Commercial solar for Canadian businesses: a project outline

How does a commercial solar project start?

With the building's electricity data, which any solar company or installer will ask for. Collect twelve months of bills, and if possible interval data from the utility. The aim is to see how much energy the business uses, when it uses it and what the rate structure charges for. Commercial customers often pay for peak power draw, called a demand charge, as well as for energy, and panels reduce the second charge far more than the first.

Sizing follows from there. As an assumed example, a shop that uses 150,000 kWh a year and sits in a region with a yield around 1,200 kWh per kilowatt would need roughly 125 kW to cover all of it. A flat roof typically needs somewhere around 7 to 10 square metres per kilowatt once row spacing is included, so a roof survey shows whether that fits. Our guide to peak sun hours in Canada and how to read a solar production estimate help check the installer's figures.

What technical checks matter?

• Roof condition and structure. A roof near the end of its life should be replaced first. A structural engineer confirms it can carry the panels and the snow load.
• Electrical service. Many commercial buildings have three-phase service, and the main panel, transformer and wiring must handle the added equipment.
• Racking. Flat roofs usually use ballasted or attached racking with a tilt, and the choice affects roof loading and warranty.
• Inverters. String or central units, discussed in solar inverter types.
• Snow and shading. Equipment on the roof and neighbouring buildings can shade arrays. See solar panels in winter.

Which ownership model should a business use?

Buying outright gives the business the savings and any tax benefits but needs capital and brings maintenance. A lease or power purchase agreement, covered in solar lease versus PPA, reduces the upfront cost in exchange for payments over time and leaves ownership with the provider. Loans sit in between, as compared in solar financing options compared.

Tenants should ask who owns the roof. A lease that ends before the payback, or a landlord who has not agreed to a rooftop system, will block the project. The system's effect on property value and sale is covered in selling a property with solar panels, which is written for houses but raises the same questions.

What approvals and tax questions apply?

Connecting to the grid needs utility approval, and the rules differ by province and by system size. Net metering or similar programs may cap system size or limit how exports are credited. Building and electrical permits are normal. Business owners should also ask an accountant about equipment deductions and credits, covered in capital cost allowance for solar, the clean technology investment tax credit and the small business solar tax guide.

Programs for businesses change often. Check the Government of Canada energy pages, your provincial energy ministry and the utility for what is currently open. In Alberta, start with Alberta small business solar incentives.

How do you compare bids?

Businesses should get at least three written proposals from different installers on the same basis: system size, panel and inverter specifications, expected annual production with the assumptions stated, warranty terms, monitoring and the scope of permits and interconnection. Look at price per installed watt as one number among several, as set out in solar price per watt explained. Check references from other commercial clients, and use the installer checklist. Costs vary by region, roof type and year, and the installation company's scope affects savings, so quotes decide.

Drake Landing Solar Community in Okotoks, Alberta, is a reminder of a different kind of scale: 800 collectors made heat for 52 homes rather than power for a business, as the solar collection page shows. The community was wound down from about 2020, which is why any long-lived system should have a maintenance and end-of-life plan.

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