How Commercial Solar Power Protects Your Bottom Line2/2/2024
Fluctuating energy costs can significantly impact your bottom line. One way to protect your financial investment and ensure long-term stability is by shifting to commercial solar power systems. This article explains how commercial solar can protect your bottom line and how it can be a long-term asset for your business.
Understanding Commercial Solar Power Systems
Commercial solar power systems are solar panel systems designed specifically for business applications rather than residential use. They work similarly to residential systems, but on a larger scale with some key differences in system types and economic benefits.
Besides the environmental benefits, commercial solar systems offer promising economic advantages. They allow businesses to cut down their energy costs, enjoy tax credits, and create a resilient and sustainable operation.
Brief Overview of Commercial Solar Power
The main components of a commercial solar system include panels (either on rooftops or ground-mounted), wiring, one or more inverters, a monitoring system, and often a battery storage system. Many commercial solar systems are designed as grid-tied, meaning they are connected to the local electric grid.
Commercial systems generate clean electricity from sunlight, offsetting the power purchased from the utility company. Solar panels produce DC power, which flows to an inverter that converts it into usable AC power. That solar power is then used onsite with any excess sent to the grid through net metering programs.
By generating their own power, businesses can reduce their energy bills and benefit from federal tax credits, additional state/utility incentives, and accelerated depreciation savings.
How Solar Power Works in Commercial Settings
There are some important considerations when implementing solar in a business:
- Larger system sizes in commercial projects are typically measured in megawatts rather than kilowatts.
- There is greater energy demand to offset, especially in industrial facilities.
- There are variations in utility rates and net metering policies among utility territories.
- System types and positioning must meet codes and integration needs.
Qualified solar installers design systems to meet the facility's needs correctly and safely.
Types of Commercial Solar Power Systems
There are three commercial solar system types:
- Rooftop Solar PV: Solar panels mounted on flat or sloped roofs
- Ground-Mount: Solar arrays constructed on racks or poles anchored to the ground
- Carport: Solar installed on cantilevered structures, creating shade for parking areas
Within those configurations, solar panels may be fixed or mounted to tracking equipment that follows optimal angles towards sunlight throughout the day. Installers conduct shade analysis, structural assessments, and feasibility studies to determine suitable solutions.
Battery storage is also commonly integrated, storing energy for use when solar production is unavailable while providing resiliency from grid outages.
Never had a solar assessment before? Learn what to expect during a professional estimate and how the survey process works in this article.