Estimate your commercial solar investment returns in 60 seconds. See payback period, net present value, and total savings including ITC and depreciation benefits.
Adjust the inputs below to see your estimated commercial solar returns.
Understanding the key financial drivers behind commercial solar investments.
The ITC provides a dollar-for-dollar federal tax credit equal to 30% of total solar installation costs. Under the Inflation Reduction Act, the 30% rate is available through 2032 for projects meeting prevailing wage and apprenticeship requirements. This single incentive reduces your net cost by nearly a third.
30% creditThe Modified Accelerated Cost Recovery System lets you depreciate 85% of the system cost (after reducing by half the ITC amount) over just 5 years using an accelerated schedule. With bonus depreciation, a significant portion can be written off in year one, effectively reducing net cost by an additional 20-25%.
5-year scheduleCommercial utility rates have historically increased 3-5% annually. Your solar system locks in energy costs at installation, so each year the gap between what you would have paid the utility and what you actually pay grows wider. Over 25 years, this compounding creates substantial savings.
3-5% / yearMost states allow commercial solar systems to sell excess electricity back to the grid at retail or near-retail rates. During peak production hours, your system may generate more than your building consumes, creating credits on your utility bill that offset nighttime and cloudy-day usage.
Bill creditsSolar PV systems have no moving parts, resulting in minimal maintenance requirements. Annual operations and maintenance costs average approximately $15 per kW of installed capacity. One inverter replacement around year 12-15 is the only significant maintenance expense over the system lifetime.
~$15/kW/yearSee how commercial solar stacks up against continued utility purchases over the system lifetime.
| Metric | Value |
|---|---|
| Total utility cost without solar (25 years) | $6,587,000 |
| Solar installation cost (after ITC & MACRS) | $487,031 |
| Solar O&M costs (25 years) | $140,625 |
| Residual utility cost with solar (25 years) | $0 |
| Total cost with solar (25 years) | $627,656 |
| Net savings over 25 years | $5,959,344 |
Values update in real time based on your calculator inputs above.
Common questions about commercial solar ROI and financing.
Our free energy audit includes a detailed solar feasibility assessment for your specific buildings, with precise system sizing, shading analysis, and financial projections tailored to your utility rates and incentive eligibility.
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