How to Calculate ROI (Return on Investment) for a Solar System in Pakistan

How to Calculate ROI

What is ROI in a Solar Project?

ROI (Return on Investment) measures how quickly your investment in a solar system pays back through electricity savings.
In Pakistan, solar power now offers one of the best investment returns — usually between 18% to 25% per year, depending on the quality of equipment, usage pattern, and site conditions.

With power tariffs increasing every few months, solar is not just an environmental solution — it’s a financial strategy that saves money from day one.

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Article By Rao Qamar Hassan Iqbal

I’m the CEO of Ocentra Engineering Services, with over 17 years of experience in the solar energy industry. I’ve dedicated my career to designing, managing, and implementing sustainable solar solutions across Pakistan. Through my blogs, I aim to share practical insights and help people understand how solar technology can transform energy efficiency and reduce costs.

Step 1: System Size & Type

  • System Type: On-Grid Solar (Net Metering enabled)
  • System Capacity: 20kW
  • Usage Type: Commercial / Residential Hybrid

Step 2: Real-Time Market Panel Prices (as of October 2025)

BrandRate per Watt (PKR)Rate per Watt (PKR)
Canadian SolarRs. 32.00Rs. 640,000
Longi SolarRs. 31.50Rs. 630,000
Jinko SolarRs. 29.75Rs. 595,000

Including inverters, structure, protection devices, BOS material, wiring, labor, and net metering, the turnkey cost of a 20kW system is approximately:

Rs. 1,600,000 – Rs. 1,700,000 (20kW Complete Installed)

Step 3: Monthly Solar Power Generation

Average solar yield in Lahore and Punjab region4.5 units per kW/day

20 kW × 4.5 × 30 = ≈ 2,700 units/month

Step 4: Monthly Electricity Savings

If your average electricity tariff is Rs. 55 per unit:

2,700 × 55 = Rs. 148,500/month

Rs. 1.78 million per year

Step 5: ROI (Return on Investment)

Investment: Rs. 1,650,000

Annual Savings: Rs. 1,780,000

ROI = (1,780,000 ÷ 1,650,000) × 100

ROI = 108% annual return

That means your solar system recovers its full cost within the first year — and continues producing free energy for the next 20–25 years.

Step 6: Payback Period

Payback = Investment ÷ Annual Savings

Payback = 1,650,000 ÷ 1,780,000 = 0.92 years (≈ 11 months)

Payback Time: Less than 1 year

After this, every month’s electricity saving is pure profit

Step 7: Benefits of Going Solar

  • Net Metering — Sell surplus power back to the grid.
  • Minimal Maintenance — Cleaning only, less than 1% annual cost.
  • Long Life — 25-year panel warranty, 10-year inverter warranty.
  • Tax Incentives — Green investments qualify for depreciation benefits.
  • Zero Fuel Cost — 100% clean, renewable energy.
  • Energy Independence — No reliance on grid fluctuations.

Why Choose Ocentra Engineering Services

Ocentra Engineering Services (OES) is one of Pakistan’s trusted solar EPC companies, delivering turnkey commercial and residential solar solutions since 2014.
We provide end-to-end services — from site analysis, design simulation, and engineering layout to procurement, installation, and commissioning.

Our team ensures:

  • Professional design and simulation accuracy
  • International quality installation standards
  • Timely project completion
  • Reliable after-sales support
  • Transparent ROI calculations before installation

Conclusion

Investing in solar is one of the smartest financial and environmental decisions you can make in 2025. With electricity prices rising, a properly engineered solar system can recover its cost in under one year — and generate savings for decades.

Get a Free ROI Simulation Today

Contact Ocentra Engineering Services for a personalized ROI report based on your site and electricity bill.

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