Solar Panel Prices For Commercial Use In USA 2024

by | Apr 23, 2024 | Renewable Energy, Solar Energy

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Commercial solar panel prices have declined dramatically during the last decade. According to NREL, commercial solar panel prices in the United States have fallen by two-thirds since 2010, mainly owing to more efficient solar technology and reduced inverter costs. In Texas, the average price of commercial solar panels is 7.6% less than the national average.

What Is The Cost of One Solar Panel?

The cost of a single solar panel can vary widely based on several factors, including the type of panel, its size, capacity (measured in watts), manufacturer, and the technology it uses.

  • Panel Type and Capacity: Most residential solar panels have capacities ranging from about 250 watts to 400 watts per panel.
  • Cost per Watt: On average, solar panels cost between $0.70 and $1.50 per watt, depending on the panel’s efficiency and the scale of the purchase.
  • Overall Panel Cost: Based on the average cost per watt, a single solar panel can range in price from approximately $175 to $600. Higher-efficiency panels, such as those used in premium solar installations, can cost more. A typical mid-range 400-watt solar panel could cost anywhere between $400 and $600 for monocrystalline panels (most efficient) and around $300 for polycrystalline panels.
  • Additional Costs: It’s important to note that the cost of the panel is just one part of the overall solar installation. Additional costs include inverters, mounting hardware, wiring, and the cost of installation labor. These can significantly increase the total cost of a solar power system.

If you’re considering a solar installation, it’s a good idea to get multiple quotes from different providers to compare the costs and types of solar panels they offer. This can help you find the best solution that fits your energy needs and budget.

Also Read: Solar Power For Home Cost In Texas

Average Installation Cost for Commercial Solar Panels

Solar is sometimes conceived of in terms of the price per watt of power capacity, which equates system prices to the price-per-square-foot metric used in the real estate industry. The average business solar installation cost is $2.00 per watt. A commercial solar system of 100 kilowatt (kW) will generate roughly 136,000 kilowatt-hours (kWh) per year, which is enough to cover an average commercial customer’s entire electricity bill in Texas and will cost around $200,000 before federal, state, and local incentives are applied.

Here’s a table that organizes the data for the cost per watt and system cost for different types of solar panels in a 6 kW system:

Panel Type Cost Per Watt 6kW System Cost (Materials Only)
Monocrystalline $1.00 – $1.50 $6,000 – $9,000
Polycrystalline $0.90 – $1.50 $5,400 – $9,000
Thin-film $0.50 – $1.50 $3,000 – $9,000

[Note: This table reflects the price range for materials only, not including the cost of installation, permits, or additional equipment which might be necessary for a full solar power system installation.]

Every commercial installation and system is unique, and setting up solar panels is a significant financial investment. The most straightforward approach to finding out how much solar might cost in your area is to request a free site analysis. Typically, the installation expenses for solar panels range from $100,000 for small businesses to as high as $1,000,000 for larger buildings.

Also Read: Solar Panels 400W: How Much Does It Cost In US?

Factors Influencing Commercial Solar Panel Cost

The first inquiry from each customer is, “How much do commercial solar panels cost?” Of course, the answer depends on the system’s size, equipment type, and electricity usage. Numerous elements influence businesses’ commercial solar panel prices.

Solar Panel Prices For Commercial Use In USA 2024

System Size: A small boutique shop and a shipping warehouse would have quite different energy supply requirements, so the size of your solar array will significantly impact your installation cost.

Type of Equipment: The rooftop black panels you see are different. Three types of solar panel technologies are available: monocrystalline, polycrystalline, and thin film. The material composition of each of these influences their efficiency, cost, and overall beauty.

Your Electrical Usage: This relates to the size of your business, as a larger facility would use more energy. However, your location influences the electricity rates in your area. According to 2019 United States Energy Information Administration data, the national average is approximately 11 cents per kilowatt hour.

Commercial Tax Credits

Tax Credit Type Percentage/Amount
Federal Tax Credit Up to 30% of the installation cost
State Tax Credit 10% of the installation cost
Accelerated Depreciation Up to 85% of the entire system cost

The trajectory of solar panel prices for commercial usage in the United States in 2024 shows a clear trend towards affordability and accessibility. As technical breakthroughs continue to reduce manufacturing costs and boost efficiency, the initial investment in solar energy systems becomes more appealing to businesses looking for long-term cost savings and sustainable solutions.

Furthermore, favourable government regulations, incentives, and a growing consciousness of environmental responsibility are anticipated to drive up commercial solar energy use. This helps reduce carbon emissions and improves energy resilience and independence for businesses across various industries.

How Much Does A 5kW Solar Panel Cost?

The cost of a 5kW solar system in the USA can vary widely based on several factors, including location, the type of solar panels used, the quality of components, and the complexity of the installation. Here’s a general breakdown:

Average Cost: As of recent data, the average cost for a 5kW solar system in the USA ranges from about $15,000 to $25,000 before any incentives or rebates. This price includes the whole system: solar panels, inverter, mounting hardware, and installation labour.

Cost Per Watt: The cost per watt for residential solar installations typically ranges between $3 and $5. For a 5kW system, that translates to $15,000 to $25,000 total cost, as mentioned above.

Incentives and Rebates

Federal Solar Investment Tax Credit (ITC): This allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. The ITC applies as long as the solar power system is installed by December 31, 2032, after which it will decrease to 26% in 2033 and 22% in 2034.

Net Metering: Many states also offer net metering, which allows homeowners to sell excess electricity generated by their solar system back to the grid, further offsetting installation costs over time.

State and Local Incentives: Many states, local governments, and utilities offer additional incentives that can further reduce the net cost. These can include rebates, tax breaks, and solar renewable energy credits (SRECs). Check out DSIRE to check out incentives near you.

Net Cost After Incentives

Considering the Federal ITC alone, the net cost of a 5kW system could drop by 30%, bringing the potential cost down to about $10,500 to $17,500. State and local incentives can further reduce these costs.

Also Read: How To Apply To Solar Energy Rebates?

Return on Investment (ROI)

The ROI for solar systems depends on various factors, including electricity rates and solar production. Most homeowners in the U.S. see a payback period of 5 to 10 years, depending on their local energy costs and sunlight exposure.

While market fluctuations and supply chain factors may impact short-term solar panel prices, the overall picture for commercial solar panel prices remains positive. As businesses prioritise sustainability and economic efficiency, widespread adoption of solar energy is expected to accelerate, paving the way for a greener and more sustainable future for commercial firms in the United States.

Also Read: Solar Panel Cost Installation In California

 

Author

  • Michael Thompson

    Michael Thompson is an esteemed expert in the renewable energy sector, with a profound experience spanning over 25 years. His expertise encompasses various sustainable energy solutions, including solar, wind, hydroelectric, and energy efficiency practices. Michael discusses the latest trends in renewable energy and provides practical advice on energy conservation.

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