Blog Updated: February 2026
An increasing number of businesses are boosting cash flow and differentiating their business with commercial solar. They are investing in solar to capture tax benefits, reduce operating expenses (OpEx), and meet environmental, social, and governance (ESG) criteria. Navigating the complexities of a solar capital energy improvement can be challenging, so we’ve answered your top commercial solar questions below.
Key Takeaways for Your Top Commercial Solar Questions
- Federal Tax Credit (ITC): The Federal Investment Tax Credit (ITC)for solar is sunsetting under the One Big Beautiful Bill (OBBB), but that doesn’t mean you missed out. Namaste Solar proactively locked in tax credits for a certain number of projects; the number of these projects are limited and must be installed by the end of 2029.
- 100% Bonus Depreciation: 100% of your asset’s depreciable basis may be taken in year-1. The basis is the system price minus half the ITC, and the value is a minimum 21% of the investment for a Colorado corporation, or up to 34% for a high-net-worth LLC member.
- Should you choose to sell your Renewable Energy Credits (RECs) to Xcel Energy, they will pay for the production of your system for a 20-year term.
- Utility Savings: Every kWh produced by solar reduces what you buy from the utility, lowering OpEx.
- Increased property value: Lower OpEx and REC income increase net operating income (NOI) and build value.
- An expertly engineered and constructed system with equipment from reputable and bankable manufacturers will have a three-decade estimated useful life (EUL).
- A typical 200-kW commercial solar system in Xcel Energy’s Colorado territory breaks even in 6-11 years, then provides 19-24 years of pre-paid clean energy.
- Rooftop systems are the most common and cost-effective type of solar installation in our market. Carports and ground-mounts are other options.
- Routine monitoring and preventative maintenance are key to ensuring your system is operating at peak performance and maintaining manufacturer warranties.
Are There Any Incentives to Go Solar?
Federal tax credit (ITC): As you may have heard, the Federal Investment Tax Credit (ITC)for solar is sunsetting under the One Big Beautiful Bill (OBBB), but that doesn’t mean you missed out. Namaste Solar proactively locked in tax credits for a certain number of projects; the number of these projects are limited and must be installed by the end of 2029.
The ITC and these tax advantaged projects allows taxable entities with tax burden to recoup 30% of the investment for the year the system is placed in service with available tax credit adders which can increase the credit up to 70%.
While 2029 may seem like a way away, commercial solar installs take time to plan and install. Additionally, the number of tax advantaged properties that Namaste Solar locked in is limited.
100% Bonus Depreciation: 100% of your asset’s depreciable basis may be taken in year-1. The basis is the system price minus half the ITC, and the value is a minimum 21% of the investment for a Colorado corporation, or up to 34% for a high-net-worth LLC member.
Xcel Energy’s Commercial & Industrial Solar*Rewards Program:Should you choose to sell your Renewable Energy Credits (RECs) to Xcel Energy, they will pay for the production of your system for a 20-year term at the following rates:
- 8-250 kWAC = $0.04/kWh
- 250.1-500 kWAC = $0.0475/kWh
- 500.1 kW-1 MWAC = $0.045/kWh
Utility Savings: Every kWh produced by solar reduces what you buy from the utility, lowering OpEx. There are also mechanisms for recouping these benefits from tenants in triple net leases (NNN).
Increased property value: Lower OpEx and REC income increase net operating income (NOI) and build value.
What is the Life Expectancy of a Solar System?
An expertly engineered and constructed system with equipment from reputable and bankable manufacturers will have a three-decade estimated useful life (EUL). Solar modules typically have a 25-30 year performance warranty. Inverters have a standard warranty up to 25 years.
What is the Typical Payback Period for Solar?
A typical 200-kW commercial solar system in Xcel Energy’s Colorado territory breaks even in 6-11 years, then provides 19-24 years of pre-paid clean energy.
What Can I Expect to Save and Will Solar Reduce Demand?
A typical 30,000-square-foot roof can accommodate a 200-kW solar system. In year one, this system may reduce utility bills $21K and generate about $11K of incentive income and $530K in tax benefits on your investment.
Demand (kW) is a separate charge on the bill, one for which we do not typically model savings. Solar can and will reduce measured demand, but because of how Xcel Energy measures it (the highest single 15-minute average throughout a month), it is less predictable to model with certainty. There is, however, a solar rate available which lowers the price of demand.
What is the Most Common Solar System in the Denver Market?
Rooftop systems are the most common and cost-effective type of solar installation in our market.
Carports are another option for commercial property owners that will protect vehicles from the sun and elements, such as hail. While double the cost of a rooftop system, they offer these additional benefits:
- Covered parking can generate revenue.
- Greater visibility of your system.
- Pairs well with installing electric vehicle (EV) charging stations.
Ground-mount systems are roughly 1.5X the cost of a rooftop system and are more efficient systems but are not as common for commercial property owners due to the required land.
Custom solar solutions like building integrated photovoltaics (PV) and solar awnings are much less common, frequently less efficient, and always more expensive.
Namaste Solar installed the 128-kW system for the Anchor Center for Blind Children. This flush-mount system is projected to save the not-for-profit $1,055,393 over its 30-year lifespan.
How Does Solar Attach to my Roof?
Flat rooftop systems are secured to the roof by a hybrid system of ballast blocks in padded aluminum pans and engineered mechanical attachments to account for our winds and the roof’s deadload (structural) capacity.
Will My Roof Support Solar?
Flat roof systems need about 5-6 pounds per square foot (psf) of available deadload capacity, while pitched roofs with flush-mounted solar need about 3 psf. In general, the more deadload capacity a roof has, the fewer mechanical attachments needed, so 7-10psf for flat roofs is preferred.
When is a Good Time to Go Solar?
Ideally, your roof will have 20 years of life remaining and an existing warranty. When sizing a solar system that will be best suited to offset your facility’s usage, it’s a good idea to consider other future capital energy improvements, such as LED retrofit, higher efficiency HVAC, and electrification.
How Long Will It Take to Put Solar on my Rooftop?
Depending on system size and complexity, installation may only take 4-8 weeks. Engineering, permitting, and equipment procurement lead-times can add six months or more, bringing typical contract to commissioning to 8-12 months.
Does Solar Make Sense if I Don’t Occupy My Building?
Solar is beneficial to both property owners and tenants in gross or NNN leases. There are two common methods to overcome the split incentive: Commercial Property Assessed Clean Energy financing (C-PACE) and green leases.
What is Maintenance Like?
Routine monitoring and preventative maintenance are key to ensuring your system is operating at peak performance and maintaining manufacturer warranties. Just like any building asset, a solar system requires repairs from time to time.
Solar owners should plan for an unexpected service visit at least every two years. The most common maintenance needs arise from system outages that occur due to electrical anomalies in the facility or inverters. Solar systems protect themselves from damage by shutting down in such cases and frequently are resolved with minimal troubleshooting and a simple system reset.
How Do I Get in Touch with a Commercial Solar Expert?
Namaste Solar’s purpose is to transform energy and transform business. Our experienced commercial solar developers can help further answer your top commercial solar questions and will help you understand your project goals, return on investment, and timelines. Reach out today by clicking the button below or giving us a call at 303-536-8920.You can also look at our extensive commercial experience and see how we measure up.
