The Benefits and Risk of Solar Power for Commercial Properties

As solar power becomes an increasingly popular, effective and efficient solution for energy savings, more commercial businesses are considering installing solar panels on new and existing buildings. Powering everything from farms to office buildings, solar is convenient and low-maintenance once set up. While solar power can be incorporated into a building design at a future date, commercial developments may wish to consider installing panels during construction. Planning early for solar power allows the electrical engineer to incorporate solar into the overall electrical system design.

Solar Power and Commercial Developments

An electrical assessment is the first step in helping a business make the choice to install solar power right from the start, and to determine how much solar power is appropriate for the development. The electrical engineer will begin with a load calculation to determine how much power a building will use at peak hours. This provides a baseline for the maximum power a solar power system should generate.

Utility companies tend to use net metering to determine the power used and generated by the customer. Net metering involves a bi-directional electrical meter to measure the power in and out. In a billing period, since the utility company will rarely pay if the customer generates more than they use, the ideal solar power generated will be equal to or less than the power consumed.

Each utility company has slightly different policies when it comes to net metering and may change these policies over time depending on the state of power consumption and generation on their grid. This means that the power generation desired for a solar power application will depend on factors such as:

• The utility company's policies;
• Local rebate policies for installing solar power;
• The cost of electricity;
• The type of development;
• How much power is used over time.

These variables (and others) will ultimately determine if installing a solar system will pay for itself over time and result in savings on electric bills, at no cost other than the maintenance of the solar panels. The return on investment after paying for the system will also depend on the above variables and can usually be reasonably estimated during the design and permit stages of development.

Why Should You Install Solar Power?

As noted, one of the main drivers for installing solar power is the return on investment (ROI). Investing in a solar power system will see pay-offs over time. Once the system is installed, the only maintenance required is regular cleaning of the panels and the eventual replacement of the panels at the end of their lifespan. Replacement will be necessary due to the loss of the panels' efficiency over time. The current lifespan is approximately every 25-30 years, depending on environmental conditions and the desired power generation.

Monetary incentives aren't the only reason to use solar panels. Other benefits include:

• Progression towards zero-carbon emissions;
• Environmental impact;
• The supply of energy to the grid;
• Shade.

British Columbia and the world as a whole are beginning to take carbon emissions more seriously and implementing policy based on reducing carbon emissions gradually in new buildings, with a goal to eventually reach zero emissions. In BC, this is referred to as the Energy Step Code in the BC Building Code. By 2030, the intent is to reach zero carbon emissions in new buildings.

To accomplish zero carbon emissions, the energy used by heating, cooling, and lighting devices in buildings must be compensated by clean energy generation. The common solution to this problem is to install solar panels on buildings, powering energy-efficient electrical systems. Doing so relieves the pressure on the grid and utilities to provide more power over years to come.

Possibly the most important part about solar power is that it is free, clean energy. Every solar panel absorbs energy from the sun, meaning reduced carbon emissions from alternative energy sources. These small changes make a big difference over time to counter the effects of climate change. By investing in "green" products, the industry grows, and the products will continue to become more efficient and cheaper to produce.

A commonly overlooked benefit of solar power is shade. On walkways, entrances, and outdoor seating areas, shade is a must-have during summer, especially in hotter, sunnier climates. Installing solar panels on canopies or similar locations to provide shade allows for an efficient use of space, allowing other devices to be installed on the roof when that is a priority.

Risks and Disadvantages of Using Solar Power

One of the biggest downsides of solar power is the reliance on factors outside of our control - namely, the sun. The function of solar panels, which is harvesting the sun's power, comes with the risk that the power created is entirely dependent on the weather (and the sun). That means power will only ever be produced during daylight hours and is negatively impacted by clouds, dirt, snow, leaves, and other environmental factors.

On top of that, the amount of energy able to be produced depends on the distance to the sun, and the path light travels through the atmosphere. Panels located far north and south of the equator will generate less solar power than those in a more direct location to the sun, due to wavelengths of light being lost in the atmosphere. Additionally, locations with longer sun coverage per day will have an advantage over mountainous areas. The same solar panel in Regina will ultimately produce more power each year than the same panel in Vancouver.

Thankfully, utilities that use net metering will often allow a form of "credit", when generated power outweighs usage (typically in the summer months) to be used when usage outweighs generation (typically during the winter months). Being at the mercy of utility companies is also a risk, however. On one hand, as they increase the cost of electricity, the return on investment for solar increases. On the other, they determine how much solar power one can provide to the grid, the length of time the credit lasts for, and other details of the net metering agreement.

The utility may additionally bill produced power differently to consumed power, meaning even if panels produce more power than consumed, a customer can still be left with a sizeable bill. This made headlines in Canada, with SaskPower customers only receiving half the cost of power for their solar generation. Fortunately for those of us in BC, BC Hydro has some of the best solar net metering policies and rebates in Canada.

As much as solar power is good for the environment as an alternative to other energy sources, solar panels also produce electrical waste. As previously mentioned, solar panels have an expected lifespan of around 25 years, although they can last longer at lower efficiencies. As panels get cheaper and more efficient, however, it may become more cost-efficient to replace old panels before the end of their lifespans with newer models. Eventually, there will be nearly as many solar panels being removed as new panels installed.

Where does all that electrical waste go? Solar panels are touted as being easily recycled since silver and silicone are both valuable materials that can be reused to produce more panels. This isn't necessarily the case in practical terms; there are minimal governmental mandates for the recycling of panels, and the cost of recycling outweighs the cost of throwing them in landfills. More companies may come forward in the future to improve recycling. At the moment, however, the waste produced is a concern for the environment.

When to Add Solar Power

Talk about solar power often focuses on the "right" time to do an installation. Will the prices drop in coming years? Should a new development plan to immediately include solar installation from the beginning, or instead target solar for the future?

The answer varies from case to case, but in general, if a reasonable ROI and timeline for pay-off of the initial investment is promising, then the best time to install is right now. It all boils down to expectations for returns, and if the owner sees reduced electricity costs and environmental benefits as a priority.

At a time with substantial government subsidies for solar power, the promise of renewable energy generation that can turn a profit is appealing. Benefits such as incorporating shade, keeping sun off a building roof, providing relief to the energy grid and the environmental benefit combined with lower costs also make solar power a strong contender for investing in your commercial building or development.

To find out if solar power is the right choice for your development or existing building, please reach out; our team is happy to discuss your project needs and whether a solar power assessment or feasibility study may help.

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