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There's no denying it - businesses are going green. Companies everywhere, from grocery stores to antique shops, are recognizing the benefits of solar energy and making the switch.

The reasons are twofold.

First, more businesses are growing to realize that solar is a cost-effective way to power their organizations. According to a study conducted by the National Renewable Energy Laboratory, the payback period for commercial solar panels is only three to four years.

This is impressive, especially when you compare it to other traditional forms of power generation like coal or natural gas.

Second? Customers flock to green businesses that show a strong desire to operate in an environmentally responsible way. A study conducted by Nielsen found that 66 percent of global consumers are willing to pay more for sustainable products. Switching to green energy is not only better for the environment, it's also better for attracting new customers and raising your prices.

In this guide, you will get a comprehensive overview of commercial solar panels. We'll discuss some of the reasons you should consider switching to solar, the various benefits of a robust solar system, how solar panel efficiency works, and the incentives and discounts available for environmentally conscious businesses like yours.

Are you ready to go green? Lets start!

PANELS, MODULES AND PV SYSTEMS
First, some quick definitions. In the context of this blog, the term solar panel generally refers to the entire solar power system - micro-inverter, controller and all. This term is interchangeable with solar module, so if you see one or the other in industry literature, you should know that they mean the same thing.

Additionally, PV system stands for photovoltaic system and is the main way solar panels and systems are commonly defined by professionals.

WHY SHOULD BUSINESS USE SOLAR PANELS?
Solar power is not a fad — it is a reliable, sustainable resource that offers a lot in terms of cost-effectiveness, scalability and return on investment.

Specifically, there are three main benefits to why you should use solar energy with your business:

1. Reducing your energy costs and saving on electricity bills
On average, commercial solar panels pay for themselves in three to five years. After that, your energy is free — every kWh of solar energy produced by your system is one kWh less than you have to buy from the grid, saving you money on your electricity bill.

As if that wasn't good enough, governments and utilities are offering ever-increasing incentives and discounts for businesses switching to solar power. You can save thousands of dollars on your system setup cost, and that's money you can use to grow your business directly rather than outsourcing it to a utility company.

2. Reducing your company's carbon footprint
Solar panels reduce greenhouse gas emissions and help businesses move towards a more sustainable future. Every 1 MW of solar energy is equivalent to 31,500 metric tons of CO2 emissions.

Historically, companies have been the largest net producers of greenhouse gases. But this is changing. The US, for example, currently has about 114 GW of cumulative installed solar capacity, enough to offset more than 127 million metric tons of CO2 emissions. And that number is only growing.

By switching to solar power, you can help your business reduce its environmental impact and become a leader in the global fight against climate change.

3. Attracting environmentally conscious customers
In the 2021 Global Sustainability Survey, 34% of consumers said they are willing to pay a premium for sustainable products.

Offering a solar installation is a great way to show your customers that you are committed to sustainability and reducing your carbon footprint. As the zero waste movement continues to gain momentum, this means that more and more consumers (like yours) will preferentially shop from businesses that align with their values.

Switching to solar is a win-win situation for companies of all sizes. Not only does it save you energy costs, it also helps the environment and can attract more customers.

Are you ready to transition? Hoymiles can assist you with the perfect solar solution – find a distributor today.

BENEFITS OF SOLAR PANELS TO BUSINESSES
While the initial investment in a solar installation can be costly, businesses reap significant benefits over time. Some of the most important benefits of solar panels for businesses are:

Increased property value
Solar installations add significant value to a commercial property and can make it more attractive to potential buyers. Studies show that solar-powered properties are better than those without solar panels.

 

re has shown that it sells up to 20% faster and 15% more.

tax deductions
Businesses can also take advantage of various tax breaks and incentives to install solar panels. For example, in 2019 the US federal government offered a 30% tax credit for commercial solar installations. That number is currently 26%, but still large enough for any business to go a great distance.

Enhanced energy independence
Solar panels enable businesses to become more energy independent; this is especially important for companies that rely on centralized grid power. When a solar system is paired with an efficient battery storage system, businesses can even go completely off the grid.

marketing benefits
Solar installations also provide a strong marketing opportunity for businesses. Companies can demonstrate their environmental awareness and commitment to sustainability by switching to solar energy. This can be a major selling point for environmentally conscious customers and can help attract new business.

environmental benefits
Naturally, solar installation also has a number of environmental benefits. It reduces greenhouse gas emissions, helps conserve energy resources and reduces the use of harmful fossil fuels.

Reduced electricity bills
Once your solar system starts working, you will start generating your own power from the sun. This means you no longer have to buy electricity from the grid, which can result in significant savings on your monthly electricity bill.

increased flexibility
Solar installations make businesses more resilient to power outages and grid failures. When the grid goes down, businesses with solar panels can continue to generate electricity for their operations.

HOW EFFICIENT ARE COMMERCIAL SOLAR PANELS?
In just a few years, solar panel technology has made incredible advances in efficiency. In 2010, the efficiency rating of an average solar panel was about 14%. Today, that number has jumped to between 15% and 20% and there is still a lot of room for growth.

What does this mean? A 13% efficient panel can generate 130 watts of energy from 1,000 watts of sunlight. A 20% efficient panel can produce 260 watts of energy. As efficiencies increase, solar yields relative to their upfront costs will continue to decline, making solar panels an increasingly attractive investment for businesses of all sizes.

What makes a solar panel efficient?
Solar panel efficiency is the product of a number of factors, including the materials used in the panel, its design and construction, and the local climate.

projection
An important factor is reflection. A well-designed panel will have glass with a low reflection coefficient, meaning most of the sunlight falling on it will be absorbed and converted into electricity. Highly reflective panels lose some of the solar energy as they bounce off the surface.

Material Type
Perhaps the most important factor in efficiency is the type of material used in the solar cell. Most commercial solar panels today are made of either monocrystalline or polycrystalline silicon. Monocrystalline solar panels consist of a single, large silicon crystal and are generally more efficient than their polycrystalline cousins. Most modern, high-efficiency commercial solar panels are therefore monocrystalline.

Operating temperature
In general, a suitable operating temperature range for solar panels is between 59°F and 95°F. Most panels are tested to ~77°F, but once you start to heat or cool significantly beyond this range, efficiency drops dramatically.

Although many consumers may think otherwise, warm climates like Texas or Arizona are ideal for solar power not because of their hot weather but because of their long, sunny days – their higher temperatures actually hamper the energy production of solar panels in these regions because the higher temperatures cause silicon to generate more heat than electricity. It is possible.

Efficiency is constantly increasing
Scientists estimate there is still significant room for improving solar panel efficiencies, and there is no indication that this technology will slow down anytime soon.

The topic of conversation? Newer solar panel technologies such as PERC (passivated emitter and rear contact) and HIT (intrinsic thin-layer heterojunction) are even more efficient than solar panels produced only a few years ago, often reaching efficiencies of 25% or higher.

However, it's important to note that these new offerings are typically more expensive, and the experimental nature of some, their long-term reliability is still up for debate.

DO YOU NEED PLANNING PERMISSION FOR SOLAR PANELS IN COMMERCIAL BUILDINGS?
Many commercial properties were not designed to accommodate solar panels during initial development. Therefore, it is important to verify whether you need planning permission from your local municipality or business authority before proceeding with a commercial solar panel installation.

Some municipalities require you to submit detailed plans and/or go through a planning process, while others may not require any planning permission for your commercial property. It depends on the age of your building and whether it was designed specifically with solar energy in mind.

The good news is that many municipalities are pro-sun and willing to help businesses make the transition. They are generally accommodating and most are happy to guide you through the process – all you have to do is ask.

Here are a few things municipalities may look for when creating planning permits:

● How will the installation affect the appearance of the building?
● Will trees need to be cut down to make room for the panels?
● How will you provide access for maintenance and cleaning?
● What is the bearing capacity of your roof?
● Are there any restrictions on what type of solar panel can be installed?

If you are unsure whether your commercial property requires new planning permits, it is best to speak with your local city council or an experienced solar installer in your area.

Need help finding an installer? Hoymiles is a company of solar power professionals with an extensive network of experienced installers in each region - contact now.

COMMERCIAL SOLAR PANEL AVERAGE COST
The average cost of commercial solar panels depends on the size of the system you need and your commercial energy needs.

According to a recent study by the National Renewable Energy Laboratory (NREL), commercial rooftop photovoltaic systems cost less than $2 per watt on average. This fell from around $4 per watt in 2008 and is expected to continue to drop as solar technology evolves.

Smaller residential systems (such as those between 10 and 100 kW) have seen a similar drop in price and currently cost around $2.50 to $3 per watt. Therefore, while the overall cost of solar energy is falling, economies of scale still apply – larger commercial systems will generally be more affordable than smaller residential systems.

This means that the more energy your business needs, the more you will have to pay in absolute up-front costs. Likewise, your system will cost less per watt, making solar energy an even more financially prudent investment.

Average installation cost
A significant part of the cost of commercial solar panels is the labor price. On average, solar installation labor costs are about $0.30 per watt, or 10-20% of the cost. So a 100 kW system will cost around $30,000 to install - but this will vary depending on your location and the company you choose to install.

A reminder: These fees are gross costs. Solar panel installation discounts and grants can often significantly reduce the amount your business will pay.

Maintenance costs
Another thing to consider is the cost of ongoing maintenance. Solar panels generally require very little maintenance, but there are bound to be some costs associated with regular cleaning and occasional repairs.

For example, if birds often leave droppings on your panels, this can cause significant staining and reduced yields. Similarly, if a panel is scratched or damaged, you will want to repair it as soon as possible to reduce energy loss.

Usually, annual or semiannual maintenance will suffice.

Other costs
Finally, there are a few additional costs you may want to consider. For example, if your commercial property is located in a regulated area, you may have to pay for a permit. You may also need to upgrade your electrical infrastructure to accommodate the solar influx.