The cost of industrial solar power is essential in determining its economic viability. For any business or industry, evaluating the costs and benefits of switching to solar power is crucial. If the cost of industrial solar power is too high, it may not be feasible for businesses to adopt it.
By determining the cost of industrial solar power, businesses can assess the potential savings they can achieve by switching to solar power. In some cases, the cost of solar power may be lower than that of traditional electricity, resulting in significant cost savings over the long term.
In addition, governments often provide subsidies for the installation of solar power systems, and the cost of solar power can impact the level of government support businesses may be eligible for. By determining the cost of solar power, businesses can evaluate the potential subsidies and tax incentives they may receive.
Typically, before tax subsidies and rebates, the cost of commercial solar panels is approximately $2.87 per watt, with costs varying from $2.50 to $3.22 per watt. However, this cost depends on certain factors and can be increased and decreased.
How much does Industrial Solar Panels Save On Energy Cost?
The cost we mentioned above is exceptionally steep, and you may wonder if investing in an industrial solar panel is a wise decision or not. The answer to this question depends on your current energy bill and whether you need to reduce the cost.
Industrial solar panels always make a good idea if your company pays a high price for electricity bill every month. A solar panel system is projected to enable commercial settings to reduce energy costs by about 75%.
An industrial solar panel system will undoubtedly be beneficial if you pay an average of $1,000 a month for electricity. Your monthly savings would be roughly $750, translating to a $250 reduction in energy costs.
You would save $9,000 in a year. That’s a substantial sum of money that can help you pay off the cost of your solar panels in three to seven years. But, if your monthly electric expenditure is less than $300, installing an industrial solar system may be worthwhile.
Your bill drops to $75, but you will only save around $2700 yearly. Even if you are still saving money, it will take you significantly longer to pay off the cost of your solar panels.
Cost of Installing an Industrial Solar Power System
Nationwide average prices for industrial solar panels are predicted to range between $1.45 to $1.56 per watt in 2021 by the SEIA (Solar Energy Industries Association) and the National Renewable Energy Laboratory (NREL).
The actual cost of an industrial solar system per watt often varies, and these figures represent national averages. The price is expressed in kilowatts of direct current and includes what a solar contractor costs for installation, inverters, solar modules, design, etc. (kWdc).
Commercial solar investment is less expensive than residential solar in dollars per watt. This is due to economies of scale, which occur when solar energy is purchased for larger commercial installations.
The project’s size significantly impacts how much it will cost to install an industrial solar system. Greentech Media gave this estimate for commercial and utility-scale installations in 2019:
- Commercial solar system costs between $1.54 and $1.56 per watt.
- Utility-scale solar costs range from $0.99 to $1.03 per watt.
The “all-in” cost of solar power per watt for an industrial solar system is around $1.75. The typical price of an industrial solar system depends on how many kilowatts you require to meet your energy needs. Commercial solar panels typically cost about $325,000, with average costs in the US ranging between $50,000 and $600,000.
Also, remember that the larger your commercial solar power system is, the higher the cost will be. But there are many ways you can keep this cost down. One way is to choose a reputable solar power installing company that is experienced with large-scale industrial installations.
Purchasing pre-assembled solar panels is an additional option. They are less expensive than purchasing the components separately and putting them together yourself.
The solar panels type you select for your business will also significantly impact how much your solar panels will cost. Solar panels come in two basic varieties: monocrystalline and polycrystalline.
Although monocrystalline panels are substantially more expensive than polycrystalline panels, they produce more energy. Whatever solar power system you opt for, the installation costs now are considerably lower than ever.
Industrial Solar Power Cost Factors
Because of real estate considerations and tax advantages like the ITC, every industrial solar power project has a unique upfront cost and lifetime cost. As shown below, you can calculate the price of your industrial solar power using a free program called PV Watts.
Your industrial solar power is calculated by 4 PV Watts using a cost factor that takes the following into account:
- Geographic location
- Efficiency and loss parameters for solar panels
- The azimuth of the roof,
- The number of hours of sunlight each day
- The amount of power used annually.
- The price per kWh of electricity you pay
You should also consider your tax preferences and the building’s ownership or lease structure. You can benefit from community solar without owning a system if you rent a building or area.
Determining Commercial Solar Cost Using PV Watts
The size and location of your solar system greatly influence the cost of commercial solar panels. PV Watts makes it simple to calculate how much sunlight your building receives. NREL created PV Watts to calculate the energy output and cost of PV (photovoltaic) energy installations around the globe.
To determine how much sunlight your commercial building gets every day, PV Watts uses the address of your facility and weather information. Type your building’s address into PV Watts’ “Input a house or business address” area and follow the instructions to determine the cost of your industrial solar power system.
Efficiency Factors of Commercial Solar Power System
Most solar panels have an efficiency of 15% to 20%. If the day is clear and it is at high noon, the sun’s energy strikes the Earth’s surface at approximately 1,000 watts per square meter. PV Watt defaults to using these 1,000 watts per square meter criterion.
So, at 15-20% efficiency, a 1 square meter commercial solar panel will generate 150-200W of electric power per square meter under ideal circumstances. The solar panel array drawn using PV Watts on your roof will be square meters.
As previously mentioned, PV Watts offers three different kinds of solar panels, each with a different efficiency rating.
- Standard: 15% efficiency (crystalline silicon/glass)
- High-end (crystalline silicon with an anti-reflective coating): 19% effectiveness
- Thin Film: 10% efficiency (thin film/glass).
Industries Can Pay Off Solar Power System Cost Fast With Tax Credits
Thanks to fantastic tax benefits and incentives, the cost of an industrial solar power system pays you back more quickly than ever before.
1. Federal Tax Credit
The general tax credit will reduce the price of industrial solar power system installation by up to 30% for new installers.
2. State Tax Credit
A 10% credit is also available in some jurisdictions to aid with the cost of business solar panels.
3. Accelerated Deprecation
Owners of commercial buildings are permitted to deduct from their business taxes up to 85% of the entire cost of their solar system. This offers a significant means of offsetting the high price of industrial solar panels.
Solar Power Benefits for Business and Industries
- Dependable and maintenance-free
- Instant return on investment
- Lower carbon footprint
- Lock-in power cost for years
- Reduce electricity expenses
- Companies can receive significant tax rebates
- Reduce reliance on utility power
- Give back to the community
- Save thousands per month on electricity costs
- Attract more clients by demonstrating their commitment to sustainability.
- Low monthly payments and no-money-down financing are available
Industrial Solar Power System– How Coldwell Solar Can Help?
A reputed solar power provider such as Coldwell Solar can help your business with the installation of commercial solar panels in several ways. The solar power provider has been in the industry for years and can help you conduct a thorough site assessment to determine the best location for solar panels and evaluate the available space, shading, and orientation.
Based on the site assessment, the provider can also design a solar power system that meets the specific energy needs of the business. Coldwell Solar has become the first choice of many businesses for procuring high-quality solar panels and other necessary components at a competitive price.
They can also handle the installation of the solar panel system, ensuring that it is installed safely and efficiently. If you need ongoing maintenance and support, the solar power provider can ensure that your solar panel operates efficiently and generates maximum.
They also offer additional energy management services to help your company optimize energy usage and reduce energy costs. These services may include energy audits, energy-efficient lighting upgrades, and energy management software.