Investment performance
Return on Investment
Installing a PV system can increase the return on investment of your operations and presents one of the best investments you can make.
Key figures
ROI at a glance.
- Investment required for a 100 kW PV system
- R 1.3 m
- Annual electricity cost saving at 100% self-consumption
- R 0.2 m
- LCOE over 25 years for grid-tie PV
- R 0.48/kWh
- Estimated savings over 25 years for a 100 kW system
- R 8 m
Breaking down the numbers
How the returns compound.
The income per kWh generated by a PV system depends on whether the electricity generated is consumed on-site or exported back into the grid. Income earned by self-consumption is higher than the feed-in tariff paid by the grid authority. For example, whilst the Eskom Landrate tariff is R 1.24 per kWh, the feed-in tariff is only R 0.79 per kWh.
Cost per kWh: The Eskom 2020/21 Landrate tariff is R 1.24 /kWh versus a PV tariff of R 0.80 /kWh (including interest on capital).
Tariff escalation: The Eskom tariff increases at approximately 8% per annum, while the PV tariff increases at only 1% per annum (on capital). This growing differential drives compounding returns over the system lifetime.
Levelised Cost of Electricity (LCOE): Over a 25-year period, grid-tie PV delivers electricity at R 0.48 /kWh versus an Eskom tariff of R 1.24 /kWh. For a 100 kW PV system, estimated savings over 25 years amount to R 8.0 million.
Model the ROI for your operation.
Request a free consultation and we will produce a detailed return on investment projection tailored to your energy profile.