How TerraSol Built a Net Zero Solar Installation for Phoenix Contact
TerraSol Energies designed and built a net zero solar installation for Phoenix Contact's new warehouse in Middletown, Pennsylvania, and the project shows what a 1 MW solar power system can do for a business that wants to cut its energy costs and its carbon footprint.
TL;DR
TerraSol helped Phoenix Contact go Net Zero. A 1 MW solar system that powers the equivalent of ~160 homes a year and cuts almost 2 million pounds of CO2 annually, all while keeping the building's existing natural gas system running smoothly alongside it.
Why Phoenix Contact Wanted a Net Zero Solar Installation
In 2017, Germany-based electronics manufacturer Phoenix Contact began planning for a brand new North American warehouse. The new building would be located at Phoenix Contact’s American headquarters in Middletown, PA.
An international leader in the electronics industry, Phoenix Contact develops innovative industrial automation, interconnection, and interface solutions.
Sustainability is a core value of the company; environmental responsibility and empowering the All Electric Society are prominently featured in Phoenix Contact’s mission statement.
One primary goal of the new warehouse (aka the LCA Building) was to reflect that mission, specifically by achieving Net Zero certification, which indicates that 100% of its energy needs are supplied by on-site renewable energy.
As Phoenix Contact is a renowned electronics manufacturer, they also wanted to take the opportunity to showcase their own components’ power by putting them to work in the solar system.
To realize the vision, Phoenix Contact enlisted TerraSol’s help in designing and constructing the project.
A net zero building produces as much energy as it consumes annually, using on-site renewable energy production instead of pulling all its power from the grid. Phoenix Contact also wanted to install its own building management and monitoring equipment as part of the system, putting its own products to work.
Phoenix Contact brought in TerraSol Energies to design and install the solar electric system that would make that goal possible.
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Designing Solar Power Around an Existing Energy System - Project Overview and Challenges
The LCA warehouse, as planned, would contain 70,000 square feet and 1MW of solar power. It was clear the project would be complex, but if done well, the benefits would far outweigh the difficulties.
TerraSol’s team began working closely with the Phoenix Contact engineering team in 2017.
The first major design consideration was the facility’s on-site co-generation; they generate their own power using natural gas via an on-site power plant. The solar system would have to work alongside the existing natural gas system.
This kind of integration is common in creating an energy-efficient commercial building, where solar has to be sized and timed around a facility's existing equipment, not bolted on as an afterthought.
The Solution
The SolutionThe solution? A cleverly designed system that would produce solar energy and cut back on the gas while the sun was up, then run on natural gas at night, resulting in maximum efficiency 24/7.
The next challenge, however, would be less solvable through good design and teamwork: COVID-19 delays.
The pandemic began just as installation was ready to begin, and construction was put on hold.
Undeterred, the engineering teams used the extra time to double, triple, and quadruple check their designs, tweaking for any panels or components that had improved since the initial plans and ensuring a fully optimized design.
In the meantime, Phoenix Contact was also awarded grants from the Pennsylvania Energy Development Authority (PEDA) and Pennsylvania Power and Light (PPL) specifically for clean energy projects that had been paused as a result of COVID.
One Small Step for Phoenix
Construction was able to begin in earnest in May 2021, and the 1MW photovoltaic solar system was officially completed in spring of 2022.
It uses 2,185 panels, produces 1,241,235 kWh/yr, and saves roughly 1,939,279 lbs/yr in CO2 emissions.
The lengthier process was well worth it, with the project providing the intended benefits and then some:
- Achieved Net Zero certification
- On days with only solar running, natural gas consumption is also reduced to almost zero
- The system generates enough power to meet the energy needs of apx. 160 homes/year
- Earned LEED Silver certification for leaders in sustainable green design
Finally, Phoenix’s proprietary building management system and monitoring components were integrated into the system, resulting in an impressive showcase for their clients.
The entire project was a clear demonstration that Phoenix will continue to push the boundaries of cutting-edge renewal technology.
Jack Nehlig, President of Phoenix Contact USA, confirmed: “Sustainability and renewable power generation are at the heart of Phoenix Contact’s vision for an all-electric society. This is one critical step on our journey to becoming a carbon-neutral company by 2030.”
Read the full case study about the Phoenix Contact project here.
What This Means for Other Businesses Considering Solar
Phoenix Contact's project is a large-scale example, but the same principles apply to smaller commercial buildings. TerraSol's portfolio of commercial solar projects includes retail, educational, and industrial buildings of all sizes, and the company has built a reputation as a top commercial solar installer in the PECO region.
Car dealerships are one example. TerraSol's solar project for Group 1 Automotive and other auto dealership solar installations shows how businesses outside heavy industry use solar power systems to generate electricity, reduce reliance on the grid, and lower energy costs over time.
Talk to our team at (888) 873-9995 for eligibility.
How To Bring a Net Zero Solar Installation to Your Building
Phoenix Contact's 1 MW system shows what's possible when a solar contractor designs around a building's actual energy use instead of a generic template.
TerraSol Energies offers free site evaluations for businesses and homeowners exploring solar, and the company's commitment to reliable service shows in projects that customers depend on for the long haul.
From solar auto dealerships to manufacturing campuses to individual homes looking to go green, TerraSol works with each customer to build one system suited to their property and their budget.
For a business or homeowner weighing the options, the Phoenix Contact project is proof that a net zero solar installation can work even on a large, complex commercial building. The same design process applies at any scale.
Frequently Asked Questions
What does "net zero" mean for a solar installation?
A net zero solar system is sized so that the energy it produces over a year roughly equals, or exceeds, the building's total energy use. The same logic applies to net zero homes. A zero energy home pairs solar panels with efficient appliances and building design to minimize energy use, then meets the rest of its demand with solar electricity.
Are federal tax credits still available for commercial solar in 2026?
Yes, but the rules changed. The federal residential tax credit expired at the end of 2025. The commercial Investment Tax Credit, covered under Section 48E of the tax code, still offers a 30% credit for solar systems like Phoenix Contact's, but a project generally needs to begin construction by July 4, 2026, or be placed in service by December 31, 2027, to qualify. Businesses considering a system should confirm current eligibility with a tax professional and their solar contractor.
Do any states still offer their own solar incentives?
Yes, and they vary by state. Washington, for example, exempts qualifying solar equipment from state sales tax through 2029. Incentives like this can reduce solar system costs for builders or buyers, even where federal tax credits have changed.
Can homeowners still afford solar without the federal tax credit?
Initial costs for solar systems can be offset by financing options, and leasing a solar system can be a low-cost option for buyers who want to avoid the upfront cost of equipment. A home solar project that's structured around battery storage and energy independence can still make financial sense, especially as utility rates rise.
How does a solar installer determine what size system a building needs?
A professional energy audit identifies inefficiencies in a home or business before any panels go on the roof. Energy usage analysis determines the size of the solar system needed, since installing more panels than a building actually uses is a poor use of money. Reducing energy demand first — through better insulation, cutting appliance energy use, or other ways to use less electricity — prevents over-investment in solar panels later.
Does HVAC affect how much solar a building needs?
Yes. HVAC systems can account for up to 50% of a building's energy use, which is why heat pumps are often paired with solar in net zero homes. They reduce the heating and cooling load the solar system has to cover.
What is net metering?
Net metering allows homeowners and businesses to receive credits for excess energy their solar system sends back to the grid, rather than losing that production.
