Originally Published: December 9, 2025
It seems that every day a new press release comes out describing how some company has switched to solar panels. But why is this happening? What’s driving this transition? That’s the topic we explore in this post. We look at why so many companies decided that solar panels were the future this year.
Plummeting Costs
The plummeting costs of commercial solar installation is one of the main driving forces. Companies that don’t do it see themselves as missing the opportunity of a lifetime.
The price of solar panels seems to halve every ten years or so, meaning that the average company can get their investment back within 6 to 9 years, depending on location. What’s more, after that point, they can enjoy free electricity for decades. With a little maintenance, today’s solar panels can last a long time.
Government Incentives
On top of that, government incentives are also playing a critical role. These are delivering rebates on installations and allowing firms to go greener at lower cost. Sometimes, it’s also possible to claim back tax credits for green installations, further reducing the overall cost for companies turning a profit.
Interestingly, recent bills in the U.S. are preserving many of these credits for businesses. That means that more startups and firms can save, encouraging investment in this type of technology.
Energy Independence
A lot of firms shifted to renewables in 2025 also because of the sheer energy independence they offer. 2022 was miserable for many companies and managers want to avoid a repeat of that in the future.
On-site generation is most popular in areas like Texas and California that have the most stable and predictable weather patterns. However, it is now a trend cropping up virtually everywhere, including in some really unexpected locations.
ESG Mandates
ESG mandates are also playing a role. A lot of companies in 2025 had to invest in renewable technologies, like solar, to meet their minimums and requirements.
For example, Meta and Walmart combined procured some 40 GW of solar through the first quarter of the year alone to support their operations. The same is true at countless other tech firms across the U.S.
Technological Leaps
On a more exciting note, many brands decided to opt for solar in 2025 because of all-around improvements in the underlying technology. Most of these were evolutionary in nature, not revolutionary, but they still make a big difference.
For example, new technologies mean that the average solar panel can now generate more power. Some manufacturers believe there is a pathway to 30% efficiency, which is extraordinary if the technology could be made to work.
Then there are various battery breakthroughs operating in parallel. Storage costs are coming down, making solar a more enticing and practical prospect for a lot of companies.
Ultimately in 2025, the corporate solar panel procurement trend went into overdrive, hitting new peaks. It’s now higher than it’s ever been, and could easily continue to rocket under the right conditions. All it requires is a few more changes in the market.
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