ClickCease Skip to main content

Debunking Common Commercial Solar Energy Myths

By February 7, 2023Blog, News
Closeup view of a long row of solar panels in a solar farm with green grass on one side and a sunset in the background.

With the increasing rate of air pollution, more and more businesses are becoming more inclined towards using environmentally-friendly energy. Fortunately, incorporating sources that produce cleaner energy has become accessible to businesses, whether startups or large enterprises.

While many businesses have started benefiting from sustainable and renewable energy, misinformation or myths related to it have become widespread. Renewable energy sources like solar emit no greenhouse gases and are cheaper than oil and gas.

There are many things people or business owners believe they know about solar power that are not true. It is important to debunk these misconceptions so businesses can understand commercial solar panels’ full potential and function.

Note that renewable energy has many benefits, and solar power is a great way to tap into it.  Following are the most common commercial solar energy myths debunked.

Common Commercial Solar Energy Myths

Aerial view of rows of black solar panels on the roofs of a cluster of warehouses with ocean, mountains and sky in the background.

Myth 1: Commercial Solar Energy isn’t Efficient Enough

When business owners find that solar power has an efficiency rate of 20 to 22 percent, they think it is not strong enough to generate energy for their facility.

Commercial solar energy doesn’t have to be 100 percent efficient as it is much stronger than typical, standard electricity. Just a few hours of sunshine is enough to power the solar panels for a long time. That makes solar energy more capable of powering your business facilities and units.

According to recent estimations, the average business can easily offset its energy requirement with a solar power system. But it also depends on the solar panel type you choose for your company or if your business has a separate energy storage system.

Myth 2: Commercial Solar Energy Is Costly

The cost to install commercial solar energy has drastically decreased over the previous two decades, making it accessible to many businesses. Most commercial solar energy panels have a payback of 5–10 years from electricity bill savings, though this varies by location. However, the lifespan of a solar system’s design is about 30 years. Therefore, business owners of solar systems can benefit from several years of “free” electricity.

A commercial solar energy system pays for itself more quickly through savings in locations that have higher electricity costs. On the other hand, savings are typically smaller in locations with lower electricity rates. While Idaho, Washington, and Louisiana have some of the lowest electricity prices, Hawaii and California have the highest rates.

Another feature that makes commercial solar energy systems more affordable is their tax credits. The United States now offers a 26% tax credit for commercial solar energy systems. A tax credit is a decrease in federal taxes made dollar for dollar.

As a result, you can purchase a commercial solar system worth $15000 for a $4,500 tax credit. Businesses should consult a tax expert to determine if they qualify for this benefit. Some states also offer rebates on commercial solar energy system investment; however, they depend on specific locations.

Depending on loan duration and current interest rates, a commercial solar system a business can afford could immediately produce a positive cash flow. This indicates that, in many cases, the cost saving on the power bill outweigh the loan installments.

Myth 3: Commercial Solar Energy Installations Don’t  Have Warranty

You might not have heard it before, but most commercial solar energy systems, batteries, and inverters have equipment warranties. But these warranties may vary from manufacturer to manufacturer.

Therefore, you need to ensure that you have a complete understanding of warranties before investing in a commercial solar energy system, as it may help protect your investment in the future. You can also find a commercial solar energy installer that offers a warranty covering the labor cost.

Generally, solar equipment has three types of solar power warranties: product warranty, inverter warranty, and power performance.

Power Performance Guarantee

As commercial solar panels age, they lose efficiency. Power performance guarantee ensures that they will still produce a particular amount of their original capacity after a specific time. Depending on the maker of the solar panels, the actual price varies. Many manufacturers promise that after 25 years, panels will still generate at least 80 percent of what they did at installation.

Equipment Warranty

Product guarantee safeguards against flaws in materials or workmanship and covers the integrity of the solar panels themselves. The majority of significant manufacturers offer 10- to 12-year equipment warranties for solar panels. Some premium manufacturers offer longer warranties.

Inverter Warranty

The manufacturer of the product and the kind of inverter significantly impact the length of the inverter warranty. A string inverter, sometimes known as a central inverter, is an independent device. Because several panels are attached to a single inverter, there are often only one or two.

A failed string inverter could cause the system as a whole to stop producing power. Their warranties typically last between five and fifteen years, but many manufacturers provide longer guarantees for a fee.

Myth 4: Commercial Solar Energy Is Unsafe for the Environment

Many business owners who don’t opt for commercial solar energy systems think it is unsafe for the environment. However, this cannot be further from reality!

Commercial solar energy is the most environmentally friendly, sustainable, and cleanest form of energy you can use for your business facilities. Using commercial solar power systems to produce electricity is an excellent way to reduce carbon footprint and combat climate change.

It assists in protecting natural resources as well as lowering air pollution. As long as your commercial solar energy system is in operation, you will have power because solar energy will never run out.

You may use renewable resources for several years because solar panels for commercial buildings survive for decades.

Myth 4: Commercial Solar System can’t Replace the Electricity Grid- It Only Operates in Summer/Sunny Days

If you think you cannot use a commercial solar power system when there is a power outage, you’re mistaken. Once captured by the sun’s rays, you can store solar energy in many ways. That means businesses and enterprises can use solar energy at all times.

While it is true that solar power systems don’t generate energy every hour, new technologies and energy storage devices have made it possible to use the energy produced by the commercial solar system at any time, whether or not the grid is operating.

You can rely on reliable power if the solar system’s battery/storage bank stores enough energy. The battery will meet the power needs of your place of business during bad weather or at night. Business owners don’t have to worry about losing electricity with solar energy storage systems. These devices keep additional solar energy in storage so commercial buildings can use it whenever needed.

Myth 5: The Government Gives Business Free Solar Energy Systems

You might have seen a lot of fake ads about free commercial solar PV from the government for businesses. However, these are not valid ads. The government doesn’t provide any free-of-cost solar power system installation. Instead, your business or company can qualify for a commercial solar loan for this investment.

The government only provides funding for the upfront cost of purchasing solar panels through various solar incentives, but it won’t pay for installing solar panels. The federal ITC enables businesses to deduct 26 percent of their solar installation cost from the federal taxes they owe. Clean energy can cover its costs thanks to this solar subsidy and falling electricity prices.

Coldwell Solar Can Design and Install Your Commercial Solar System

Two solar company workers walking and talking among rows of large blue solar panels on a solar farm.

As a company that has always been enthusiastic about solar energy, Coldwell Solar is happy to assist business owners in utilizing this wonderful technology. Find a dependable and skilled commercial solar energy contractor who will perform the work correctly if you are a business owner wishing to put solar products on your site.

It’s a precise process that requires special expertise to complete. Since 1986, Coldwell Solar has assisted businesses in making the most of their solar energy investments. The company also provides customers with peace of mind by providing a 25-year workmanship warranty on all installation projects it completes.

The team will surely put you on the path to clean power for your company by making the entire procedure as quick and simple as possible. Call Coldwell Solar or visit their website immediately if you’re ready to start your commercial solar energy journey and become a sustainable and environmentally friendly business.



The Fed has passed a bill granting renewable energy funds, meaning an expanded tax credit for renewable energy users

Contact us to learn how you can benefit today