Your system size is measured in watts, and is dependent on how much electricity you need for your business. (For your reference, an average home installs a 6 kilowatt, or 6,000 Watt, solar panel system to cover their electricity needs.) There is no average size system for commercial buildings. The cost of a solar panel system is usually measured in dollars per watt. On EnergySage, the average commercial system was priced at $2.87/Watt before any rebates or incentives, with most quotes ranging from $2.50/Watt to $3.22/Watt.
Decreased equipment and installation costs aren’t the only reason for your business to go solar. There are other factors that can reduce your business’s out-of-pocket cost for a solar panel system, including:
- Federal Investment Tax Credit (ITC): This is the most significant financial benefit for anyone interested in using solar panels at their business or residence. Owners of newly installed solar panel systems get a federal tax credit for 26 percent of the cost of the system.
- Accelerated depreciation: Businesses can deduct 85 percent of the value of the solar asset from their taxes, providing another significant offset to the upfront cost of a system array.
- Performance-based incentives (PBIs): PBIs, including solar renewable energy certificates, are a way for solar owners in some markets to receive payment from their utility for the solar electricity that their system generates. These incentives can be significant and greatly enhance financial returns for system owners over the life of the system.