What’s the ROI on Solar for Irish Commercial Properties?

For most Irish commercial properties, the return on investment (ROI) for solar PV systems is typically strong, with many businesses recouping their initial costs within 4 to 7 years and generating decades of ongoing savings thereafter. Commercial solar is one of the most compelling energy investments available to Irish companies in 2026, particularly for businesses with high daytime energy use.

This guide breaks down how ROI is calculated for commercial solar in Ireland, the factors that influence it, and ways to maximise long term financial return.

What Does ROI Really Mean for Commercial Solar?

ROI in solar refers to how much money a business saves or earns from its solar installation relative to what it costs. A strong ROI means that the solar system quickly pays for itself and then continues to generate savings and value over its lifetime, which is typically 25 to 30 years or more.

In the commercial context, ROI comes from three main sources:

• Electricity bill savings from self generated solar power
• Export income from surplus generation sold back to the grid
• Tax incentives and allowances that reduce net investment cost

Because businesses usually consume much of their electricity during daylight hours, solar can displace a large proportion of grid electricity at higher retail prices.

Typical Payback Periods for Irish Businesses

In Ireland, commercial solar installations often achieve payback within 4 to 7 years, meaning the cumulative savings and credits offset the upfront cost in that period.

Some examples include:

• A 25 kWp system could save a few thousand euro a year on electricity, depending on usage and self consumption.
• Systems of 50 kWp or larger typically achieve ROI faster because they generate more daytime energy and benefit from economies of scale.

Since solar panels can last well beyond a decade, most of the electricity generated after payback is effectively free energy for the business.

How Electricity Savings Drive ROI

Commercial solar systems generate electricity during business hours when energy demand and costs are highest. Every unit of electricity you generate and consume on site displaces a unit you would otherwise buy from an electricity supplier.

For example:

• If your business spends €10,000 yearly on grid electricity, and solar cuts this by 50% to 70%, that can mean €5,000 to €7,000 annually in direct cost savings.
• Over 20 years, this adds up to €100,000 to €140,000 in avoided electricity costs depending on system size and usage.

The more electricity you generate and consume on site, the quicker your system pays for itself.

Export Payments and Extra Income

Businesses that generate more electricity than they use can export surplus power back to the grid and receive export payments. Under current schemes like the Clean Export Guarantee, suppliers pay for exported renewable electricity. Revenue from exports adds to ROI, although the highest value in most cases comes from self consumption rather than export rates.

For a detailed look at how export payments work, see Solar Export Payments in Ireland: A Complete 2026 Guide to Earning from Excess Energy Generation.

Tax and Incentive Boosts to ROI

Irish commercial solar investments benefit from supportive financial frameworks such as:

• Accelerated Capital Allowances (ACA) that let businesses deduct the cost of solar equipment against taxable profits in the year of purchase
• Grant support under schemes like the Non-Domestic Microgeneration Scheme that can significantly reduce upfront costs

These incentives improve cash flow and strengthen ROI by lowering the net investment and increasing early year returns.

Factors That Influence Commercial Solar ROI

System Size and Scale

Larger systems often pay back faster in relative terms because they generate more energy and reduce the unit cost of generation.

Electricity Usage Profile

Businesses with high daytime energy consumption (offices, retail, workshops, factories) see greater displacement of grid electricity and therefore stronger ROI.

Electricity Prices

High or volatile grid electricity prices make solar savings more valuable. Solar effectively fixes a portion of your energy cost for decades.

Roof Suitability and Orientation

South facing roofs with minimal shading maximise solar generation. Complex roofs or shading may reduce output, but technologies such as solar optimisers can help mitigate this.

Financing Method

How you fund the system affects ROI. Paying cash up front yields higher long term return, while financing spreads costs over time but still typically delivers strong net value.

Long Term Value Beyond Financial ROI

Solar delivers more than just direct returns.

Stability and Energy Security

Solar protects against rising electricity costs and unpredictable market pricing.

Sustainability Credentials

A visible solar installation demonstrates environmental responsibility, which can support customer perception and business strategy.

Property Value

Solar installations can increase commercial property values by improving energy performance and lowering operating costs.

For insight into how solar panels affect property and appeal, see Solar for Landlords: Reduce Bills and Boost Property Appeal.

Real World ROI Examples

Here are typical estimates you might see in the Irish commercial context:

• Payback period: 4 to 7 years for most systems
• ROI over lifetime: 14% to 25% or more depending on grid pricing, savings, and incentives
• Savings potential: 40% to 70% reduction in grid electricity costs annually

With systems often generating energy for 25+ years, the years after payback contribute substantially to net financial gains.

Final Thoughts

Solar PV is one of the most strategic energy investments commercial property owners can make in Ireland. With predictable long term savings, tax incentives, export opportunities, and strong typical returns within a decade, solar delivers both financial and operational value that compounds over the lifespan of the system.

If you want to assess the ROI potential for your specific property, WattCharger can model energy usage, savings projections, and grant options to help you make an informed decision.