Pros and Cons of Installing Commercial Solar Panels in 2024
Solar panels have a lot of benefits, which makes it an easy decision for commercial business owners to invest in their buildings. Local 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. If you want to know more about cost of solar commercial solar panels you can check you blogs also.
- 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.
With solar panels, the electricity bill stays far closer to consistent for many years to come. It is not affected by the fluctuating price of natural gas or inflation. So, commercial businesses can pay the same amount of money for electricity every year.
Also, this helps business owners to easier and more accurately predict their cash flow as they do not have to predict what their electricity bill amount will be next month. You can Also Read about how AI can helps in Solar Installation in Are Blogs.
- Reduced Carbon Footprint –Local electricity primarily relies on natural gas or coal, depleting precious natural resources and releasing harmful carbon emissions into the atmosphere, which have adverse environmental consequences. However, businesses that utilize commercial solar panels, in addition to contributing to a more sustainable future, can also take advantage of solar panel grants for nonprofit organizations. Solar energy, harnessed from the sun’s rays, emits no greenhouse gases, making it an exceptionally eco-friendly choice.
From the moment they adopt solar panels, businesses begin reducing their carbon footprint while simultaneously aligning with their sustainability goals. This double benefit of environmental responsibility and potential grant opportunities makes WattMasters an ideal partner for businesses and nonprofit organizations in your local community.
- 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.
When businesses become eco-friendly, customers get a good image of that businesses. This not only attracts new customers to the business, but the same goes for good employees.
Commercial solar panels can create a good image for a business, which can enable the business to advertise they are a “green business”. This can demonstrate their commitment to the community and the environment, which can attract more customers and more loyal employees to their company.
- Low Maintenance Cost – With more focus being put on saving the environment in recent years, everyone is leaning towards using eco-friendly businesses. When businesses become eco-friendly, customers get a good image of that businesses. This not only attracts new customers to the business, but the same goes for good employees. Utilizing commercial solar panels and taking advantage of the commercial solar tax credit can create a good image for a business, which can enable the business to advertise they are a “green business”. This can demonstrate their commitment to the community and the environment, which can attract more customers and more loyal employees to their company.
- 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.
Commercial businesses can also deduct their solar panels’ depreciation expenses from their taxes for five years by using a Modified-Accelerated Cost-Recovery System (MACRS). The good news is, MACRS can be combined with ITC. As the ITC percentage will eventually be reduced, the MACRS percentage will increase helping businesses to write off more from their solar panel cost
Commercial businesses can also claim State Investment Tax Credit for their newly installed solar panel system. This ITC percentage is given by the states, and thus, is dependent on the location of the business.
And lastly, there’s an additional 10% tax credit available if US-made solar panels are purchased. Ideally, we keep our money within our own economy anyway, and this is a great incentive to do just that.If you’re looking for a reliable commercial solar installation in Phoenix, it’s essential to choose the right partner. There are several reputable commercial solar companies in Phoenix that specialize in renewable energy solutions. When considering solar installation for your business, it’s also a smart move to collaborate with an EV charging station contractor. This dual approach not only helps you harness the power of solar energy but also caters to the growing demand for electric vehicle infrastructure, making your business more sustainable and eco-friendly while meeting the needs of your customers and employees.
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.
Particularly businesses with smaller budgets may not want to spend a big chunk on commercial solar panel installation and would rather use the money for something else.
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.
To 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.
The upgrade or replacement of the rooftop or the electrical system can result in higher upfront costs. This is another reason why some businesses choose not to install commercial 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.When considering commercial solar panel installation, it’s crucial to know what to expect. To begin, you should research and follow tips to choose the best solar companies to ensure a successful project. Understanding the cost of commercial solar panels is another essential factor, as it varies based on several factors. Exploring the top commercial solar projects and their impacts in the USA can offer valuable insights into the potential benefits for your business. One such benefit is the integration of commercial solar carports, which not only generate clean energy but also provide shaded parking. Lastly, don’t forget to consider the significant environmental benefits of commercial solar energy, as it helps reduce carbon emissions and promotes a more sustainable future.
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.
When opting for commercial solar panel installation, businesses should expect a comprehensive site assessment to determine system size and location. A customized design will then be created to meet energy needs and budget. Installation follows, with experts ensuring efficient setup. Ongoing maintenance and monitoring services ensure a reliable, sustainable source of clean energy.
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.
If you’re looking for a reliable commercial solar installation locally, look no further than WattMasters. Our expert team specializes in providing top-notch solar solutions for businesses in your area. If you want to know More about Solar panels in Arizona You can Check Are Blogs.
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!