Building a sustainable future is something we can all contribute towards.
And the best way to start is by lowering our Carbon Footprint. One way a business can do this is by installing solar panels on the property.
But how much do commercial solar panels cost? Read on to find out.
Commercial Solar Panels Cost | Average Prices
The average price of commercial solar panels will vary depending on the number of kilowatts needed to cover your energy consumption.
With average prices in the United States ranging from $50,211 to $502,113 in 2021, that puts the average cost of commercial solar panels at around $251,162.
According to EnergySage, ‘The cost of a solar panel system is usually measured in dollars per watt.’
And the average commercial solar panel system is priced at around $2.87 per watt, but the prices range from $2.50 to $3.22 per watt before tax incentives and rebates.
In the United States, the average commercial solar panel system of $251,162 will provide you with a system of 100kW.
$50,211 will provide you with a 25kW system and $502,113 will provide you with a 250kW system.
These are the prices based on an average cost of $3 per watt:
- Small Commercial Solar Panel Cost (25kW): Avg: $50,211
- Small-Med Commercial Solar Panel Cost (50kW): $100,423
- Medium Commercial Solar Panel Cost (100kW): $200,846
- Large Commercial Solar Panel Cost (250kW): $502,113
(The 30% Federal Tax credit is included in these prices)
Benefits of Commercial Solar Panels
Businesses Enjoy Faster Pay Off With Tax Credits
There are certain financial benefits to adopting commercial solar panels that makes them so appealing to business owners.
These benefits are tax credits and incentive and they make paying back the cost of commercial solar much faster than ever before.
Federal Tax Credit
The standard government tax credit will save new solar installers up to 30% of the cost of your commercial solar panel installation.
State Tax Credit
States can also offer their own tax credit rates, meanin installers can save up to an additional 10% on the installation cost of commercial solar panels.
Business owners with commercial facilities are permitted to deduct up to 85% of the solar panels system’s total value from the business taxes.
With such a high percentage, it’s a fantastic way for commercial facility owners to offset the cost of solar panels.
Savings – How Much Do Commercial Solar Panels Save on Electricity?
Installing solar panels on your property is a great way to save money on your electricity bills. Commercial facilities that have solar panel systems installed, reduced their monthly electricity bills by 75%, on average.
This would take your monthly electricity bills down from approximately $2,000 to $500, saving you $1,500 and drastically reducing your overall monthly bills.
On top these monthly savings, it takes an average of 3-7 years to pay off your commercial solar system and business owners can enjoy 25-35 years of free electricity.
Installing a commercial solar panel system makes it easy to reduce costs and plan for the future.
Most Affordable Installation Costs Ever
There has never been a better time in history to install solar panels on your commercial property. Primarily because they are cheaper and more affordable than ever!
There has been a consistent decrease in the price of solar panels since 1998, dropping between 6% and 12% every year since then. This decrement accelerated after 2009.
Are Commercial Solar Panels Worth it?
Yes, commercial solar panels are certainly worth it! There are so many benefits to installing solar panels on your property.
Not only can solar panels reduce your electricity cost by 75% and inturn reduce your monthly energy bill, but it’s also an investment in the future.
After paying back the cost of the solar panel installation, you will enjoy free electricity for up to a quarter of a century! Undoubtedly doing your bit for the planet by reducing your carbon footprint.
From a business standpoint, being able to deduct up to 85% of the system’s cost from your business taxes is such a big plus.
When you consider the affordability of solar panels, it makes even more sense to install them on your property. The Solar Energy Industry Association reported that the price of solar panels have plummeted by 75% since 2006.
And if we look back even further to compare the prices, solar panels are 100x cheaper than they were back in 1976. They are not as daunting an investment as people think they are and the benefits far outweigh the costs.
In addition to the benefits mentioned earlier, there are a host of reasons why commercial solar panels are worth it:
- Reduce electricity costs
- Save thousands on utility costs each month
- Potentially free electricity for the future
- Instant Return On Investment
- Eligible for significant tax credits and ebates
- Reliable & Maintenance Free
- Can be a backup energy source in emergencies
- Reduces your dependence on traditional power
- Commitment to sustainability
- Reduce your Carbon Footprint to help the environment
- Improves the image and reputation of of the business
- Easy to finance through low monthly payments
Average Cost Of Commercial Solar Panel In Different States
Average Cost In California
On average, commercial solar panel installation in California costs $2.39 per watt, although this may increase to $3.23 per watt, depending on the volume of panels and watts needed. This means that California’s average cost of solar panel installation ranges from $11,942 to $16,158.
Average Cost In Arizona
The average cost of commercial solar panel installion in Arizona is around $2.25 per watt.
This price would be to install solar panels on a building, however, to cover a space the size of a parking lot or a field in a complex with solar panels, it would cost you around $2.50 to $3.50 per watt.
This means that Arizona’s average solar panel installation price ranges from $13,188 to $19,153.
So to recap, solar panels have become more affordable with the average cost of commercial solar panels sitting around $251,162. The cost per watt ranges from $2.50 to $3.22 per watt.
Crucially, there are tax rebates available for businesses to offset this cost. Installers of commercial solar panels can enjoy:
- A 75% reduction in their electricity bill
- Offset electricity usage by 75.3%
- A quick pay-off of installation costs within 3-7 years
- An instant return on investment
- Free electricity for 25-35 years
- A more sustainable future