Electricity prices aren’t going down anytime soon. If you own a business, you’ve probably noticed that your energy costs keep creeping up, eating into your bottom line. And the worst part? You have zero control over it.
That’s why so many business owners are asking the same question: Is commercial solar installation worth it?
The short answer: Yes, for most businesses, solar is a smart financial move.It lowers operating costs, increases net operating income (NOI), and locks in predictable energy costs for decades. Plus, there are massive tax incentives that make solar more affordable than ever.
If you’re wondering how much a commercial solar system costs, how fast you’ll see a return, and whether solar is reliable for business operations, you’re in the right place. Let’s break it all down.
How Can Commercial Solar Installation Benefit Your Business Financially?
The biggest reason businesses go solar? It saves a ton of money.
Most businesses see 50-80% savings on electricity costs after installing solar. Depending on the size of your system and local utility rates, that could mean tens of thousands of dollars in savings every year. And the best part? Those savings start immediately.
If you own commercial property, solar does more than just cut expenses—it boosts your NOI. Lower energy costs mean higher profitability, which directly increases your property’s value. For landlords, that’s a game changer.
Some businesses even turn their solar panels into an additional revenue stream. If your system generates more electricity than you use, you might be able to sell the excess power back to the utility. States with strong net metering programs allow businesses to recoup costs even faster.
Case in point:Show Me Dough Fundraising. After installing solar, they cut their annual energy costs by 60%—a savings that went straight back into growing their business.
What Does a Commercial Solar Installation Actually Cost?
It’s the first question most business owners ask: How much does commercial solar cost?
The answer depends on a few key factors: your energy needs, system size, location, and installation complexity. But to give you a ballpark, the Solar Energy Industries Association (SEIA)reports that, as of 2024, commercial solar installations cost an average of $1.46 per watt.
For a 100-kilowatt system, which is typical for small-to-midsize businesses, that adds up to $146,000 before incentives. Don’t let that number scare you—most businesses pay far less thanks to tax credits, grants, and financing options.
Estimate Your Savings
Curious about how much solar could save your business? Contact Artisun today and learn more about your unique saving potential!
What Incentives and Tax Benefits Are Available?
Right now, the government is practically paying businesses to go solar.
The Federal Investment Tax Credit (ITC)lets you deduct 30% of your total system cost from your taxes. If your project meets certain domestic content requirements, you can add another 10% bonus credit. That’s 40% off your system cost before you even factor in other incentives.
Then there’s accelerated depreciation through the Modified Accelerated Cost Recovery System (MACRS).This lets you depreciate 100% of your solar system cost in year one, which can dramatically lower your tax liability.
On top of that, many states offer their own incentives, including cash rebates and tax exemptions. If you’re an agricultural producer or located in a rural area, the USDA REAP grantcan cover 25-50% of eligible project costs.
For a lot of businesses, these incentives cover over half the cost of solar panel installation.
How Long Does It Take to See ROI with Solar?
Most businesses see a return on investment (ROI) in 2 to 7 years.
The biggest factorsthat impact your payback period are your current electricity rates, available incentives, and the efficiency of your system. Businesses in states with high energy costs—like California or Illinois—typically see faster payback periods than businesses in states with cheaper electricity.
Solar doesn’t just save you money on bills—it can increase the value of your property as well. A commercial building with lower operating expenses is more attractive to buyers and tenants. Studies show that buildings with solar sell for more and lease up faster.
Here’s an example: A business paying $50,000 per year on electricity installs solar and cuts energy costs by $35,000 annually. That means the system pays for itself in about 3.5 years—and after that, the savings keep stacking up.
Is Solar Energy Reliable for Businesses?
Short answer: Yes.
Commercial solar panels last 30 to 40 years and require almost no maintenance. Most systems come with 25-year performance warranties, so as long as they’re installed properly, they’ll keep generating power for decades. Check out this articlefor more about one of the longest-serving photovoltaic plants in Europe that is still in operation today.
If your business needs backup power, you can pair solar with battery storage. This keeps your operations running even if there’s a power outage.
Once your system is installed, performance monitoring software tracks energy production in real time. If anything isn’t working optimally, you’ll get an alert immediately.
How to Get Started with Commercial Solar Installation
So, how do you actually move forward? Here’s what the process looks like:
Step 1: Gather Your Info
Before you start, collect your last 12 months of utility bills and make note of your energy usage. It also helps to have basic info on your building’s roof condition and available space.
Step 2: Schedule a Commercial Solar Assessment
This is where Artisun Solar comes in. We’ll evaluate your site, analyze your energy usage, and give you a customized solar savings proposal.
Step 3: Develop a Financing Strategy
Our team will help you navigate tax incentives, financing options, and rebates to make solar as affordable as possible.
Step 4: Custom System Design & Proposal
Once we finalize the plan, we’ll design a system tailored to your energy needs and business goals.
Step 5: Permitting & Approvals
We handle all the paperwork, permitting, and utility approvals so you don’t have to.
Step 6: Installation & Commissioning
Our team will install the system with minimal disruption to your business.
Step 7: Ongoing Monitoring & Support
Once the system is up and running, you’ll track your energy savings in real-time and get ongoing support to ensure peak performance.
Is Commercial Solar Installation Right for You?
Still not sure? Ask yourself these questions:
- Do you own your building?
- Are your energy costs rising?
- Do you qualify for local/state solar incentives?
- Will you be in your building for at least 10 more years?
If you answered YES to most of these, solar is a no-brainer.
Final Thoughts: Why Businesses Shouldn’t Wait on Solar
Commercial solar installation isn’t just a smart financial move—it’s one of the best investments you can make in your business. The incentives available right now won’t last forever, and the sooner you install, the sooner you start saving. Request a FREE Commercial Solar Assessment from Artisun Solar today!
