Solar 101 for Businesses

Solar lowers your business’s overhead costs.

By reducing the electricity you get from the grid, installing solar on your property lowers your business’s electric bill. Your business may qualify for significant federal and local tax credits for installing solar at your business as well.

Solar elevates your brand.

More and more customers are attracted to businesses with a commitment to sustainability. Companies that incorporate sustainability into their operations and mission have been shown to maintain a higher employee satisfaction level and retention rate too. By demonstrating your business’s commitment to going green through clean, locally produced solar power, you bolster your company’s brand reputation and potentially attract new customers who value sustainability.

Solar is healthier and better for the environment.

Solar is one of the cleanest forms of renewable energy. By switching to solar, you reduce your business’s carbon footprint and help New York fight climate change. Solar also reduces the presence of harmful air pollutants that may cause health problems. Ultimately, by going solar, you are contributing to a cleaner and healthier community.

Your business will be compensated for the solar it produces.

With solar, your business can go from being an energy consumer to becoming an energy producer. How your business is compensated for solar energy is dependent on whether the power you use is from an onsite or offsite array.

If your solar project is onsite, you use the electricity produced by your solar panels. Anything generated beyond that will go into the grid. Electric utilities will then credit your bill for the excess power your business provides to the grid (though you may still have to pay other charges and fees).

If your solar panels are offsite – either through a power purchase agreement or community solar subscription your business receives credits on its electric bill for the power the panels provide to the grid. The credit may be calculated as a dollar amount or kilowatt-hours.

Ask your contractor about how compensation will work for your business.

How does solar energy work?

Solar panels convert the infinite energy of the sun into electricity—even on cloudy days. Unlike power generated by fossil fuels, solar energy does not create noise or water and air pollution. Solar panels, which are made up of photovoltaic (PV) cells, convert sunlight into direct current (DC) electricity throughout the day. Since most buildings and businesses in the United States run on alternating current (AC) electricity, the DC electricity generated by solar panels is then converted into AC electricity through inverters. You can use the converted electricity to power your business. You will be compensated for providing power to the grid when you are producing more electricity than your business uses.

How do solar panels work?

PV cells allow light particles, or photons, to knock electrons free from atoms. This process generates electricity, a form of power you can use just about anywhere.

Will my business still be connected to the grid?

When you go solar, you will still be connected to the grid. This allows you to draw power from the grid if you ever need more electricity than your system is producing. Staying connected to the grid also allows your business to be compensated for providing power to the grid when you are producing more electricity than you need.

You may also consider installing energy storage technologies, which would enable your business to store the excess energy produced for use when needed. Storing excess energy that your system produces allows you to be less reliant on the grid. This stored energy can also be used during the event of a power loss, creating greater resiliency for your business. If you are interested in learning more about energy storage, check out our Energy Storage Program.

Where is solar being installed in New York?

Visit this interactive map to see how many systems have been installed near you. You can also find local community solar projects.

Where can I learn more about solar terms and technologies?

If you are interested in learning more about how solar works, we encourage you to visit U.S. DOE Solar Website .

Is my commercial property a good candidate for going solar?

Solar panels work best when installed on a sunny south-facing roof or a large area on your property with little to no shade. Get in touch with a qualified contractor for a detailed assessment of your property. If your property isn’t a great candidate for rooftop or ground-mounted solar, community solar may be right for your business.

How many panels will my business require?

The system size depends on your business’s energy needs. Your solar contractor will work with you to assess those needs.

A good starting place is to gather a year’s worth of your electric bills. Your solar contractor will use that information and assess your business or building’s sun exposure, the size and slope of your roof, available roof space, and other factors to determine how big your system will need to be. Your contractor can also tell you if a ground-mounted system may be a better fit for your site than a rooftop system.

My company does not have an ideal property for installing a solar array. Are there other options available to my business?

If your business doesn’t own its property, isn’t ideal for solar panels, or if you do not want to install them on your property, you can still lower your costs with an off-site solar option, community solar, or remote crediting.

Community solar is new to New York State, and more and more projects are becoming available. Community solar allows businesses to reap the benefits of solar without having to install panels on their property and makes the benefits of clean energy a possibility for more New Yorkers than ever before.

My business sits on a large property. Are there options for leasing our land to solar developers?

Some solar developers are looking for large parcels of land, ranging from 10 to 35 acres, that can be used for solar. Not every property is ideal for installing large solar arrays due to property limitations or zoning requirements, but a participating contractor or developer will be able to determine your suitability. If your property is a candidate for solar, you could benefit from a long-term lease with a developer. Learn more about leasing your land or roof for solar development.

Leasing land to solar developers is not limited to business owners. If you own a large property, you also could consider a long-term lease. To help you make the best, most informed decision, we put together a Landowner Considerations for Solar Land Leases Fact Sheet [PDF].

• Conduct a self-assessment of your building to see if it’s a good fit for a solar installation, especially the condition of your roof. Solar panels should not be installed on old or damaged roofs. If your roof has visible damage, such as cracked or missing shingles, you should ask your contractor if you will need to repair the roof before installing solar.
• If you lease your commercial property, check the terms of your lease to confirm if installing solar panels is allowed before you reach out to a contractor.
• Review our tips and pointers for finding and preparing for a contractor.
• Use our search tool to find participating NY-Sun contractors near you.

What financial support is available to help my business pay for solar?

In New York State, businesses can take advantage of upfront incentives from NY-Sun, various federal and/or State tax credits, and options for low-interest financing to get financial support for their solar projects.

How much does solar cost?

The cost will depend on your system’s size, your site conditions, the equipment you selected, and your payment method. Be sure to get a few price quotes from participating contractors to determine the cost and payment option that is the best fit for your business. NY-Sun also offers financing options and incentives for New York businesses looking to go solar.

What are my options to pay for solar?

There are three popular ways for businesses to pay for solar: leases, power purchase agreements (PPAs), and loans. Discuss your options with your contractor to learn more.