What Factors Into the Cost of Commercial Solar Panels?
Equipping your business with solar panels offers a range of benefits, from reduced carbon footprints to decreased electricity bills. Like with any purchase, knowing what you are investing in and the various factors affecting costs play a huge role in the decision process. So what factors into the cost of commercial solar panels, and how do they save or spend your money?
Installation Mount
Solar panels come with different mounts, giving you various placement options and costs. The three major mount types for commercial solar panels include roof, floor, and carport mounts. Typically, floor mounts cost the most for installation due to the additional equipment needed to prop and secure the panels. Floor mounts require poles, cement foundations, and other reinforcers that increase their total cost. The system’s placement location further affects the installation cost depending on its distance from other components in the system, including the central power unit or charge controller.
Equipment Type
On top of different mount options, solar panels also come in a variety of panel types. Most solar panels consist of monocrystalline, polycrystalline, or thin-film panels. The accessibility, supply-demand, and ease of production factor into the cost of these material types. The total cost of your solar panel system varies depending on the panel type. Compared to monocrystalline and thin-film, polycrystalline panels are the cheapest selection.
System Size
The larger the square footage used by the system and the higher the electricity demand, the more panels you’ll need. Between the desired coverage space and the number of panels required, the size of your system increases or decreases the cost. The efficiency of your solar panels also plays a part in the total equipment your system uses, further varying the amount you pay.
Net Metering
Net Energy Metering (NEM) saves you costs on running solar panels. NEM is an agreement and billing arrangement allowing solar panel users to send unused energy back to the grid for credit. The credits gained from NEM go toward your next energy bills, or they can be saved for later dates. However, NEM agreements vary per state.
Tax Credit
On a larger scale, the Solar Investment Tax Credit (ITC) factors into your total, long-term solar panel costs. The solar ITC was implemented to encourage people to switch to a more renewable energy source. This federal policy offsets the costs of commercial solar panels. Solar panel users and investors can receive tax credits toward the income taxes they might owe the government. With the solar ITC in play, using solar panels for your business saves you long-term costs.
Various elements factor into the cost of commercial solar panels, from the type of system you choose to different protocols offered in your location. Pairing your space with the best type of panels, mount options, and set up for your needs saves you money and determines the experience you’ll have using solar energy. With the right system for your goals and workspace, you can receive the bountiful benefits a solar panel system offers.