In short: a business usually wants one of four things from an energy project: stay open during outages, cut the power bill (often the demand charge), offer EV charging, or make its own power with solar. Each goal below links to the commercial guide, the calculators and the state facts you need before talking to an installer or engineer.
Commercial projects differ from home projects in ways that change the answer: demand charges on the bill, building and fire codes for emergency power, three-phase service, financing that can be a purchase, a lease or a power purchase agreement, and tax rules that changed in 2025. This page routes you by goal and by type of property.
Pick your goal
Stay open when the grid goes down
Start by listing the loads you cannot lose: refrigeration, servers and point of sale, security, pumps, life-safety lighting. That list, not the size of the building, decides the generator or battery size.
- Commercial backup generators: sizing, diesel or natural gas, codes and service contracts
- Commercial battery storage for short outages and ride-through
- Backup power options compared, from portable to permanent
Cut the power bill and demand charges
Many commercial rates add a demand charge based on your highest average use over a short interval, usually 15 minutes, in the billing period. A battery that trims those peaks can save money even where energy rates are low. NREL’s 2017 survey of more than 10,000 tariffs estimated that about 5 million commercial customers could lower their bills this way. Read your bill first: if there is a line in dollars per kW, demand charges apply to you.
- Commercial battery storage and demand charges
- Commercial solar: roof, carport or ground mount, and how the business case works
- Lowering the electric bill: many of the same habits apply to small shops and offices
Offer EV charging
Employees, tenants, guests and fleets each need something different: Level 2 for people who park for hours, DC fast charging for quick stops and fleets. Load management and your utility’s make-ready program can change the cost a lot.
Make your own power
Commercial solar is still growing while home solar shrinks: 638 MWdc went in during the second quarter of 2026, up 11% from a year before (SEIA/Wood Mackenzie). Farms and rural sites can also look at small wind or a stream.
- Commercial solar and solar with battery storage
- Small wind, micro-hydro and hybrid systems for farms, ranches and remote sites
- Off-grid power for sites with no utility line
By type of property
| Property | Usual priorities | Start with |
|---|---|---|
| Hotels and lodging | Guest safety, elevators and water pressure, refrigeration, EV charging as an amenity | Hotel backup power, solar and EV charging |
| Offices | IT and network uptime, workplace charging, daytime solar | Batteries, EV charging |
| Retail and restaurants | Refrigeration, point of sale, lighting, demand charges | Generators, batteries |
| Warehouses and light industry | Large flat roofs for solar, forklift and fleet charging, demand peaks | Solar, fleet charging |
| Farms and ranches | Well and irrigation pumps, remote buildings, open land | Solar, wind, hydro |
| Multifamily | Resident EV charging, common-area loads, backup for elevators and pumps | EV charging, generators |
Paying for it: purchase, lease or PPA
- Purchase (cash or loan): you own the system and keep all the savings and any tax benefits you qualify for; you also carry maintenance and performance risk.
- Lease: a fixed payment to use equipment someone else owns; the owner usually handles maintenance and claims the tax benefits.
- Power purchase agreement (PPA): a developer owns and runs the system on your site and sells you its power at an agreed rate, often for many years.
None is best for everyone. Compare total cost over the contract, who maintains the equipment, what happens if you sell the building, and the escalator in any lease or PPA rate. A lawyer or accountant should read long contracts.
Federal tax credits for businesses in 2026
What we verified on IRS pages: the clean electricity investment and production credits (48E and 45Y) still exist, but the 2025 law ends them for wind and solar facilities placed in service after 2027 when construction begins after July 4, 2026. Energy storage is treated under separate rules, and new restrictions apply to material from prohibited foreign entities. The commercial EV charger credit (30C) ended for property placed in service after June 30, 2026. Whether your project qualifies depends on timing, ownership and equipment sourcing, so ask a tax professional before counting on any credit.
Codes and permits to expect
Commercial work is designed and installed by licensed professionals and inspected by the local authority. For backup power, the National Electrical Code separates emergency systems (Article 700), legally required standby (701) and optional standby (702); NFPA 110 sets performance rules for the first two. Which category your loads fall into decides the equipment, wiring and testing. Solar, batteries and chargers also need utility approval to connect, and storage has fire-code rules. Ask early who your engineer of record will be.
Prices differ by state
Commercial electricity averaged 8.47 cents per kWh in Texas in July 2026, 11.37 in Florida, 15.19 in Illinois and 30.56 in California (EIA, preliminary). The same solar or battery project can pay back very differently. See Texas, Florida, North Carolina, South Carolina, Illinois or every state.
How we work with businesses
Each commercial guide has a business version of our request form; get quotes lists them all. Tell us about your project and we will connect you with a licensed, independent installer who serves your area. It is free, there is no obligation, and only the installer you choose gets your details. We don’t sell, quote or sign installation contracts. Read how it works.
Questions businesses ask
What size backup generator does a small business need?
It depends on the loads you must keep running, not floor area. A shop that only needs refrigeration, lights and registers may need far less than one running full air conditioning. An electrician or engineer should measure or calculate the load, including motor starting currents, and check whether any loads are code-required emergency loads. Our commercial generator guide explains the steps.
What is a demand charge?
A charge based on your highest rate of use, in kilowatts, during the billing period, usually averaged over 15 minutes, on top of the energy you use in kilowatt-hours. One short spike, such as several large motors starting together, can set it for the whole month. Batteries, load scheduling and charger power management can lower it. Check your bill for a line in dollars per kW.
Can a business still get a solar tax credit?
Possibly, but the window is narrowing. IRS guidance says the 48E and 45Y credits end for wind and solar facilities placed in service after 2027 when construction begins after July 4, 2026, and foreign-entity sourcing rules now apply. Projects that began construction earlier may have more time. Eligibility is fact-specific, so confirm with a tax professional before you sign.
Is a lease or PPA better than buying?
Buying usually gives the most savings over time if you have the capital and can use the tax benefits. A lease or PPA needs little or no money up front and moves maintenance to the owner, but you share the savings and sign a long contract. Compare the total cost, the yearly price escalator and what happens if you move or sell.
Sources: EIA Electric Power Monthly Table 5.6.A (July 2026 commercial prices, preliminary); SEIA/Wood Mackenzie Solar Market Insight Q3 2026; NREL, survey of U.S. demand charges (2017); IRS Notice 2025-42, Instructions for Form 3468 (2025) and the clean electricity investment credit page; NFPA 110 and NFPA 70 (NEC) committee documents on Articles 700 to 702. Written by the SolutionEnergy editorial team; last reviewed October 2026.