Commercial and Residential Solar Panels: Differences and Commonalities

– Cost-Effectiveness of Solar Panel Installation in Factories: In contrast, factory installations involve larger scales and higher initial costs, but due to substantial electricity consumption, the payback period for surplus electricity fed back to the grid is usually about 4 years, with potential continuous returns lasting up to 30 years. Factory installations not only save significant electricity costs but also meet production demands, enhancing energy utilization efficiency. For example, Zhejiang Huayuan Copper Co., Ltd. and Huayuan Jinbo Technology Co., Ltd. installed a commercial solar power station with a capacity of 5.4 megawatts, expected to generate 5.4 million kilowatt-hours annually, saving about 2 million yuan in electricity costs and reducing carbon dioxide emissions by 4,860 tons per year. Furthermore, factory installations can also receive government subsidies, improve the company’s green image, and increase competitiveness.

In summary, there are clear differences between commercial and residential solar panels in terms of usage scenarios, target user groups, and cost-effectiveness, and users should choose the solar panels that best meet their needs.

II. Commonalities Between Commercial and Residential Solar Panels

(A) Policy Support

Both commercial and residential solar panels, as new types of green energy, receive encouragement and support from national policies. To promote the development of renewable energy and achieve the goals of “carbon peaking and carbon neutrality,” the government has introduced a series of policy measures, including financial subsidies, electricity bill subsidies, interest discounts on loans, and tax incentives. For instance, in China, the national subsidy policy for rooftop solar panel installations includes a financial subsidy of no less than 0.42 yuan per kilowatt-hour, and the on-grid electricity price for solar photovoltaic power is no less than 0.55 yuan per kilowatt-hour. For eligible projects, the government offers interest discounts on loans, typically covering 50% of the loan amount, while also exempting value-added tax and providing a “three exemptions and three half reductions” policy on corporate income tax, as well as exemption from land use tax. These policies provide strong support for the development of both commercial and residential solar panels.

(B) Connection to the National Grid

Both types of solar panels must connect to the national grid as part of it. Connecting to the national grid requires meeting certain conditions, such as having a grid-tied main circuit breaker that is easy to operate, can be locked, and has a clear disconnection point at the inverter output junction box to ensure the safety of maintenance personnel. The lightning protection and grounding of solar power stations and grid-tied equipment must comply with the requirements set by the national grid company, with qualified grounding resistance tested at specified intervals.

(C) Similar Business Models

1. Self-Funding Installation: Whether for commercial or residential use, users can choose to fund their solar panel installation. For users with sufficient financial resources, self-funding allows them to capture all the benefits. For instance, some households opt for self-funded installations to save on electricity bills and earn additional income; similarly, some factories invest in solar panels to reduce energy costs and improve energy efficiency.
2. Applying for Bank Loans: Users with insufficient funds can apply for bank loans to install solar panels. Currently, many banks are willing to invest in this sector as it offers relatively high and stable returns. For example, some households apply for bank loans to install solar panels, then use the savings from reduced electricity bills and income from selling electricity to repay the loans; similarly, some factories apply for loans to finance their installations, repaying them with saved electricity costs and government subsidies.
3. Third-Party Investment for Construction: Both types of installations have opportunities for third-party investment, following a financing leasing model. For example, a mainstream third-party investment model is Energy Management Contracting (EMC), where a third party leases the rooftop and offers discounted electricity prices, allowing the owner to enjoy price reductions without investing capital. The third party earns revenue from the electricity fees of the grid-connected electricity and the discounted fees for the owner’s usage.
4. Leasing Rooftops for Income: Users can earn income by leasing their rooftops. For those unable or unwilling to fund solar panel installations, leasing rooftops presents a good option. For example, some households rent their rooftops to solar companies, earning rental income annually; similarly, factories can lease rooftops to solar firms, using the rental income to reduce energy costs or increase other revenues.