Commercial solar panels are large-scale solar projects used primarily by businesses, organizations, and other large property owners.

It’s more common than you think. In fact, it’s estimated that commercial solar power currently generates nearly one-third of U.S. solar energy, having grown more than 15-fold between 2009 and 2021.

Commercial solar energy systems can cost between $24,900 and $581,000, depending on the size of the project.

In this article, we’ll explain in more detail the cost of commercial solar energy, its uses, benefits, and much more.

What is a commercial solar panel?

Commercial solar is a term used to describe solar panel installations in the commercial and industrial (C&I) sector. It is a broad category that covers all solar energy uses outside of the residential segment ( solar panels for homes ) or utility segments (solar power plants also known as solar farms ). As such, commercial solar energy encompasses not only businesses but also government and non-profit organizations.

Businesses and organizations that use commercial solar energy systems include various examples.

• Commercial office buildings
• Farms, ranches and vineyards
• Factories and warehouses
• Hospitals and clinics
• Educational and day centers
• Shopping centers and retail stores
• Underground and outdoor parking

As you can see, there is a wide range of organizations that can benefit from solar energy.

Where can commercial solar energy systems be installed?

Here are some places where you can set up commercial solar panels:

• On the roofs and awnings of commercial buildings.
• Ballasted on a flat roof or other flat surfaces.
• Barns and stables.
• Pergolas, gazebos and patio covers.
• Garages and covered parking spaces.
• Mounted on poles.
• Bodies of water such as artificial ponds and lakes (“ float voltages ”).

Given the range of organizations that can use commercial solar panels and the diversity of locations they can serve, commercial solar energy systems are installed in a wide variety of different structures and configurations.

Solar projects can be installed on a much larger scale, resulting in a much higher price.

How much do commercial solar energy systems cost?

As stated by the Solar Energy Industries Association (SEIA), the price of commercial solar panel systems in 2025 averages between $1 and $2.50 per watt.

Based on these average cost figures, we can estimate the cost of commercial solar energy systems for different sizes:

Incentives and benefits for commercial solar panels

There are numerous strong reasons why businesses, government bodies, and nonprofits should transition to solar power. Below is a list of the top incentives and advantages of commercial solar panel systems:

• Tax credits and other incentives for solar photovoltaic systems
• Elimination of the electricity bill
• MACRS Depreciation
• Multiple financing options
• Green credentials
• Fast payback period

We explain each of these benefits below.

Tax credits and other incentives for solar photovoltaic systems

If your organization spends $50,000 setting up a solar energy system, it can claim a $15,000 credit on its taxes thanks to the Clean Energy Tax Credit, also known as the Solar Photovoltaic Tax Credit, which covers 30% of the installation cost.

You can learn more about using the solar PV tax credit for commercial installations in this Department of Energy guide . Keep in mind that with the passage of the Inflation Reduction Act of 2022, the full 30% tax credit will be available through the end of 2032.

There might be extra perks from states, utilities, and local governments for companies that transition to solar energy. Check out the incentives available in your area.

Reducing operating costs by eliminating the electricity bill

You can completely get rid of your electricity bill with tailor-made commercial solar energy systems. Eliminating your electricity bill completely is particularly easy if you install a grid-connected system , which allows you to export surplus energy to the grid and import energy to cover the deficit when necessary. Moreover, if net metering is available, you can sell back energy at the full retail rate!

Complete elimination of the electricity bill involves:

• Protection against utility rate increases: You’re less hit by future energy price hikes because you make and use your own energy.
• Positive cash flow: A lot of companies that switch to solar start seeing benefits right away, since the loan payments (if you finance the panels) can be cheaper than what you save on your energy bill.
• Free electricity: After you’ve covered the cost of your solar panels, it’s like your organization is getting energy for free.

MACRS Depreciation

Under the modified accelerated cost recovery system (MACRS), the payback period for solar energy equipment is just five years. This setup allows businesses to significantly cut their tax obligations in the first five years of having the equipment, which is great news given that solar panels come with a guaranteed lifespan of 25 years. 

You can combine MACRS with a solar photovoltaic tax credit. When utilizing the 30% tax credit, the project’s cost basis is effectively reduced to 85%, as it’s decreased by half the value of the tax credit.

Flexible purchasing and leasing options

The most cost-effective way to buy solar panels for maximum lifetime savings is to pay upfront in cash, but organizations can also choose from three financing options.

• Solar loan: When you go for a solar loan, you’re buying solar panels through a loan and paying it back each month over a period of 5 to 20 years.
• Solar panel leasing: If you opt for solar panel leasing, you’ll be paying a set monthly fee to the solar company to use their panels.
• Power Purchase Agreement (PPA): With a Power Purchase Agreement (PPA), you commit to buying the electricity produced by the solar panels at a specific rate for each kilowatt-hour (kWh).

If you buy a solar energy system with a loan, you can get tax credits, but you won’t get them with leased panels or PPAs. Solar loans usually give the best bang for your buck and are the go-to choice for homeowners.

Alignment of generation and consumption

Solar power generation and electricity consumption tend to be almost completely aligned in commercial solar panel installations. This is because most organizations consume electricity during the day, when the sun is shining and the solar panels generate energy.

This leads to an increased level of using solar energy for oneself. This means that, generally, commercial solar installations have:

• Less need for energy storage, which is good because battery solutions increase the initial cost and payback period.
• Increased savings in locations where net metering (full sales tariff for solar energy exports) is not available.

This is in stark contrast to what happens in homes and the grid in general, which see a greater increase in electricity consumption after sunset, just when solar panel output declines. This imbalance is known as the duck curve, and typically requires expensive battery solutions.

Fast payback period

The combination of incentives, utility bill savings, and the tax benefits of MACRS depreciation means that commercial solar payments can offer a good return on investment, with an average payback period of between four and eight years .

This is a very short payback period, especially considering the lifespan for which solar panels are designed. You can expect your solar panels to last at least 25 to 30 years, which is the length of time offered by most performance warranties on current models.

Just keep in mind that you’ll have a shorter payback period if you buy with cash than if you finance your panels .

Green credentials

We all know that businesses that listen to what their customers want thrive, while those that don’t are doomed to fail. Moreover, when it comes to climate change and the well-being of our planet, most customers have very clear ideas:

• Sixty percent of U.S. adults believe climate change is a serious threat to the nation.
• 74 % of customers are concerned about how the products they purchase affect the environment.

Companies need to show they are taking these concerns into account and demonstrate their commitment to clean energy and sustainability. A good way to achieve this is by installing commercial-scale solar energy systems. It’s a win-win scenario: organizations can save money on electricity costs while also helping to reduce their carbon footprint.

Corporate giants like Apple, Amazon, Google, Target, and Walmart have taken note and are installing massive amounts of solar capacity while announcing ambitious plans to transition to clean energy entirely.

You don’t need to be part of a giant corporation to participate in a solar project either. A good example of this is a solar energy system installed on a farm, which generates clean energy while providing shade and protection for plants.

Using a Virtual Private Network (VPN) is a great way to protect your online privacy, but it can slow down your internet connection. It’s common for a VPN to reduce your connection speed by 50% or more because your data must be encrypted and sent through a secure server, which takes extra time.

When you connect to a VPN, your online traffic is encrypted and routed through a remote server. This protects your online activities, but it can also cause slowdowns. The time it takes to encrypt and decrypt your data, as well as for it to travel to and from the VPN server, is the main cause of this speed reduction.

Why does a VPN slow down the internet connection?

Using a VPN can slow down your internet connection for several reasons, including encryption protocols, distance to the server, and server load.

Encryption protocols

VPNs use encryption to keep your connection private, but this process consumes some of your bandwidth. The stronger the encryption, the more bandwidth it requires. For example, the best VPNs like Surfshark use 256-bit AES encryption, which is very secure but potentially resource-intensive.

VPN Server Location

The distance between you and the VPN server matters. The further away the server, the slower your connection will be. VPNs like Surfshark connect you to the fastest and usually closest server. A shorter distance results in a faster connection.

VPN Server Capacity and Load

The number of users on a server also affects your speed. Popular servers can become congested and slow down your connection. Connecting to an overloaded VPN server is like being stuck in a traffic jam: even if you know the route, you’ll be slowed down.

Tips to Avoid VPN Slowdowns

Change server location

To increase your VPN speed, change the server location. Connect to a server closer to you for a faster connection. Most VPN apps make it easy to change servers, so feel free to experiment.

Avoid using a free VPN

Free VPNs often have limitations like limited server counts and overhead, which can result in slower internet speeds. Investing in a paid VPN service generally offers better speed, security, and reliability.

Try a different protocol

Many VPN apps allow you to choose from different encryption protocols. Switching to protocols like IKEv2 or WireGuard can increase your speed without significantly compromising security.

Clean your browser

A browser with too many extensions or cached data can slow down your browsing experience. Clean your browser regularly by removing unnecessary extensions and clearing the cache.

Restart your device

Restarting your computer, phone, or tablet can resolve software issues affecting your VPN connection speed.

Restart your router

Restarting your router can refresh your connection and potentially improve speed. If you haven’t restarted your router in a while, it might be time to do so.

Remove some software

Some apps use your bandwidth in the background, slowing down your connection. Disable non-essential programs to improve your VPN speed.

Update your hardware

Older devices may struggle to keep up with the demands of modern software. Consider upgrading your phone, laptop, or router to newer models for better performance.

Use a wired connection

While Wi-Fi is convenient, a wired connection is generally faster and more reliable. Use an Ethernet cable to connect directly to your router for increased speed and stability.

What is the speed reduction due to a VPN?

Find an internet speed test site

To get started, visit an internet speed testing site like Ookla’s Speedtest.

Perform a first test without VPN

Before connecting to a VPN, run a speed test to measure your current internet speed. Record your download, upload, and ping speeds.

Connect to a VPN server

Connect to a VPN server and rerun the speed test. Note the new download, upload, and ping speeds. If you’re connected to a nearby server, the speed drop should be minimal.

Experiment with different servers

Try connecting to increasingly distant VPN servers and repeat the speed test for each server. You’ll likely see a pattern: the further away the server, the greater the speed reduction.

Check ISP throttling

Use Netflix’s Fast.com test to check if your internet service provider (ISP) is throttling your internet connection. Connect to your VPN and retest. A significant speed improvement with the VPN could indicate that your ISP is throttling your connection.

Test the blocking of services

Use the free Wehe speed test app to check for blocking and throttling of specific services by your ISP.

FAQs

Does NordVPN slow down internet connection?

Yes, using NordVPN can affect your internet speed, but the impact is generally small. NordVPN uses strong encryption methods and has over 5,000 servers in 60 countries to minimize this slowdown. NordVPN’s NordLynx protocol, based on WireGuard, provides faster speeds. Using NordVPN can also bypass intentional ISP slowdowns, improving your connection for activities like streaming.

Can a VPN increase your internet speed?

Yes, a VPN can improve your internet connection by bypassing ISP throttling. When you use a VPN, your internet activity is encrypted, preventing your ISP from detecting and slowing down certain activities. Run a speed test with and without a VPN to see if a VPN improves your speed for specific activities.

Does a VPN slow down your internet connection on your iPhone?

Using a VPN on your iPhone may slow down your internet speed, depending on the iPhone model and the VPN service you use. Try connecting to a closer VPN server, updating your iPhone and VPN app, or experimenting with different VPN protocols to optimize performance. Restart your iPhone regularly and check your network settings to improve VPN speed and overall internet performance.

Why is my VPN not working on the internet?

Your VPN software could be outdated. Your VPN settings may not be configured correctly. You could have poor internet connectivity or an intermittent network connection. The issue might not be related to the VPN at all. It could be your internet connection preventing your VPN from connecting.

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• Discovering Innovative Tech Horizons with XannyTech.Net

In the rapidly evolving world of financial technology, one platform stands out—fintechzoom .io. With a focus on cutting-edge insights, real-time financial updates, and expert analysis, FintechZoom is reshaping how individuals and businesses interact with finance. Whether you’re an investor, entrepreneur, or simply someone looking to stay informed about global markets, FintechZoom is at the forefront of digital finance transformation.

Understanding FintechZoom.com

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FAQs

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FintechZoom integrates AI, blockchain, and fintech innovations to provide data-driven insights.

Does FintechZoom provide real-time market updates?
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How does FintechZoom cover cryptocurrency trends?
It offers expert analysis, trend predictions, and real-time updates on major digital assets.