Pros and Cons of Installing Commercial Solar Panels in 2023
Solar panels have a lot of benefits, which makes it an easy decision for commercial business owners to invest in their buildings. Commercial solar panels can help a business save money, electricity, and the environment. However, commercial solar panels have some cons too.
In this article, we will see the pros and cons of installing commercial solar panels.
Pros of Commercial Solar Panel Installation
- Reduced Operating Cost – Commercial solar panels can save a big amount of electricity bills for a commercial business. Businesses that use local electricity have to pay a hefty amount every week or month for electricity. But solar energy helps businesses to reduce their utility bills resulting in a reduction in the operating cost by up to 75% on average.
- Fixed Electricity Bill – The price of local electricity has been increasingly volatile and continues to increase. So, there is no fixed amount that businesses have to pay each month for electricity bills.
- Reduced Carbon Footprint – Local electricity uses natural gas or coal to produce energy. This not only reduces natural resources but also emits carbon into the air, which negatively affects the environment.
- Green Branding Looks Good on You! – With more focus being put on saving the environment in recent years, everyone is leaning towards using eco-friendly businesses.
- Low Maintenance Cost – Solar panels have a very low maintenance cost, thanks to having no moving parts. Also, as solar panels are fixed to a surface, most commonly above the roof, there is very little chance of the parts breaking.
- Solar Tax Credits – With the Federal Investment Tax Credit, commercial businesses can claim 30% of the investment against their annual taxable income. Only commercial businesses with newly installed solar panels are eligible for this, which greatly reduces the installation cost of commercial solar panels.
Cons of Installing Solar Panels on your Commercial Building
- Upfront Cost – Commercial solar panels may save a lot of money in the long run, but they do not come at a small price. The upfront cost of commercial solar panels is high, which is one reason why commercial businesses are unsure about installing solar panels.
BUT, it should be known that commercial solar panels often pay themselves off within the first 3 to 5 years, and financing is an option to reduce upfront costs!
- Weather Unpredictability – Solar energy is entirely dependent on sunlight. But sunlight is different in various areas. As more sunlight equals more energy, businesses located in snowy or cloudy areas will produce a comparatively low amount of energy than businesses located in sunny areas.
T
o get more energy, commercial businesses from areas with low sunlight might need to install more panels, which will cost them more money.BUT, the good news for Arizona businesses is that we have plenty of sunshine, more sun than nearly anywhere else! Commercial solar installation in Phoenix and cities throughout Arizona is often cheaper than other places as less panels are needed because of the abundance of sun here.
- Building Upgrades – Sometimes, to install solar panels, commercial buildings might need some upgrades. Particularly the rooftop or the electrical system might need to be upgraded or even replaced before installing solar panels.
- It’s Good for Business!
Also, as more and more businesses are trying to meet sustainability targets, solar panels are one of the easiest ways to do that.
Plus, customers also like businesses that are eco-friendly and concerned about the environment. Solar panels produce green energy that can influence more customers to choose your commercial business over other competitors.
Nonetheless, solar panels are free from creating any pollution. So, employees can work freely in a great work environment. Surveys have shown that employee retention is stronger with businesses that show they care about our environment through the use of solar panels and other green initiatives.

Like all things that have their pros and cons, solar energy also has its beneficial points and negative reasons. However, as you can see, even some of the top cons above aren’t really that big of a deal, especially for businesses in Arizona.
Ultimately, business owners should weigh the pros and cons for themselves to decide if commercial solar panel installation is a smart investment for their company.
Watt Masters is here to help! With over 50,000 solar panel installs throughout Arizona, we have extensive experience and wisdom to share that can greatly help you with your commercial solar decision. We look forward to meeting you!