Solar Restaurant Calculator

Enter your restaurant type, monthly electricity bill, and roof size — get solar system sizing, MACRS depreciation savings, ITC, and full 25-year ROI.

Restaurant details

Restaurant type?

Monthly electricity bill?

$/mo

Available roof area?

sq ft

State?

Financing method?

Solar system for your restaurant

31.3 kW system (79 × 400W panels) — 64% energy offset

Annual solar production49,275 kWh/yr

Annual electricity savings$6,307/yr

Gross system cost$87,500

Federal ITC (30%)-$26,250

Year 1 MACRS depreciation (20% bonus + regular)-$6,694 tax savings

Combined first-year tax benefit$32,944

Effective cost after tax benefits$54,556

Payback period8.6 yrs

25-year NPV (5% discount)$29,820

Demand charge reduction (est.)~$946/yr

Annual CO2 reduction9.5 tons/yr

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How to Use This Calculator

Enter your restaurant type and actual electricity bill

Select your restaurant type for a benchmark — coffee shops average 3,000 kWh/month; fast food restaurants 6,000 kWh/month due to heavy fryer, HVAC, and refrigeration loads; casual dining 8,000 kWh/month; fine dining 10,000 kWh/month. Then enter your actual monthly electricity bill for precision. If your bill seems higher than average, it likely includes demand charges — the fee utilities charge for your peak 15-minute power draw, which can represent 30-50% of a commercial electricity bill.

Measure your roof and select your state

Enter the usable square footage of your restaurant roof. Subtract space for HVAC units, vents, kitchen exhaust fans, and 3-foot setbacks from edges. A rough estimate: multiply the restaurant square footage by 0.6-0.8 to get usable roof area. The calculator uses 80 sq ft per kW as the panel density, which is standard for commercial installations using 400W panels.

Why commercial solar beats residential economics

Restaurant owners get more tax benefit than homeowners. The 30% federal ITC applies to commercial systems, PLUS businesses can use MACRS 5-year accelerated depreciation — including 20% bonus depreciation in 2026. This means year-one tax benefits often total 40-55% of system cost, dramatically improving payback periods compared to residential solar.

The Formula

Max System kW = Roof Area ÷ 80 sq ft/kW System kW = min(kW for full offset, Max kW from roof) Annual kWh = System kW × PSH × 365 × 0.80 Energy Offset % = Annual kWh ÷ Annual Usage kWh × 100 Annual Savings = Monthly Bill × 12 × Offset % Gross Cost = System kW × 1,000 × $2.80/W Federal ITC = Gross Cost × 30% MACRS Basis = Gross Cost − (ITC × 50%) Bonus Depreciation (2026) = MACRS Basis × 20% Year 1 Regular MACRS = Remaining Basis × 20% × Tax Rate Combined First-Year Tax Benefit = ITC + Year 1 MACRS Tax Savings Effective Cost = Gross Cost − Combined First-Year Tax Benefit Payback = Effective Cost ÷ Annual Savings 25-yr NPV = −Effective Cost + Σ(Savings × 0.995^yr ÷ 1.05^yr)

The MACRS basis is reduced by 50% of the ITC per IRS rules. In 2026, 20% bonus depreciation applies to the full depreciable basis, then regular 5-year MACRS applies to the remaining 80%. A 25% business tax rate assumption is used — adjust based on your actual tax bracket for precision.

Example

Carlos — Fast food franchise, Texas, 2,500 sq ft roof

Carlos owns a fast food franchise in Texas with a $820/month electricity bill. He has 2,500 sq ft of usable roof space. He's evaluating a cash purchase of solar with all available tax benefits.

Restaurant typeFast food / QSR

Monthly bill$820/mo ($9,840/yr)

Roof area2,500 sq ft (~31 kW max)

StateTexas (5.4 PSH, $0.128/kWh)

Result

System size24 kW (61 × 400W panels)

Energy offset~95%

Annual savings~$9,350/yr

Gross cost$67,200

Federal ITC (30%)-$20,160

Year 1 MACRS tax savings-$6,270

First-year tax benefit$26,430

Effective cost$40,770

Payback~4.4 years

25-year NPV~$64,000

Carlos's combined ITC and MACRS depreciation benefit cuts the effective system cost by nearly 40% in year one alone — before earning a single dollar of savings. A 4.4-year payback on commercial solar is excellent. Over 25 years, the NPV of $64,000 makes this one of the best capital investments available to a restaurant owner.

FAQ

Is solar a good investment for restaurants? ▼

Restaurants are among the best candidates for commercial solar for several reasons: (1) High electricity consumption — restaurants use 5-10× more electricity per square foot than offices, creating large bills and large potential savings. (2) Daytime operating hours — restaurants run peak HVAC, refrigeration, and kitchen equipment during peak solar hours, directly using solar-generated power without batteries. (3) Large flat roofs — commercial restaurant buildings typically have large, unobstructed roofs ideal for solar. (4) Business tax advantages — ITC + MACRS depreciation dramatically improves the economics beyond residential solar.

What is MACRS depreciation and how does it benefit restaurants? ▼

MACRS (Modified Accelerated Cost Recovery System) is IRS depreciation for business property. Solar systems qualify for 5-year MACRS, meaning you can deduct the system cost over 5 years rather than the system's 25-year lifespan. In 2026, an additional 20% bonus depreciation applies (reduced from 100% in earlier years). The depreciable basis is the gross cost minus 50% of the ITC. Combined, a restaurant owner with a $100,000 system and 25% tax bracket can save $26,000+ in year-one federal taxes from depreciation alone, on top of the $30,000 ITC credit.

What are demand charges and can solar reduce them? ▼

Demand charges are fees utilities charge based on your highest 15-minute power draw during the billing period, typically $5-20 per kW of peak demand. They can represent 30-50% of a commercial electricity bill. Solar panels can reduce demand charges when they produce power during your peak demand period — typically hot summer afternoons when HVAC and refrigeration run simultaneously. However, solar alone doesn't guarantee demand charge reduction; adding battery storage specifically sized to shave demand peaks is more reliable. The calculator estimates 15% demand charge reduction as a conservative average for daytime-operating restaurants.

How does solar help with green certification and marketing? ▼

Solar panels have become a meaningful marketing differentiator for restaurants. Studies show 60-70% of restaurant customers prefer dining at environmentally responsible businesses. Solar supports LEED certification points, Green Restaurant Association certification, and B Corp certification — credentials that attract both customers and employees. Restaurants can display their solar output and CO2 reduction on digital signage, menus, and social media. Some chains use solar as a PR story with measurable ROI in brand value beyond the electricity savings — particularly in urban markets with younger demographics.

Should a restaurant choose cash, loan, or PPA for solar? ▼

Each structure has distinct advantages. Cash purchase gives the best long-term ROI — you own the system, claim the full ITC, and use all depreciation benefits. Paybacks of 4-7 years are common for restaurants. Business loan (often USDA, SBA 504, or bank) means $0 upfront, with monthly loan payments lower than current electricity savings from day one — creating immediate positive cash flow. Power Purchase Agreement (PPA): a third party owns and maintains the system; you pay a fixed per-kWh rate (usually below retail) — zero upfront risk, but no ITC or depreciation, and lower long-term savings. For profitable restaurants with tax appetite, cash or loan maximizes return. For cash-strapped operations, a PPA still reduces energy costs with no capital required.

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