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How Much Do Commercial Solar Panels Cost? – Watt Masters

How Much Do Commercial Solar Panels Cost? - Watt Masters

How Much Do Commercial Solar Panels Cost?

Your building’s commercial solar panels cost can be a considerable amount of money, but the system will also offer substantial savings in energy costs. The total cost of a commercial solar panel system depends on several factors such as the size and scope of the project, the type of panels and inverters being used, and local installation costs. 

Ultimately, a well-designed commercial solar panel system can save businesses thousands of dollars in long-term energy savings. In this article, we will discuss some of the factors that make up the cost of a commercial solar panel system.

Why Install Commercial Solar Panels?

Solar energy is a brilliant alternative to natural energy sources like coal and natural gas, while also making use of free renewable energy from the sun. It can give you clean, renewable energy and is free from any hassles that you have to face with your local utility companies.

In the past decade, solar panels have become very popular. Many are leaning towards solar panels to bring electricity to their homes and offices.


The benefits of installing commercial solar panels for your business include:

  • Reducing energy overhead costs by 75% on average.
  • Easier budgeting and future planning by hedging against utility rate volatility. 
  • Increasing the value of the building.
  • A smart upgrade investment with a return on investment in as little as 3 years.
  • Creating a positive public image by demonstrating corporate responsibility and environmental stewardship, which can help retain existing customers and employees, and attract new ones.
  • Protection from power outages. If the grid goes down during the day, it won’t matter as much as you will have your own sustainable power source.



Watt Masters installed a 1.5 megawatt solar panel system on a 24/7 refrigeration warehouse in Phoenix, saving them a ton of overhead on electricity bills, and also provided much peace of mind knowing that they could remain energized during the hot hours of the day even if the utility grid went down.

This was the largest rooftop commercial solar installation in Phoenix!

> Read the news press release here.

*Watt Masters was a subcontractor for Empire Power, running all wiring and installing the solar panel system.

But, does this mean solar panels are very pocket friendly? To find out the exact cost of solar panels, some things need to be considered.

The Cost of Commercial Solar Panels

The cost of a commercial solar panel system depends on the size of the panels, the type of panels, and the area where they need to be installed.

commercial solar panel installation in Phoenix, AZ
Cost by Size

The most common sizes of commercial solar panels are 25kW, 50kW, 100kW, and 250kW. The bigger the size of the solar panels, the higher the price.

The size of the solar panels is determined by the type of commercial facility you have.

If the solar panel system is for a small shop, you will need smaller solar panels or fewer larger panels. A single small commercial office building may need a 25kW, 50kW, or 100kW commercial solar panel system.

For a large warehouse, you will need a larger solar panel system, which will cost more. Some warehouses, manufacturing, and distribution centers Watt Masters has installed solar on have required multiple megawatts.

You will also need to know the dollar per watt of your area before you figure out what size of solar panels you need.

Commercial solar panels cost less than residential solar panels at a dollars-per-watt rate. But in the long run, as commercial solar panels are larger in size than residential solar panels, they will cost more. Even then, solar energy is more efficient and cost-saving than local utility energy rates.

The average dollar-per-watt rate of commercial solar panels is $2.87. The average 100kW commercial solar panels cost in the United States is about $250k, a 25kW system averages around $50k, and a 250kW commercial solar panels cost averages around $500k.

Depending on the size of the solar panels, the dollar-per-watt rate can be between $2.50 to $3.22 per watt.

commercial solar by Watt Masters commercial solar installers in Phoenix, AZ
Cost by Type

The type of solar panels also dictates the cost of the commercial solar panel system. There are mainly two types of solar panels – monocrystalline and polycrystalline.

Monocrystalline solar panels cost more than polycrystalline ones because they are more efficient and produce more energy. Polycrystalline solar panels are easier to manufacture and produce less energy, which is why they cost less.

largest rooftop commercial solar system in the US by Empire Power Systems, Watt Masters for wiring and solar installation
Cost by Area

The price of commercial solar panels is also dependent on the area you live. In an area with more sunlight, you will need a smaller solar panel system to produce energy.

Larger solar panels are required to produce electricity in areas where sunlight is comparatively low.

Another determinant factor here is the tax credit. Many states offer tax credits between 1% to 20% for installing solar panels. This goes on top of the federal tax credit of 30% offered by the United States, which was just extended to 2032 with the Inflation Reduction Act.

The tax credits can reduce the upfront cost of commercial solar panels by a big number. In addition, other incentives can cut down the cost of solar panels.

Cost of Installing Commercial Solar Panels

The cost of installing commercial solar panels has gone down a lot in the past two decades. Since 1998, the installation cost of solar panels has decreased by about 6% to 12% every year.

The installation cost of commercial solar panels depends on the size of the solar panels. The larger the panels are, the more you will have to pay for installation.

The #1 most important factor to saving money on commercial solar and ensuring a smooth experience is choosing a reputable commercial solar energy contractor in Phoenix.

An experienced commercial solar installer should have a plethora of experience installing large commercial solar panel projects. This will save you a ton of money and prevent a lot of headaches and lost time.

There are a lot of moving parts to solar installation, electrical being one of the most important. It’s important to choose a solar contractor that has a lot of electrical experience, not just solar installation experience.

Watt Masters Solar Electricians has been in the electrical industry for 4 generations and probably has more experience with commercial solar wiring than any other solar provider in Arizona.

industrial solar company in phoenix az
In Conclusion - Is It Worth It to Invest in Commercial Solar Panels?

Commercial solar panels come with many benefits, making them a worthwhile investment. Commercial solar panels have become a great option for people to reduce the use of natural resources for electricity, which it turn saves you a lot of money on utility bills and helps forecast future costs more efficiently.

Solar also helps you reduce your environmental footprint, which improves your company’s imaging making you look like a good citizen and positive contributor to our society.

It is important to research and think about all the factors before choosing to invest in commercial solar installation for your property, and this is where seeking out the best commercial solar installer in Phoenix can help. Watt Masters in only a call away and has extensive experience in commercial solar – we would love to help you!

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