Understanding Commercial Solar ROI: What to Expect

With energy prices on the rise and sustainability targets becoming more urgent, many businesses are turning to solar power. But for commercial organisations, the decision to go solar often comes down to one key question: what’s the return on investment (ROI)?

Understanding your ROI is crucial before committing to a solar installation. It ensures you can weigh the upfront cost against the long-term financial and environmental benefits. In this blog post, we break down the key factors that influence solar ROI for commercial premises and what you can expect from your investment.

What Is Solar ROI?

Solar ROI is a financial measure that compares the cost of a solar installation against the savings it generates over time. It includes direct energy bill savings, potential earnings from excess energy exported to the grid, and long-term protection from rising utility costs.

Typical ROI components:

• Energy bill reductions
• Government incentives (e.g., Smart Export Guarantee)
• Increased energy independence
• Reduced carbon footprint and improved ESG credentials
• Payback period (years it takes to “break even”)

Key Metrics That Influence ROI

1. System Size & Energy Usage

The size of your solar array will depend on your site’s energy demand. Larger systems offer more savings but also require more capital investment. The more energy your business uses during daylight hours, the faster your ROI.

Example:
A system like the one installed at York Racecourse (68.04 kWp) produces over 40.88 MWh annually, resulting in £184,970 lifetime savings and a payback period of 7 years.

2. Installation Costs

Installation costs vary depending on the size, roof type, technology used, and whether battery storage is included. Although it’s an upfront cost, this is offset by:

• Long system lifespan (25+ years)
• Warranties and low maintenance

3. Energy Prices

With the UK energy price cap frequently changing, solar offers protection from unpredictable future hikes. The higher the unit cost of electricity, the greater the financial benefit of generating your own.

4. Self-Consumption Rate

The more of your generated solar energy you use on-site, the higher your savings. Businesses that operate during the day — such as golf clubs, leisure centres, schools, and manufacturing sites — typically see stronger ROI.

Example:
At Harewood Downs Golf Club, a 45-panel system delivers £119,165 in lifetime savings while also avoiding 4 tons of CO₂ emissions per year.

5. Export Earnings

If your system generates more electricity than you use, you can export it to the grid and earn through the Smart Export Guarantee (SEG). While rates vary, this income adds to your overall ROI.

6. Battery Storage

Adding battery storage increases upfront cost, but improves ROI by allowing you to store and use solar power when the sun isn’t shining — reducing grid reliance even further.

What’s a Typical Payback Period?

Most commercial solar projects in the UK see a payback period between 5 to 8 years, depending on the system size, energy usage patterns, and available incentives.

After this point, all the energy savings and export income are pure profit — and with systems lasting 25+ years, that’s a lot of free electricity.

Beyond the Numbers: Environmental ROI

While financial savings are key, don’t overlook the environmental return:

• Reduced carbon emissions
• Support for your net-zero strategy
• Improved CSR and ESG performance
• Greater brand appeal for eco-conscious customers and investors

Sowerby Bridge Cricket Club, for example, saves 1 ton of CO₂ per year, the equivalent of planting 260 trees over the system’s lifetime.

Use Our ROI Calculator

Want to find out what solar could save your business? Use our ROI Calculator to get a quick estimate based on your current energy usage and site size. It’s a great first step in exploring your solar potential.

✅ Ready to See Results Like These?

At Novus Energy, we’ve worked with a wide range of businesses across sectors — from schools to sporting venues — delivering real savings and real impact.

We handle everything from design and installation to aftercare and performance monitoring, ensuring your system delivers the best possible return.

Get in touch today to book a free consultation and start your journey to cleaner, cheaper energy.