Solar 101

Whether you’re exploring or ready to go solar, this guide covers how it works, why it matters, and how your business benefits.

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Solar 101

Commercial Solar FAQ

Everything you need to know before going solar with Smart Roofs.

Yes. With the right system design, solar can offset up to 100% of your business’s electricity needs. System size depends on your building’s footprint, average monthly energy use, and other factors. We’ll provide a custom analysis to get the best fit for your property.

No problem. If you lease, we can work with the property owner and show them how solar adds value. If you just got a new roof, now’s a great time—solar systems last 25–35 years, just like your roof.

Not always. We’ll inspect your roof for free. If repairs are needed, we can provide roofing quotes and bundle the cost with your solar system under one loan.

Yes. Solar panels generate electricity from sunlight—not heat—so they work well year-round, even in colder states. Winter production may be slightly lower due to shorter daylight hours.

Most commercial systems are installed on flat rooftops and stay out of sight. If your system is visible, our team will design it to complement your property’s aesthetics.

Solar helps you lock in long-term energy savings, protect against rising utility rates, and increase property value. Plus, there are generous tax credits and incentives available that can offset 30–50% of your project costs.

We handle everything—from engineering and permitting to utility approvals and inspections. Our process minimizes disruption to your business. Most installs take a few weeks once permits are approved.

Solar panels collect sunlight and convert it to direct current (DC) electricity. An inverter then changes it to alternating current (AC) power, which your building uses. This reduces your need for grid electricity.

Standard systems shut off during an outage to protect utility workers. However, we offer battery backup and special inverters that can keep your essential operations running during blackouts.

Very little. Panels are durable and self-cleaning through rain and wind. If you ever need service, our team has you covered. All equipment comes with up to 25-year warranties.

That depends on your current electricity usage and utility rates. If your monthly bill is over $800, the savings are significant. Send us your recent bill and we’ll provide a free, custom savings report.

Net metering allows you to earn credits for excess solar energy sent back to the grid. These credits reduce your future utility bills, increasing your total savings.

You can:

  • Pay cash and own the system outright
  • Use a solar loan with little to no upfront cost
  • Sign a Power Purchase Agreement (PPA) and only pay for the power you use
  • Lease your roof to a solar investor and earn passive income

We’ll walk you through the best option based on your goals.

Still have questions? Get in touch for a solar analysis and project review. We’re here to help you make a smart, confident decision.

Solar Incentives

Cut Project Costs by Up to 50%

Solar incentives are financial programs offered by federal, state, and local governments to make solar more affordable for businesses. These incentives can dramatically lower upfront costs and improve ROI.

Smart Roofs will help you identify and secure all available incentives—so you don’t leave money on the table.

30% Federal Investment Tax Credit (ITC)

Claim 30% of your solar system cost as a direct federal tax credit until December 31, 2025.

Bonus ITC

Get an extra 10–20% credit for U.S.-made or energy community projects.

MACRS Depreciation

Accelerate tax savings by depreciating your system over five years.

State & Local Incentives

Extra rebates may be available based on your utility or location.

Solar Terms

Terms & Definitions

Understand the language of solar so you can make informed decisions.

Common Terms

  • Alternating Current (AC): Electricity used by the grid and your devices. Solar panels produce DC, which is converted to AC by inverters.
  • Direct Current (DC): Electricity generated by solar panels and stored in batteries before conversion to AC.
  • Inverters: Devices that convert solar DC power into usable AC electricity.
  • Microinverter: Converts power at the panel level for better system performance.
  • String Inverter: A central inverter connected to a group (or “string”) of panels.
  • Interconnection: The process of connecting your solar system to the utility grid.
  • Net Metering: A billing system that credits you for excess solar energy sent back to the grid.
  • Kilowatt-hour (kWh): The unit of energy used to measure power consumption or generation.

Other Helpful Terms

  • Electric Vehicles (EV): Cars powered by electricity, often charged via solar.
  • NABCEP: The top certification for solar professionals.
  • Renewable Energy Certificates (RECs): Credits for generating green electricity.
  • Power Purchase Agreement (PPA): A no-upfront-cost solar plan where you pay only for the energy used.

Incentives & Policies

  • Investment Tax Credit (ITC): A federal tax credit that covers 30% of eligible solar project costs.
  • Bonus ITC: Extra credit for projects using U.S. materials or built in energy communities.
  • MACRS Depreciation: Tax deduction for commercial solar systems.
  • Inflation Reduction Act (IRA): Expands solar incentives and supports clean energy development.
  • REAP (Rural Energy for America Program): USDA-backed grants and loans for rural businesses.
  • C-PACE Financing: Solar loan paid via property tax—ideal for nonprofits and commercial properties.

System Types & Components

  • Photovoltaic (PV): Solar technology that converts sunlight into electricity.
  • Fixed-Tilt Array: Panels fixed at an angle to maximize sun exposure.
  • Racking & Mounting: Hardware that secures solar panels to roofs or ground surfaces.
  • In-Front-of-Meter (IFM): Utility-scale solar that feeds energy directly to the grid.
  • Behind-the-Meter (BTM): On-site solar that powers your building first, reducing grid use.