Commercial Solar Energy FAQs

Frequently Asked Questions

Businesses throughout Southern California are choosing commercial solar energy to save money, reduce demand charges, and show their commitment to a sustainable environment. We’re here to help you through the confusion. Common questions include which equipment to use, product and workmanship warranties, and which financing option is best for your business.

If you have a question that we haven’t addressed, you can call us at 619-743-9193.

Why Install Solar Energy For My Business?

Commercial solar installations are helping businesses in California and Arizona save thousands in electricity costs every year. As utility rates continue to rise, business owners are taking advantage of the variety of available financing options to achieve better pricing for their power needs.

On average, businesses see about a 75% reduction in energy costs by choosing to install a commercial solar energy system. There are incentives available to reduce the cost of solar even further, such as the Federal Solar Investment Tax Credit.

You can read more about these incentives here.

Is Solar Energy a Smart Decision For My Business?

All types of businesses throughout California are going solar. There are few better decisions a business owner can make to reduce operating costs and secure a solid return on investment than to invest in a solar energy system.

Available incentives, such as the Investment Tax Credit and accelerated depreciation, paired with a variety of financing options make this a fantastic time to go solar. You’ll also have the opportunity to show your customers that you are committed to a better future with clean energy.

What is Net Metering?

Net Energy Metering is an arrangement that compensates a business with grid-connected solar for energy exchanged with the utility. Instead of disconnecting from the utility, most businesses remain a customer of the utility company and install enough solar panels to offset all or most of the electricity they consume. Some of this power is consumed immediately on-site, but the rest is sent to the utility in exchange of energy credits to be used later at night when the solar panels aren’t producing electricity. As of April 2023, California is currently under NEM 3.0.

You can learn more about the current Net Metering and how it affects solar system owners here.

Commercial Solar Financing Questions

Should I Buy or Lease Solar Panels?

While owning a solar energy system tends to be the trend for the residential market right now, many businesses choose to go solar through a lease or power-purchase-agreement (PPA). The best ROI is seen with a cash purchase or financed-to-own solar panel system, but many businesses don’t have or don’t want to dedicate the resources necessary.

Leases and PPAs will significantly reduce utility costs (typically saving 40% or more of your current costs). You can request a free consultation and let our expert solar analysts help you decide what’s best for your business.

What Finance-To-Own Options Are Available?

Loans for commercial solar panel systems are limited, usually due to the project size required by most businesses. Small businesses requiring systems less than 30kW have a few more options than larger energy consumers. One of the most innovative financing options, available for most of San Diego County, is YGRENE (a Property-Assessed Clean Energy program).

Like other PACE programs, this type of financing allows you to utilize the building’s property taxes to fund the project. The big advantage is that you’ll be able to take a percentage of tax credit (between 20% and 30%) and take accelerated depreciation on the solar energy system, giving you a better bottom line.

What Is a PPA?

Power-Purchase-Agreements (PPAs) allow you to enter into a long-term contract (typically 15-20 years) to reduce your energy costs. Instead of purchasing traditional power from the utility, you’re agreeing to purchase all the electricity produced by a third-party-owned (TPO) solar energy system.

The size of system installed is based on your consumption, and you’ll still be grid-tied which allows you to take advantage of Net Metering and use the utility as a virtual battery. Most businesses find that this option will save 20%-40% on their current electricity rates with no up-front costs.

Commercial Solar Energy Equipment Questions

Which Solar Panels Should I Install?

There are several factors that can make the decision easier when choosing solar panels for your business: pricing, wattage, product warranty, and company stability. Ultimately, installing a solar energy system in your business is about saving money on your electricity costs. Even though choosing a less expensive panel may seem like the obvious answer, you should look at the warranty provided by the manufacturer.

Ultimately, installing a solar energy system for your business is about saving money on your electricity costs. If you have limitations on roof space or want the premium products, choosing a premium all-in-one solution like the SunPower Helix System may be the right decision for your commercial solar needs.

At SolarTech, we offer several solar panel options to achieve your solar goal, whether it’s getting the most cost savings or owning a best-in-class solar energy system.

Should My Business Install Central or Micro Inverters?

Most commercial solar installations utilize central inverters instead of microinverters. Microinverters, which are often used to mitigate shade impact or varied performance of several arrays, are not typically issues experienced when installing a solar energy system on a flat/open roof space of a business. Central inverters cost less and minimize point-of-failure concerns by drastically reducing the equipment used.

Should I Install Solar & an Energy Storage Unit?

Under the current Net Energy Metering agreement: Yes.

As the cost of credits provided by the grid under the new NEM 3.0 was greatly reduced, the smartest decision for businesses going solar is to store their excess energy, and use it during peak hours, thus saving more money at the end of the month in their utility bill.

A variety of new energy storage unit models are being produced today, each with its features and efficiency. SolarTech designs every system to be storage-ready and provides the best options in the market that will fit your energy goals and budget.

Learn more about what energy storage units we recommend for businesses here.

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