Commercial solar power in Canada is rising, sparking the interest of big and small businesses. But is a solar investment worth it?
In 2023, corporate buyers in Alberta have committed to over 500 MW of new utility-scale solar farms, highlighting solar as a viable and beneficial energy solution for Canadian businesses.
Despite the need for a substantial fund to start solar, the long-term savings on energy bills and the independence from fluctuating grid prices are attractive to consumers.
Thankfully, solar technology is becoming more affordable, making it a viable option for large and startup commercial companies.
If you’re considering commercial solar power in Canada, this list of 11 compelling reasons, from financial to environmental benefits, will tell you why it’s a valuable commitment for your business.
| What is commercial solar power? Commercial solar power refers to using solar electricity for businesses, government agencies, educational institutions, and nonprofits. While installations include rooftop and ground-mounted systems similar to residential solar, commercial projects are larger in scale, often reaching megawatts for greater energy demands. |
11 Reasons To Use Commercial Solar Power In Canada
#1 Energy Savings
Solar power provides a compelling opportunity for businesses to cut down on their long-term operational costs.
Considering that commercial properties typically use about 22.5 kWh of electricity per square foot annually, installing solar panels becomes a smart move to reduce these energy expenses significantly.
As electricity prices keep rising, adopting solar energy protects businesses from future cost increases.
On average, a business can lower its electrical expenses by 75% over the life of its solar system. This makes solar power an excellent cost-saving option, particularly when a large portion of the budget is spent on electricity.
#2 Grid Independence
Businesses adopting solar power gain significant energy independence, enhancing their resilience against disruptions like power outages.
The commercial sector in Canada, encompassing offices and schools (11% of the country’s end-use energy demand) could greatly benefit from the energy independence offered by switching to solar power.
Institutions generating and storing their own electricity can maintain operations without interruption during grid failures, safeguarding productivity and revenue continuity.
This independence from the grid also allows businesses to avoid higher energy costs during peak times by utilizing stored solar energy.
Additionally, unlike traditional gas-powered generators, solar systems offer a quieter, cleaner, and more cost-effective solution for continuous power supply.
#3 Increased Property Value
Installing solar panels on commercial buildings not only reduces electricity costs but also increases property values.
According to a calculation, a business could even save more than $100,000 on electricity over 20 years, depending on the system’s size and usage.
Net metering further amplifies financial returns by allowing businesses to sell excess power back to the grid, earning credits and further lowering net electricity costs.
For these reasons, buildings with solar installations can pay a premium over those without. This added value is due to buyers who are mindful of long-term savings on energy costs.
#4 Scalable
Solar power’s scalability is a significant advantage for growing businesses.
As companies expand, adding solar panels is straightforward, often just requiring installation on new or existing rooftops.
This flexibility not only saves space but avoids the logistical challenges associated with physical expansion.
Solar installations can also be easily modified to support business growth and increase sustainability, all without the noise disruption of conventional generators.
#5 Low Maintenance
Solar panels are a low-maintenance, cost-effective option for businesses, requiring only occasional cleaning to remain efficient.
With no moving parts, these systems are less prone to wear and tear, significantly reducing the need for repairs and ongoing maintenance costs.
Built to endure various weather conditions with durable materials like tempered glass and non-corrosive aluminum, solar panels can last over 25 years.
This reliability lets businesses concentrate on their operations and maximize their investment, reducing worry about maintenance expenditures.
#6 Environmental Sustainability
Businesses can use solar power to effectively reduce environmental impact, crucial in an era where green initiatives are increasingly valued.
With solar panels, companies can eliminate greenhouse gas emissions and water pollution, while operating quietly, making them suitable for urban settings.
This commitment to sustainability is appealing as consumer demand for eco-friendly practices rises.
A survey indicates that 61% of Canadian consumers are more attentive to the environmental impacts of their purchases, making solar energy a strategic choice for businesses looking to attract eco-conscious customers and enhance their market reputation.
#7 Leverage Tax Incentives
Installing solar panels qualifies businesses for various tax credits, rebates, and grants at the federal, state, and local levels.
For example, the 2023 Canadian Federal Budget introduced a refundable 30% Clean Technology Investment Tax Credit on the capital cost of solar projects, applicable until 2034.
Also, businesses can benefit from accelerated capital cost allowances, allowing full deduction of the installation costs in the first year.
These incentives make solar an economically advantageous option for businesses looking to reduce costs and increase sustainability.
#8 Ease Installation
Solar power systems offer straightforward installation options that can seamlessly integrate into various business locations, including rooftops, parking lots, and ground mounts.
The installation process is efficient and doesn’t disrupt daily operations, allowing businesses to continue as usual without any significant interruptions.
As solar technology advances, it becomes an increasingly accessible and practical choice for businesses, no longer just a luxury item.
#9 Affordability
Solar power is now an affordable and accessible option for businesses, dropping almost 90% compared to 2010.
While the initial costs might deter some, numerous incentives, tax benefits allowing 85% deductions early on, and various financing options make installation feasible.
Once installed, these systems can generate free electricity for up to 40 years, making them a reliable long-term investment.
#10 Building Economy
Investing in solar power significantly contributes to job creation, with the solar industry generating two to three times more jobs per dollar than coal or gas.
Survey shows that almost 90% of employees prefer working for companies that share their values on important issues, including sustainability. No wonder Canada’s clean energy sector, including solar, successfully employs 430,500 people, with projections to grow nearly 50% by 2030.
Businesses adopting solar not only support local economies through high-quality, well-paying jobs but also attract and retain employees who value sustainability, enhancing workforce satisfaction and productivity.
#11 Improve Business Image
Adopting solar power significantly enhances a business’s image by demonstrating a commitment to sustainability, an aspect increasingly valued by consumers, investors, and board members.
This commitment reduces carbon footprints, aligns with consumer preferences, and bolsters corporate social responsibility, attracting eco-conscious customers and investors.
Reports also state that 78% of investors support companies investing in environmental, social, and governance (ESG) initiatives, even if it impacts short-term profits.
However, businesses installing solar panels not only visibly support ESG goals but also contribute to achieving Canada’s net-zero GHG emissions target by 2050.
Final Thoughts
As you can see, there are many benefits of commercial solar power. Canada’s vast and growing solar industry is advancing rapidly.
Integrating solar panels on commercial buildings not only reduces environmental impact but also lowers operating costs significantly.
These systems provide stable, clean power generation and storage, ensuring financial and ecological resilience without disrupting daily operations.
If you’re considering solar panels for your commercial property, contact Gridworks Energy, your trusted solar partner in Edmonton.
Take the next step towards sustainability and enhanced efficiency—learn more about our solar solutions for businesses today!
FAQs
Is solar a worthwhile investment in Canada?
Solar panels are a long-term investment ideal in provinces with ample sunlight. Installing solar systems offers numerous benefits, such as reduced energy costs, increased property value, and reliable electricity during outages, not to mention minimal maintenance once installed.
What is the common use of solar power in Canada?
In Canada, group solar panels power many homes and businesses. They also supply energy to the grid and remote, larger-scale off-grid communities.
How much are commercial solar panels in Canada?
Commercial solar installations for small and mid-sized businesses range from 25 kW to 100 kW systems, resulting in significant capital. However, businesses can quickly recover these costs in the first year through tax credits and rebates.
