Solaire · July 28, 2026
How to Calculate the ROI of a Commercial Solar Project for a Quebec SME
Learn how to calculate the ROI of a commercial solar project in Quebec: incentives, savings, and a real cost example.
For an SME that owns its building, a roof isn't just protection from the weather. It's an asset that can generate income. The key is knowing how to calculate, with real numbers, what a commercial solar project actually delivers. Here is the method we use with our clients to evaluate the return on investment (ROI) of a solar array in Quebec.
How to calculate the ROI of a commercial solar system for a Quebec SME
1. The Components of the Calculation
A commercial solar project's ROI comes down to four main variables:
- Net installation cost: the turnkey price, after applicable incentives are deducted
- Annual savings: reduced electricity bills and, where applicable, revenue from selling surplus power
- Tax incentives and grants: tax credits and accelerated depreciation, which lower the real cost of the project
- Useful system lifespan: typically 25 to 30 years for quality commercial panels
2. Incentives Available in Quebec in 2026
Four levers reduce the net cost of a project or increase what it returns:
- 30% federal Clean Technology Investment Tax Credit (CT ITC) on eligible solar equipment costs
- Accelerated depreciation (CCA Classes 43.1 / 43.2) allowing a large share of the investment to be deducted in the early years
- Hydro-Québec's OSE 6.0 program for selling surplus electricity produced
- Peak demand management under Rate M: solar paired with storage (BESS) can reduce demand charges
3. A Concrete Example: a 250 kWp System
Take the case of a manufacturing SME with a good-sized flat roof, a stable daytime consumption profile, and a net investment of $375,000 after incentives:
- Net cost after incentives: $375,000
- Annual savings (electricity + surplus): $42,000 to $47,000
- Payback period: 6 to 9 years
- Years of net profit after payback: 15 to 20 years
In other words: after 8 to 9 years, every kilowatt-hour produced becomes direct profit for the rest of the system's lifespan.
4. What Makes ROI Vary From One Project to Another
Two neighbouring buildings can post very different returns. The main factors:
- Roof orientation, tilt, and shading
- Roof's structural condition: a membrane that needs replacing in 5 years changes the whole equation
- The company's consumption profile (day vs. night, seasonality)
- Whether a battery energy storage system (BESS) is added to maximize self-consumption
Conclusion
A sound ROI calculation isn't just about panel prices. It has to account for the roof's condition, the incentives available, and the company's real consumption profile. That's exactly AL Pro Solutions' role: an independent analysis, with no ties to any particular installer or manufacturer, to give you the right number before you invest.
Want a personalized estimate of your solar ROI? Contact AL Pro Solutions for a free assessment of your building.
📧 al@alprosolutions.ca · 📞 514 222-0998 · 🌐 alprosolutions.ca
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Contact AL Pro Solutions : +1 514 222-0998 · al@alprosolutions.ca