Is Solar PV a Smart Investment? Let’s Talk ROI.

When most people think about solar PV, they think of it as a way to reduce energy bills or “go green.” And while both are true, the reality is - solar is also one of the smartest, most stable investments a business can make right now.

At Distrikt Energy, we’ve delivered systems across Scotland for commercial, industrial, and public sector clients who aren’t just thinking about the environment - they’re thinking about the bottom line.

So let’s break it down.

What’s the return on investment (ROI) for solar PV?

Most of the systems we design for commercial clients deliver an ROI in the range of 10–20% annually - and often higher when energy prices rise. That’s not a guess - it’s based on real-world system performance, energy consumption patterns, and today's panel efficiencies.

Depending on usage, a system can often pay for itself in 4–7 years, with panels continuing to generate free electricity for 20+ years after that.

How does that compare to other investments?

Investment Type	Typical Annual ROI	Risk Level	Volatility	Inflation Hedge
Solar PV	10–20%	Low (fixed asset)	None	✅ Yes
Commercial Property	5–10%	Medium	Moderate	✅ Yes
Stock Market (FTSE 100 avg)	7–9%	High	High	❌ Variable
Bonds	3–5%	Low/Medium	Low	❌ Limited
Cash in the bank	1–4%	Very Low	None	❌ No

Unlike financial investments, solar PV isn’t affected by market volatility. It doesn’t rely on tenant occupancy, interest rates, or stock prices. Instead, it’s tied directly to something every business needs: energy.

It’s not just about saving — it’s about earning

With a solar system installed, you're essentially buying 25 years’ worth of electricity up front at a massive discount. You’re locking in a fixed energy cost and protecting your business against future price hikes — which, let’s face it, are almost inevitable.

And in some cases, you can even export excess energy back to the grid for a small return - turning your building into a micro-generator.

Solar is also a tax-efficient investment

In many cases, solar PV qualifies for 100% tax relief in the year of installation under the Annual Investment Allowance (AIA) or full expensing rules. That means you could reduce your corporation tax bill while increasing your future cash flow. Win-win.

And if you don’t want the upfront cost?

No problem. We offer Power Purchase Agreements (PPAs), where we cover the cost of the system and you simply pay for the energy it produces - at a rate cheaper than your current supplier. You save money from day one, without spending a penny on the install.

The bottom line

If you’re sitting on capital and wondering where to put it, here’s why solar PV stacks up:

• ✅ Predictable, inflation-proof returns

• ✅ Proven performance and reliability

• ✅ Improves property value and EPC ratings

• ✅ Cuts operational costs for decades

• ✅ Visible ESG benefits that win business

  
  

No other investment gives you this combination of financial performance, energy security, and sustainability - all in one package.

Want to see what the ROI would look like for your site? We’ll build a detailed forecast based on your roof, your bills, and your usage - no sales fluff, just solid numbers.