Put simply, commercial solar installation means fitting PV equipment to commercial buildings to supply clean, affordable electricity. As with home solar systems, commercial installations include inverters and panels to generate energy and convert it into usable electricity. Depending on use and scale, they may also include EV chargers, solar batteries and other products.
In this article we explain how PV works and its industrial applications.
How does a commercial solar system work?
A commercial solar system collects sunlight through solar panels and generates direct current, which inverters convert into alternating current. The building can then use this electricity instead of drawing it from the grid, saving on electricity bills.
Solar electricity must be used or it is exported to the grid. If you generate less solar energy than you consume, you will still draw some power from the grid, but less than without solar.
Surplus solar electricity is exported to the grid through a bidirectional meter. Depending on where your commercial property is located, that surplus may be lost or you may be compensated with credits for future use. With a storage system, surplus generation can be stored for later use instead of being sent to the utility.
What are the industrial applications of solar panels?
Large industrial buildings such as warehouses and factories use a lot of electricity for heating, cooling, lighting and running equipment. Many manufacturing and logistics businesses can benefit from industrial PV on their buildings, including:
- Warehousing
- Cold storage
- Food processing
- Cement production
- Pharmaceuticals and medical technology
- Information technology
- Chemical manufacturing
Top 5 advantages of industrial PV for large companies
Lower operating costs
One of the main reasons building owners consider solar is lower electricity bills. Commercial solar panels can offset a significant share, or even all, of their electricity consumption, delivering major savings on utility bills.
Positive customer perception
Environmentally conscious customers view brands that care about climate change and renewable energy more favourably.
Available incentives
Government, local councils and utilities offer incentives for switching to solar, which can increase long-term savings.
Additional tax savings
Businesses may benefit from accelerated depreciation schemes that allow commercial solar systems to be written off over the first few years, further reducing tax.
Environmental benefits
Solar reduces the carbon footprint of your commercial property, cutting emissions and pollution and helping to tackle climate change.
Is commercial solar worth the investment?
Given the price, most commercial property owners will ask whether a high-capacity industrial PV installation is worthwhile. If the system is sized correctly for your needs and installed by an experienced contractor, the investment will pay for itself and deliver savings over time.
Because projects vary, it is hard to estimate average solar savings. However, with rising electricity costs and incentives for commercial solar, commercial installations are generally worthwhile.
Factors to consider include:
- Net metering or surplus compensation
- Local electricity costs
- Incentives
In short
There is no single answer as to whether solar suits your commercial building, because many factors affect cost, long-term savings and benefits. Although solar is worthwhile for most commercial uses, always ask a trusted solar company for an estimate of system size, cost and savings.
If you want to install a commercial PV system on your property, contact Keiken Engineering.
