6 Things to Know Before Getting a Commercial Solar System

21 Jul.,2025

 

6 Things to Know Before Getting a Commercial Solar System

Solar power is a sustainable and financially savvy solution to cut rising electricity costs for businesses. Transitioning to a commercial solar system can be a game changer. It will help businesses reduce their carbon footprint. As a result, it has a positive environmental effect.

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However, you must understand some important aspects of the commercial solar system before its installation. That’s why Solar Medix experts have prepared this guide.

This article covers all the aspects of commercial solar panel installation. You will learn everything about the need for commercial solar panel installation. From its financial and environmental benefits to tax incentives, it will answer all of your relevant queries.

We will also guide you through its maintenance requirements and installation process. This blog covers the 6 essential things everyone should know before getting a Commercial Solar System,

  • Does My Business Need a Commercial Solar System?
  • Financial Benefits of Commercial Solar Systems
  • Environmental Benefits of Commercial Solar Systems
  • Tax Credit for Businesses with Commercial Solar Systems
  • Maintenance of Commercial Solar Panel Systems
  • Installation Process of Commercial Solar Systems

Does My Business Need a Commercial Solar System?

There are several factors to consider before investing in a commercial solar system.

Here is all of the necessary information:

Assessing Energy Needs

You must be aware of the energy consumption of your business before choosing a commercial solar panel. Reviewing your electricity bills will help you understand your business’s maximum energy usage. Solar power is essentially beneficial for businesses with high energy usage.

Evaluating Financial Benefits

Going solar not only reduces your business’s operating costs but also provides long-term savings. Explore the rapid expansion of solar energy in the U.S. with this SEIA graph, showing solar’s increasing share of new electricity-generation capacity from to H1 . This surge illustrates solar’s growing role as a cost-effective energy solution for businesses.

Source: Solar Energy Industries Association (SEIA)

Aligning with Sustainability Goals

Solar energy is one of the cleanest and most renewable energy sources. The commercial solar system will reduce the environmental impact of your business. As a result, it will lower your carbon footprint.

Assessing Site Suitability

It’s crucial to evaluate your property’s suitability before installing a commercial solar system. The best approach is to conduct a solar feasibility study by professionals like Solar Medix experts.

Our experts will conduct a detailed analysis of your site’s potential, including assessments of roof conditions, available space, and sun exposure.

Solar-Powered Success

Hershey installed a 1 MW solar array at its manufacturing facility in Pennsylvania. It was part of their mission to reduce operations costs and support sustainability initiatives.

Ultimately, they generated enough electricity that they could supply power to 500 homes annually. It helped reduce their energy cost significantly. It also helped them reinforce their commitment to environmental responsibility.

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Financial Benefits of Commercial Solar Systems

Commercial solar installation comes with compelling financial incentives as well:

Reduced Operating Costs

Switching to commercial solar can reduce your electricity bills radically. For instance, a business spending $10,000 a month on electricity can make big savings by going solar and generating their own electricity.

Return on Investment (ROI)

You have to make a substantial one-time investment while installing commercial solar systems. It will provide you with an attractive ROI. In most cases, businesses recover their investment in just 3-7 years.

The initial investment in solar can be substantial. Most solar panels come with a lifespan of 25-30 years. It will help you add additional savings to your financial return.

Protection Against Rising Energy Costs

Understanding energy market dynamics is crucial for businesses considering solar investments. The graph below, sourced from data compiled by Ventyx, the Velocity Suite, highlights the significant correlation between energy demand and day-ahead prices in ERCOT regions.

As demand increases, so do prices, underscoring the financial advantages of investing in a commercial solar system to achieve energy independence and shield against price volatility.

Source: Solar Energy Industries Association (SEIA)

Energy Independence

Solar energy makes businesses less dependent on fluctuating utility rates. It also helps them avoid the impact of rising energy costs. This is particularly beneficial in areas with an unstable energy supply.

ROI in Action

General Motors (GM) has integrated solar energy across its operations. GM has installed a 2.2 MW solar array at its Lordstown Assembly Plant. It provides 1.9 million kWh of electricity annually.

This system has reduced GM’s energy costs significantly. It demonstrates a robust ROI. Moreover, it aligns with their corporate sustainability goals.

Environmental Benefits of Commercial Solar Systems

Solar power also offers significant environmental advantages in addition to financial savings:

Reducing Carbon Footprint

Adopting solar power significantly reduces CO2 emissions. For example, a MW solar installation in the ERCOT region can prevent 323 thousand tons of CO2 emissions, showcasing the substantial environmental and economic value of solar investments.

Supporting Renewable Energy

Investing in solar is a great way for businesses to transition to cleaner energy sources. It will also contribute to a more sustainable future.

Enhancing Corporate Responsibility

Going solar will be a great way for a company to build its reputation as a responsible corporate citizen. It will symbolize a business’s stewardship to its consumers and stakeholders.

Environmental Impact

Patagonia is an outdoor clothing company. It has installed solar panels at its distribution center in Reno, Nevada. Their 1 MW solar system generates about 1.5 million kWh of energy each year.

It significantly reduces their carbon footprints. It also supports their long-standing commitment to sustainability.

Tax Credit for Businesses with Commercial Solar Systems

Businesses with commercial solar installations can also avail of substantial tax incentives:

Federal Investment Tax Credit (ITC)

The Federal Investment Tax Credit (ITC) offers a 26% deduction on solar installation costs for commercial and utility-scale projects that commenced construction before December 31, , and are completed and placed into service before January 1, .

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This substantial deduction provides a lucrative incentive for businesses to invest in solar energy, contributing significantly to the growth and sustainability of the solar industry in the United States.

State and Local Incentives

Many states and municipalities offer additional incentives. It includes tax credits, rebates, and grants. It further reduces the cost of commercial solar systems.

Depreciation Benefits

Accelerated depreciation for solar energy systems under the Modified Accelerated Cost Recovery System (MACRS) benefits businesses. It allows them to recover the investment over five years.

Tax Incentives in Practice

Walmart has been a leader in solar energy adoption. They have installed solar panels at over 360 locations in the U.S. They availed of the federal ITC and various other state incentives.

These installations cut their energy costs. Additionally, it also provides significant tax benefits. All this makes their investment in solar highly advantageous.

Maintenance of Commercial Solar Panel Systems

Solar systems are mostly low-maintenance. Regular upkeep ensures that they operate efficiently:

Routine Inspections and Preventative Maintenance

Annual inspections are crucial for detecting any damage or issues within the solar system, supporting its infrastructure, and extending its lifespan. These routine checks are a fundamental aspect of preventative maintenance strategies, ensuring the system maintains optimal performance.

Regular inspections also form an essential part of a comprehensive Operations and Maintenance (O&M) plan, which is vital for maximizing the efficiency and reliability of the solar installation.

Cleaning

Dust and debris can accumulate on solar panels. It will reduce their efficiency. Regular cleaning is necessary to keep them operating at peak capacity. Cleaning frequency depends on the location. Most panels need cleaning 2-4 times a year.

Monitoring Systems

Most modern solar systems come with solar monitoring tools. They provide real-time data on energy production and system health. They also help identify and address any performance issues instantly.

Efficient Maintenance

Prologis is a global leader in logistics real estate. It has one of the largest commercial solar portfolios in the industry. It has a solar capacity of 200 MW worldwide. Prologis emphasizes efficient maintenance. It ensures optimal performance and longevity of their solar systems.

Installation Process of Commercial Solar Systems

The installation of a commercial solar system is a multi-step process. It typically involves the following stages:

Site Evaluation

The first step is a complete evaluation of the installation site. It involves an assessment of its suitability for solar installation. This includes an analysis of the roof condition, orientation, and shading. The structural capacity of the property to support panels is also evaluated.

System Design

A customized system design is created based on on-site evaluation and energy needs. This design considers the optimal placement of panels. The type of system (on-grid, off-grid, or hybrid) and the required capacity are also determined.

Permits and Approvals

The next important step is getting the necessary permits and approvals. Its process varies from location to location. Mostly, it includes zoning approvals and building permits. It also ensures compliance with local utility regulations.

Installation

Solar experts mount the panels and set up the inverters and batteries (if applicable). Then, the system is connected to the building’s electrical infrastructure. This stage usually takes a few days to several weeks. It mostly depends on the size of the project.

Testing and Commissioning

The system undergoes rigorous testing after installation. It ensures that the solar panels function correctly and safely. Testing includes checking the electrical connections and system performance. Solar experts also ensure the adherence of the system to safety standards.

Successful Installation

Target Corporation implemented a 3 MW solar system at their Phoenix, Arizona, distribution center. This installation now generates approximately 4.5 million kWh annually. It resulted in a reduction of CO2 emissions equivalent to removing over 700 cars from the road each year.

The initiative underscores Target’s commitment to sustainability. It enhances energy efficiency and operational resilience. Additionally, they are achieving substantial cost savings.

This blog covered almost every aspect of a Commercial Solar System. If you’re interested in getting a Commercial Solar System, call Solar Medix today, our solar experts will be happy to help you out.

Choosing the Right Commercial Solar Financing Plan

As businesses look for ways to reduce energy costs and improve their environmental footprint, commercial solar installations are becoming an increasingly popular option. However, the upfront cost of a solar system can be a significant barrier. Fortunately, various solar financing options can make this transition more feasible. The key to making a smart investment is understanding the different solar financing plans available and choosing the one that best aligns with your business goals.

In this blog, we will guide you through the essentials of solar financing for businesses, how to choose the right solar financing plan, and explore the most popular options to help you make an informed decision.

Understanding Solar Financing for Businesses

Solar financing refers to the methods businesses use to fund the installation of solar energy systems. Rather than paying the full cost upfront, businesses can explore different solar financing for businesses options, such as loans, etc. These options allow businesses to install solar panels and enjoy the financial benefits of solar energy while paying over time or sharing savings with a third-party investor.

Understanding these financing models is crucial because each comes with its own benefits and obligations. The right plan can help your business save on energy costs, reduce carbon emissions, and improve your financial health in the long term.

Key Considerations Before Choosing a Solar Financing Plan

Before committing to a solar financing plan, businesses should consider several factors to ensure the investment aligns with their needs and goals. Some of the key considerations include:

  • Energy Usage and Savings Potential: Estimate how much energy your business consumes and how much of that can be offset by solar energy. A solar expert can help you assess potential savings.
  • Upfront Costs: Determine how much capital your business can afford to invest in solar technology, as well as whether you're willing to pay upfront costs or prefer to finance the system.
  • Tax Incentives: Take advantage of tax credits and rebates available for solar installations. These incentives can significantly reduce the initial cost of solar panels.
  • Financing Flexibility: Some flexible solar financing plans offer low interest rates or allow you to pay as your energy savings increase. It's important to evaluate these terms in light of your business's cash flow.
  • Long-Term Goals: If your business plans to stay in the same location long-term, purchasing solar panels outright can be beneficial. However, if you anticipate moving in the near future, a lease or PPA might be more flexible.

There are several commercial solar financing options available, each offering unique benefits. Here are the most common types:

  1. Solar Loans for Businesses is one of the most popular options. With this model, you borrow money to cover the cost of the solar installation and repay the loan over time, typically with interest. Depending on the loan terms, the business owns the solar system, meaning it can claim all available tax incentives and rebates.
    • Pros: Full ownership, tax credits, long-term savings on energy costs.
    • Cons: Upfront payments (depending on the loan terms), loan approval process.
  2. Cash Purchase If your business has the capital, paying for the solar system outright can be the most cost-effective option in the long run. After the initial investment, there are no monthly payments, and the business can immediately start saving on energy bills.
    • Pros: Full ownership, maximum savings over time.
    • Cons: Large upfront cost, limited flexibility.

Benefits of Choosing the Right Commercial Solar Financing Plan

Selecting the right commercial solar financing plan is crucial to maximizing both financial and environmental benefits. Some of the key advantages include:

  • Reduced Energy Bills: A good solar financing plan can help businesses lower their energy costs significantly. With solar power, you can generate your own electricity, leading to immediate savings on utility bills.
  • Long-Term Savings: While the initial investment can be high, solar energy systems typically pay for themselves over time through energy savings. In some cases, businesses can recoup their investment in as little as 5-7 years.
  • Improved Sustainability: Solar energy is clean and renewable. By adopting solar power, businesses contribute to reducing their carbon footprint, aligning with sustainability goals, and enhancing their corporate image.
  • Tax Credits and Incentives: Solar financing plans that allow ownership open the door to significant federal, state, and local tax incentives, making solar an even more attractive option.

Common Mistakes to Avoid When Choosing Solar Financing Plan For Businesses

While solar loans for businesses and other financing models offer great opportunities, businesses often make mistakes when selecting the right plan. Some common mistakes to avoid include:

  • Underestimating Upfront Costs: Even though financing options like PPAs or leases require little to no upfront payment, businesses should still consider long-term costs, including interest or lease payments.
  • Not Considering Maintenance Costs: Some solar financing plans require businesses to pay for maintenance or system upgrades, which could impact long-term savings.
  • Choosing Short-Term Savings Over Long-Term Investment: While plans with lower upfront costs might seem attractive, they may not offer the best savings over time. Always consider the system's total cost and potential return on investment.
  • Ignoring the Fine Print: Make sure to read the terms and conditions of the financing contract thoroughly. Unexpected fees or poor contract terms can diminish the overall value of the investment.

How to Evaluate and Finalize Your Commercial Solar Financing Plan

When evaluating and finalizing your commercial solar financing plan, consider the following steps:

  1. Consult a Solar Expert: Work with an expert to understand your energy needs, savings potential, and available financing options.
  2. Compare Financing Options: Compare different solar financing models, considering factors like interest rates, upfront costs, loan terms, and ownership structure.
  3. Review the Total Cost: Look beyond monthly payments and focus on the total cost of the system over its lifespan, factoring in energy savings, maintenance, and incentives.
  4. Consult with Financial Advisors: A financial advisor can help you determine the impact of solar financing on your business's cash flow and long-term financial goals.

Conclusion

Choosing the right solar financing plan for your business is an important decision that requires careful consideration. By understanding your energy needs, the financing options available, and the long-term benefits of solar energy, your business can make an informed decision that will reduce energy costs and contribute to a more sustainable future.

At Svakarma, we understand that financing decisions are critical to business success. That's why we offer business loans tailored to your needs, helping you invest in solar energy and other growth opportunities. With flexible repayment options, quick approval, and competitive rates, our business loans ensure your company can make the most of its energy and investment potential.

Take the first step toward energy savings and sustainability with Svakarma's Solar loan solutions today.

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