This article provides an in-depth look at commercial solar systems, showcasing their potential to revolutionize how businesses generate and consume energy. It emphasizes the financial and environmental benefits of adopting solar technology, illustrating the process, challenges, and long-term rewards Contact online >>
This article provides an in-depth look at commercial solar systems, showcasing their potential to revolutionize how businesses generate and consume energy. It emphasizes the financial and environmental benefits of adopting solar technology, illustrating the process, challenges, and long-term rewards of transitioning to renewable energy sources for commercial operations.
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The energy transition away from fossil fuel electricity generation towards sustainable energy sources is becoming increasingly vital in our journey to combating climate change. Within this green revolution, commercial solar energy emerges at the helm, offering businesses an opportunity to not only support the environment, but to also benefit financially. This article aims to explore the multifaceted world of commercial solar energy, delving into the technology of commercial solar, its applications, and the various financial incentives available for commercial solar systems. If you own or operate a commercial or industrial organization and are looking for ways to reduce energy costs for your business, uncover the benefits of solar energy for your operation.
Commercial solar energy, also known as photovoltaic (PV) energy, utilizes solar panels and systems to generate electricity for commercial, industrial, or municipal applications. Commercial solar systems are specifically designed based on a business''s energy consumption and/or available space to install PV panels. While some businesses might have rooftops with much sun exposure, others could be limited and it may not be profitable to install solar panels on the entire roof. Some commercial solar applications utilize parking lot space through the construction of parking canopies, while others try to utilize extra land that they might own at or near their business.
The answer: it depends. The profitability of a commercial solar system depends on several factors. And, many times these factors are predicated on the location of the system due to state-specific incentives. When looking at the numbers, it is important to be aware of the costs, benefits, and financial perks associated with commercial PV. The best way to do this is to transform your solar project into a financial statement with income, expenses, assets, and liabilities. Let''s explore this in more detail in the example below.
For this illustration, we will assume the following:
Now, there are several ways to look at the profitability or return on investment with this example. One school of thought says that the business is earning $77,000 per year on a $1,225,000 investment (purchase price after tax credit). This gives the business owner a 6.2% annual rate of return. Another school of thought is to take the annual benefit from the SREC income and energy savings, less maintenance costs ($140,000) and divide it into the total system cost after the tax credit ($1,225,000). In this scenario, the business owner recoups his investment in 8.75 years and then gets free power from the solar system (less any maintenance costs).
Another scenario, that we will discuss in more detail below, is bonus depreciation. The IRS allows businesses to depreciate 100% of the solar project cost in year one. This allows the owner to offset all of the income generated by the system as well as other business income he might have in that year. Remember, depreciation is not a one-to-one benefit as the total cash value is based on your tax rate.
In each scenario, this appears to be a profitable deal for the business owner. Now, remember, the SREC inventive income is a state-based incentive and will change based on the project’s location. It''s best to evaluate each commercial solar project on an individual basis to determine its profitability.
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There are several ways to construct a commercial solar system. While most private businesses are concerned with the financial aspects of the solar project, other organizations are more driven by environmental benefits. All of these factors play a role in determining how much solar to install on a property. Let''s explore some of the more uses of commercial solar below and their advantages.
A rooftop solar system consists of photovoltaic (PV) panels installed on the roof of a building to convert sunlight into electricity. This setup is designed to seamlessly integrate on the building''s roof and electrical system, making it the most popular commercial solar system use. If the business''s roof has a lot of sun exposure, this is often the very best and most affordable way to install solar.
A carport system is another type of solar system for commercial use. This design involves the construction of carport canopies in a business''s parking lot. The carport is designed in such a way that cars can park underneath while solar arrays are mounted on top of the structure. This is often implemented when the building''s roof cannot get enough sunlight or hold enough solar panels. While carport solar systems are a great way to produce more electricity, they can be costly to construct and often affect the profitability of the solar project.
A ground mount system involves installing ground-mounted steel and/or other structures that can support the installation of solar panels in an open area, such as a field. Like the carport systems, ground-mounted solar systems can be more costly to install when compared to rooftop systems, as the cost of steel and construction can outweigh the benefits from the energy production. However, businesses that have limited rooftop space or lots of open land often take advantage of this commercial solar installation option.
The adoption of commercial solar energy systems offers a myriad of benefits that extend beyond environmental effects to include substantial economic and operational advantages. Below, we highlight the key benefits that businesses can leverage by integrating solar power into their operations.
While installing a commercial solar system has many benefits, it also comes with some challenges. Let''s explore some of the top challenges faced by our customers today when considering a solar option.
If you are thinking about a solar system at your business, the best place to start is with a free solar consultation. During this stage, a solar expert will evaluate your building, your roof, its sun exposure, local rules and regulations, available solar incentives, your building''s energy production, and more. At this step of the process, you can even design a solar system virtually to see how it will look on your building and to project its energy performance. This will give you a good idea of the potential of solar at your business and whether it’s worth taking the next step.
At Diversegy, our team of energy experts has a deep understanding of the solar energy industry and how to engineer commercial solar systems for our customers. In fact, through our parent company, we are part of a conglomerate of energy companies that manufacturers, engineers, and installs solar panels for commercial businesses. Want a free quote to see how solar might work for your business or organization? Contact our team today!
Diversegy, LLC520 Broad StreetNewark, NJ 07102
[email protected](201) 374-9641
We deliver market access, support, technology, and financial benefits to our broker partners, sales agents, and energy customers.
520 Broad StreetNewark, NJ 07102
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About Commercial solar electric
As the photovoltaic (PV) industry continues to evolve, advancements in Commercial solar electric have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Commercial solar electric for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Commercial solar electric featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
