1. What is ROI and why does it matter?
ROI (Return on Investment) is a measure of how much an investment pays back. For a solar system, ROI is calculated as:
(annual savings – annual costs) / installation cost × 100%.
A good ROI matters for choosing a system and getting your investment back quickly.
2. What are business tariffs in Azerbaijan?
Industrial and commercial consumption starts at 10 qapik/kWh and goes up to 11–12.5 qapik.
These tariffs apply not to individuals but to businesses that use renewable energy systems.
3. How are annual savings calculated?
- First, take your monthly consumption (for example, 20,000 kWh).
- Multiply it by the tariff (10 qapik) to get your monthly cost in AZN.
- If the solar system covers 50–70% of that consumption, you calculate the savings.
- Example: 12,000 kWh × 0.10 AZN = 1,200 AZN in savings per month, or 14,400 AZN per year.
4. System costs and ROI period
- A standard 10 kW system (installation, equipment, labour) can cost around 10,000 AZN.
- If annual savings are 1,500 AZN:
- ROI = (1500 / 10000) × 100 ≈ 15%
- Payback period: 6.7 years
5. Key factors affecting ROI
| Factor | Effect |
| System size and self-consumption share | Consume more of your own energy |
| Tariff level | Higher tariff → faster ROI |
| Installation cost | Delivery and installation costs |
| State support / PPA | A long-term contract at a fixed tariff is possible |
6. Support and long-term contracts
Azerbaijan's Ministry of Energy guarantees energy purchases at a fixed price for 20–25 years, which gives businesses financial predictability.
This takes the form of a PPA (Power Purchase Agreement) model and adds stability to ROI calculations.
7. Calculation example
- A 50 kW system can produce 70,000 kWh per year.
- At a tariff of 10 qapik: savings = 7,000 AZN per year.
- System cost: around 50,000 AZN.
- ROI → pays back within 7 years.
Given that panels last more than 30 years, such a system saves more than 210,000 AZN over 30 years.
8. What should you do?
- Collect your monthly and annual energy usage data.
- Determine the potential share of the solar system (for example, 50–70%).
- Build your ROI model: compare the investment with the savings.
- Include state tariffs and PPA options.
Conclusion
For businesses in Azerbaijan, a solar energy system:
- can pay for itself in 4–7 years;
- then enters a "free energy" period;
- and the state's fixed price guarantee makes the whole model more predictable.
Helind Enerji can help!
We can offer you:
- an analysis of your monthly consumption;
- future savings and ROI calculations;
- a review of PPA and legal requirements;
- a proposal tailored to your facility.
Get in touch and let's prepare a real savings and ROI calculation for your facility together!