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How do I calculate the profitability of solar panels?


07/04/2022

The profitability of a photovoltaic installation refers to the time it will take you to recover the investment and the benefits it will give you until the end of its useful life, which is usually about 25 years.


 
The two main factors for calculating profitability are: the price of the installation and the annual energy savings.
 
Installation price / Annual savings = Depreciation
For example:
€ 100,000 / € 20,000 / year = 5 years
 
With current light prices, up to 2.5 years of ROI can be achieved.
 
(Annual savings x Years warranty) - Installation price = Net profit
For example:
(€ 20,000 / year x 25 years) - € 100,000 = € 400,000

The biggest difficulty in this calculation is the estimation of the annual savings, as it depends a lot on the consumption of each user, the evolution of the price of light or the production capacity of solar panels. This obviously depends on the design of the plant. Factors such as the irradiation of the site, the works, the orientation, the quality of the materials, among others, must be taken into account.
 
When choosing a supplier or installer, it is usually chosen who offers the cheapest price of the installation, but, as we have seen, the profitability also depends on the annual savings.
 
At this point, it is important to note that the more plates there are not necessarily more profit as factors such as the selling price of surpluses that are usually lower than the purchase must be taken into account. Or so it has been. The rules of the game can change over time and the market has changed so much that we have seen in recent years.

If you want your own study, call us: +34 93 252 84 53.


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