Commercial solar economics are different from residential
Commercial buildings on Long Island pay PSEG demand charges in addition to per-kWh energy charges. A properly-sized commercial solar system shaves both — the energy meter slows, and the demand peak (the single highest 15-minute window in the billing cycle) often gets clipped by midday solar production. Combined, the bill impact can be 50–80% on typical retail / warehouse / light-industrial loads.
Business-owned systems are not covered by the residential credit that ended in 2025; they fall under separate federal commercial rules for credits and depreciation. What a specific project qualifies for depends on its timeline and your tax position, so we model it with your CPA rather than quote a blanket percentage here.
Commercial financing structures
Direct purchase remains the highest-return option for businesses that can use the tax treatment available to them, and the business owns the system at the end of it. Payback depends on your demand-charge profile and what your CPA confirms the project qualifies for — we put both in the written quote.
For businesses that cannot use depreciation (non-profits, churches, low-tax-burden LLCs), Power Purchase Agreements (PPAs) work better. A third-party finances + owns the system; you sign a 15-to-25-year contract to buy the solar electricity at a fixed rate below your current PSEG rate. Zero upfront, immediate bill reduction.
Operating leases sit in between — flat monthly payment, system reverts to your ownership after the term.
Common commercial installs across LI
Warehouse rooftops (200kW–1MW class) — flat-roof ballasted mounts, no roof penetration needed, fast permit cycle. Retail strip centers (50kW–200kW) — split production among tenants via virtual net-metering. Multi-family buildings (50kW–250kW) — feeds common-area loads (lobby, hallway lighting, elevators) directly; residual flows to the building's house meter or virtual-net-meters to a single owner unit.
Pole-mounted or carport-canopy systems are an option for sites with limited roof space or solar-suitable parking lots — typically 100kW+, treated the same as roof-mounted for incentive purposes.