves from competitors and fostering customer loyalty. As sustainability continues to influence consumer behavior and purchasing decisions, businesses that fail to adapt risk being left behind in an evolving market.
As the global community becomes increasingly aware of the environmental impact of human activities, businesses are under growing pressure to operate sustainably. Switching to solar energy demonstrates a commitment to reducing carbon emissions and mitigating climate change. Unlike fossil fuels, solar power produces no greenhouse gases or air pollutants during operation, making it a clean and renewable energy source. By harnessing the abundant energy from the sun, businesses can significantly reduce their carbon footprint and contribute to a more sustainable future for generations to come. This environmental stewardship not only benefits the planet but also enhances the reputation of businesses as socially responsible entities, appealing to environmentally conscious consumers and stakeholders.
Solar panels for commercial purposes can save your business money on their energy bills while presenting opportunities to sell surplus power back to the national grid and giving your business financial stability in the ever chaotic energy market. At Low Energy Services, we are a leading commercial solar panel installer covering Scotland and the North of England. We have worked with commercial businesses big and small ranging from office building solar panel installs to multi site systems for well known fast food chains.
The process of solar panels is quite simple. Solar Photovoltaic (PV) modules harness energy from the sun and generate this into electricity for use in and around your office building. Solar Panels only need daylight to produce electricity, meaning that they can provide energy all year around, even on a cloudy day in the North of Scotland.
For more information, please visit 3 kW On Grid Solar System.