Table of Contents
Residential and commercial solar panels are becoming nigh ubiquitous!
With solar technology being more affordable than ever, they have become especially appealing during modern times when environmental factors such as climate change and cost factors such as increasing electricity prices are dominating global news.
So, how do residential vs commercial solar panels stack up?
Read below to learn more about both these types of panels, their benefits, costs, and of course, their key differences.
Global warming was once considered a conspiracy against big oil companies – but we all know when it comes to capitalism, things aren’t as pure as they may seem.
With soaring global demands that are expected to rise year over year, humanity has reached a point where we can’t live without electricity.
As the saying goes, too much of anything can make you sick. In the case of the planet Earth, this sickness is in the form of rising global temperatures.
We call this phenomenon global warming.
Global warming occurs when greenhouse gasses such as carbon dioxide and methane build up in the atmosphere and trap the heat coming from the sun. In normal circumstances, the Earth’s ecosystem is naturally designed to dissipate this excess heat back into space.
The typical heat-exchange cycle goes like this: the sun heats the ground and oceans, the escaping heat then builds up and rises above and is then transferred out from the atmosphere into space.
However, when greenhouse gasses are increased, this process is disrupted. See, greenhouse gasses are efficient at “catching” infrared light (heat) on its way out. So, molecules absorb the heat instead of letting it pass through into space.
In normal circumstances, greenhouse gasses are important for keeping a balanced temperature, but when you add too much of it, the overall temperature starts to rise, and that is when we begin to see climate-related problems such as heavy or no rainfall in different areas, rising sea levels due to melting ice caps, disastrous storms, and uncomfortable summers/winters.
Humanity has been aware of climate change for decades and countless research has done nothing but prove that human activities are indeed causing an increase in greenhouse gasses.
Surprisingly, we have dealt with a similar issue like this in the past. When air conditioning was invented, the initial designs called for refrigerants with extremely high Global Warming Potential (GWP).
Luckily, with the help of science and research, humanity took corrective measures in the form of a treaty called The Montreal Protocol on Substances That Deplete the Ozone Layer. This treaty was a joint effort that banned high GWP refrigerants to help save the planet!
Today, we face a different issue related to industrial progress. Industries create greenhouse gasses due to their immense reliance on fossil fuels.
Humanity has again taken on the ambitious challenge to save the earth and introduce alternative ways to generate power and decrease our reliance on fossil fuels.
One such way is solar energy!
Solar energy uses specialised materials that are combined, formed, and divided into cells. These multiple cells are then combined to form a solar panel.
When exposed to sunlight, the cells inside the panel undergo a chemical reaction that creates electricity. This electricity is then used to power our homes and can also be stored in batteries.
Solar technology just wasn’t affordable during the 19th and early 20th centuries, however thanks to advancements, we have now brought down the overall cost to about an estimated £3.13 per watt in 2024! This lowered price along with government incentives makes solar power not only feasible but more likely to be adopted by the masses.
Here are some of the key differences divided by criteria between residential vs commercial solar panels:
Residential solar panels are designed to be compact and have just about enough capacity to support the electricity needs of a typical home. These panels can be made from either monocrystalline, polycrystalline, or thin-film materials. Each type has its advantages but the most efficient of them are the monocrystalline panels with thin-film panels being the least efficient but costing less and being just adequate for small homes.
Residential solar panels range from 3KW to up to 10KW. For most homes, a 5KW system would be more than adequate to support the electricity needs for different appliances. As you can imagine, the higher the capacity, the more costly the system will be. So, in most cases, people tend to go for either 3KW or 5KW systems.
The good news is that since solar systems are modular, you can add more panels and equipment to increase the capacity of the system later. Furthermore, each system offers different levels of savings and a varying Return on Investment (ROI).
In most cases, a 5 to 8KW system will be more efficient at saving money on electricity bills and providing a reasonable ROI that can earn back the initial installation cost within 7-10 years.
Commercial solar panels are excellent for businesses that want to reduce their carbon footprint. These systems are designed to accommodate higher electricity demands and have a higher capacity.
Most commercial systems use monocrystalline panels that are costlier but offer excellent efficiency in capturing sunlight and converting it into electricity. These systems usually start from 10KW and can go up to several megawatts depending on the requirements.
For example, a solar panel system can be installed for small and medium-sized businesses, office buildings, as well as large factories that require megawatts of energy daily.
Residential solar panels focus on improving the aesthetics of the home while providing efficiency. This is why many residential solar panel solutions are based on polycrystalline or thin-film panels that can be contoured to any shape.
However, with a focus on aesthetics and integration, you do lose a bit of efficiency in residential systems – but they are still ideal at generating the energy needs of a typical home.
Commercial solar panels focus on high-grade monocrystalline panels that are designed to extract as much power as possible. These systems are typically costlier and can produce high levels of electricity that can be used for powering a variety of heavy-duty appliances.
Residential solar panel installation is quicker, more efficient, and can be done within a few days rather than months. These solar panels can be mounted anywhere so long as the area receives adequate sunlight. In the UK, the typical place for solar panels is rooftops.
Residential systems require less complex electrical integration and can be easily connected to a single-phase grid. Some smart or hybrid systems that include battery packs may require additional labour hours, but even then, you would have a working solar system powering your home within the week!
Commercial solar panels are usually large projects that require complex integrations, backups, and complex inverter and battery installation. These projects can often take several weeks or months to complete.
For commercial project installations, solar panels can either be mounted on rooftops, parking lots, or virtually any vacant space in the property that sees a healthy amount of sunlight every day.
These systems are typically connected to a three-phase grid and are excellent for powering any type of business without power disruption.
Residential Solar Panels have a lower initial cost due to their smaller size and capacity requirements. On average, you can expect a typical 3.5KW system to cost around £7,000. The bigger the system, the more the cost!
However, cost isn’t truly a burden for solar systems because these systems are designed to not only generate electricity but also sell back excess energy generated by the panels to the grid.
Government schemes such as the Smart Export Guarantee (SEG) are designed to purchase electricity from homeowners using a special tariff. So, if you factor in the savings on your electricity bills and the amount of electricity that you sell back, you can gain back the initial installation cost within a few years.
Furthermore, the government also offers several tax breaks, incentives, and grants to homeowners to install panels and switch to green power!
Commercial solar panels have a higher upfront cost simply because these systems are larger and require way more panels than residential properties. However, just like residential properties, businesses can also sell back energy and gain additional incentives including tax breaks and grants which can make the initial investment worthwhile.
Additionally, the business can also improve its brand image, increase its property value, and reduce its power bills by installing a solar system!
Solar panels don’t have mechanical or moving parts, so they require very little maintenance. The only maintenance is in the form of cleaning the panels so that they are free from dirt and debris which can cause inefficiencies in capturing sunlight.
The panels themselves can last up to 25 years with the system only requiring periodic battery replacements due to degradation.
For commercial solar projects, maintenance is about the same but can naturally take more time than typical residential systems due to their size and capacity. Both types of systems need to be monitored to ensure that the system is working efficiently.
The good news is that professional installation companies, like Calder Electrical provide maintenance contracts on every solar installation. This contract takes the burden off the customer and ensures the longevity and efficiency of all solar installations.
Residential solar panels usually don’t require permission for installation but must comply with building regulations and grid connection standards. Please keep in mind that the government wants people to adopt solar energy which is why they offer relaxed requirements and incentives to make the technology more feasible and attractive for the average Joe.
Due to the size and capacity of commercial solar panels, business owners must acquire permission to install solar systems on business premises. These permissions are relatively easier to get but are stricter and the installation must comply with all the applicable building regulations, health and safety standards, the British Standards for electrical installations, and the grid connection requirements.
Short answer: yes.
The cost of solar panel installation depends on several factors. Considering that one of the most common sizes of a home solar panel system is 3.5kW, it would cost approximately £7,000 and cover around 29 square metres of your rooftop. Commercial installations can cost up to £15,000+ and cover several square meters of the property.
It is important to note that the cost is directly related to the complexity of the project and the solar power output. A higher-capacity system requires more panels, batteries, and additional electrical equipment.
The good news is that these costs can be earned back by the system. However, the rate at which you save money will depend on the system. For example, a 3KW system may be cheaper but have a lower ROI compared to a 5KW system that generates more energy, therefore saving you more money and quickly gaining back the initial investment cost.
The cost is also dependent on the installation company. Professional installations tend to cost more, but the truth is that they are the only ones that matter. Why? Well, solar installations are a one-and-done kind of deal so it’s best to get the system right the first time.
Amateur installations may look great and save money, but they are hardly up to the industry standards and can cause inefficiency. Remember, an inefficient system can not only increase the ROI of the project but can also affect the total savings from the system.
Professional installations also guarantee longevity which is crucial for these systems. A properly installed system can last up to 25 years, which is also the warranty period for most high-quality panels.
A professional company can help you map out the project and help you pick the right system for your needs at your specific budget without sacrificing the quality or efficiency of the system.
Every purchase decision has a return on investment (ROI) and this factor is even more important for commercial properties.
The average return length for commercial solar panels is around 8 to 12 years depending on the size of the system.
Commercial solar systems break even at a much quicker pace since most businesses operate only during the daytime and the energy requirements taper off near the end of business hours. Homeowners typically have a slower-paced ROI but if you install a higher capacity system, you can quickly rack up the savings and gain back your initial investment in a reasonable time.
The SEG tariff, the amount you sell back, the consumption rate, the efficiency of the system, and the installation quality all go into an efficient ROI.
However, with more and more people going the solar route, it has become apparent that this technology truly is worthwhile in the context of cost and environmental protection. It is not only saving a lot of money but also reducing the carbon footprint for people around the world!
Calder Electrical Services provides a wide range of solutions to help you play your part in making the world a more sustainable place.
If you wish to have solar panels installed on your residential or commercial property, our experts can conduct a site visit to determine your requirements and propose the best location to install them.
We also offer solar battery storage installation so that you can minimise any wastage of the energy you create. This will help lower your energy bills and make you more independent from the grid.
Contact us here or call us on 0800 612 3001 to talk to our experts right away!
Photo by Watt A Lot on Unsplash
