The business of deploying Solar & Storage projects for homes and buildings has a complex value chain that starts with OEMs and their distribution networks, followed by solar installation companies (also known as ‘EPC’ firms: engineering, procurement and construction), third-party financing firms and asset management. 

As shown below, this value chain is fragmented with thousands of firms that work together to deliver ~300-500k residential projects per year and ~10k commercial projects per year in the US market. Also shown below is the consumer’s extended influencer and marketing network that plays a significant role in their buying decision; plus the authorities that grant approval for such projects – cities, AHJs & utilities that provide net metering access. And finally, various other providers of business services like software, third-party marketing and legal services play a major role as well.

Behind every successfully completed project, there are ~20 different companies involved : 10+ different manufacturers of various components, at least one distributor for key hardware supply, 3-5 different firms that complete the EPC role (including permit engineering, outsourced labor crews and third-party marketing firms), at least one consumer financing company (80% of projects are financed), at least 2 authorities granting approval along with one maintenance provider and one or more software vendors.

Needless to say, it’s a complex industry like many others that delivers $Billions of dollars in product/services per year to building owners. Partnerships between firms happen at every step of the value chain: OEMs partner with distributors downstream, similarly distributors partner with EPCs downstream and EPCs in-turn partner with a host of business service providers like financing companies, permit engineering firms, marketing platforms and also maintenance providers. 

Why are partnerships so crucial for success in this industry? There are four key reasons:

• Reduce customer acquisition cost: partnerships along the value chain help every firm reduce its own customer acquisition cost. E.g. for an OEM, it is difficult to find and serve every EPC in every city / state on their own in a profitable way and so partnerships with regional distribution companies is crucial to gain EPC customer access.

  Similarly, for an EPC, it’s crucial to partner with marketing platforms that help find end-clients through a variety of online marketing services, either online and offline. In the US market, soft costs reign high and project margins are slim, hence keeping customer acquisition cost low is crucial for success.

• Efficient Scale-up of operations: relying on out-sourced third-party firms for specific services like financing of projects, or even repair and maintenance helps build scale faster. While many firms often grow to internalize certain functions (e.g. EPC launching a fund in-house, or even developing in-house software tools), the most successful firms identify their core competence quickly and rely on the best partners to do the rest, for faster growth. The business rules around solar and storage permitting, financing and even utility pricing / incentives vary from one city/state to another – hence partnering with software platforms that can simplify design and sales of new projects can help EPCs grow faster.
• Improve business focus: for every firm in the value chain, it’s crucial to lock the core-competence internally. Whether it’s a financing firm or a maintenance provider, they must identify the one thing they are good at, and improve that over time with focus across the organization. Partnerships allow this to happen faster – firms that quickly find their core focus, and partner with others to achieve the rest of the integrated value offering downstream do better in the long run. It’s the classic ‘build vs buy’ choice, and the most successful firms find out quickly that the ROI is poor to ‘build’ everything in house.

• Data-access for Reliable Asset Operations: partnerships across the value chain help improve the quality of data access for improved maintenance too. For example, a hardware OEM like a battery-inverter maker provides live data on its performance hourly / daily on open networks and this helps EPCs / maintenance firms react to issues quickly, which in turn helps reduce warranty costs and improves customer satisfaction.

  Solar and storage assets provide long-term value by fixing the energy cost, and break-even over 3 to 7 years depending on the location, while operating for 25+ years of warranty. The industry is yet to mature and EPCs being fragmented often go-out of business. The customer’s Asset reliability is important: and having only ONE firm stand behind their system can be risky: unlike the car industry, where OEMs have reliable & powerful dealer networks whereby the customer can purchase and service their cars from one OEM / dealer, Solar / storage assets are equally expensive, yet there are no such OEM / dealer networks. Hence it’s crucial for consumers to have access to data for their project(s) at one place. Software platforms like Enact have the unique ability to enable such partnerships.

Unlike other solar software competitors like Aurora or OpenSolar, Enact is highly differentiated with its focus on asset management & customer outcomes. Enact is the only platform today that has monetized the entire customer journey, with subscription revenues from BOTH the installer and the consumer (B2B2C). Enact’s commercial solar capabilities are now well established in many markets too, so this combination of features has enabled revenue growth in multiple countries simultaneously.

Enact completed its 10th year of operations in 2024 and over the years, Enact has grown its business model carefully while leveraging partnerships consistently along the way. Enact first started with B2B software subscription revenues leveraging its design software platform. Later it unlocked B2B2C revenue through the launch of its Consumer Asset Management offering, and even direct-to-consumer design services / asset management revenues in California. 

Powerful partnerships helped Enact scale its revenue lines rapidly, while keeping customer acquisition costs low and maintaining its core business focus on software and data services. Here’s some examples of successful partnerships, divided into three main groups, only focusing on the US market (additional partnerships are global)

• Partnerships to unlock access Installer clients for Software SubscriptionSuch firms have hundreds of Installer clients, so integrating with them and offering their products can provide automation and stickiness to the user.
  1. Financing providers e.g. Sungage and LightReach
  2. Permit Engineering firms e.g. ExactUS and CRENG
  3. Distributors e.g. CED Greentech
  4. Other Software platforms e.g. BluBanyon
  5. Other Hardware OEMs e.g.  Renusol (roof structure)
• Partnerships that help improve end-customer asset managementEfficient asset management requires removal of ‘data silos’ and Enact’s integration with different OEM hardware data clouds like inverters and batteries enables centralized data access, that enables improved customer service and issue resolution
  1. Inverter Hardware OEMs for data access e.g. Solark and Fronius
  2. Installation partnerships (“Insider”) e.g. 20+ US EPCs
  3. Service and repair networks e.g. 5+ firms like JP Solar that fix / repair
• Corporate Partnerships that help reduce end-customer acquisition costEnact services end-consumer solar and storage project needs directly in California, partnerships with different corporates below enables lower cost of customer acquisition
  1. Retail networks e.g. Batteries Plus and Walmart
  2. Home Electrification partners e.g. Quit Carbon
  3. New-home aggregation e.g. Haven Development

In addition to the above categories, Enact’s Product Platform also has technology partnerships with dozens of vendors (e.g. data providers, imaging providers, cloud services).  Enact also partners with a variety of businesses to scale its offering globally.

Explore the benefits of joining the Enact Partner Program and grow with us.
See how Enact’s software can help you win more projects and better serve your customers. Book a free demo with our team today.

Written by Deep Chakraborty, CEO of Enact Systems, Inc.

Switching to solar energy isn’t just about going green — it’s a strategic investment for businesses looking to cut costs and boost sustainability. With commercial solar, organizations can harness renewable energy to power their operations, reduce their carbon footprint and unlock significant financial savings. In addition, various government incentives make the transition to solar even more attractive.

Businesses benefit from commercial solar by reducing energy costs, enhancing sustainability and integrating with advanced energy solutions like storage and EV charging, making it a comprehensive approach to energy management.

If your business is ready to explore solar, now is the time to take advantage of these opportunities and incentives:

1. Cost Savings: Reduce or even eliminate monthly electricity bills, an operational cost which increases over time.
2. Increased Property Value: Solar can increase the value of commercial properties on the market. By reducing operating costs, property owners can increase net operating income (NOI), a key factor in property valuation. Higher NOI can lead to a higher market value.
3. Energy Independence: Protect against rising utility rates and power outages.
4. Sustainability Leadership: Demonstrate environmental responsibility to customers, employees and stakeholders. Commercial solar can increase your company’s environmental, social and governance (ESG) score.
5. Return on Investment (ROI): Solar installations can increase property value and generate long-term financial returns.
6. Employee and Customer Appeal: Many employees and consumers prefer businesses that prioritize sustainability.

The ITC was extended under the Inflation Reduction Act (IRA) of 2022, ensuring the 30% rate remains in effect for systems installed through 2032. After this period, the credit is set to gradually decrease unless further action is taken by Congress.

The ITC provides significant financial advantages to businesses investing in solar energy systems. By reducing the tax burden, it effectively lowers the upfront cost of installation, making solar projects more affordable. This reduction in costs helps businesses see faster returns on investment as the tax credit shortens payback periods. Additionally, businesses benefit from improved cash flow due to ongoing energy savings, allowing them to allocate funds to other priorities.

Over time, solar energy systems provide substantial cost savings while helping businesses meet sustainability goals and appeal to environmentally conscious customers or stakeholders. For businesses, the ITC is not just a tax incentive — it is a pathway to greater financial stability and environmental responsibility.

Businesses who qualify for the ITC may also qualify for additional bonus credits — including the domestic content bonus, energy community bonus and the low-income communities bonus. These bonus credits are offered to qualifying commercial projects that meet additional criteria.

This is an additional tax credit under the ITC for solar projects that use a specified percentage of components manufactured in the United States. To qualify for the domestic content bonus, commercial solar projects must include steel and iron products that are manufactured in the U.S. It incentivizes the use of domestically produced materials, potentially increasing the tax credit by 10%.

This bonus provides an additional 10% tax credit for solar projects located in designated “energy communities.” These areas include regions with economic reliance on fossil fuel industries or those experiencing high unemployment due to the transition away from fossil fuels.

This incentive offers an additional tax credit for solar projects that serve or benefit low-income communities. Depending on the project’s design and location, this bonus can increase the ITC by 10% or 20%, supporting equitable access to renewable energy.

Depreciation is the process of allocating the cost of a tangible asset over its useful life. It reflects the asset’s gradual reduction in value due to wear and tear, age or obsolescence. The Internal Revenue Service (IRS) offers guidelines for income tax deductions that allow businesses to recover the cost basis of certain properties — like commercial solar systems.

Under MACRS, businesses can deduct the depreciation of a solar energy system over a five-year period, rather than the longer depreciation schedules typically applied to other types of assets.

This accelerated schedule enables businesses to claim larger deductions sooner, which reduces taxable income and improves cash flow during the initial years of the solar investment. Additionally, the bonus depreciation provision, reinstated by the Tax Cuts and Jobs Act (TCJA) of 2017 and extended under subsequent legislation, allows businesses to deduct up to 40% of the project’s cost in the first year for systems installed in 2025. This will decrease to 20% in 2026 and will end in 2027, unless extended by Congress.

The REAP Grant offers small businesses and agricultural producers funding for renewable energy projects, covering up to 40% of the total project cost through grants. Additionally, applicants can apply for loan guarantees covering up to 75% of the cost.

Eligible projects include solar panel installations, energy storage systems and efficiency upgrades. To qualify for the REAP Grant, individual borrowers must be U.S. citizens or permanent residents and private-entity borrowers must demonstrate that loan funds will remain in the U.S. The program is available to businesses located in rural areas, defined as locations with populations of 50,000 or less.

Commercial solar incentives help businesses reduce the upfront cost of solar installations, making the transition to renewable energy more affordable and financially viable. These incentives shorten payback periods, enhance return on investment and reduce energy costs over the long term. By combining federal tax credits, state incentives and grant programs, businesses can achieve significant savings while meeting sustainability goals. Adopting solar energy enhances a company’s reputation, appealing to eco-conscious customers and stakeholders. Overall, commercial solar incentives empower businesses to save money, improve profitability and contribute to a greener future.

Government incentives for commercial solar projects can significantly reduce upfront costs and accelerate your return on investment. Enact Solar simplifies the process, helping you take full advantage of these programs while turning your property into a high-performing asset.

• Free Site Evaluation: Our experts assess your property’s solar potential at no cost, identifying how solar and energy storage can maximize your investment.
• Comprehensive Investment Review: We provide clear, data-driven pricing models and financial analyses that break down costs, savings, tax credits, rebates and ESG impacts, so you fully understand the financial advantages.
• Competitive Installer Bidding: For qualified projects, we manage a competitive bidding process through our platform to secure the best pricing and most qualified installers — helping you maximize incentive savings and minimize project costs.
• New Construction Solar & Storage Planning: We offer expert guidance in the early design phase to optimize solar integration and ensure your project qualifies for the latest incentives and rebates.

Partnering with Enact Solar gives you access to expert evaluations, custom solar designs and a network of trusted installers — all at no cost. Let us show you how solar can lower your operating costs and boost your property’s value. To get started, schedule a free consultation to start your free site evaluation and start saving.

Commercial solar is transforming how property owners meet their energy needs, providing a sustainable and cost-effective solution to rising energy costs. A commercial solar photovoltaic (PV) system allows properties to generate their electricity on-site, reduce operating costs and achieve long-term financial savings. Additionally, solar can positively achieve sustainability goals and reduce your property’s carbon footprint.

• Solar Panels: Mounted on rooftops, parking canopies or as ground installations, capturing sunlight to produce low-cost electricity.
• Inverters: Convert the direct current (DC) produced by solar panels into usable alternating current (AC) for your facility.
• Energy Storage Solutions (Recommended): Battery systems store excess solar energy — or power from the grid — providing power during peak demand times or outages.
• EV Charging Stations (Optional): Solar systems can integrate with electric vehicle (EV) charging infrastructure, supporting workplace EV initiatives or customer convenience.

Investing in commercial solar is a strategic decision that can provide your property with significant financial, operational and reputational advantages. Here’s a closer look at the key benefits:

• Cost Savings: Commercial solar systems enable businesses to generate their own electricity, drastically reducing dependency on utility companies and lowering energy bills. Over time, these savings can add up to substantial financial benefits, often allowing solar installations to pay for themselves within a few years. Many businesses also take advantage of local, state and federal incentives, further enhancing their return on investment.
• Increased Property Value and Higher NOI: Solar installations can increase the market value of commercial properties. As operating expenses decrease, the property’s net operating income can directly improve. Lower energy costs means higher profitability, which makes properties become more appealing to potential buyers or tenants seeking cost-efficient and sustainable spaces. Additionally, having solar on-site can differentiate your property in competitive real estate markets.
• Energy Independence: By adopting solar energy, your property can shield itself from the volatility of traditional energy markets. Fluctuating electricity prices and potential utility outages are less of a concern when your energy comes from an independent, reliable source. In combination with battery storage, solar systems can provide backup power, ensuring business continuity during grid outages.
• Sustainability: Going solar is an impactful way to reduce your property’s carbon footprint. This can align with your Corporate Social Responsibility (CSR) goals and increase your property’s Environmental, Social and Governance (ESG) score. Commercial solar not only helps combat climate change but also positions your brand as an eco-conscious leader, appealing to environmentally aware customers, investors and partners.
• LEED Certification: Commercial solar can contribute toward a LEED certification for your property. The LEED Scorecard is a globally recognized rating system for buildings based on sustainability metrics. A LEED certification demonstrates that your property is healthy, efficient and cost-saving. The benefits of this certification include increased property value and a competitive advantage in the marketplace.
• Incentives and Tax Benefits: Government policies often favor businesses investing in renewable energy. Federal and state-level tax credits, such as the Investment Tax Credit (ITC), can significantly offset installation costs. Accelerated depreciation options, like the Modified Accelerated Cost Recovery System (MACRS), allow businesses to recover the investment quickly. These financial benefits make the transition to solar even more affordable and lucrative.

By embracing commercial solar, your business not only secures immediate and long-term financial savings but also gains a competitive edge in today’s sustainability-driven marketplace. Whether you’re looking to reduce costs, enhance resilience or strengthen your brand — solar energy offers a smart, forward-thinking solution.

These systems are ideal for properties in urban or suburban areas with large, flat rooftops. Rooftop installations make efficient use of otherwise unused space, turning it into an energy-producing solar asset. They are particularly advantageous for warehouses, manufacturing facilities and office buildings with expansive roofs. The panels can be installed at optimal angles to maximize energy generation, taking advantage of existing structures without requiring additional land. Additionally, rooftop systems often qualify for incentives, enhancing their financial appeal.

Perfect for properties with open land, ground-mounted solar systems offer a versatile solution for high energy demands. These systems are especially beneficial in rural settings where space is abundant and can be customized for scalability. They can accommodate large-scale installations, making them suitable for agricultural operations, industrial sites, or any enterprise with significant energy requirements. Ground-mounted systems can also incorporate tracking technology to follow the sun’s movement, further boosting energy output.

These dual-purpose systems combine solar energy generation with the added convenience of shaded parking. Solar canopies are an excellent choice for properties looking to enhance their facilities for employees and customers while producing clean energy. From shopping centers to corporate campuses, solar parking canopies not only provide energy but also protect vehicles from the elements, offering an environmentally friendly and practical solution. Moreover, these systems can include electric vehicle (EV) charging stations, adding another layer of functionality and appeal for businesses with a forward-thinking approach.

Businesses in any industry can benefit from adopting a custom solar system. All property owners can benefit from lower operating costs and increased property values. Here are a few examples of businesses in different industries that can benefit from solar.

• Office Buildings: Reduce operating costs by offsetting energy consumption from lighting, HVAC and office equipment. Solar energy enhances sustainability efforts and demonstrates commitment to green practices to employees and clients.
• Retail & Grocery: Keep energy costs in check while maintaining consistent refrigeration and lighting systems. Solar parking canopies can also provide shaded parking and improve customer satisfaction.
• Manufacturing: Offset the energy-intensive needs of production lines, machinery and other industrial equipment. Solar systems help reduce energy costs and support long-term financial stability.
• Storage & Warehouses: Maintain climate control systems and lighting while lowering utility expenses. Solar energy helps warehouse facilities achieve energy independence and reduce operating costs.
• Restaurants & Hospitality: Power kitchens, refrigeration, guest accommodations and amenities efficiently. Solar systems align with the growing demand for sustainable practices in the hospitality sector, attracting eco-conscious customers.
• Hospitals & Healthcare Clinics: Provide reliable power for critical medical equipment, lighting and climate control systems. Solar and energy storage systems can ensure operational continuity during outages while cutting energy expenses.
• Nonprofits: Reduce energy bills and allocate savings to mission-critical activities for nonprofit organizations. Solar installations demonstrate a commitment to sustainability and appeal to environmentally conscious donors.
• Schools and Childcare: Offset the costs of heating, cooling and lighting classrooms. Solar energy can also serve as an educational tool for students, teaching the importance of renewable energy.
• Agriculture: Power irrigation systems, barns and processing equipment while cutting costs. Solar energy helps farmers and agricultural businesses maintain operations with reduced environmental impact.

Discover how commercial solar can transform your property into a powerful asset that generates savings, boosts net operating income and adds long-term value. At Enact Solar, we make the process simple, cost-effective and risk-free.

• Free Site Evaluation: Our experts will assess your property’s solar potential at no cost, providing you with professional insight into how renewable energy can benefit your investment.
• Comprehensive Investment Review: We deliver clear, data-driven pricing models and financial analyses, helping you understand costs, potential savings, tax incentives and ESG impacts.
• Competitive Installer Bidding: For qualified projects, we manage a competitive bidding process through our platform to secure the best pricing and most qualified installers, saving you time and money.
• New Construction Solar & Storage Planning: Need help optimizing your design plans for solar integration? We offer expert guidance during the early design phase to maximize your property’s solar potential.

Partnering with Enact Solar means gaining access to expert evaluations, customized solar panel designs and a network of trusted installers — all at no cost to you. Let us help you make informed decisions and simplify the path to sustainable energy solutions.

Contact our team of experts to start your free site evaluation and uncover how solar can start saving you money and enhancing your property value.

California businesses are grappling with an unprecedented surge in electricity prices, making energy a critical overhead cost for commercial operations. Over the past decade, utility rates have risen significantly, placing a strain on industries already dealing with inflation and rising operational expenses. Commercial electricity rates in California are among the highest in the nation, and the pace of these increases shows no signs of slowing.

This rising energy cost has also led to increased interest in evaluating the cost of solar panels in California as businesses explore sustainable alternatives to reduce expenses.

The trend isn’t just about inflation — it reflects systemic changes in the energy sector, including grid modernization, wildfire mitigation and electricity generation energy cost inflation.

Historically electricity costs double every 20 years, however since 2018 the cost increases are 10% or more depending on the utility company. This would see the electricity costs double every 8-10 years.

For business owners, this insidious rising operating cost increase erodes profit margin. Thankfully business owners can hedge against these costs and rethink their energy strategies through commercial solar systems. Enact Solar offers businesses and nonprofits customer commercial solar and energy storage solutions, designed on our award-winning software and tailored to our clients’ needs.

• Grid Upgrades: Utilities are investing billions in infrastructure to modernize the power grid and prevent outages.
• Wildfire Mitigation: Given California’s history of devastating wildfires, utility companies have implemented expensive fire prevention measures.
• Electricity Generation Cost Inflation: The electricity that is produced in California is created from various fuel sources, nuclear, natural gas and green sources. When the cost of making the fuel goes up, the cost of your electricity also rises. Aging nuclear facilities will soon have to be decommissioned and this load has to be replaced.

As electricity costs rise, commercial solar energy emerges as a sustainable and cost-effective solution for businesses. By generating power on-site, companies can hedge against future rate increases while reducing their carbon footprint. California’s sunny climate provides a unique advantage, enabling businesses to harness ample solar energy throughout the year.

Perhaps the only advantage of high electricity costs is how it makes solar a very attractive investment. After the tax benefits available to business owners, the payback is determined by the value of the electricity costs being offset. High electricity tariffs result in very aggressive solar cost recuperation and high returns on investment.

For many commercial entities, transitioning to solar isn’t just about cost savings — it’s a statement of environmental responsibility that resonates with stakeholders and customers alike.

PPAs allow companies to reduce their energy bills immediately without incurring capital expenses, making it an attractive option for those seeking immediate relief from high electricity costs.

Moreover, solar ownership enables businesses to capitalize on energy storage solutions, such as batteries, further increasing energy resilience and independence. For companies aiming for long-term growth and sustainability, solar ownership is a strategic investment.

California’s rising electricity costs are forcing businesses to reevaluate their energy strategies. Solar energy offers a sustainable and cost-effective solution, whether through ownership or innovative agreements like PPAs. By investing in solar, businesses can not only shield themselves from future rate hikes but also contribute to a greener future.

Reach out to Enact today to see if your property is qualified to take advantage of these benefits. Not every property is suitable for solar. Talk to an expert who can review and help you quickly understand how you can take advantage of this opportunity.

By adopting solar, California businesses can achieve cost savings, energy security and a competitive edge while contributing to a cleaner future

Commercial solar systems reduce electricity bills by generating clean energy onsite. With California’s high utility rates and ongoing price hikes, businesses can stabilize energy costs and achieve long-term savings. Solar power also reduces reliance on the grid, offering protection against future rate increases.

By pairing solar with energy storage, businesses can maintain operations during grid outages. This is especially critical in California, where power disruptions caused by extreme weather or wildfire-related shutdowns are common.

Adopting solar demonstrates a commitment to sustainability and reducing carbon emissions. This appeals to eco-conscious customers, employees and stakeholders, enhancing brand reputation and corporate social responsibility.

Enact helps businesses of all types transition to clean energy with tailored solar and energy storage solutions. Our mission is to simplify the solar journey with end-to-end services, from design to installation and monitoring.

Commercial projects are unique and our energy advisors leverage Enact’s design software to create solutions specific to your energy needs.

Getting started is easy — schedule a free consultation with our team. Share your business’s name, address and electricity data (such as your latest bill) and our team will develop a proposal outlining your system design, performance estimates and projected savings.

Visit our website to learn how Enact can help your business save with solar.

Updated Sept. 2024

Solar energy has become increasingly popular in the United States. This includes increasing applications of solar and battery storage for commercial properties. Commercial solar helps businesses reduce monthly utility costs and offer increased support for sustainability.

The U.S. Energy Information Administration reported 1.6% of all commercial buildings in the u.s. have installed small-scale solar. As this number continues to rise, thanks to government incentives and increasing electricity costs — Enact supports businesses in their transition to clean energy. Commercial solar benefits not just businesses — but nonprofits, houses of worship, schools and government buildings.

Going solar offers numerous benefits for businesses and other organizations. As the demand for electricity and utility prices rise, solar energy offers businesses an attractive alternative. Solar provides sustainable, clean energy that can reduce operating costs, see a good return on investment and appeal to consumers.

While solar seems expensive, it will pay for itself over the system’s lifetime. Solar panels have warranties up to 25 years, making commercial solar a long-term investment in savings. A commercial solar system can cut overhead costs and reduce your dependence on unstable fossil fuel prices. Over time, the electricity cost offset by your system will surpass the installation cost — and make you money. Paybacks for solar projects can range depending on the various factors.

1. Loans for short or long-term from a range of providers, which includes banks, credit unions and specialty lenders, including the PACE loan option (“Property Assessed Clean Energy”).
2. Leasing options that offer 10 to 25 year repayment terms and allow the tax credit and depreciation benefits to be used by a third party owner.
3. Power purchase agreements (PPA) whereby the solar asset belongs to a third-party that sells the energy to the business customer for long-term contracts up to 25 years and retains the tax credits and depreciation benefits.

More businesses are concerned about climate change and improving corporate sustainability. Commercial solar and storage systems are an investment into savings, security and sustainability. Corporate sustainability can increase your company’s responsibility to its stakeholders and community.

Your business can position itself as a responsible, sustainable business. There is a significant consumer market for environmentally-conscious products, services and companies. Solar energy is a renewable energy source, producing electricity from the sun with no carbon emissions. This can help your company reduce their carbon footprint, which can enhance your brand. Going solar can help your business attract and serve customers, build customer loyalty and foster goodwill among your community.

Storage batteries store excess solar energy — or energy from the utility grid — for later use. Solar energy is a “use it or lose it” form of energy. Without a battery, excess energy is sent to the utility grid. A storage battery system helps businesses maximize their investment in solar — and allows you to use solar-generated energy around the clock.

Commercial solar systems also protect businesses from rising utility costs. When energy costs rise, your company can see stable energy costs from your solar system.

The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the solar system cost. Meaning during the tax year, you can write off a percentage of the solar cost from your taxes. The current ITC allows businesses to write off 30% of solar expenses.

In addition to the ITC, there are depreciation benefits for commercial solar projects which improve the financial return. The Modified Accelerated Cost Recovery System (MACRS) is an depreciation system used for tax purposes. MACRS allows the capitalized cost of an asset to be recovered through annual tax deductions over a specific period of time

MACRS incentivizes private investment in property, such as solar energy. Solar equipment can be eligible for a cost recovery period of five years. If you used the ITC, you must reduce the project’s depreciable basis by half the value of the 30% ITC — meaning you can deduct 85% of your tax basis.

Some states, like California or Massachusetts, offer incentives for residential and commercial solar projects. For example, Massachusetts offers the Solar Massachusetts Renewable Target (SMART) Program. The SMART Program is a production-based incentive that is paid directly by utility companies to solar electric system owners.

For more information about your state, check the Database of State Incentives for Renewables & Efficiency. Additionally — counties, cities, municipalities, utility companies and nonprofits may offer incentives, rebates or grants.

While the science remains the same, there are differences between solar systems that power homes and systems that power commercial buildings. The Enact process remains similar for both homeowners and businesses as we offer customized solar solutions for our customers. Differences range from size, installation, cost, time, color, placement and financing. For both residential and commercial customers, going solar offers financial and environmental benefits.

Commercial solar projects are often larger. Not only do commercial buildings require more electricity, but commercially sized solar panels and storage batteries are larger. This is to capture more sunlight and provide more power to the building. Commercial projects for small businesses may be similar to residential projects. Residential solar projects are typically smaller, limited by roofspace and designed to meet household usage. 

Installation details can be different based on your situation, but the process is the same. Residential systems are often smaller and are installed on slanted, pitched roofs. Commercial solar projects are often larger and typically installed on flat roofs. Flat roofs can be easier for solar panel installation, as it allows the owner more control of the solar panel angles and direction. For buildings in the Northern Hemisphere, the best direction for solar panels is facing south.

While commercial solar systems can have higher costs, they typically have a lower cost per watt on par with residential systems. When comparing panel to panel, commercial panels have higher costs due to their larger size. Commercial solar systems with storage also have the ability for more storage space (due to larger building sizes). However, panels are bought individually and can be determined by their power calculation.

Installation times for commercial solar projects are generally longer than residential projects. The longer installation time is due to larger-sized projects and a longer, more detailed approval and permitting process. Additionally, commercial solar projects are typically more unique — Enact aims to meet the exact needs of our commercial customers. While commercial solar projects have larger scale and technical complexities, once approved are typically straightforward. Enact remains involved throughout the installation process.

Solar panels often come in black or white, with commercial panels tending to be white. Residential panels can come in black or white but are often black due to manufacturer choices and homeowner preferences.

Commercial properties have more solar installation options — such as rooftop solar, ground-mounted solar and solar-paneled carports. Commercial properties are often bigger and can have more room or options for solar panel placement. Residential solar panels are typically limited to rooftops based on home size and neighborhood regulations.

The Inflation Reduction Act of 2022 expanded the investment tax credit for solar and battery storage projects — which includes nonprofits. Nonprofits with no tax liability can apply for direct payments equal to the value of the tax credit. The current ITC is 30% — meaning the government will provide direct payments consisting of 30% of the solar project. This includes solar, solar plus storage and storage-only projects.

The White House offers a great resource outlining direct payments and explaining eligibility.

Solar can be a great asset for small businesses. If your small business owns property, solar systems with or without storage can provide lower energy costs and more energy stability. For the same reasons above — reduced utility bills, lower carbon emissions and energy security. Small businesses can also see returns on investment for solar panels due to government incentives, nonprofit grants and panels pay for themselves over time.

Using our design and documentation software, we create free customized solar energy system designs to meet the needs of our customers. This can include energy storage and electric vehicle solutions if desired.

After agreeing to the perfect design for your business, we coordinate the entire installation and permitting process to save you time. Our end-to-end service takes you through the process step by step for a simple, solar experience.

After installation and proper government and utility permitting, we also offer a solar and storage monitoring platform Enact Consumer App. The Enact Consumer App empowers clean energy owners to understand their system’s performance and quickly identify maintenance or repair problems.

Enact doesn’t just work with homeowners, but also businesses of all sizes and shapes. We’ve worked with hotels, shopping malls and manufacturing facilities. If you want to learn more about how solar can save you money, visit our website and request a free custom proposal.

All we need to set up a free consultation is your name, the company’s name and address. Send us a copy of your latest electricity bill before your consultation so we can design a proposal. More electricity consumption information, such as monthly kilowatt-hour consumption or green button data, is also helpful.

Commercial projects are unique, Enact provides custom solar solutions for our commercial partners. Enact’s team of energy advisors use our solar design software to create the right system for your business. Businesses in California are usually quoted with an energy storage battery due to the impact of  NEM 3.0.

Sign up for a free consultation to get started on your organization’s solar journey. During an Enact consultation, our energy advisors will get to know your company and energy needs — and create a custom proposal. An Enact proposal outlines your system, estimated performance and forecasted savings.