Commercial solar panels have become a popular way for business owners to cut costs and save on their energy bills. But before you install a solar system, it’s important to understand the advantages and disadvantages of the technology.

A well-designed commercial solar panel system will lower your electricity bill and save you money in the long run. But before you can decide to go solar, it’s important to do an energy audit on your business to ensure it’s the right fit for you.

Cost

Solar costs have continued to decrease in recent years, with a two-thirds decline since 2010. This is largely due to the advancement of solar technology and lower inverter prices.

The cost of a solar panels commercial can vary based on a number of factors, including the size of the facility and its energy usage needs. Generally, smaller systems are cheaper than large ones.

Moreover, the type of equipment you use will affect your system’s efficiency and price. For example, monocrystalline panels produce more energy than polycrystalline ones.

A commercial solar installation can cost between $100,000 for a small business to $1 million or more for a large company with high energy demands. This is because the larger a business is, the more electricity it will need.

Efficiency

Getting the most energy from your commercial solar panels depends on how well they perform, and efficiency is one of the key factors in this. Higher-efficiency panels produce more kilowatt hours (kWh) of electricity, over time, than lower-efficiency ones.

High-efficiency solar panels generally use a higher-grade silicon cell technology, which has a lower rate of light-induced degradation or LID. This can reduce power loss and increase system life expectancy.

In addition, solar cells are affected by ambient temperature and irradiance levels, which can also impact their performance. As a result, many companies include a temperature coefficient in their panel specifications.

Most of the top-performing panels on the market today use PERC technology, which increases productivity by up to 12%. PERC solar cells have a reflective layer below them that reflects sunlight, increasing their output.

Tax credits

If you’re a commercial property owner, the solar investment tax credit (ITC) could be the best incentive for your solar panels. It’s currently at 26 percent, reduced to 22 percent for projects started in 2020 through 2022, and then to 10 percent after 2022.

A separate incentive is the production tax credit (PTC), which is available on projects that generate electricity in the first 10 years of operation. It reduces the business owner’s federal income tax liability and is adjusted annually for inflation.

There are also state-based incentives that can help reduce the cost of your solar project. In New York, for example, the Solar Energy System Equipment Credit is equal to 25% of your qualified equipment expenditures, up to $5,000.

Maintenance

Many solar customers are surprised to learn that solar panels require maintenance. This is largely because solar technology is often marketed as ultra-resilient and trouble-free, but that doesn’t mean problems won’t occur over the course of the 25plus years of a PV panel’s warrantied lifespan.

In most cases, the cost of maintaining a commercial solar system will be covered by its manufacturer warranty. This typically includes cleaning, inspecting, and replacing components like the solar panels, inverters, batteries, and racking.

However, it’s important to note that solar panels will degrade over time due to the elements. As such, regular maintenance will help to detect issues that may be causing your system to produce less electricity.