Maximizing ROI: Chroma’s Data-Driven Strategies for Commercial Solar Installations

As businesses seek sustainable energy solutions, one company is leading the charge with data-driven strategies that maximize return on investment (ROI). Chroma Energy Group, a top provider of commercial and utility scale solar installations, is making waves with projects that cut costs and boost energy efficiency.

Chroma’s recent work on a commercial industrial installation in Nashville exemplifies its approach. This behind-the-meter project, designed to offset costs for the end user, is just one of many examples of how Chroma is targeting commercial installations. The Nashville job includes nearly 1 megawatt of solar power spread across 11 rooftop arrays and two ground-mounted systems, benefiting an affordable housing development. In this case, the solar energy offsets costs for community amenities like the leasing office, pool, and maintenance facilities, while excess energy is sold back to the utility.

Chroma’s innovative approach is driven by a comprehensive financial analysis that considers federal tax incentives, economic zone adders, and potential grants. For example, companies that invest in solar may need to upgrade major equipment or replace roofs, which can affect ROI. Chroma’s team excels at assessing these variables, providing a full audit to determine whether solar is a smart investment. 

“Our goal is to design an optimized system that helps offset high demand charges and delivers maximum cost savings to the end user,” said Chroma Vice President of Business Development Jacob Duncan. “We use advanced software to analyze data and ensure that our designs are as effective as possible.”

Chroma’s Expertise in Commercial Solar Installations

Chroma’s reputation in the solar energy industry is built on a relentless commitment to innovation. By embracing the latest technology and data analysis tools, Chroma stays ahead of the curve, offering tailored solutions that meet the unique needs of each client.

From initial audits to system layouts, Chroma’s pre-construction teams leverage software that turns data into actionable insights. They’re not just about installing panels—they’re about creating systems that work seamlessly with existing infrastructure. Chroma also navigates the complexities of procurement, ensuring clients get the best products at competitive prices, despite industry challenges like tariffs and long lead times.

“We pride ourselves on procuring the best products at the best prices,” Jacob said. “A good ROI is six years, but we’re seeing returns as fast as two and a half years, depending on the project.”

Data-Driven Strategies for Maximizing ROI

Chroma’s success hinges on its meticulous approach to data. It all starts with a comprehensive energy audit, a crucial first step in understanding a client’s energy needs. This initial assessment informs everything that follows, from system design to financial modeling.

Using predictive analytics, Chroma incorporates weather data, historical energy usage, and modeling to forecast energy production with remarkable accuracy. This ensures the systems are not just effective but optimized for maximum performance.

Cost-benefit analysis and financial modeling break down every aspect of the project, from initial costs to long-term savings. By clearly outlining the expected ROI, Chroma helps businesses see the big picture—highlighting both financial and environmental benefits.

Real-World Success Stories

Chroma’s strategies aren’t just theoretical—they’re proven in the field.

One solar installation project Chroma provided a cost savings analysis on maximizing ROI through a combination of financial incentives and substantial energy cost savings. The project utilizes a 1,315,700 W-DC solar photovoltaic (PV) system, which is projected to generate 52.19% of the facility’s annual energy use. This solar solution comes with a total system cost of $2,631,400 but benefits from USDA grants and federal tax incentives reduce the net cost to $277,302. Specifically, the company leverages the federal Modified Accelerated Cost Recovery System (MACRS) bonus depreciation and the Investment Tax Credit (ITC), along with a USDA REAP grant, which cover a significant portion of the initial expense. The projected payback period is only 2.7 years, with an internal rate of return (IRR) of 20.6%, making the investment highly lucrative.

The solar installation significantly reduces the facility’s dependence on utility-provided energy, leading to lower demand charges and overall energy costs. Combined with the environmental benefits of reducing 28,664 tons of CO2 over 20 years, the project not only provides a strong financial return but also aligns with sustainability goals, further enhancing the company’s long-term value and market competitiveness.

Another customer’s solar project showcases how a large-scale 1.96 MW solar installation can significantly enhance ROI through a mix of financial incentives and energy cost savings. The project includes a solar installation that covers a substantial portion of the facility’s energy needs (40.02%). By utilizing the federal Investment Tax Credit (ITC), Modified Accelerated Cost Recovery System (MACRS) bonus depreciation, the project reduces the overall installation costs substantially, offering a strong financial foundation for future savings. The original system cost of $3,073,463 was brought down to $1,367,691 after applying the 30% tax credit and utilizing the accelerated depreciation. 

These financial benefits help lower the upfront capital investment while allowing the customer to quickly realize energy savings and achieve a short payback period.

In terms of operational efficiency, the solar installation is projected to deliver significant reductions in annual energy costs, providing a long-term buffer against rising utility rates. The customer can expect consistent savings on electricity bills over the lifespan of the system, contributing to a high internal rate of return (IRR) and net present value (NPV). 

By helping businesses reduce their carbon footprint, Chroma positions its customers as leaders in environmental stewardship. The long-term financial gains, combined with government incentives, make the investment even more appealing.

“Going solar isn’t just about saving money—it’s about making a positive impact,” Duncan said. “Our clients are not just enhancing their bottom line; they’re contributing to a greener future.”

Conclusion: The Chroma Advantage

Chroma’s commitment to data-driven solutions and tailored designs ensures maximum ROI for every client. For businesses looking to cut energy costs, meet sustainability goals, and lead in the sustainable energy movement, Chroma offers a clear path forward.

Ready to see how Chroma can transform your business with solar? Contact us today to learn more about our customized solar solutions.

As Chroma continues to push the boundaries of what’s possible in commercial solar, the future of energy efficiency—and your bottom line—looks brighter than ever.