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How commercial solar payback actually works

Payback periods get quoted loosely. Here's the honest version — what actually drives them, and how to pressure-test a number before you commit.

Shay BrazierFounder, Revolve Energy
May 20268 min read
Rooftop solar installation on a transport hub building

What's behind a payback figure

Every solar proposal leads with a payback figure. Few explain what's behind it. The number is only as good as the assumptions underneath — and those assumptions are where projects quietly succeed or fail.

The variables that actually move payback

System cost per kW, your consumption profile, the share of generation you self-consume, and your tariff all matter more than which panel brand sits on the roof.

A payback figure without the assumptions behind it is a marketing number, not an engineering one.

1. Self-consumption rate

The percentage of generation you use on site is the single biggest lever. A system that exports half its output earns far less than one sized to be consumed where it's made.

2. The tariff you're escaping

Payback is really a comparison against what you'd otherwise pay the grid. A site on an expensive, peaky tariff pays back faster than one on a flat cheap rate.

3. The 25-year view

Payback marks the break-even year. The value is in the two decades after it, as grid prices rise and the asset keeps producing.