How Much Do Commercial Solar Panels Cost?

Unfortunately, there isn’t a straight answer as to how much commercial solar panels cost. Why? Because commercial properties have vastly different power needs and square footage. To get an exact price, you’ll need to schedule a comprehensive estimate with a professional solar installer that’s experienced in commercial solar projects. 

That said, there are some key factors that influence the cost of commercial solar panels. In this blog, we’ll provide a general overview of what these cost factors are:

• System size
• The quality of panels & equipment
• Installation complexity
• Incentives and rebates

With the decreasing costs of solar technology and the positive environmental impact, investing in commercial solar panels can be a wise and financially sound decision for many businesses. For this reason, we’ll also take a look at:

System Size

Generally, larger commercial solar panel systems come with a higher upfront cost. This is because larger installations require more solar panels, inverters, mounting equipment, and electrical components. However, larger systems often enjoy cost reductions due to their increased scale, leading to a lower cost per watt.

To that end, larger systems have the potential to generate more electricity, leading to greater savings on energy bills over time. It’s important for businesses to carefully assess their energy needs and consider factors such as available roof or ground space to determine the optimal size of the solar panel system that balances upfront costs with long-term savings.

Equipment Quality

Premium solar panels tend to come with a higher price tag compared to lower-quality alternatives. This is because high-quality panels are built using superior materials, advanced manufacturing processes, and stringent quality control measures. As a result, they offer several advantages, including:

Higher Efficiency

High-quality panels are more efficient, meaning they can convert a higher percentage of sunlight into electricity. This increased efficiency results in greater energy production and, ultimately, higher savings on electricity bills over the system’s lifetime.

Better Performance in Low-Light Conditions

Premium solar panels are equipped with superior light-absorption capabilities, enabling them to generate electricity even in cloudy or shaded environments. This is crucial when considering cost and return on investment. By maximizing energy generation in low-light situations, high-quality panels can significantly enhance the overall energy output and long-term electricity savings.

Increased Durability

Although they may come with an increased cost, better quality solar panels are built to withstand harsh weather conditions, temperature fluctuations, and potential mechanical stress. The enhanced durability reduces the risk of damage, degradation, or premature failure, thereby minimizing the need for costly repairs or replacements.

Installation Complexity

The complexity of the installation can affect the cost of commercial solar panels. Factors such as the type of roof, accessibility, and any necessary structural modifications can increase the installation expenses. Rooftop installations are generally more cost-effective than ground-mounted systems.

Why Roof-Mounted Systems Cost Less

The structure of a building (namely, the roof) provides an existing foundation for solar panels. This eliminates the need for foundation construction, which can be expensive for ground-mounted systems. Additionally, the wiring and electrical connections are typically more straightforward for roof-mounted systems, further contributing to cost savings.

Incentives and Rebates

Tax credits and incentives can have a significant impact on the cost of a commercial solar panel installation. Government programs at the federal, state, and local levels often offer various financial incentives to promote renewable energy adoption. These incentives can include investment tax credits (ITCs), grants, rebates, and performance-based incentives. 

For example, the federal ITC allows businesses to deduct a percentage of their solar investment from their tax liability. This can effectively lower the upfront cost of installing solar panels, making them more affordable for commercial properties that have a much higher upfront cost when compared to residential solar installations.

Maintenance and Operational Costs

While the initial installation cost is a crucial consideration, it’s equally important to account for ongoing maintenance and operational expenses. Regular cleaning, inspection, and repairs may be required to ensure optimal performance and maximize the lifespan of the system. These costs should be factored into the overall financial analysis.

Prior to signing a contract with your chosen solar installer, ask them about their warranties and guarantees.

Financing Options

Various financing options are available to businesses considering solar panel installations. These include outright purchases, leasing, power purchase agreements (PPAs), and solar loans. Each option has its own implications in terms of upfront costs, ownership, and long-term savings. However, you should always evaluate these options carefully to determine the most suitable approach based on your financial situation and goals.

To learn more, check out our blogs, ​“What’s the Difference Between Secured Solar Loans Vs. Unsecured Solar Loans” and ​“Should You Lease or Buy Solar Panels?”