The cost of commercial solar panels for businesses, farms, community organisations, or other non-residential buildings can vary greatly, with systems costing anywhere from €15,000 to €150,000, or even more for very large customers.
On average, commercial solar panel systems cost approximately €850 – €2,000 per kWp capacity of the overall system.
Factors affecting the cost of commercial solar PV prices include the size of the system, the quality of the components, and the complexity of the installation work.
Prices for solar panels have fallen dramatically in recent years, making now an excellent time for businesses to invest in solar energy to save money.
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The key takeaways:
How large are commercial solar PV systems
The size of a solar PV system for a business, farm, office or other non-residential customer can vary greatly.
Small retail or hospitality businesses might only install a 3kWp – 7kWp solar PV system of around 7 to 16 solar panels.
This is roughly in line with a domestic solar panel project and would have similar costs of €5,000 – €10,000 for the customer.
However, many businesses will install far more solar panels, with hotels, office blocks, factories, warehouses, and more often getting systems of 50kWp – 200kWp or even higher.
This is a more complex project, and will likely come with higher costs for installation and additional equipment needed.
Financial Returns on Commercial Solar Panels
Commercial solar PV systems can typically recoup their initial cost in 4 – 7 years and are expected to have a lifespan of 30 years or more. Larger systems involved in commercial solar have shorter payback periods than most residential solar systems.
This means that for anywhere from 20 – 30 years after this they will carry on producing electricity which is all profit for the owner from reduced energy bills.
| Solar PV System Size | Annual Electricity Output | Annual Savings |
| 20kWp | 17,300kWh | €6,199 |
| 50kWp | 43,300kWh | €15,514 |
| 100kWp | 86,600kWh | €31,028 |
| 150kWp | 130,000kWh | €46,579 |
Estimates assume south-facing solar panels with a 30° inclination. Savings based on Electric Ireland 35.83c per kWh 24-hr rate.
What Factors Affect Commercial Solar Panel Costs?
There are multiple different areas which come into play when it comes to gauging the cost of a commercial solar panel installation.
Factors that affect the cost of solar panels:
Equipment Costs for Commercial Solar Panels
There are multiple pieces of equipment which go into a solar PV array. The quality and quantity of those components will affect the overall price of the system.
Are Commercial Solar Panels Worth It?
There are many benefits, both financial and otherwise, for businesses, farms, and more to install commercial solar panels at this time.
Some of these benefits include:
Grants for Commercial Solar Panels
There are different streams of grant funding available to help businesses and more with the costs of commercial solar panels from multiple government programmes.
The SEAI offers up to €162,600 for businesses, farms, schools, and non-profits such as community groups to have solar panels installed.
Farms can also avail of up to €90,000 in grant funding for commercial solar panels through the TAMS 3 programme from the Department of Agriculture.
Other grant schemes and financial aid programmes are also available to help with the cost of commercial solar panels.
Commercial Solar Panels With No Upfront Costs
Some solar installation companies offer deals which allow for the installation of commercial solar panels with no upfront costs through a lease or power purchase agreement.
The specifics of these deals will vary by provider but have many of the same essential factors. The installation company will handle the upfront costs of installing the solar panels, as well as maintenance for the duration of the deal, which typically lasts from 15 – 25 years.
In a lease deal, the customer is essentially leasing the equipment from the provider, and paying them a fixed monthly fee.
In a power purchase agreement, the customer agrees to buy electricity from the company that installs the solar panels at a fixed rate.
Deals can vary in their specifics, and one factor which should always be examined closely is who retains ownership of the solar panels at its end.
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