Commercial Solar Panel Installations: Costs, Benefits & What to Expect

Dee Yonker

2021 Guide to Commercial Solar Panel Installations - EcoWatch

Going solar and installing solar panels in businesses have become a trend in the past couple of years because there are a lot of advantages, like being able to save on the costs of electricity and lessening their carbon footprint on the atmosphere. Despite being at it for a few years, there are still a lot of questions pertaining to this renewable energy power source, so here are some common questions about commercial solar panels to help you have a better understanding of commercial solar panel installations: costs. benefits, and what to expect.

What Is Commercial Solar?

A commercial solar system is a solar system for businesses. The main difference that you may notice between residential solar and commercial solar is that commercial has a lot more types compared to residential because businesses may or may not come in different sizes. 

Commercial Solar Costs 

The cost of your solar panel would depend on how big the business is. The average cost of a commercial solar system would have to be around $50,000 but a large facility or when you are planning on having your own solar farm, then it could cost you a minimum of one million dollars just for installation.


The installation might seem like it’s a lot, but there are a lot of incentives that you could get when your business goes solar:


1. Net Metering

Net metering could be done in both residential and commercial solar systems where they could give the extra energy you do not use back to the grid and get credit in return.

2. State and Local Incentives

According to the state you live in, you could get your own incentive in addition to the federal solar tax credit and net metering. You could do your research on your own state if you are planning on getting your own commercial solar system.

3. Federal solar tax credits

There is a 26 percent deduction when you have a federal solar tax credit. This could be used in any kind of solar system, may it be commercial or residential.

4. Bonuses from MACRS

MACRS stands for Modified Accelerated Cost Recovery Systems where they would deduct your tax and give businesses a chance to recover all of the money that they invested in the installation of their commercial solar system.

Benefits of Commercial Solar System

1. Commercial Solar System Environmentally

Going solar and getting your own solar system for your business would be the perfect opportunity to turn to sustainable and renewable energy and lessen your carbon footprint in the environment because you could lessen the amount of carbon dioxide that you would usually create when you are relying on energy that comes from fossil fuels.

2. Commercial Solar System Financially

If you look at your financial statement, energy would have to be the number one thing all of your budgets are going to since everybody needs energy (especially businesses) in order to function. Accordion to Energy star, the average cost that a small business would spend on energy would have to be 60 billion dollars a year, but with solar energy, you get to lessen it with all of the warranty, incentives, and the fact that the average life of a solar panel is 25 years so it’s a big investment.

What Types of Companies Should Go Solar? 

  • Agricultural companies
  • Architects, engineers, and contractors
  • Manufacturing, distribution, and storage
  • Water districts
  • Multi-family and assisted living
  • Enterprises
  • Car dealerships
  • Educational and nonprofit organizations
  • Office buildings
  • The government and the military
  • Healthcare facilities
  • Hotel and restaurants
  • Local businesses


Factors to consider to make you the perfect fit for a commercial solar system:

  • If you have your own building and property that has a huge area that has no shade, either on the ground or the roof of your building.
  • You could consider going solar if your roof is in mint condition.
  • When you are in a location where the sun is always shining and the weather is hot.


The initial cost of just installing your panels and having your system could cost a lot, but you could get back revenue and save a lot more in the long run, so there are a lot more benefits that you could have by going solar.

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