Investing in commercial solar power is more than just an environmentally responsible decision; it’s a strategic move that can generate substantial financial returns for your business. But how exactly do you calculate the return on investment (ROI) for such a venture? Let’s dive into the world of commercial solar ROI and unveil the economic benefits it holds for your business.

Understanding Solar ROI:

The ROI of your commercial solar system depends on several variables including your system’s size, the cost of installation, the rate of electricity consumption, and the rate at which you are charged for that consumption. It’s calculated by considering the total savings on electricity bills over the lifetime of the system against the initial investment cost.

  1. Initial Investment:

This encompasses the cost of the solar panels, inverters, mounting equipment, and the cost of installation. A reliable solar provider like Target Solar provides a detailed quotation to help businesses understand their upfront costs.

  1. Operating Expenses:

While solar systems require minimal maintenance, occasional expenses such as inverter replacement and system checks should be factored into the ROI calculation.

  1. Energy Savings:

The immediate financial benefit of a solar power system lies in the reduction of your energy bills. By generating your own power, you decrease your reliance on the grid, leading to significant cost savings.

  1. Incentives and Rebates:

Several states offer attractive rebates and incentives for businesses going solar. For instance, the $3,700 homeowner rebate in Victoria and Queensland can greatly reduce the initial cost of installation.

  1. Feed-In Tariffs:

If your solar system generates more power than you consume, the excess can be fed back into the grid. Many electricity retailers offer feed-in tariffs for this excess electricity, providing another avenue for savings.

Calculating ROI:

To calculate the ROI of your commercial solar system, divide the total savings (including energy savings, feed-in tariff income, and rebates) by the total investment cost, and then multiply by 100 to get a percentage.


Understanding the ROI of your commercial solar investment is crucial in making an informed decision. With the right solar solution, businesses can enjoy significant savings, a reduced carbon footprint, and an impressive return on investment.

Call to Action:

Ready to explore the ROI of commercial solar for your business? Contact us at Target Solar. With over 500 successful projects and 150+ glowing Google reviews, we’re your trusted partner for all your commercial solar needs. Get your free quote today, call us at 1300 776 527!