How to Calculate the Profitability of a Solar Installation in 2025

One of the first questions people ask when considering solar is: Is it really worth it? At RenovaEnergy, we help you calculate the profitability of your solar system so you can make an informed decision, backed by real data based on your energy habits.

What factors affect profitability?

Solar profitability varies depending on key variables such as:

• Annual electricity consumption
• Electricity price and the tariff you’re on
• Estimated solar output based on your location, roof size, and system orientation
• Total cost of the installation (with or without a battery)
• Excess energy compensation and available incentives

Basic formula to estimate profitability

A simple formula to begin with is:

Annual ROI (%) = (Annual savings / Total investment) x 100

For example, if you invest €6,000 and save €700 a year:

• Profitability: 700 / 6,000 = 11.6%
• Payback period: around 8.5 years

What’s considered a good return?

Anything above 10% annual ROI is excellent. Plus, solar energy is a stable, predictable long-term investment.

How to increase profitability

• Shift your energy use to daylight hours
• Choose a tariff with fair compensation for excess energy
• Avoid oversizing the system unnecessarily
• Take advantage of subsidies and tax incentives

RenovaEnergy helps you calculate your real numbers

You don’t need to do complex math. RenovaEnergy calculates your system’s real profitability based on your consumption habits, location, and energy goals. You’ll know exactly how much you’ll save and how long it takes to recover your investment.

Want to know if solar is a smart choice for you in 2025? We’ll help you with no strings attached.