There are three main types of solar panels: monocrystalline, polycrystalline, and thin-film. Monocrystalline panels, known for their efficiency and sleek appearance, are often preferred for commercial buildings due to their higher output and longevity. Polycrystalline panels are more cost-effective but less efficient, while thin-film panels offer flexibility and are lightweight but have lower efficiency. For commercial applications, monocrystalline panels are generally the best choice, balancing efficiency with long-term value.

 In addition, in certain roof applications, it may make sense to use Bi-Facial Modules. These are modules that have the ability to harvest power on the back of the panel from light reflected from the roof surface, further enhancing production. These are typically used on roofs with reflective white surfaces or TPO-type membranes.

Solar panels require minimal maintenance, making them a convenient choice for commercial properties. Typically, it involves regular cleaning to remove dust, debris, or snow and an annual inspection to check for any damage or wear. Since there are no moving parts, solar panels are less prone to breakdowns. Any maintenance or repairs are generally straightforward and can often be handled by the solar provider’s maintenance team. Overall, the low maintenance requirement of solar panels adds to their appeal for commercial use.

Solar panels are designed for longevity, typically lasting 25 to 30 years. However, many panels continue to operate efficiently well beyond this period, albeit at a slightly reduced capacity. The lifespan can vary based on factors like the quality of the panel, local weather conditions, and maintenance practices. At Axis Solar, we ensure the use of high-quality panels and provide guidance on optimal maintenance, helping to maximize their lifespan for your commercial property.

At a Federal level, there is a 30% Investment Tax Credit which allows customers to deduct 30% of the total system cost from their tax payable to the IRS. Under the new Inflation Reduction Act, this tax credit is now available to non-profits and other non-taxpaying entities through a Direct Pay mechanism. Companies are also able to take advantage of accelerated and Bonus Depreciation to allow them to realize additional tax benefits in earlier years.

And finally, at a local level, there may be highly advantageous incentives available from the local utility. For example, Austin Energy offers a Performance-based Based Incentive or a Capacity-based Based Incentive to enhance solar ROI.

Ultimately this will depend on the current electricity rate that a customer is paying, and whether there are any local rebates available. Where there are no local rebates, a payback of between 4 & 7 years would be about average. In the case where there are local incentives, the payback can be as low as 2 to 4 years.

There is a wide variety of financing options available to assist with commercial solar purchases. Typical term loans are available to customers who have strong financials, these can range from 5 up to 20 years in some cases. In certain areas, there is the possibility to enter into a third-party arrangement known as a Power Purchase Agreement (PPA) where a third party will install the system for you at no upfront cost, then enter into an agreement with you where they sell you the power at below current market rate for a period of usually around 15-20 years.

Again, this will depend on the system size and final cost, however, over the 25 year warrantied lifetime of a commercial solar system, the average cost of electricity produced over the lifetime equates to roughly $0.02-$0.03/kWh. Typical commercial electricity rates are currently in the $0.08-$0.15/kWh and increasing by around 4% per year.

Another way of looking at it would be that a solar system should generate about 2.5X in annual savings vs. the gross cost of the system (this increases to around 6X savings once incentives are accounted for).

The City of Austin (through Austin Energy) has a goal of reaching 93% Carbon Free power generation by 2030, and 100% by 2035. Austin currently procures around 50% of its power from renewable sources.

Most modern buildings are engineered to withstand additional loads or up to around 20 pounds per square foot on the roof (such as air conditioning units, snow etc…). A retrofitted solar system should only add around 3.5 to 6 pounds per square foot of dead load to a roof.

As part of our engineering assessment we will consult with structural engineers to investigate the roof condition and building structural integrity prior to installation and ensure we receive a sealed approval from the engineer.

Solar panels work most efficiently in unshaded areas. When designing the system we will look for areas or obstructions that could cause shading on the panels to assess what effect these items could have on the performance of the system. Fortunately, on larger commercial facilities, there does not tend to be a substantial number of rooftop obstructions and we are typically able to achieve an appropriate system size while avoiding obstructions.

The solar energy produced feeds directly into your building’s electrical panel. Unless batteries are added to the system design (which is currently very rare on commercial applications), the power from the solar system isn’t stored, rather it is used instantaneously.

Most major components come with long manufacturers warranties of up to 25 years. This includes factoring in acceptable levels of decline in performance over time. During our financial analysis stage, we will outline the forecasted 25 year performance of your system and show how your system should continue to perform over time.

Installing a solar system on your property will enhance the buidling’s attractiveness to employees and tenants. It will also likely add qualification points for LEED certification or other Green Building credentials.

We recommend an annual inspection of the system by one of our trained techs. Cleaning is not typically necessary unless your panels are in a very dusty arid climate.

How your utility company credits you for your solar production will be determined by their individual solar regulations. Some companies provide a credit on your bill for the solar produced at a fixed rate regardless of the production relative to your consumption. Others will provide higher benefit for solar that is consumed by the customer rather than pushed back to the grid. During our economic modelling we will review your local utility’s solar regulations and outline the financial impact these will bring to your solar production.

With the continued deployment of solar, and over a decade of large scale installation volumes, insurance companies are extremely familiar with solar installations on buildings. Typically, there should not be a noticeable change in the premiums for the buildings as a result of installing solar panels. You should consult with your insurance broker to ensure that the new panels are added to your coverage.

Solar panels have a warrantied life of 25 years, but the reality is that they should still function long after this time. Therefore, the savings will continue. However, should you decide to remove them, the process would be to engage a contractor to remove the panels and associated racking from your facility. The contractor will likely recycle the components depending on their age.