Energy bills are one of the biggest challenges for businesses today. If your company relies heavily on electricity—whether for lighting, production, or climate control—these expenses can quickly spiral out of control.
However, solar panels for businesses provide a practical way to cut costs, stabilize long-term energy spending, and show customers a commitment to sustainability.
In this guide, you’ll discover which industries gain the most from solar energy, how to calculate ROI, and what steps to take when adopting solar power for businesses.
Which Businesses Benefit the Most from Solar Energy?
Almost any business can reduce its electricity costs with solar panels, however, certain industries see particularly impressive returns due to their energy consumption patterns, operating hours, and facility characteristics.
#1. Manufacturing and Industrial Facilities
Manufacturing plants are a great example of successful commercial solar installations, and for a good reason. These facilities typically consume massive amounts of electricity during daylight hours—precisely when solar panels produce their peak output.
For instance, Volkswagen’s Chattanooga facility features one of the largest solar installations. Built in 2013, the 9.5 MW system generates up to 12.5% of the plant’s electricity during full production, with 33,600 solar panels covering 33 acres adjacent to the factory.
Also, many manufacturing operations benefit from federal and state solar incentives for businesses, which can cover 30-50% of installation costs. The combination of high energy usage, suitable roof space, and available incentives makes manufacturing one of the most lucrative sectors for solar energy cost savings.
#2. Retail Stores and Shopping Centers
Retail businesses represent another sweet spot for solar energy implementation. Shopping centers and large retail stores typically operate during peak sunlight hours when customer traffic is highest, creating natural synergy between energy production and consumption needs. Also, these businesses often have expansive, flat rooftops that are perfect for solar panel installations.
A good example is Target Corporation. They have installed solar panels on over 500 of its U.S. stores, including a notable installation in Napa, California. If we consider that a typical retail store with a 20,000-square-foot rooftop in a sunny location can install solar panels that generate roughly 1,858 kWh per day, at an average electricity rate of $0.15/kWh, this translates to about $8,361 in monthly savings, or over $100,000 annually.
Additionally, many retail businesses benefit from the marketing value of going green, using their solar installation as a selling point for environmentally conscious customers.
#3. Offices and Corporate Campuses
Office buildings might seem like obvious candidates for solar energy for businesses, but the benefits extend beyond simple electricity savings. Corporate campuses typically maintain consistent weekday operations, with peak energy usage occurring during standard business hours when solar production is strongest.
For example, J.B. Hunt Transport launched a 40-acre solar facility in Gentry, Arkansas, to offset up to 80% of the electricity for their three corporate campus buildings in Lowell. Featuring nearly 18,000 solar panels—including 10,000+ bifacial modules—the system generates around 9.3 million kWh annually. Also, they feed the excess energy to the local grid through net metering, maximizing efficiency and sustainability for the company.
Furthermore, modern office buildings often turn to solar installations. Many companies discover that their solar system becomes a source of employee pride and client impression. For instance, in June 2022, Playfair Capital, a venture capital firm based in London, installed a 12kWp commercial solar system across three different roof spaces of their office building.
#4. Hospitality and Leisure Businesses
Hotels, resorts, restaurants, and entertainment venues present unique opportunities for solar energy applications. These businesses often operate extended hours with significant energy demands for lighting, climate control, kitchen equipment, and guest amenities.
Furthermore, the hospitality industry gains significant marketing advantages from solar installations. Guests increasingly prefer environmentally responsible accommodations, and solar panels provide visible proof of a business's commitment to sustainability.
A good example are two leading hotels in Wexford County, Ireland. The first one is Riverside Park Hotel in Enniscorthy, which supplies roughly 20% of its energy needs and saves 240 MWh annually with solar panels. The other one is Brandon House Hotel in New Ross, which generates 185.5 MWh per year, covering nearly 14% of its energy consumption.
#5. Agriculture and Farming Operations
Farms often require substantial electricity for irrigation systems, grain drying, livestock ventilation, and cold storage. As a plus, the wide-open spaces typical of agricultural properties provide unlimited options for ground-mounted solar arrays, while the relatively remote locations of many farms mean higher electricity rates from traditional utilities.
In Two Creeks, Wisconsin, a dairy farm turned to solar energy as a sustainable income source. The farm leased 500 acres of land for a 30-year solar project. This partnership not only provides a steady revenue stream but also keeps the family farm intact for future generations.
#6. Data Centers
Data centers represent some of the most energy-intensive businesses in the modern economy, making them prime candidates for large-scale commercial solar installations. These facilities require consistent power for servers, cooling systems, and backup equipment, with electricity often representing 60-70% of their operating costs.
The Mineral Gap Solar Project in Wise County, Virginia, demonstrates how businesses can leverage renewable energy. This 3.46 MW solar array powers a 65,000-square-foot data center, showing how commercial-scale solar installations can meet substantial energy demands for business facilities. Also, what makes this project particularly noteworthy is that it converted previously coal-mined land into productive solar infrastructure.
#7. Automotive Dealerships and Service Centers
Car dealerships and automotive service centers typically feature large, flat-roofed buildings perfect for solar panel installation, while their operating hours align well with peak solar production. Service bays require substantial lighting and ventilation, while showrooms demand consistent climate control to maintain customer comfort.
Group 1 Automotive, one of the largest car dealership groups in the United States, installed 10,000 solar panels across multiple dealership rooftops. Their initiative shows how businesses with significant energy demands can use rooftop solar to reduce operational expenses. This example is particularly relevant for businesses with large facilities and high electricity consumption.
#8. Warehouses and Distribution Centers
Warehouses and distribution facilities represent another category of businesses that see exceptional returns from solar energy investments. These operations typically feature enormous roof spaces—sometimes hundreds of thousands of square feet—providing ample room for extensive solar arrays. Also, distribution centers often operate during extended daylight hours, with peak activity occurring when solar panels generate maximum power.
Amazon is a great example of the massive potential in warehouse and distribution operations. The company installed solar panels generating up to 41 MW of power across facilities in California, New Jersey, Maryland, Nevada and Delaware, which fulfills up to 80% of their annual power needs.
Which Factors Determine Solar ROI for Businesses?
Determining how businesses benefit from solar energy requires examining the specific factors that influence return on investment (ROI). The most successful commercial solar installations share certain characteristics that maximize both energy production and financial returns, including:
- Roof space and sunlight exposure. Businesses need adequate roof area or available land to accommodate enough solar panels to meet their energy needs. A restaurant might only need a modest 20-panel system, while a manufacturing facility could require hundreds of panels across multiple buildings. The orientation and tilt of available installation space also matter—south-facing roofs with minimal shading produce the most electricity throughout the day.
- Energy consumption patterns. Companies that use the most electricity during peak sunlight hours typically see the best returns, since they can immediately use the power their panels generate rather than selling it back to the utility company. Businesses with predictable, consistent energy usage are able to properly size solar systems and predict financial returns.
- Local utility rates and available incentives. Areas with high electricity costs and generous solar incentives for businesses create the most attractive investment scenarios. A business paying $0.15 per kilowatt-hour for electricity will see much faster payback than one paying $0.08 per kilowatt-hour. Similarly, regions offering substantial tax credits, rebates, or accelerated depreciation schedules improve the economic case for solar installation.
- Equipment quality and system design. This factor determines long-term performance and reliability, and ultimately solar panel ROI. Premium solar panels with 25-year warranties and high-efficiency inverters cost more upfront but typically provide better returns over the system's lifetime. Professional installation and proper system sizing ensure optimal performance and help businesses avoid costly problems down the road.
How to Choose the Right Solar Equipment for Your Business?
Selecting appropriate solar equipment requires balancing upfront costs with long-term performance and reliability. The main components—solar panels, inverters, solar batteries, and mounting hardware—each play a role in the solar system's success.
Proper solar panel selection involves trade-offs between cost, efficiency, and durability. Monocrystalline panels offer the highest efficiency, making them ideal for businesses with limited roof space but higher upfront budgets. On the other hand, polycrystalline panels provide good performance at lower costs, while thin-film panels work well for specialized applications despite lower efficiency ratings. Business owners should focus on the total cost per watt of production over the system's lifetime rather than just the initial purchase price.
Inverter technology has evolved significantly in recent years, with options ranging from traditional string inverters to advanced power optimizers and microinverters. String inverters offer the lowest cost for straightforward installations, while microinverters provide maximum flexibility and performance monitoring capabilities. Businesses with complex roof layouts or potential shading issues often benefit from the additional investment in microinverter technology.
Furthemore, the importance of professional installation and system design cannot be overstated. Many businesses discover that working with experienced commercial solar installers saves money in the long run by avoiding common pitfalls and ensuring optimal system performance from day one.
Final Thoughts
The question of benefits from solar panels for business has a straightforward answer. Almost any company with adequate roof space, reasonable electricity usage, and access to quality equipment can achieve meaningful savings. However, the businesses that see the most dramatic returns share common characteristics—high daytime energy consumption, suitable installation space, and commitment to long-term investment.
Companies considering solar installation should focus on finding experienced installers, understanding available incentives, and selecting quality equipment that will provide decades of reliable service.
Solar Panels for Businesses FAQ
#1. Who would benefit the most from solar panels?
Businesses with high daytime electricity consumption, adequate roof space, and consistent operating hours benefit most from solar panels. Manufacturing facilities, retail stores, office buildings, and data centers typically see the fastest payback periods and highest returns on their solar investments.
#2. Which companies use solar energy?
Major companies across virtually every industry now use solar energy, including Target, Amazon, Apple, Google, General Motors, and IKEA. Small and medium-sized businesses in manufacturing, retail, hospitality, agriculture, and professional services also increasingly adopt commercial solar power systems to reduce operating costs.
#3. Can small businesses afford solar panels?
Yes, small businesses can afford solar panels through various financing options, including solar loans, leases, and power purchase agreements. Federal tax credits, state incentives, and decreasing equipment costs have made solar accessible to businesses of all sizes, with many systems paying for themselves within 5-7 years.