Economic and Environmental Benefits of Solar Photovoltaics for Commercial and Industrial Buildings in Michigan

Commercial and industrial sectors significantly contribute to greenhouse gas (GHG) emissions. Integrating photovoltaic (PV) systems in these sectors presents an opportunity to reduce energy costs and environmental impact. Despite the exponential growth of solar PV capacity, adoption in the commercial and industrial sectors remains low. This lag is likely influenced by a lack of awareness among building owners regarding the feasibility and returns of solar PV systems. This study evaluates the economic and environmental potential of PV systems for commercial and industrial buildings in Michigan, focusing on the motivations, barriers, financial feasibility, and GHG reduction. We explore factors affecting PV adoption and associated benefits through structured interviews and modeling using the REopt tool. The interviews reveal a strong interest in PV systems driven by sustainability goals and potential energy cost savings; however, significant barriers persist, including high upfront costs, long payback periods, and limited awareness of PV technology and financing options. The REopt model analysis demonstrates that PV systems offer financial benefits across C&I facilities, with recommended system sizes varying based on load profiles and rooftop space availability. Further, the scenario analysis suggests that multi-faceted policy incentives, such as combining federal tax credits with net billing improvements or feed-in tariffs, can maximize the financial and environmental benefits of PV systems.