Investing in commercial solar is one of the smartest financial decisions a business can make. Lower operating costs, protection against rising utility rates, tax incentives, and sustainability benefits make solar extremely attractive.
However, not all solar projects deliver the results companies expect. In many cases, avoidable mistakes reduce savings and create unnecessary frustration. Here are the most common mistakes businesses make when going solar — and how to avoid them:
1. Focusing Only on the Lowest Bid
Price matters, but choosing the cheapest proposal can be costly in the long run. Some contractors cut corners by using lower-quality equipment, undersized systems, or inexperienced installation crews. A well-designed system should prioritize long-term performance, durability, and ROI—not just upfront cost.
What to do instead: Evaluate equipment quality, warranties, installer experience, and projected energy production — not just price per watt.
2. Failing to Analyze Energy Usage Properly
Many businesses install solar without fully understanding their load profile, seasonal usage, or peak demand charges. This can result in undersized or oversized systems that don’t maximize savings.
What to do instead: Conduct a thorough energy audit and review at least 12–24 months of utility data before system design.
3. Ignoring Tax Incentives and Depreciation Benefits
Federal and state incentives can significantly reduce the net cost of a solar system. Businesses that don’t structure their project properly may miss out on the full value of the Investment Tax Credit (ITC), MACRS depreciation, or bonus depreciation.
What to do instead: Work with a contractor and tax professional who understand commercial solar incentives and can structure the project strategically.
4. Overlooking Roof Condition and Structural Integrity
Installing solar on a roof that will need replacement in five years creates avoidable complications and added costs. Structural limitations can also impact system size and safety.
What to do instead: Conduct a roof inspection and structural assessment before moving forward with installation.
Get Your Energy Independence
5. Not Considering Future Expansion
If your business plans to grow, expand operations, or increase energy usage, your solar system should be designed with scalability in mind.
What to do instead: Plan for future load increases and leave room for system expansion where possible.
6. Choosing an Inexperienced Commercial Installer
Commercial solar projects are more complex than residential installations. They require expertise in engineering, permitting, interconnection agreements, and large-scale system design.
What to do instead: Partner with a contractor who specializes in commercial solar and has a proven track record.
7. Missing Out on Grants and Funding Opportunities
One of the most expensive mistakes businesses make when going solar is overlooking available grants and funding programs. While many companies factor in tax credits and depreciation, they often miss opportunities like USDA REAP grants, state clean energy grants, utility rebates, and community solar funds. These programs can significantly reduce upfront capital costs — sometimes covering 20% to 50% of a project. Unfortunately, many businesses either don’t realize they qualify, assume the application process is too complicated, or work with contractors who don’t proactively identify these opportunities. Missing out on stacked incentives can dramatically extend payback periods and reduce overall ROI.
What to do instead: Partner with a commercial solar contractor who actively evaluates and pursues grant and funding opportunities on your behalf. An experienced team should assess eligibility for programs like USDA REAP, state and local energy grants, and utility rebates, while coordinating with your CPA to properly structure the project for maximum incentive stacking. With the right guidance, these funding sources can substantially lower your net investment, accelerate payback, and transform a solid solar project into an exceptional financial decision.
Key Takeaways
When designed and installed correctly, commercial solar can deliver decades of predictable savings and long-term value. Avoiding these common mistakes ensures your business gets the maximum return on its investment and a system built to perform for years to come.
If this sparked your interest, visit our commercial solar resource page to learn more about how a solar solution might be a huge win for your business. View our case studies to see what we’ve done for other businesses. And if you would welcome a trusted commercial solar partner to help you evaluate your company’s energy usage, available incentives, funding opportunities and other factors, get in touch with us to ensure all of your questions get answered.