Commercial Solar Energy
Save money for your business, farm, or commercial property
More businesses in Wisconsin are looking at commercial solar energy as a way to meet their future energy needs. While the motivations and requirements vary from business to business, one thing is always true:
Under the right circumstances, an appropriate, well-built commercial solar electric system or commercial solar hot water system is a viable, even lucrative, option for many businesses, farms, commercial property owners, non-profits, and government organizations. At North Wind Renewable Energy, our mission is to help you determine if solar electricity or solar hot water is right for you.
- Save money. An appropriate, well-built solar electric or solar hot water system can help reduce your energy bills. This is particularly true over the long term as businesses begin to pay premiums for fossil fuels, such as coal and natural gas, to offset the cost of related greenhouse gases.
- Make money. Under certain circumstances, a solar electric or solar hot water system could be a revenue opportunity. This isn’t always possible: it depends on a number of factors, such as your energy consumption, your location, your utility, and the type of commercial solar energy system you choose. But it is possible for many businesses
- Enjoy discounted prices. Today, generous federal, state, and utility incentives make solar electric and solar hot water system available for less than 30 percent of actual installed cost. In some areas, utilities may even pay a premium for the energy generated—potentially turning a cost into a revenue opportunity.
- Do your part. Even if protecting the environment isn’t part of your business plan, a solar electric or solar hot water system helps you do your part to fight global climate change. And of course, you are free to tell your increasingly discriminating customers all about it.
- Energy load. Your energy load is the amount of energy your business consumes. Energy load is an important consideration affecting the size of your solar electric or solar hot water system, especially if you want commercial solar energy to meet 100 percent of your energy needs. Energy load can also affect the overall economics of your investment and the benefits your business enjoys. For example, if you have a very small energy load, you may be able to invest in a system that will let you generate revenue by selling excess energy back to the grid. This is a great benefit that is unique to businesses with a small energy load.
- Energy use. Your energy use is, generally, how and when your business consumes energy. Energy use can have a big affect on whether a solar electric or solar hot water system makes sense for your business and, if so, what type of commercial solar energy system you should choose. For example, if your business consumes a large quantity of energy to heat water, a commercial solar hot water system may make more sense than a commercial solar electric system.
- Geographic location. The geographic location of your business and the orientation of your property are important because they determine the quantity and quality of available sunlight. Location also determines the ease with which you can connect a solar electric system to the grid, the demand for commercial solar energy in your area, and the incentives offered by your utility.
- Costs and available funding. Grants and other incentives may reduce the cost of a solar electric or solar hot water system by as much as 70 percent. But a system still requires an up front investment. In addition, the savings from some incentives do not materialize until after the system is installed or has been depreciated over time.
- Mission and values. Adopting commercial solar energy may be an important part of your commitment to your customers or communities. If it is, there may be additional benefits for you to consider when evaluating a solution.
With so many incentives currently available, now is a great time to invest in a solar electric or solar hot water system for your business.
Focus on Energy
Focus on Energy, Wisconsin’s energy efficiency and renewable energy program, provides a Cash Back Reward or Implementation Grant (depending on the size of the system) for commercial solar electric and commercial solar hot water systems.
- The amount of incentive is determined by the expected production of the system; they typically amount to a one-time payment of 20-25 percent of overall system cost.
- The incentive is paid out after the system is commissioned.
- Eligibility and amount may vary slightly by the technology used in the system.
For more details, please visit the Focus on Energy website.
Renewable Federal Grants and Tax Credits
A federal program through the Treasury Department offers for-profit businesses a grant of to 30 percent of the installed cost of a solar electric or solar hot water system. Businesses that would prefer to lower their tax burden instead can choose to take a 30 percent tax credit.
For more information, please consult a qualified tax adviser to determine your eligibility and incentive level.
Utility Incentives or Premium Buy-Back Rates
Some Wisconsin electric utilities have begun paying a premium rate for energy generated by solar electric systems. Each utility’s program varies slightly in capacity limits, the value of the electricity produced, and interconnection requirements.
For more information about this incentive, please contact us. We can help determine if your utility provides this incentive and, if so, the potential value of the incentive to you.
Net Metering
“Net metering” is when a utility provides full retail credit for any extra energy that is added to the utility grid by a customer-owned solar electric system. In Wisconsin, municipal and investor-owned utilities are required to allow customers to net meter solar electric systems with a rated output of 20 kW or less.
This incentive is available only to businesses who do not participate in the premium buy-back rate programs described above (either because you are not eligible or because you choose not to participate).
Property Tax Exemption
Solar electric and solar hot water systems are exempt from Wisconsin property tax assessments, which means you can invest in a solar energy system without increasing the assessed value and tax liability of your property.
USDA Rural Energy for America Program (REAP)
This incentive is worth 25 percent of the installed cost of the system, and can greatly help the economics of a renewable energy project. A REAP grant may also be available to cover the costs of site assessments and feasibility studies.
In general, if you are a rural business or farm in a population center of 50,000 or less, and derive at least 50 percent of your income from the business, you may be eligible for a REAP grant. That being said, the eligibility criteria and the application process for a REAP grant is complex; we suggest you consider hiring a professional to help with the process.
For information, please visit the REAP website.
Modified Accelerated Cost-Recovery System (MACRS)
Federal tax law allows businesses to depreciate a solar electric system over a five-year period—a faster rate than for other capital investments and equipment. This can result in a reduction in your federal tax burden (the exact reduction is determined by your federal tax rate).
For more information, please consult a qualified tax adviser to determine your eligibility and incentive level.
- Research your options. A little research goes a long way; the Solar Electricity and Solar Hot Water pages in our website are great places to start. You can also contact North Wind using our online contact form or by calling (715) 630-6451.
- Review benefits and key considerations. As with any investment, it is a good idea to understand the benefits and key considerations related to commercial solar energy. Such due diligence will help you throughout the decision process, beginning with your free consultation with North Wind.
- Contact North Wind. Use our online contact form to describe your needs/interests and to submit any questions you might have. We will contact you to discuss the solution that is right for you. You can also contact us by calling (715) 630-6451.





