The Solar Payback Myth
The Solar Payback Myth:
Why Commercial Solar Pays Off Faster Than You Think
You may be one of those business owners that hesitates to invest in solar energy, believing that the return on investment (ROI) takes too long to materialize. We feel that everyone should know that this perception is outdated. Just like the technology sector, advancements occur rapidly, and when combined with financial incentives/ tax credits, the payback period for commercial solar installations is significantly accelerated, especially in the Mid-Atlantic region.
Understanding Commercial Solar Return on Investment (ROI)
The ROI for commercial solar projects measures how quickly the initial investment is recouped through energy savings and incentives. Several factors influence this period:
In the Mid-Atlantic region, businesses are seeing impressive returns. For instance, in Pennsylvania, the average ROI for commercial solar installations is 14.45%, with an average payback period of just 8 years, with some being as low as 3 years. Some arrays are modeled, showing an IRR of 18%.
Real-World Success Stories
Our clients have already benefited from commercial solar installations:
Four Seasons Produce: This client uses a significant amount of power due to refrigeration requirements; they achieved a project payback period of around 4 years, significantly reducing reliance on grid power and enhancing energy security.
Commercial venue in Lititz: This client had us install a 2.7 MW system with an expected payback of 4 years. They have solar installed on many of their buildings on campus.
GSM Industrial: This client had us install a 869 KW system on their roof and will see a payback period of 5 years.
Factors Accelerating Payback Periods
Several elements contribute to the shortened payback periods for commercial solar projects:
Conclusion
The belief that commercial solar installations take decades to pay off is a myth. With current incentives, technological advancements, and real-world data, businesses in the Pennsylvania and Mid-Atlantic region are experiencing payback periods as short as 3 to 8 years. Solar energy investment offers a rapid ROI and contributes to environmental sustainability and energy independence.
At MVE Group, we specialize in designing and installing commercial solar solutions tailored to your business’s unique needs; this can be a rooftop, ground mount, or even a floating solar array. Contact us today to learn how we can help you achieve a faster payback and long-term energy savings.
