Grid Rates & IncomeRates: The solar produces kilowatt hours ( kWh ) so its value and cost saving is tied to the Grid rate per kwh (eg.30c/kwh) a company is paying. The higher this grid rate the higher the ROI. Incentives: Self-consumption of all the solar energy generated will not be 100% (eg: limited weekend use) so the amount and rate the grid pays for the surplus solar adds to the ROI. Also there are large incentives /subsidies which lead to reduction of the solar installation cost payable. Tax Depreciation adds further to the ROI post tax. | System DesignAn Energy Efficiency audit of a business current usage and facilities may lead to instal/upgrades such as lighting ( LEDs) plus review of energy bills will lead to possibly reduction in demand and right-sizing of the solar system size to improve ROI.
| FinancingHow the solar system is financed, be it self-financed by the business or leased or paid & owned by a third party selling the energy produced to the business impacts significantly the ROI. Alternatively a roof owner may lease the roof to a third party for a period to own the system and sell the solar energy back to the business or its tenants. |