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What This Calculator Measures
Three metrics that determine if solar makes sense for your business
Annual Savings
Cut your energy costs by 40-70% using real utility rates from SCE, PG&E, SDG&E, and LADWP.
Payback Period
Most California businesses see full ROI in 3-5 years with federal ITC and state incentives.
10-Year ROI
Total return including energy savings, incentives, and protection from rate increases.
Based on 100+ commercial solar installations across California
Understanding Your Commercial Solar Calculation
Our commercial solar calculator provides California businesses with accurate estimates based on your specific facility characteristics, local utility rates, and available incentives. Understanding what goes into your calculation helps you make informed decisions about your solar investment.
Key Factors That Affect Your Solar Estimate
Roof Size and Orientation: Using Google Solar API data, we analyze your actual roof dimensions, pitch angle, and compass orientation. South-facing roofs in California generate 10-15% more energy than east or west-facing installations, directly impacting your ROI calculation.
Annual Energy Consumption: Your current electricity usage determines optimal system size. Commercial facilities consuming 50,000+ kWh annually typically see the best returns, as larger systems benefit from economies of scale in equipment and installation costs.
Utility Rate Structure: Time-of-use (TOU) rates significantly impact savings. With California peak rates reaching $0.34/kWh during 4-9 PM, solar production during afternoon hours delivers maximum value. Our calculator factors in your specific utility's rate schedule.
Understanding Your Payback Period
The payback period represents how long until your energy savings equal your initial investment. For California commercial solar installations, typical payback ranges from 3-6 years depending on:
- System size: Larger systems (250kW+) achieve better per-watt pricing
- Utility rates: Higher-rate territories like SDG&E see faster payback
- Incentive qualification: SGIP battery storage incentives can reduce net costs by 30-50%
- Financing structure: Cash purchases maximize long-term savings; PPAs eliminate upfront costs
The 30% Federal Investment Tax Credit (ITC)
Every commercial solar calculation includes the federal Investment Tax Credit, which reduces your tax liability by 30% of total system cost. For a $500,000 installation, that's $150,000 in direct tax savings. Bonus adders for domestic content (10%) and energy communities (10%) can increase the credit to 50% for qualifying projects.
California Commercial Electricity Rates by Utility
Understanding your utility's rate structure is essential for calculating accurate solar savings. California businesses pay some of the highest commercial electricity rates in the nation.
SDG&E
San Diego Gas & ElectricHighest rates in California - best solar ROI
SCE
Southern California EdisonServes Orange County, Inland Empire, parts of LA
PG&E
Pacific Gas & ElectricNorthern California - strong TOU differentials
LADWP
Los Angeles DWPMunicipal utility with unique solar incentives
Why Time-of-Use Rates Favor Solar
California utilities charge premium rates during peak demand hours (typically 4-9 PM). While solar production declines in evening hours, pairing solar with battery storage allows businesses to store daytime generation and discharge during expensive peak periods. This arbitrage between off-peak generation and peak consumption can increase total savings by 25-40% compared to solar alone.
All California investor-owned utilities project 5-7% annual rate increases through 2030. Today's solar investment locks in energy costs for 25+ years, providing a hedge against rising utility prices that compounds savings annually.
Industry-Specific Solar Savings in California
Different industries see varying returns based on energy consumption patterns, facility characteristics, and operational requirements.
Warehouse & Logistics
Large flat rooftops provide maximum solar capacity. Distribution centers with 100,000+ sqft can install 500kW-2MW systems, dramatically reducing operating costs.
Manufacturing
High energy intensity facilities benefit most from demand charge reduction. Battery storage eliminates costly demand spikes from equipment startups.
Retail & Hospitality
Peak energy use aligns with solar production. Visible rooftop installations demonstrate sustainability commitment to eco-conscious customers.
Office Buildings
ESG compliance increasingly required by tenants. Solar installations attract premium tenants and increase property values by 3-4%.
Real Businesses, Real Savings
California businesses trust Promise Energy for proven solar solutions
Los Angeles Convention Center
Los Angeles, CA
- •Annual savings exceeding $450,000
- •3.5 year payback period
- •1,500 tons of CO₂ reduced annually
"The solar installation has exceeded our expectations in both performance and savings. Promise Energy delivered a world-class system that positions us as a leader in sustainable event venues."
Ability Tri-Modal
Carson, CA
- •Innovative strap racking system
- •Over 830,000 lbs of CO₂ reduced lifetime
- •Turnkey installation completed on schedule
Silver Star Apartments
Los Angeles, CA
- •LEED Platinum certification achieved
- •26 solar water heating collectors
- •USGBC LA Project of the Year winner
Join 100+ California businesses saving millions with solar
Commercial Solar Calculator FAQ
Common questions about using our free commercial solar savings calculator for California businesses.
How accurate is this calculator compared to a professional quote?
Our commercial solar calculator provides estimates within 5-10% of actual project costs for most facilities. The calculator uses real utility rate data, verified Google Solar API roof analysis, and current incentive programs. For final pricing, we recommend a free site assessment where our engineers verify roof condition, electrical infrastructure, and site-specific factors.
What incentives are included in the calculation?
The calculator automatically includes the 30% federal Investment Tax Credit (ITC), California Self-Generation Incentive Program (SGIP) for battery storage, utility-specific rebates for your service territory, and local programs like LADWP solar incentives or Anaheim Solar Advantage. Bonus ITC adders for domestic content and energy communities are calculated when applicable.
Can I calculate solar for multiple buildings or locations?
Yes! For multi-site portfolios, run the calculator separately for each address to get location-specific estimates. Many California businesses with multiple facilities benefit from portfolio-wide energy procurement strategies. Contact us for consolidated multi-site proposals with volume pricing.
How do demand charges affect my commercial solar savings?
Demand charges (measured in $/kW) can represent 30-50% of commercial electricity bills. Solar alone provides modest demand charge reduction, but solar paired with battery storage can reduce demand charges by 50-80% through peak shaving. Our calculator factors in your utility's demand charge structure when estimating total savings.
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