C&I ROI Framework
ERS Energy’s ROI framework is built on conservative assumptions and honest projections you can present to your board. With the global weighted-average LCOE of utility-scale solar PV at USD 0.043/kWh in 2024 and installed costs down about 87% since 2010 (IRENA), the business case for C&I solar has never been stronger.
Payback, IRR and savings figures are estimates for reference only, not a quotation or offer. Actual results depend on the site survey, tariff and usage.
Every projection we deliver is built on conservative assumptions, real-world data from ERS Energy’s C&I installations, and 17 years of operational history.
We model savings from your actual consumption patterns using Tier-1 panels (22%+ efficiency) and inverters (98.5% conversion), simulating generation hour-by-hour against your load profile.
For businesses on MD General tariffs, rooftop solar earns only a small maximum-demand credit, which we model explicitly and cap at 15% of the energy savings. Battery storage is the main tool for reducing peak demand further.
Government incentives materially affect your returns — for solar, GITA (60% of qualifying CAPEX at the 24% tax rate) reduces the effective system cost by about 14.4%; for BESS (100% allowance) by up to 24%. We model each incentive precisely.
We model the full 25-year project life with conservative assumptions.
Your finance team needs an IRR figure, not just payback years. This model uses internal installed-cost ranges and the post-July 2025 TNB tariff schedule, and shows results as ranges. It outputs unlevered IRR, NPV at 8% and 10% discount rates, and a 25-year cumulative savings chart. The numbers your board pack needs.
Illustrative estimate only, based on the stated assumptions and current published tariffs/incentives. Not a quotation or financial, tax or investment advice. Actual results depend on a site survey.
expand_circle_right Get Full Site-Specific Analysis“I need a number for the board presentation next week.”
An office building in KL with a RM 28,000/month bill on NDMV General. Click the Board-deck case tab above; it pre-fills the inputs and the dashboard renders system size, annual savings, IRR, and NPV as ranges. Ready for a board slide in one screenshot.
430 kWp · IRR 19.7%–21.6% · payback 4.9–5.5 yrs · NPV RM 971,964–1.0M @ 8% · RM 3.7M net / 25yr
“NDMV General or Time-of-Use: which is better for us?”
Click the Tariff comparison tab, then toggle the Tariff dropdown between General and ToU while keeping the bill and hours fixed. In this model, General usually gives the higher IRR because rooftop solar earns a small demand credit on General tariffs but none on Time-of-Use (for a RM 25,000/month manufacturer running 12 hours: General IRR 23.4%–25.6%, ToU IRR 18.9%–20.7%).
Tip: lock in your category with TNB only after comparing both tariff results side by side
Illustrative outputs from the ROI calculator engine for typical C&I profiles (ranges reflect an internal installed-cost band). For your personalised analysis, contact our team.
TNB NDLV General tariff · 8-hr operations · Retail / F&B / small office
TNB NDLV General tariff · 10-hr operations · Light manufacturing
TNB NDMV General tariff · 10-hr operations · Weekday consumption
TNB NDMV General tariff · 12-hr operations · High self-consumption
TNB NDMV General tariff · 16-hr operations · Large roof area
* Illustrative only. Outputs of the ERS calculator engine: respective TNB tariffs, GITA at 60% of solar CAPEX × 24% tax rate, 3% annual tariff escalation, 0.5% annual degradation, exported energy not credited, annual O&M and an inverter replacement in year 13 included. Actual results vary by site. Estimates for reference only, not a quotation or offer; actual results depend on the site survey, tariff and usage.
We stress-tested a typical 500 kWp factory installation (NDMV General tariff, base IRR 23.4%–25.6%) across three scenarios. Even in the worst case (consumption drops 10%), payback extends by about half a year and IRR stays around 21.0%–23.0%. Estimates for reference only, not a quotation or offer.
Solar savings are tied to your own electricity consumption rather than external markets. As long as your business uses electricity during the day, the system generates savings.
For C&I customers on MD General tariffs, rooftop solar earns only a small demand credit (capped at 15% of energy savings in our model); battery storage is the main tool for cutting peak demand. Every 100 kW of peak demand avoided is worth RM 8,927/month on NDMV General (RM 9,706 on Time-of-Use).
= RM 19,639/month demand charge savings (NDMV General, illustrative 220 kW reduction)
Solar panels don’t stop after payback. Tier-1 panels typically carry 25–30 year performance warranties (manufacturer-specific). Our model assumes 0.5% annual degradation; your cumulative savings keep growing.
Modelled output as a share of year-1 output, at 0.5% a year degradation.
Payback, IRR and savings figures are estimates for reference only, not a quotation or offer. Actual results depend on the site survey, tariff and usage.
Every ERS Energy commercial solar proposal includes a comprehensive financial model built specifically for your site and consumption profile.
12-month electricity bill review, demand pattern identification, peak vs. off-peak breakdown, tariff block utilisation.
Site-specific irradiance data, shading analysis, roof structural assessment, system yield projection with seasonal variation.
Annual energy & demand charge savings, Solar ATAP export credits, 25-year cumulative model with tariff escalation and degradation.
GITA benefit quantified, Solar ATAP export value, green financing rate impact, net effective cost after incentives.
IRR (levered & unlevered), NPV at 8% and 10%, simple payback, monthly cash flow projection, sensitivity analysis.
Professional PDF with all assumptions documented, data sources cited, methodology explained — ready to present to your board or CFO.
The typical flow of a commercial solar project, from your first conversation with us to decades of energy savings and asset performance.
IRR depends on system size, financing structure, tariff exposure and incentives. A cash purchase generally returns more than a PPA structure, which trades a lower return for zero upfront capex. Use our ROI calculator for an illustrative range for your site.
Payback = Total system cost (post-tax, post-incentive) divided by year-1 electricity bill savings. Year-1 savings = (annual generation in kWh) × (effective avoided TNB tariff). Conservative methodology assumes no time-value adjustment, no tariff escalation. Our calculators assume no tariff escalation, so they tend to be conservative if tariffs rise.
Payback: how many years to recover the capital (simplest, used for screening). IRR: the discount rate at which NPV equals zero (annualised return percentage, comparable to other investments). NPV: net present value of cash flows discounted at your cost of capital (RM amount). For board presentations, IRR + payback are most-cited; for capital allocation decisions, NPV is more rigorous.
Yes. The C&I ROI calculator uses conservative assumptions, including a site-wide yield of about 1,250 kWh/kWp/yr. Inputs: system size, industry type, daytime load profile, financing structure. Outputs: year-by-year cash flow, payback, IRR, NPV.
Use your weighted average cost of capital (WACC). Malaysian listed corporates typically use 8% to 11%. Family-owned manufacturers: 10% to 14%. SMEs without formal WACC: use 12% as a conservative default. ERS's ROI calculator defaults to 10%; adjust per your treasurer's guidance.
Our calculators assume no tariff escalation, so they tend to be conservative if tariffs rise. Board-grade projections should test sensitivity to tariff changes as well as generation.
Free ROI report includes: site-specific generation estimate (kWh/year), 25-year cash flow projection, payback period, IRR and NPV, GITA tax-allowance impact, sensitivity analysis (tariff +/-, generation +/-), comparison of cash vs PPA vs lease structures, and 3 anonymised reference cases from similar industry sectors. Delivered within 5 business days.
Submit your last 3 electricity bills and our C&I team will prepare a full site-specific ROI model and financing options report within 5 business days — at no cost, no obligation.
