Differences Between Residential and Commercial Solar Systems

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When it comes to solar energy, there are two main types of systems: residential and commercial. Residential solar systems are designed for single-family homes, while commercial solar systems are designed for businesses and other large buildings. There are many differences between these two types of systems, which we will discuss in this blog post. Keep reading to learn more about the differences between residential and commercial solar systems!


Naturally, the first difference between residential and commercial solar systems is their purpose. Residential solar systems are designed to power a single-family home, while commercial solar systems are designed to power businesses and other large buildings. This difference is reflected in the size and capacity of the two types of systems. Residential solar systems are typically smaller and have a lower capacity than commercial solar systems.

In truth, even commercial systems can differ from one system to the next. For example, imagine a small office compared to a large factory. The solar system for the small office will be much smaller than the solar system for the factory. In fact, some commercial solar systems can be as large as a football field.


The cost of residential and commercial solar systems also differs. Residential solar systems tend to be less expensive than commercial solar systems, partly because of the difference in size and purpose. With residential solar systems requiring a lower capacity than commercial solar systems, homeowners can choose a more affordable system.

Solar panels

Typically, residential solar systems have smaller solar panels than commercial solar systems. Homeowners can choose from a variety of panel types to find the right size for their needs, but most panels are between 3 and 5 feet tall. Commercial solar panels, on the other hand, can be up to 10 feet tall. The larger size of commercial solar panels allows businesses to generate more power with fewer panels, which can save on installation costs.

Solar Inverters

Additionally, the solar inverter is the part of the solar system that converts the DC power generated by the solar panels into AC power that can be used by your home or business. Residential solar systems usually have one solar inverter, while commercial solar systems often have multiple solar inverters. The multiple inverters can be configured to provide backup power in case one inverter fails.

Solar Tracking

Another difference between residential and commercial solar systems is that commercial solar systems often have solar tracking. Solar tracking is a technology that adjusts the position of the solar panels throughout the day so that they can capture the maximum amount of sunlight. This leads to increased electricity production and can offset the higher cost of the tracking system; often, smaller systems don’t need this sort of technology.

Solar Leasing

Commercial solar systems are also often leased, rather than purchased outright. This can provide businesses with a way to go solar without a large upfront investment. However, it’s important to read the terms of the lease carefully before signing, as some leases may have provisions that are unfavorable to the business.

Choosing a System

Whether you’re a business owner or a homeowner, it’s best to contact solar system professionals in Sydney to discuss your needs and get an idea of the cost before making any decisions. They can help you determine the right system for you, and can give you an estimate of the cost and expected return on investment.

If you’re a business owner, it’s important to keep in mind that commercial solar systems are typically larger and more expensive than residential ones. However, they also tend to generate more electricity, making them similar in terms of ROI.


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