To win more commercial solar projects in 2025, installers need to offer more than just competitive pricing. With customers becoming increasingly informed, trust and strong referrals are key. That trust needs to be built not only during the proposal and installation phases—but also long after the system is up and running.
A key way to build this confidence is by helping customers understand the full picture, not just the initial installation cost. This is where Levelized Cost of Energy (LCOE) becomes essential. LCOE is the average cost of producing electricity over the lifetime of a solar system, calculated by dividing the total system cost—including installation, operation, and maintenance—by the total energy the system will generate. It looks beyond price tags and considers the entire lifespan of the system: energy production, reliability, safety, and overall return on investment.
For example, consider two commercial solar systems—one uses a lower-cost inverter that needs replacement after 10 years, and the other uses a premium inverter with a 25-year warranty. While the first system might appear cheaper upfront, factoring in the replacement cost, labor, downtime, and lost energy production significantly raises its LCOE. The second system, though slightly higher in initial cost, maintains consistent performance and lowers long-term costs, resulting in a lower LCOE and a stronger ROI for the customer.
By helping customers understand and compare LCOE, installers can shift the focus from upfront cost to long-term value, making it easier to justify higher-quality equipment and win trust.
For installers committed to long-term performance and lower LCOE, partnering with Enphase means gaining reliable, proven support across the entire system lifecycle. Here’s how we bring lasting value to commercial installs:
- Long-term reliability
25-year warranty on the IQ8P-3P Commercial Microinverter, with a low failure rate under 0.05% - Built-in safety
AC architecture eliminates exposure to high-voltage DC, reducing risk for installers and customers - Installer-first support
Regional Field Service Technicians (FSTs) and Field Applications Engineers (FAEs), plus integrated design software and services - Simplified logistics
One inverter SKU to stock (IQ8P-3P Commercial Microinverter) helps reduce operational complexity - Compliance ready
U.S. manufacturing enables domestic content requirements, with full Buy American Act (BAA) and Build America Buy America Act (BABA) compliance
When evaluating a commercial solar project investment, a key concept to understand is levelized cost of energy or ‘LCOE.’ According to the US Department of Energy, LCOE is “Critical to making an informed decision to proceed with development of a facility, community or commercial-scale project.”
What does LCOE entail?
- The measurement of lifetime costs of energy divided by the energy production
- Technology cost and performance parameters
- Capital expenditures (CAPEX), operating expenditures (OPEX), and capacity factor
- System size and expected lifespan of the equipment
- Initial investment (including financing, if applicable)
- Annual operation and maintenance (O&M) expenses
- Investment risk and projected return on investment
LCOE calculations allow installers and asset owners to make informed decisions by comparing different technologies based on lifetime cost, not just upfront pricing. For more on LCOE concepts, refer to this National Renewable Energy Laboratory (NREL) guide and slide 5 of the U.S. Department of Energy presentation.
Conclusion:
When evaluating commercial solar investments, upfront cost is only part of the story. LCOE helps customers understand the full financial impact of their decision, factoring in lifetime performance, safety, and long-term reliability. By offering a trusted solution like the Enphase IQ8P-3P Commercial Microinverter, installers can deliver lower long-term costs, increased safety, and peace of mind. This is the kind of value that wins deals, builds trust, and earns referrals.
