What is the typical payback period for a high quality commercial solar power system?
Synopsis
A typical payback period for a commercial solar system is relative to the price they are paying for power, the amount of power they are using, and the available roof space. On average, most commercial clients experience a return on investment between three and a half to five years. The long-term benefits of installing a solar system are immense, with savings continuing for the next 25 years.
The core reasons why businesses consider solar are to secure their energy future, save on energy bills, and gain environmental credentials. With energy prices consistently increasing, commercial solar systems provide businesses with the much-needed energy security. Installing solar is an easy decision for businesses that own roof space, as it saves them money while securing their energy future.
Video Transcript
So a typical payback for a commercial system is relative to the price that they're actually paying for power. Relative to the amount of power that they're using and relative to the amount of solar that we can fit on their roof. But as a typical measure I'd say most commercial clients fall in between three and a half and five years. This is the normal return on investment for a system. So the longterm benefits after that return on investment period just keeps on chugging around for the next 25 years. They keep on saving money and it keeps on doing its business.
So I think the core reasons most businesses consider solar in the first place is because they're worried about their energy security. So with a commercial solar system, you absolutely get that energy security. The second concern would be they want to save money and they absolutely do that. The third factor is that the business gets those environmental credentials that a lot of businesses like to present to their customer base. So for commercial clients, I think the reason they go for solar is it's all about saving on your energy bills and securing your energy future. In this day and age, when the you know, the energy prices are always on the up and I think this really secures that.
Start to finish these 210 kilowatt job will probably be on site for maybe three weeks depending on weather. But this particular site's going to save $80,000 in the first year off its bills. And over the 25 year life of the system, it's going to be $1.6 million. I think that energy saving is a real cost for businesses these days. So if they can save anywhere, then you know, solar is a pretty easy, low cost investment. I think installing solar is really an easy decision for a lot of commercial businesses. If you own the roof space, you are going to save money. It's as simple as that.
