The ROI of Solar in The caribbean — What the Numbers Say

Introduction

Solar isn’t just about going green—it’s about saving money and protecting yourself from unpredictable power costs.

For homeowners and businesses in Trinidad & Tobago and throughout the Caribbean, solar energy delivers one of the strongest returns on investment (ROI) available anywhere in the world.

Let’s break down the math.

1. Understanding ROI (Return on Investment)

ROI measures how fast your solar system pays for itself through electricity savings.

Formula: ROI = Annual Savings ÷ Total System Cost × 100

Example:

If you save TT$6,000 per year and your system cost TT$40,000 → ROI = 15% annually.

That’s better than most bank investments or fixed deposits.

2. Residential Example

A typical 5 kW rooftop system:

Generates ~7,500 kWh/year

Electricity cost = TT$0.41/kWh

Annual savings ≈ TT$3,000

Payback = 5–7 years

System lifespan = 20+ years

After payback, you’re essentially generating free energy for more than a decade.

3. Commercial Example

100 kW solar array:

Generates ~145,000 kWh/year

Annual savings = TT$59,000

Payback = 4–6 years

ROI = 12–18% annually

Businesses with daytime operations benefit most because they consume what they generate, minimizing grid dependency.

4. Hidden Benefits That Increase ROI

⚡ Reduced Downtime: Backup systems prevent costly outages.

🏢 Property Value Boost: Solar-equipped buildings sell faster and for more.

🌎 Tax & Duty Incentives: Many Caribbean governments, including T&T, have VAT exemptions and import duty relief for renewable energy equipment.

5. ROI vs. Traditional Investments

Compare solar to typical investment options:

Bank Savings: 2–3%

Fixed Deposit: 3–5%

Solar Energy: 12–18% ROI

That’s why solar isn’t just sustainable—it’s profitable.

Conclusion: Solar Is an Asset, Not an Expense

With energy prices rising, solar is one of the few investments that saves you money every single day.

For Caribbean homeowners and businesses, the question isn’t “Can I afford solar?”—it’s “Can I afford not to?”

See your exact savings potential today.