Commercial Solar Panel Installation In Lake Forest & Orange County, CA
Talk To Us About Your Commercial Solar System Today
A commercial solar energy system can greatly reduce operating expenses while increasing property value and Net Operating Income. Commercial electricity rates typically include both energy charges (billed in KiloWatt-Hours, KWH) and demand charges (billed in KiloWatts, KW). A solar energy system can work to offset all of the energy charges and a significant portion of the demand charges, effectively saving 60% to 90% of annual electricity costs.
How Solar Energy Fits With Your Business
In commercial solar, everything is bigger, from the power produced to the size of the solar panels themselves. This is usually a good thing. But it also means that the solar panel installation process doesn’t exactly happen overnight. The typical commercial solar panel installation process takes 3-6 months to complete. The process is obviously more complex than just installing solar panels. Factors affecting the length of time required for completion include the size and type of the solar energy system, utility interconnection process, and local building requirements.
Despite the laundry list of items on the checklist, the process is relatively straightforward when managed correctly. And the good news is that your commercial property is likely an excellent candidate for solar panel installation. The best commercial properties for solar energy are those that combine unavoidably high electricity cost with a lot of open roof space. Many businesses easily meet the first criteria but don’t have enough space on the roof for the requisite number of solar panels.
Below is a rough timeline of all necessary milestones required for a successful solar panel installation:
Engineering & Design Phase (2-3 weeks)
We perform a comprehensive site survey to determine all necessary design and construction details. A final design will be created and compared to the original proposal to ensure all deliverables are met.
Permit & Planning Phase (6-8 weeks)
We facilitate the approval process with the respective building department and utility company. Once a permit is approved, the installation window will be scheduled.
Installation Phase (4-8 weeks)
We coordinate with the customer to ensure proper communication and minimal impact to on-site operations. Each project has an on-site supervisor and assigned project manager to handle all customer needs. We will also manage the building inspection during this phase.
Interconnection Phase (2-8 weeks)
We facilitate the approval process with the utility company. Depending on the size of the solar project, a utility inspection may be required. The interconnection approval timeframe can vary significantly based on the specific utility and size of project.
Commercial Solar Energy Financing & Incentives
One of the main obstacles preventing businesses from going solar is obviously the cost. A large electricity bill usually needs a large solar system to offset it. Barnes Solar offers competitive pricing but even for a 100 KW system, the price can range from \$200,000-\$500,000. Even with solar energy financing opportunities, the cost can be a lot to stomach.
However, given the multiple tax incentives available, the payback period for a commercial solar panel installation is often less than 5 years. The federal tax credit (Investment Tax Credit, ITC) is available for 30% of project costs through the end of 2019. Both federal and state tax law also allow for the solar system to be treating as an operating asset and thus eligible for depreciation schedules (Modified Accelerated Cost Recovery System, MACRS), that can reduce the net project costs by another 30% to 40%.
Solar energy financing in the commercial sector is not quite as prevalent as it is on the residential side of the industry, but it is growing rapidly. In many instances it is possible to defer a large cash outlay in the form of a loan or operating lease and still take advantage of the many incentives available.