Guide To Integrating Solar Power in Commercial Buildings

Understand the basics of solar power for commercial buildings, including a step-by-step process for installing, computing costs, and financing methods.

Just as more residential homes are integrating solar power, corporate, nonprofit and government buildings are also switching to solar in a big way. In 2022, more businesses are choosing to install solar at their facilities according to a recent report from Solar Energy Industries Association. This guide is for commercial property owners who want to transition to a more energy-efficient source and save on utility bills.

What Is Commercial Solar?

Similar to residential solar installations, commercial solar panels harness the power of sunlight and convert it into electricity to power office buildings, factories, warehouses and more. Since the sun will always produce sunlight, solar is one of the most sustainable forms of energy. Compared to traditional energy sources like coal and gas, solar technology does not produce harmful emissions, so it's also a cleaner source of electrical power.

These days, many other large companies across the U.S. and the world are transitioning to solar. Walmart, IKEA, Costco, FedEx, Apple, and Verizon for example, have switched to solar, where it’s feasible, to power their facilities. Installing solar panels not only saves money, it can also significantly reduce a company’s carbon footprint.

Where are Solar Panels Installed?

A roof installation, similar to residential solar power systems, is the most ideal option for commercial buildings. Offices, warehouses, factories and other similar spaces often have vast roof-tops where the panels can catch the most sunlight.

Other installation options for commercial solar panels include parking lots that can be turned into solar carports, which are virtually open-air garages with solar paneled roofs. Ground-mounted solar arrays that have the ability to tilt and elevate during certain hours to catch the most sunlight are great for commercial facilities built on an expansive area.

How Much Do Commercial Solar Panels Cost?

According to the December 2022 market research from covetool.com, a 10 kW to 2 MW commercial solar panel system costs $1.83 per watt before any tax rebates or incentives. Larger fixed-tilt or one-axis tracking utility-scale systems greater than 2 MW cost $1.06 per watt on average.

Commercial solar installation costs for small and mid-sized businesses range from $43,000 for a 25 kW system up to $175,000 for a 100 kW system. Businesses recover about 45 percent of solar panels costs within the first year through tax credits and rebate programs.

How Much Electrical Power Can Solar Generate?

It depends on the daily average electric consumption of the building. To figure out how large a solar panel system is needed to power a commercial building or facility, multiply your business’s hourly energy needs by the number of hours of peak sunlight in your area.

For reference, if the sun shone for five hours with enough intensity to generate the full power rating of the solar installation, the 30-panel solar installation would have developed 11.7 kW x 5 hr = 58.5 kilowatt-hours (kWh) of electricity.

Refer to this formula —

How many solar panels do I need for commercial use?

Once you figure out how large your commercial solar system needs to be, you can divide the total wattage by the wattage of the individual panels. Depending on the size of these panels, this will determine how many of each you will need.

Is there a difference between commercial and residential solar panels?

Commercial and residential solar panels are similar in terms of how they work – both absorb sunlight that is transformed into energy. As with most commercial products and applications, size matters.  Everything is done on a larger scale to generate more wattage quickly and meet the energy demands of a busy enterprise.

What Is The Process For Installing Commercial Solar?

1.     Perform a Site Audit

The solar company you’ve chosen to install your commercial-grade panels will review utility consumption and cost by reviewing your utility bills. They will complete a thorough inspection of the building or grounds and gather information, including measurements of beams and structural walls, to aid in the system design process.

The installer then submits a proposal with the recommended location, layout and dimensions of the system, as well as its size and generation capacity. It will also detail the specific models of solar panels and inverters and a description of the wiring.

The proposal will state the cost of the system including the equipment and labor, minus rebates, and other incentives, projected energy costs and savings, and warranty information.

2.     Approve the Engineer’s Plan

The data gathered during the audit is handed over to solar engineers who then plan, design, and execute the solar energy project. During this process, the engineer will report on the cost, efficiency, schedule and safety recommendations prior to starting the project.

3.     Complete Permit Applications

Depending on the state, local government, and size and complexity of the system, this process can move along quickly or take a lot of time and money. EcoHome Solutions can provide dedicated assistance in completing permit applications as fast as possible. At this point, the installer will begin completing paperwork for rebates and incentives on the owner’s behalf.

4.     Supervise Panel Installation

Depending on the size and complexity of the project, an installation can take between two days to two weeks. For the typical attached or hybrid roof installation, holes are drilled into the rafters in alignment with the solar panel mounts. Thin pieces of metal are then placed over the mounts, preventing water leakage. The panels are then attached to the rails and connected together. Finally, the solar panels are connected to the inverter.

5.     Request for Final Inspection and Interconnection

Before the newly installed commercial solar system can be used, the owner must first obtain the sign-off from the utility or city building department with a final inspection. Inspectors ensure that the modifications to the building or grounds are up to code and that proper permits have been acquired.

Then the owner must submit an interconnection request to their utility. The interconnection waiting time, requirements, fees, and application process will vary depending on the location of the commercial facility. Each state has jurisdiction over interconnection to the grid and in many parts of the country, this process can be very complex and cost-prohibitive.

How to Pay for Commercial Solar: Financing Options

Refer to this guidance from ecowatch.com to decide which solar financing option is right for you. Ultimately, the way you choose to pay for your solar panel system will depend on a number of factors, including your expendable income, your credit score and ability to get a good loan rate, and more.

Here’s a summary of the types of solar panel financing available:

Thinking About Switching To Solar?

Find the perfect solar panel design and integration for your commercial facility to meet your current energy usage and start saving on your monthly utility bills using omni’s solar panel calculator. And if you decide that going solar is right for your company, contact us for free advice. We help with the design and set up of solar panel equipment, installation, including acquiring financing, permits and warranties.