Path-Q Solar
Can solar lower operating costs enough to justify replacing a business roof?
Answer
Sometimes, but solar savings should not be treated as automatically justifying a roof replacement. Evaluate the incremental cost of replacing the roof now, the avoided cost of removing and reinstalling solar later, the roof's expected life, and the business's after-tax cash flow separately and together.
Key points
- Separate the cost required for the roof alone from the incremental cost and savings attributable to solar.
- A new roof may reduce future solar removal, reinstallation, downtime, and compatibility costs.
- Compare the combined project with delaying solar, replacing the roof alone, or using a different roof or site.
What it depends on
- Roof condition, remaining life, warranty, and replacement scope
- Solar cost, production, financing, and expected operating savings
- Cost of future solar removal and reinstallation
- Business tax, financing, ownership, and expected site occupancy
Risks and trade-offs
- Installing over an inadequate roof can create future disruption and duplicate costs.
- Combining projects can increase upfront capital needs and construction coordination risk.
- Projected energy savings may not cover the roof replacement because the roof serves a separate building need.
Information you may need
- Independent roof assessment and replacement estimate
- Solar production and savings model with financing alternatives
- Expected building occupancy, maintenance plan, and future removal assumptions
Your next step
What to do next
Obtain separate roof and solar scopes, then compare combined and sequential project cash flows using the incremental roof-related costs.
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