Commercial Solar Panel Upfront Cost

Businesses are increasingly realizing the monetary benefits of installing commercial solar panels.

Commercial solar panel upfront cost.

With a payback in the mid single digits and a typical internal rate of return irr exceeding 10 most companies find that solar makes sense purely as a financial investment. However through 12 31 2019 the itc is valued at 30 for commercial solar. The 2018 average reported by the national renewable energy laboratory is 1 83 per watt. The average solar panel payback period is 7 to 12 years depending on where you live and the cost of electricity.

You ll break even after 8 years and start generating a return on your investment. We simply subtract the annual electricity savings from the upfront. As such the up front cost of 1 064 350 will be reduced by 30 319 305 so the new cost of commercial solar is 745 045. Average commercial solar cost breakdown now that you know the parts of the solar system it s important to understand that the costs to get a new photovoltaic array don t stop with the equipment.

Solar is often thought about in terms of the price per watt of power capacity which equalizes system costs similar to the price per square foot metric the in real estate sector.