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Neither rooftop nor ground-mounted solar is automatically the better factory investment. Rooftop arrays use building space that might otherwise have no productive use, while ground-mounted arrays can be larger when roof area, roof loading or roof geometry is limiting. The right choice depends on usable area, structural and civil-work requirements, target capacity, expected generation, interconnection and a genuinely comparable cost proposal.
Published figures can establish useful boundaries, but they cannot price your factory without a location, site plan, roof assessment, electrical design and utility assumptions. The U.S. benchmarks below therefore separate current reference data from historical modeled comparisons and identify what a site-specific study must verify.
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The decision in one sentence
Choose rooftop solar when the roof has enough sound, accessible and usable area for the capacity you need and the avoided land use is valuable. Choose ground-mount when the roof cannot safely or economically host the array, when a separate parcel permits a materially larger system, or when ground access makes construction and maintenance more practical. A hybrid system can be sensible when each surface solves a different constraint.
The National Laboratory of the Rockies’ 2025 Annual Technology Baseline (ATB) puts the issue plainly: “Costs within any given year and for any given project can vary based on site-specific or larger market factors.” It also says that “Currently, CAPEX—not levelized cost of energy (LCOE)—is the most common metric for PV costs.” Those cautions matter because a dollar-per-watt figure without matching scope, date, capacity basis and financing assumptions can produce a misleading answer.
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What the published cost figures actually say
The strongest current reference in the supplied material is the 2025 ATB’s U.S. commercial-PV benchmark. It reports representative commercial system prices of $1.85 per watt DC for 2023 and $1.66 per watt DC for 2024. These are bottom-up benchmark and market-adjusted figures, not bids for a particular factory and not separate rooftop and ground-mount quotations. The ATB notes that its base-year estimates omit regional impacts, so local labor, permitting, equipment, terrain and interconnection can move a project substantially.
| Figure | What it represents | How to use it |
|---|---|---|
| $1.85/W DC (2023) | Commercial PV system-price benchmark in the 2025 ATB | Historical reference for U.S. commercial PV; not a factory quote or a rooftop-versus-ground split |
| $1.66/W DC (2024) | Commercial PV system-price benchmark in the 2025 ATB | More recent reference value; still not site-specific and excludes regional impacts in the base-year estimate |
| $1.56/W DC rooftop (Q1 2021) | NLR/NREL modeled commercial-rooftop benchmark | Dated modeled evidence only; do not treat as a current offer |
| $1.64/W DC ground-mount (Q1 2021) | NLR/NREL modeled commercial-ground-mount benchmark | Dated modeled evidence only; do not treat as a current offer |
The 2021 pair is useful for understanding the direction of an older model, not for forecasting a 2026 project. Inflation, module and inverter pricing, labor markets, system size, roof condition, civil work and the definition of included costs all change the result. NLR’s cost-analysis program now uses its PV System Cost Benchmark framework for benchmarks beginning in 2023; since 2024 it has been a Department of Energy-led joint laboratory effort with Sandia National Laboratories and Lawrence Berkeley National Laboratory.
Another accounting trap is capacity basis. Commercial PV prices are commonly quoted in DC watts, while the ATB notes that total capital expenditure includes inverter costs measured in AC capacity. A proposal that mixes DC system size with AC inverter capacity, or that includes balance-of-system work in one option but not the other, is not an apples-to-apples comparison.
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Rooftop cost components
A rooftop proposal usually includes modules, inverters, wiring, racking or attachment hardware, engineering, construction labor, commissioning and interconnection. The building adds its own due-diligence items: roof-load analysis, attachment or ballast design, membrane protection, access paths, fall protection, fire setbacks and coordination with roof warranties. A roof that needs replacement soon can turn an apparently inexpensive solar project into a combined reroofing and PV project.
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Ground-mount cost components
Ground systems add site preparation, grading where needed, foundations or driven piles, racking, trenching, roads or crane access, drainage, fencing and vegetation management. In historical NREL commercial modeling, pile-driven ground-mount structures carried higher material, equipment and labor costs than the modeled rooftop alternatives. The same modeling described economies of scale that reduce the difference as system size increases. Soil refusal, rock, contaminated ground, wetlands, flood risk or a long underground route to the factory can erase that scale advantage.
Why size changes the comparison
NREL’s historical commercial modeling found rooftop applications had lower modeled costs at several smaller system sizes. The gap narrowed as systems grew, and ground-mount became more competitive at larger sizes. That is a modeled relationship, not a universal rule: a small roof with expensive reinforcement can cost more than a simple ground array, while a large parcel with difficult grading can reverse the result. Ask every bidder to price the same DC capacity, AC capacity, equipment scope, site work, interconnection boundary and contingency.
Space: usable roof area is not the same as roof area
What limits a rooftop array
Measure the area that can actually host modules, not the building’s gross footprint. Exclude skylights, smoke vents, HVAC equipment, roof drains, parapets, expansion joints, access corridors, fire lanes and required setbacks. Module orientation, row spacing, shading from taller roof equipment and safe maintenance access further reduce the net area. A roof plan should identify these exclusions before anyone converts square footage into a target capacity.
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There is no reliable universal factory conversion from roof square footage to kilowatts. Module efficiency, module dimensions, tilt, row spacing, shading, code setbacks and inverter design all affect the result. A credible layout should show module count, DC capacity, azimuth and tilt, row spacing, clearances and the area reserved for operations.
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What limits a ground array
Ground-mount uses a separate parcel or open portion of the industrial site. The developable area must account for row-to-row shading, access roads, equipment pads, drainage, setbacks from property lines and buildings, stormwater controls, easements, fire access, security fencing and future expansion. Steeper slopes can require grading or specialized racking. Agricultural, environmental, floodplain or zoning restrictions may make a seemingly empty field unavailable.
Land opportunity cost belongs in the comparison. A ground array may occupy space needed for truck staging, employee parking, warehousing, expansion or stormwater infrastructure. Conversely, a roof may be operationally valuable if future equipment, rooftop cooling units or maintenance work need the same space. Put the alternative use of each surface on the site plan and assign a documented cost or business constraint rather than treating land as free.
Structural and civil feasibility checks
Roof investigation
- Obtain structural drawings and an engineer’s assessment of dead load, wind uplift, snow load and seismic requirements for the proposed mounting system.
- Document roof age, membrane type, warranty terms, leaks, repairs and the expected replacement date.
- Check whether the building can support concentrated attachment loads or whether ballast would create unacceptable weight.
- Preserve access to drains, HVAC units, smoke-control equipment, roof hatches and fire paths.
- Coordinate shutdowns, crane lifts, hot work, fall protection and production safety with factory operations.
Ground and site investigation
- Review geotechnical information for soil bearing capacity, rock, groundwater, corrosive conditions and pile drivability.
- Map grading, drainage, flood exposure, erosion controls and stormwater obligations.
- Confirm construction access for drilling rigs, cranes, delivery vehicles and maintenance equipment.
- Locate underground utilities, process lines, easements and areas reserved for future expansion.
- Define fencing, security, vegetation control, snow removal where relevant and emergency access.
Neither configuration eliminates engineering. Rooftop shifts the difficult questions toward the building and roof; ground-mount shifts them toward soil, drainage, land use and civil construction.
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Annual generation is a design and location result, not a mounting-type constant. The 2025 ATB identifies solar profile, technology, shading, downtime and inverter losses as capacity-factor influences. A ground array may allow a favorable orientation, wider row spacing and easier cleaning, but it can lose output to terrain, horizon shading or vegetation. A roof may have excellent southern exposure or may be divided by parapets and equipment that create persistent shade.
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Require both designs to use the same weather dataset, module and inverter assumptions, degradation rate, availability, clipping rules and loss schedule. The production model should report annual kilowatt-hours, monthly output, clipping, soiling, shading and downtime separately. If factory load is highly seasonal or operates overnight, compare the hourly production profile with consumption rather than relying only on annual energy.
Do not infer a payback period from a benchmark price. Payback also depends on tariff structure, demand charges, export compensation, incentives, taxes, financing cost, curtailment and maintenance. The ATB warns that LCOE comparisons become confusing when incentives, location, production and cost of capital differ.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to make an apples-to-apples proposal comparison
Issue one technical basis of design and require each bidder to complete the same schedule. At minimum, request the following fields:
| Comparison field | Rooftop proposal | Ground-mount proposal |
|---|---|---|
| System size | DC kW and AC inverter kW | DC kW and AC inverter kW |
| Usable area | Net roof area after equipment, access and fire exclusions | Net developable land after roads, drainage, setbacks and easements |
| Annual production | Modeled kWh with a full loss schedule | Modeled kWh with the same loss schedule |
| Included construction | Roof repairs, attachments or ballast, safety systems and access | Geotechnical work, foundations, grading, roads, drainage, fencing and trenching |
| Electrical scope | Service upgrades, switchgear, transformer and interconnection | The same electrical boundary and interconnection assumptions |
| Commercial terms | Price date, escalation, contingency, taxes and financing assumptions | The same price date, escalation, contingency, taxes and financing assumptions |
Ask for exclusions in writing. A low quote that omits roof replacement, pile refusal, stormwater work, utility upgrades or production shutdowns is not lower-cost; it is incomplete.
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A step-by-step factory decision process
- Define the objective. Set the target: maximum on-site generation, a renewable-energy percentage, demand-charge reduction, resilience, a fixed budget or preservation of expansion land.
- Collect site documents. Assemble roof drawings, roof reports, structural information, utility bills, interval load data, property surveys, easements and expansion plans.
- Map both surfaces. Produce a roof obstruction plan and a ground developability plan. Mark access, fire routes, drainage, utilities and future construction zones.
- Screen structural and geotechnical risks. Commission a roof engineer and, for ground options, obtain appropriate geotechnical and civil information before fixing a capacity.
- Choose a common design basis. Specify module class, inverter architecture, DC/AC ratio, orientation, tilt, degradation, loss assumptions, monitoring and safety requirements.
- Model production. Run both layouts with the same weather data and report annual and monthly output, shading, clipping, downtime and availability.
- Request comparable EPC pricing. Require line-item costs for equipment, labor, mounting, structural or civil work, electrical work, interconnection, permitting, commissioning and contingency.
- Value operational impacts. Price roof access, maintenance interruptions, land opportunity cost, vegetation control, security, insurance and any production shutdowns.
- Check approvals and utility constraints. Confirm building, fire, planning, environmental and interconnection requirements for the actual jurisdiction; these were not supplied for a specific factory and cannot be assumed from a national benchmark.
- Evaluate finance using consistent assumptions. Compare CAPEX first, then incentives, tax treatment, energy value, demand savings, export revenue and cost of capital under the same scenario set.
- Stress-test the preferred design. Reprice roof replacement, higher-than-expected civil work, delayed interconnection, lower production and a changed electricity tariff.
- Approve only after a constructability review. Confirm the final layout, outage plan, warranty interfaces, operations responsibility and schedule with facilities, safety, production and finance teams.
Typical decision scenarios
Small system on a broad, sound roof
If the factory needs a modest array, the roof is in good condition and there are few obstructions, rooftop may avoid land acquisition and civil work. Historical NREL modeling found rooftop systems lower-cost at several smaller sizes, but that result still needs to be tested against the building’s actual loading and roof-repair needs.
Large energy target with limited roof area
When the desired capacity exceeds the roof’s usable area, a ground array can provide room for expansion and simpler row layouts. Its economics depend on whether the parcel is genuinely developable and whether foundations, grading, drainage, access and interconnection add substantial cost.
Roof nearing replacement
A roof replacement can be the controlling schedule and cost issue. Compare a reroof-plus-solar project, a solar installation after reroofing, and a ground option. Include warranty responsibilities and the cost of removing and reinstalling modules if future roof work is likely.
Mixed constraints
A split design can place a base system on the roof and add ground capacity where land is available. This can reduce the pressure on either surface, but it creates multiple mounting, maintenance and electrical scopes. Evaluate the combined design with one production model and one interconnection study rather than assuming the two arrays operate as independent projects.
Common mistakes and how to correct them
- Using a national benchmark as a bid: Label every figure by year, geography, DC or AC basis and scope. Replace it with site-specific proposals before approval.
- Comparing different system sizes: Request rooftop and ground designs at the same capacity, then separately compare the maximum feasible capacity of each surface.
- Counting gross roof or parcel area: Deduct obstructions, access, setbacks, drainage, roads and future-use reservations in a documented layout.
- Ignoring the roof lifecycle: Obtain a condition report and price replacement or reinforcement explicitly.
- Leaving civil work out of ground pricing: Require geotechnical, grading, drainage, roads, fencing and vegetation assumptions in the EPC scope.
- Comparing DC dollars per watt with AC output: Show DC module capacity, AC inverter capacity and the conversion assumptions in every proposal.
- Relying on annual kilowatt-hours alone: Match hourly generation with factory load, demand charges, storage plans and export limits.
- Assuming approvals are identical: Verify local building, fire, planning, environmental, utility and interconnection rules for the actual site.
- Choosing the cheapest incomplete quote: Normalize exclusions, contingencies, escalation, taxes, outage costs and owner-supplied work before ranking bids.
What a defensible recommendation should contain
A final recommendation should identify the selected configuration, feasible DC and AC capacity, usable roof or land area, modeled annual and monthly production, major losses, structural or geotechnical findings, interconnection path, complete CAPEX scope, operating responsibilities and the assumptions that could change the result. It should also state why the rejected option failed: insufficient usable area, unacceptable roof loading, excessive civil cost, loss of expansion land, lower production or an approval constraint.
Because no factory location, roof drawings, roof age, load capacity, parcel dimensions, target capacity, tariff, interconnection study or financing terms are available here, a universal price, land requirement, payback or winner would be false precision. Use the published figures as dated context, then make the decision from matched site studies and proposals.
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