What Does Solar Panels T Do for a Bulidng?

what does solar panels t do for a bulidng?

As we approach 2025, integrating solar panels into commercial projects is no longer just an option, but a strategic necessity. This blog post takes a deep dive into how solar energy works and what does solar panels t do for a bulidng. Solar panels have become a popular addition to buildings, and they offer benefits beyond just energy savings.

1. Energy Independence
Installing solar panels allows buildings to generate their own electricity, reducing their reliance on the grid. This not only provides better control over energy costs, but also protects against rising electricity prices. By harnessing the power of the sun, buildings can enjoy a more predictable and stable energy budget.

2. Cost Savings
One of the most notable benefits of solar panels is the cost savings they offer. While the initial investment may seem high, solar systems typically pay for themselves within a few years through reduced electricity bills. Additionally, many governments offer tax credits and incentives that can further offset the cost of installation.

3. Environmental Impact
Solar energy is a clean and renewable energy source that can significantly reduce a building’s carbon footprint. By using solar panels, buildings can reduce greenhouse gas emissions, help improve the environment, and combat climate change. This shift toward renewable energy is essential for sustainable development.

4. Increased Property Values
Properties equipped with solar systems typically see an increase in market value. Homebuyers are increasingly looking for energy-efficient features, and installing solar panels can make a building more attractive. According to several studies, homes with solar panels installed sell faster and for higher prices than homes without them.

5. Low Maintenance Requirements
Once installed, solar panels require little maintenance. Regular cleaning and occasional inspections are usually enough to keep them running efficiently. This low maintenance makes solar panels a worry-free energy solution for building owners.

6. Energy Resilience
Solar panels can enhance a building’s energy resiliency, especially when paired with a battery storage system. This setup allows a building to store excess energy generated on sunny days for use during cloudy days or power outages. This resiliency is critical to maintaining operations, especially in commercial buildings.

7. Incentives and Financing Options
Many state and local governments offer incentives for solar installations, making it easier for building owners to invest in solar technology. Financing options such as solar leases or power purchase agreements (PPAs) enable building owners to go solar with little upfront cost.

Incorporating solar panels into building design not only improves a building’s energy efficiency, but also improves its overall value and sustainability. As technology improves and costs continue to fall, solar will play an increasingly important role in future building energy solutions.

How Commercial Building Solar Panels Reduce Operating Costs

Businesses have to pay for electricity, but then get nothing for it. That’s because most companies essentially lease their electricity, rather than own it. Solar panels can be installed on company property or at other locations. When turning to solar, companies either enter into a power purchase agreement (PPA) or purchase commercial solar panels.

Corporate Solar Power Purchase Agreements

With a PPA, businesses can often save a significant amount on their monthly electricity bills, as solar power is often cheaper than grid electricity. However, it’s a third party that actually owns the solar panels, not the company using the electricity. As a result, companies can often go solar with no down payment, which can be a big selling point. Additionally, companies using solar electricity aren’t responsible for the maintenance and upkeep of the panels, but they also don’t receive tax benefits.

Purchasing Commercial Solar Panels

Owning a solar power system allows companies to enjoy “free” electricity for years, as the system has paid for itself. If your clients are sufficiently tax-minded, there is a great opportunity that they could qualify for federal tax credits and bonus depreciation. Always ask clients to speak with a tax professional to determine if they qualify for the solar investment tax credit (ITC) and depreciation, and be careful not to provide tax advice.

Solar Panels on Commercial Buildings Increase Property Value

Numerous studies have shown that solar systems can increase home values, so this may be true for commercial property owners with solar PV systems. This is because properties with solar have lower maintenance costs due to lower energy bills. Keep in mind that your clients must have solar panels on their commercial buildings for the building owner to benefit from the increase in property value.

Solar Tax Relief for Commercial Buildings

Another great benefit of solar for commercial buildings is the potential to qualify for two federal tax breaks. These financial incentives help increase the return on investment for a solar system while shortening the payback period.

Additionally, some states and utility companies offer additional tax credits or rebates for commercial solar systems. Understanding these incentives is also critical to providing this information to potential clients.

Solar Tax Credits

Companies that purchase solar systems before 2033 can receive a 30% tax credit. However, this incentive will drop to 26% in 2033, so it makes sense to encourage potential commercial customers to go solar before the incentive tapers off.

Depreciation of Solar Panels on Commercial Buildings

Businesses can choose to depreciate 100% in the first year using the bonus depreciation method, or they can deduct the system over 6 years under the Modified Accelerated Cost Recovery System (MACRS). MACRS has a depreciation schedule that depreciates the system by a different percentage each year.

FAQs

1. What do solar panels do for buildings?

Solar panels provide buildings with renewable energy, lowering energy costs, increasing property values, and reducing greenhouse gas emissions, promoting sustainability. In addition, they increase a building’s energy independence, reduce reliance on the grid, and improve overall functionality and market appeal.

2. How much does it cost to install solar panels?

Installation costs vary by building size, system type, and location. Generally speaking, installation costs for commercial buildings are higher than for residential buildings, but tax incentives and subsidies are available to reduce the initial investment.

3. Can solar panels meet all of my building’s electricity needs?

The output of solar panels depends on the lighting conditions and the size of the system. The design can be adjusted to meet or partially meet the building’s electricity needs.

4. Will installing solar panels affect the building’s appearance?

Modern solar panels come in a variety of designs, including low-profile, smooth options that can be integrated with the building’s exterior. Many owners find that solar panels can enhance the modern look of their buildings.

5. Will solar panels work on cloudy days?

Yes, solar panels can still work on cloudy days. Although cloudy and overcast weather will reduce their efficiency, the panels can still generate electricity using diffuse light. In fact, they can still generate a certain amount of electricity on cloudy days, although the output may be lower than on sunny days.

6. How do solar panels work on a house?

Solar panels convert sunlight into electricity through the photovoltaic effect. Here’s how it works:
Absorbing sunlight: The silicon solar cells on the solar panel absorb sunlight, which excites the electrons in them.
Power Generation: The flow of excited electrons creates direct current (DC).
Converting Current: DC is converted to alternating current (AC) by an inverter for home use.
Power Distribution: AC is distributed around the house to power lights and appliances.
Monitoring & Maintenance: The system comes with monitoring tools that allow users to track power generation, and maintenance requirements are low.

7. Will installing solar panels affect the appearance of the building?

Modern solar panels come in a variety of designs that can be combined with architectural styles. Many property owners find that solar panels add a modern feel to their buildings.

8. How do I assess if my building is suitable for solar panels?

When assessing whether a building is suitable for solar panels, factors such as the roof’s orientation, slope, shading, and available space need to be considered.

Conclusion

What do solar panels do for a building, you ask? With so much solar energy available, why not use it to power your commercial building? Installing solar panels is one of the best ways to make your roof more environmentally friendly. Not only do solar panels generate renewable energy and reduce energy costs, they also increase property value and reduce greenhouse gas emissions. Are you ready to enjoy the benefits of solar panels for your commercial building? If so, contact Sungold to get a quote and get started today!