ROI of Commercial Solar & Battery: Costs, Savings & Payback Time
Investing in solar power and battery storage for your business can significantly reduce energy costs, improve sustainability, and provide long-term financial benefits. However, before making the switch, business owners often ask: What’s the return on investment (ROI) for a commercial solar or battery system?
The ROI of a commercial solar or battery system depends on factors such as installation costs, energy savings, government incentives, and long-term financial benefits. In this guide, we’ll break down how to calculate your ROI, the key factors that influence it, and how Jousto can help you maximise your returns.
What Is ROI in Commercial Solar and Battery Systems?
ROI (Return on Investment) is the time it takes for the savings generated by your solar or battery system to cover the initial installation cost. It is typically expressed as:
Payback period (years) – The time required for the system to pay for itself through savings.
Annual return percentage – The percentage of return compared to the initial investment.
For most businesses, the payback period for solar is between 3 to 7 years, while battery storage has a longer payback period of 7 to 10 years. However, financial benefits continue long after the system has paid for itself.
Factors That Influence ROI for Commercial Solar and Battery Systems
1. Business Energy Consumption
The more energy your business consumes, the higher your potential savings. Businesses that operate during the day benefit the most from solar because they can use the power as it is generated.
High daytime energy users (best for solar): Retail stores, offices, manufacturing plants, warehouses.
Businesses with night-time usage (best for solar + battery): Restaurants, hotels, medical facilities, data centres.
2. Electricity Rates and Savings
Australian businesses pay some of the highest electricity rates in the world. Solar power allows businesses to reduce reliance on the grid and lock in lower energy costs for 20+ years.
Typical commercial electricity rates: $0.20 – $0.40 per kWh
Solar-generated electricity: $0.05 – $0.10 per kWh
Savings potential: Up to 75% lower energy costs
With a battery system, businesses can store excess solar energy and use it during peak demand times, further reducing costs.
3. Government Incentives & Tax Benefits
The Australian government offers various incentives to reduce the cost of commercial solar and battery installations. These include:
Small-Scale Technology Certificates (STCs) – For businesses installing systems under 100kW, providing an upfront discount.
Large-Scale Generation Certificates (LGCs) – For systems over 100kW, offering ongoing revenue for energy production.
Instant Asset Write-Off – Businesses can claim tax deductions for solar and battery systems under certain schemes.
These incentives significantly reduce upfront costs and improve the ROI of solar and battery investments.
4. Solar Feed-In Tariffs (FiTs)
If your business produces excess solar energy, you may be able to sell it back to the grid through feed-in tariffs (FiTs). However, FiTs are usually lower than retail electricity prices, so storing energy in a battery may be a better option for businesses that need power at night.
Typical feed-in tariffs: $0.05 – $0.12 per kWh
Grid electricity cost: $0.25 – $0.40 per kWh
This means using solar power directly or storing it in a battery is more cost-effective than selling it back to the grid.
5. Installation Costs
The upfront cost of commercial solar and battery systems depends on the size and complexity of the installation.
Average Costs in Australia:
With government rebates, businesses can reduce these costs by 20–40%, significantly improving ROI.
6. Payback Period for Solar vs. Battery Storage
Solar Payback Period: 3 – 7 years
Battery Payback Period: 7 – 10 years
While solar panels provide a faster return, batteries add long-term energy security and savings by avoiding peak electricity rates.
Real-World Example: ROI Calculation for a 50kW Solar System
Let’s look at an example of a 50kW commercial solar system for a business in Australia:
System Cost (after incentives): $45,000
Annual Electricity Savings: $12,000
Feed-In Tariff Revenue: $1,500
Total Annual Savings: $13,500
ROI Calculation:
Payback period = $45,000 ÷ $13,500 = 3.3 years
Annual Return = ($13,500 ÷ $45,000) × 100 = 30%
This means the business recovers its investment in just over 3 years and enjoys free solar energy for the remaining 20+ years.
Should Your Business Invest in Solar, Battery Storage, or Both?
Solar Only: Best for Businesses That
✔ Operate mainly during the day
✔ Want fast ROI (3–7 years)
✔ Have high electricity bills
✔ Have available roof space for solar panels
Solar + Battery: Best for Businesses That
✔ Operate day and night
✔ Want to avoid peak electricity costs
✔ Need backup power to prevent disruptions
✔ Have excess solar energy going to waste
How Jousto Can Help Maximise Your ROI
Jousto specialises in helping businesses analyse, install, and optimise solar and battery solutions for maximum ROI.
Jousto’s Services Include:
✅ Energy Audits – Assess your business’s energy needs and savings potential
✅ Customised Solar & Battery Solutions – Tailored systems based on your energy profile
✅ Government Incentive Guidance – Assistance in claiming STCs, LGCs, and tax benefits
✅ Expert Installation & Maintenance – Ensuring your system operates at peak efficiency
✅ Ongoing Monitoring & Optimisation – Maximising your long-term energy savings
Final Thoughts
A commercial solar or battery system is a smart investment that delivers significant cost savings, energy independence, and sustainability benefits. While solar provides faster payback, adding a battery offers greater control and long-term energy security.
With government incentives, rising electricity prices, and improving solar technology, there has never been a better time to invest in commercial solar and battery storage.
🔹 Want to know your business’s ROI potential? Contact Jousto today for a professional energy assessment and tailored solar or battery solution.
