How Commercial Solar Differs from Residential in Nevada

Nevada Solar FAQs
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How Nevada Commercial Solar Differs from Residential

Nevada Commercial solar is different than residential; these distinctions are imperative. Nevada business owners need to look at the different factors to see if commercial solar is a viable option. It’d be a mistake to learn about rooftop solar in Reno or Las Vegas and assume those same principles apply to commercial solar as well.  

When Does Nevada Commercial Solar Make Sense?

Two main factors play a large part in whether solar will be a good option for your Nevada business. The first is owning your building. The second is having a steady cash flow.

Owning Your Building

For small business owners, buying the building may not be a good option. It makes even less sense if you don’t foresee the company staying in that building long-term.

However, if you don’t own the building that your business operates in, solar may not be a good option for you. Only the property owner can purchase solar in a way that benefits the bottom line of the business.

If you don’t own your building, you might be able to get your landlord to consider buying solar. But, it is in your best interest to wait until you own your building.

Steady Cash Flow

The net change in a company’s cash position will change from one period to the next. The goal is to have more cash inflow than outflow. Steady positive cash flow is essential for a commercial solar installation.

Reno NV commercial solar systems are an investment. Since most don’t have the cash to pay for it up-front, financing involvement is necessary.

If your debt-to-income ratio is higher than 100 percent, your business may be too dependent on debt. High debt-to-income makes financing a commercial photovoltaic system difficult.

Nevada Solar Tax Credit For Businesses

Companies with commercial solar can get a 100 percent write-off for their first year of solar expenses. You can claim this write-off through the MACRS bonus depreciation.

MACRS is great for businesses interested in solar, but they need to make sure they qualify. First and foremost, you need to own the property. Nonprofits, schools, and churches can’t get the MACRS because they don’t have any tax liability.

Reducing Your Commercial Power Bill

There are quite a few things that go into designing a system to offset power bills. One of the major components is an inverter. If you have quality solar panels and a sub-par inverter, your system will under-produce.

Inverters convert direct current (DC) from solar panels into alternating current (AC) the business can use. Getting a quality inverter will ensure that you’re getting the most from your PV panels.

Inverters can be either oversized or undersized. The AC power rating to the solar panel’s DC capacity ratio will determine the expected production.

Inverter clipping may occur if the inverter has a lower capacity than the solar panels. Inverter clipping occurs when the inverter cuts off excess power above its rating.

If the inverter has a larger capacity than the modules, the array may not produce what the inverter can handle. Go Solar Group uses SolarEdge inverters.

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