What size solar system does a typical small business need

Estimating system size for small businesses

Sizing a solar system for a small business starts with understanding annual electricity consumption measured in kilowatt-hours (kWh). A simple way to estimate is to review 12 months of utility bills to calculate average monthly and annual use. Once you have annual kWh, divide by the expected annual kWh produced per kW of solar in your location (often between 1,000โ€“1,600 kWh per kW depending on sun exposure and climate).

For example:

  • 20,000 kWh annual usage รท 1,200 kWh/kW โ‰ˆ 16.7 kW system

Factors that influence system size include roof or site space, orientation and shading, peak demand needs, recommended offset percentage (e.g., cover 50โ€“100% of use), and budget.

Steps to determine right size

  • Gather 12 months of energy bills
  • Calculate annual kWh usage
  • Check local solar production estimates (kWh per kW)
  • Consider future growth or energy efficiency upgrades
  • Consult with a solar designer to model system output and site constraints

A professional site assessment is recommended because roof condition, structural capacity, and electrical panel limitations can affect feasible system size. Many businesses also evaluate partial coverage or phased systems to match cash flow and operational needs.