What is the payback period of commercial solar PV?

As with domestic solar, there are several reasons a business may choose to install commercial solar PV. One is sustainability concerns, another is to try to improve your public image, but the potential financial benefits will always be a high priority. This includes the payback period, or how long it will take to return the cost of your original investment.

Why is solar financially beneficial?

Solar panel installation Weston, such as that available from //redbridgeandsons.co.uk/solar-pv-panels/solar-panel-installation-weston, can reduce your energy bills by providing an in-house source of electricity rather than relying on the National Grid. In the case of commercial solar in particular, this means you may be able to gain a competitive advantage over rivals. For most businesses, a solar installation will allow you to break even on your original investment within three to five years.

Factors Affecting the Payback Period

Current Energy Consumption

If you want to assess your payback period accurately, you will first need to analyse the amount of energy you currently consume and how much it costs you. If you can adopt other techniques to improve energy efficiency as well as solar, you may reduce your payback period by requiring a smaller solar PV system.

Energy Generated

The type and size of solar PV system you use will affect how much energy you are actually able to generate, as well as the amount of sunlight you receive. Maximising the capacity to produce solar-powered electricity will lower the duration of the payback period.

Installation Costs

Higher installation costs mean it will take more time to pay back the money you spend on your new solar PV system, but there may be grants and other support to reduce what you need to spend. Modern solar does not have to be expensive, although a commercial property may have more requirements than a domestic home.

It is the combination of your current consumption and expenditure, your likely installation costs and the amount of energy you will be able to generate that will decide the payback period of your new solar PV system.