Investing in commercial solar panels is more than just a step toward sustainability—it’s a strategic move to lower energy costs, reduce tax liabilities, and strengthen your business’s long-term financial health.
Yet, for most business leaders, the decision hinges on two key factors: the return on investment (ROI) and payback period.
So, the big question remains: is solar a smart financial move for your business in 2025?
While solar isn't a one-size-fits-all solution, we’ve analyzed data from over 160 agricultural and commercial solar installations completed by Paradise Energy in the last year to give you a clear picture of what to expect.
In this blog, we explore this data to provide you with a clear picture of what a solar panel investment could look like for your business and how you can maximize your solar investment in 2025.
Overall Performance:
By Mounting Type:
Ground Mount Installations:
Roof Mount Installations:
State Highlights:
System Metrics:
For the sake of this report, we grouped all our agricultural and commercial solar installations into one group of over 160 installed solar projects. This report breaks down the results from all of those projects.
With an average ROI of 13.52%, Solar energy consistently outperforms traditional investments, such as stocks on the S&P 500. While long-term stock investments generally yield around a 10% ROI, the data shows that business leaders can expect a higher annual return on a solar panel investment.
What makes solar an even better investment is its predictability. Solar ROI depends on two reliable factors: the sun shining and your electricity needs—both of which are virtually guaranteed. In contrast, stock market returns rely on company performance and economic conditions, which can be unpredictable and volatile.
The average payback period for commercial solar panels is 10.43 years with an average system lifespan of over 30 years.
One of the most attractive aspects of solar investments is how quickly they start to pay off. You're combining the elimination of an expense with the federal tax credit, USDA grant, and accelerated depreciation to deliver significant front-loaded financial benefits within the first few years.
After the initial payback period, your savings on electricity costs flow directly to your bottom line. Unlike utility bills, which never end, your solar system's cost is finite. Once it’s paid off, you’re replacing an uncontrolled expense with guaranteed savings.
Although Paradise Energy Solutions currently provides commercial solar installations and maintenance services in eight states, most of our agricultural and commercial installations in the past year were in six states.
We’ve compiled the data from six states to provide you with a breakdown of the average system size, cost, ROI, and break-even point.
Commercial solar panel performance varies by state, with Pennsylvania leading in ROI at 14.45% and the shortest payback period of 9.42 years. Maryland also delivers strong results with an ROI of 14.25% and a payback period of 9.82 years.
Yes, several incentives and tax benefits can significantly improve the ROI of solar panels. Commercial solar systems under 1 MW AC qualify for a federal tax credit of 30% or more, depending on eligibility for additional 10% "adders" such as energy community or domestic content bonuses. Businesses can also take advantage of accelerated depreciation.
Beyond tax incentives, the USDA REAP Grant and various local grant programs are available to help offset the upfront installation costs.
A solar panel system requires relatively low maintenance if properly installed. In most cases, the component that will require attention is the inverter. The good news is both solar panels and inverters come with extensive warranties. At Paradise Energy, we go even further by offering our Triple Ten Guarantee, which covers most maintenance and warranty-related work, reducing potential out-of-pocket expenses for our customers.
These are some additional maintenance costs to consider:
Both solar investments and new machinery have distinct benefits, but they serve different purposes within a business. Here’s a comparison of the two:
While solar primarily focuses on reducing costs, new machinery can drive business growth by enhancing efficiency and production capabilities. Prioritizing a solar investment allows you to leverage its front-loaded returns—such as significant tax savings and energy cost reductions in the initial years—to support other capital expenditures. By capitalizing on solar’s early financial returns, you can strategically invest in both cost savings and operational expansion.
There are several risks that could impact the ROI and payback of your solar investment, including:
Are you interested to see how solar energy could benefit your business’s bottom line? The first step is to talk with one of our solar consultants. Your solar consultant will empower you to make an informed decision by answering your questions, reviewing your site’s solar feasibility, and providing detailed numbers for your investment.
If you are not yet ready to talk with a solar consultant, no problem. We have tools for you to continue investigating solar on your own. Use our solar payback calculator, visit our solar learning center, and hear from other business leaders who have invested in solar.