Every business owner has basic questions about why they should invest in commercial solar energy. Here are some of the most common commercial solar faqs.
The word photovoltaic comes from the Greek words: photo,&#;phos,&#; meaning light, and &#;volt&#;, which refers to electricity. Photovoltaic (PV) means light-electricity, which perfectly describes the process of converting light into electricity with solar photovoltaic cells.
Solar cells are constructed from materials capable of absorbing energy from the sun, specifically in the form of photons, and transforming these photons into electricity, essentially turning photons into electrons. When sunlight hits a solar cell, the photovoltaic (PV) material within the panel absorbs this energy. This absorption generates electrical charges that move and result in the flow of electricity through the panels.
Adopting commercial solar energy can lead to a decrease in operational costs and provide several financial benefits, including tax credits and a notable return on investment.
The Solar Energy Industries Association has documented that businesses utilizing commercial solar systems generally observe a 50% reduction in their electricity expenses, with some cases reporting decreases of 80-90%.
The installation of solar energy systems has been associated with an average increase in property value of about 10%.
These findings highlight the practical advantages of integrating solar energy into business operations for business owners considering such investments for long-term energy solutions.
Check out our blog post: &#;How does solar benefit commercial buildings?&#; to learn more about why your business should invest in solar energy!
Switching to commercial solar systems is increasingly recognized as an effective strategy for businesses to minimize their environmental impact. This shift represents a commitment to sustainable energy practices. Initially, the process entails a consultation with a team specializing in solar panel installation.
During this consultation, the team evaluates the company's energy needs and devises a tailor-made system to address those requirements. Following the approval of the system design, the installation phase begins. This typically includes mounting panels to the commercial building's rooftop and integrating them with the existing electrical infrastructure. Many businesses witness a return on their investment in solar technology within a few years following installation.
Investing in solar energy not only helps reduce dependence on fossil fuels but also cuts down on carbon emissions. This transition not only serves environmental purposes but also grants businesses greater control over their energy usage and expenses.
Many firms specializing in commercial solar installations provide continuous monitoring and maintenance services. These services ensure the solar system maintains its efficiency and energy production capabilities over time.
Given the pressing challenges posed by climate change, the decision to embrace solar energy reflects a business's dedication to sustainability.
Clean energy offers numerous financial advantages.
One of the most immediate benefits of solar energy is the significant reduction in electricity bills. By generating your own electricity, you rely less on the grid, which directly translates to lower monthly energy costs. Over time, the savings can cover the initial investment in solar panel installation.
Properties equipped with solar energy systems often see an increase in value. Studies have shown that commercial properties with solar installations sell at a premium compared to those without. This is due to the prospective savings on energy bills and the growing consumer preference for sustainable energy solutions.
Governments and local authorities frequently offer incentives, rebates, and tax credits to encourage the adoption of solar energy. These financial incentives can significantly offset the installation costs and accelerate the return on investment. Business owners and homeowners should explore available local, state, and federal incentives.
Renewable energy can protect against the unpredictable rise of energy prices. By generating your own power, you become less affected by the fluctuations in utility rates, ensuring more predictable expenses. This is particularly advantageous for businesses that require budget stability.
Solar energy systems are renowned for their durability and low maintenance requirements. After the initial installation, the ongoing costs to maintain solar panels are minimal, ensuring that the savings from reduced energy bills are not offset by high upkeep expenses.
Solar energy is a renewable source of power and it has a vital role in reducing greenhouse gas emissions and mitigation of climate change. This is crucial to protecting humans, wildlife, and our ecosystems. Solar energy improves air quality and reduces water use from energy production. It&#;s a win-win situation for everyone!
Solar panels are capable of generating electricity in the winter months as efficiently as they do in the summer. It's important to note that if the panels are obscured by thick layers of snow, their ability to produce energy will be compromised. However, light layers of snow will not be a hindrance, and because the solar panels are installed with a vertical slant, the snow will easily melt and slide right off.
Installation experts often suggest incorporating features such as snow guards to protect the panels from being overwhelmed by ice and snow. Even in conditions of heavy rain or thick cloud cover, sunlight continues to reach the panels, enabling them to generate electricity.
Additionally, rain serves a beneficial role in maintaining the efficiency of solar panels by cleaning off any accumulated dust or dirt.
When properly installed, solar panels are built to endure up to 30 years, requiring little to no maintenance.
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The maintenance demands for solar panels are minimal. A bi-annual cleaning is generally sufficient, provided the panels are not exposed to severe weather conditions.
Professional cleaning services for solar panels can be obtained for a few hundred dollars, ensuring they remain in optimal condition.
The likelihood of needing repairs or replacements for your solar panels is low, so there's minimal concern regarding their upkeep.
When you start considering something totally new and different for your business, like purchasing commercial solar systems and panels, you might not be sure where to start. What questions should you be asking? Who should you ask? How do you know if the answers you get are accurate, complete and unbiased? In other words, as with many new endeavors, it&#;s likely that you don&#;t know what you don&#;t know.
Once you start getting serious about going solar, it&#;s a good idea to hire an unbiased solar energy consultant to help you make decisions about your solar project&#;understanding and choosing solar technologies, deciding where your solar installation will go, exploring the different ways to pay for it, knowing how it&#;ll be maintained, and so on. But if you&#;re just in the initial discovery stages, here are 9 questions you can ask solar panel installation companies (who might be commercial solar dealers, installers, distributors or manufacturers) to get an idea about whether solar is right for your business:
1. How much money can my organization expect to save with a commercial solar power system?
The key to getting a useful answer to this question is to specify that you want a long-term cost savings estimate&#;such as how much you&#;re likely to save over 20 years&#; time. This is important because solar is meant to last for decades, and one of its main advantages is that it can protect your business from volatile and generally rising fossil-fuel-based energy price changes. If you purchase your solar system, it can take a few years to break even, but then you&#;ll really start to see the savings. If you lease a solar system or enter into a power purchase agreement (PPA), there&#;s usually no money required upfront, so you can start to see savings in your energy bills from day one. Also ask your NJ solar contractor to run estimates on different solar technologies. Higher-quality solar panels, which cost more and might mean a slightly more expensive lease or PPA, will yield better savings over time than lower-quality panels. When you evaluate commercial solar panels, things like efficiency, durability, useful life and performance levels can make a tremendous difference in the return you can expect to get on your investment.
2. How much upfront capital will my organization need to go solar?
You might think &#;How much do solar panels cost?&#; is the right question to ask, but it&#;s really not. Here&#;s why: The price of solar panels, as well as the amount of energy they produce, varies widely&#;and it depends on many variables. The more useful question for businesses is &#;How much upfront capital will my organization need to go solar?&#; The answer to that depends on how you decide to pay for your solar project. If you purchase the system outright, the amount of capital you&#;ll need may depend on how much you plan to finance and your lender&#;s requirements. But if you choose to lease a solar system or enter into a (PPA), you may be able to get solar with zero upfront. Ask about your options and explore them thoroughly with a solar financing expert to see which model is right for you.
3. What other financial options are available besides purchasing a system outright?
You can also lease a solar system or buy the energy from a solar installation owned by a third party through a PPA. Though the long-term payoff is usually greater when you purchase a solar system, leasing does make sense for many organizations. There&#;s usually an option to purchase the system at the end of the lease term, so the ability to enter into the lease with little or no money down&#;plus the option to purchase the system later&#;may be a win-win for your company. However, be wary of solar companies that only offer leases as an option and push them hard. That may mean that they make their money off of leases and may not be as concerned about finding the right solar solution for your business as they should be.With a PPA, you buy the energy, not the solar equipment. You get the benefit of a set electricity rate over an extended period of time (usually 20-30 years). And similar to leases, you usually have the option to purchase the system outright after some period of time has passed, or you can negotiate a new agreement when your term is over. Again, if you have little or no capital to put down on the purchase of a system, and you don&#;t want to operate and maintain a solar energy system yourself but want the benefits of renewable energy, entering into a PPA may make the most sense for you.
4. Is my building or site appropriate for solar?
A commercial solar project site expert or designer can probably give you a preliminary evaluation of your site&#;s suitability for solar over the , but will have to visit your site(s) to make a final determination. They&#;ll be looking at available roof and parking lot space, nearby land appropriate for a ground-mounted solar panel array, the angle of the sun and shading, building integrity, soil quality, permitting concerns, grid interconnection requirements, and more. They&#;ll also need to know or look into factors such as building ownership, historical structure status, local ordinances, etc.
5. What size and type of system should I choose for my business?
You can choose rooftop (the most common choice for commercial solar users), carport or ground arrays&#;or a combination of these. You can have the solar installation on your own site or offsite. You can build just enough solar to meet your energy needs or build more than you need and potentially get credited for any excess energy that you produce (depending on what public policy and utility company practices allow in your state&#;s energy market). This is a question a solar energy consultant or the manufacturer or dealer you choose to work with will answer for you. They&#;ll need to analyze your past and current energy needs and evaluate whether or not they can fit enough panels on your site to meet those needs. If your building or site can&#;t accommodate enough panels, you may need to consider higher-efficiency panels or an offsite solution. But there are many ways to take advantage of solar power, so it&#;s often just a matter of finding the right solar solution.
6. What types of products do you carry and how do they differ?
If you end up working directly with a solar panel manufacturer, as some companies prefer, they will of course tell you why their products are the best choice. If you start with a dealer or installer, they will make recommendations based on the brands they sell. Rooftop commercial solar power system. And while most solar companies will honestly try to find the right solution for your budget, values and energy needs&#;a third-party solar consultant can help you compare solar products (like panels, inverters, mounting hardware, monitoring software, and other system components) in an unbiased way. Depending on your priorities&#;saving money long-term, contributing to a cleaner environment, improving the value of your commercial property, etc.&#;you should explore qualities of solar technology like efficiency, reliability, performance, durability, scalability and warranties to determine which solar manufacturers&#; products are your best choices. Then you can look for a dealer with a good reputation who provides that technology in your area.
7. Who will be responsible for ongoing operation and maintenance (O&M) of my commercial solar system?
As mentioned previously, solar is a long-term investment that is meant to last for decades. Though quality solar installations are generally very low-maintenance and trouble-free, they do require occasional cleaning, ongoing monitoring and possible repairs to continue performing optimally over time. It&#;s important to know who will maintain the system, monitor its performance and keep it operating at maximum efficiency. You can do that yourself or enter into a contract with another company. Your O&M needs will be highly contingent upon the size and complexity of your system, but most established solar O&M providers can offer robotic or human panel-cleaning services, performance monitoring and reporting, and as-needed repair and parts replacement so you don&#;t have to worry about your solar system at all.
8. What policies and incentives are available for my organization if we decide to go solar?
The biggest incentive currently available is the federal commercial renewable energy Investment Tax Credit (ITC), which might influence your decision to go solar sooner rather than later. It constitutes a significant tax credit of 30% of the value of projects completed through the end of , but that credit begins to decrease year by year after that: 26% in , 22% in , and just 10% thereafter. In addition to the federal ITC, there may be a variety of other state and local policies and incentives that reward businesses for going solar. Start with a search of the Database of State Incentives for Renewables & Efficiency ® (DSIRE®) to see what&#;s out there for you. Note that commercial solar systems take some time&#;typically nine months or more&#;to get installed after the project is initiated. So factor that into your decision-making regarding the ITC and other time-sensitive incentives.
9. Which panels would you (or did you) choose for your own business and why?
A solar dealer&#;s answer to this question can be the most revealing of all. If their answer is honest and straightforward, it will give you the best idea of what someone who lives and breathes solar all day, every day, really thinks of the panels on the market&#;including pricing, quality and long-term payoff potential.
There&#;s a lot to learn and understand about commercial solar power systems when you&#;re in the beginning stages of exploring solar as an option for your business. If you ask the right questions and push for unbiased answers, though, you&#;ll be able to go into the process armed with a strong understanding of what you need and who can provide it&#;the foundation of good business decision-making.
Contact us to discuss your requirements of Commercial Solar Panel. Our experienced sales team can help you identify the options that best suit your needs.