Why Do Commercial Solar Systems Cost More?

Commercial solar power systems can be a great way for a business to reap long-term savings while also helping to protect the environment. If you already have a solar power system for your home, you might think that you’ll pay a similar price to put one on your commercial property. However, commercial systems tend to come with much higher upfront costs than residential ones. What makes them more expensive? Keep reading to find out and to learn how you can help to keep the costs down.

Larger System Size

The most obvious reason for a commercial system to cost more is their sheer size. Businesses usually need a lot more power than an average household. That means you need a larger array with more panels, as well as more supporting equipment. A commercial system will likely need to supply tens of kilowatts, or even hundreds, while a residential system can often be as small as 5 to 10 kW.

Larger systems require more materials, more labor, and more time. Even though commercial projects benefit from a lower cost per watt (the perks of “buying in bulk,” as it were), the overall price tag is still much higher because of the massive increase in total pieces of equipment.

Engineering and Structural Considerations

Commercial buildings often have unique structural and engineering challenges when compared to residential homes. For example, flat roofs are a common element in commercial building designs; these require special racking systems that can angle your panels correctly. Those racks often need a ballast or special attachment point to stabilize them while minimizing damage to the roof. While residential systems do use mounting equipment for the panels, the racks are much simpler and, therefore, less expensive and easier to install.

More Extensive Permitting Process

Businesses face more rigorous permitting requirements, which can involve multiple municipal departments, additional inspections, and utility coordination. This adds time and cost to the installation. A residential installation is usually much simpler to get approved.

Keeping Costs Lower

With the costs of commercial systems so high, you’re likely wondering what you can do to keep the costs as low as possible. Here are a few tips:

1. Choose a high-efficiency design: More efficient panels will reduce the total number of panels needed.

2. Consider phased installation: Start small, then expand over time to spread out the cost.

3. Apply for incentives: Take advantage of federal tax credits, depreciation deductions, local rebates, and grants to reduce cost.

4. Work with an experienced installer: A qualified professional can optimize your design, minimize waste, and streamline permitting.

If you need a commercial solar system, start by contacting commercial solar distributors to find low-cost equipment and receive recommendations for experienced installers in your area.