Solar energy is the fuel of the future. While solar panels have a single objective, which is to generate electricity, commercial and residential panels vary in design. Commercial solar panels are designed for businesses with enough roof space to house multiple panels and generate significant amounts of electricity. However, making the shift to clean energy can be daunting and difficult to make. Worry not because this guide will help you decide whether solar energy is the best energy solution for your business.
Commercial panels are a form of renewable energy that converts sunlight into electricity. They are made of photovoltaic cells composed of semiconductor materials such as silicon or cadmium telluride. These cells absorb light from the sun and create an electric field across the cell that generates electricity through an inverter connected to the solar panel system.
Commercial solar panels can be installed on the roof of a building, whether it’s residential or commercial, to power its electricity needs. These panels are distinctly larger for industrial purposes.
There are many reasons to get a commercial solar panel installation.
- Reduce your carbon footprint by producing clean energy from the sun, which has no emissions.
- Reduce your energy bills by purchasing electricity from the utility at a lower rate than it costs to generate it on-site with traditional sources like fossil fuels or nuclear power. You can also get paid for any excess electricity that you produce, helping defray the cost of installing solar panels in the first place (with some federal and state incentives).
- Support renewable energy because it reduces greenhouse gas emissions and helps you move away from climate-changing fossil fuels like coal and natural gas. It also supports the local economy through job creation in manufacturing operations and installation services throughout the country, giving consumers more options when choosing where they spend their money!
Feed-in tariffs (FITs) are a program that provides payments to businesses that generate solar electricity. In exchange for generating clean energy, your business can sell the extra electricity produced back to the grid and receive payments from your utility company.
In most cases, FITs work by paying you a set rate per kilowatt-hour (kWh) of energy you produce. If you produce more than you use or need on-site, it can be sold back through an agreement with your electric utility company at full retail value plus any applicable taxes–between 12% and 29%.
The benefits of FITs include the following:
- Making money off unused excess power production
- Tax credits for renewable energy production
When calculating the potential savings for your business, it’s essential to consider all your energy costs. This includes items such as utilities and equipment operation, as well as maintenance costs. Once you know how much money you spend on these items each month, you can use this information to determine how much money solar panels will save over time.
The average installation cost of commercial solar panels is $7 per watt, or $28,000, plus the labour cost of installing them yourself. If you assume that a business with 100 kilowatts (kW) installed would have an annual electric bill of $25,000 without solar panels and save 10% on their overall energy needs using solar energy instead (a conservative estimate), then they would save $2,500 annually.