How does photovoltaics work, and is it still a profitable investment?

Photovoltaic installations allow the conversion of solar energy into electricity using photovoltaic cells. It is an ecological and relatively inexpensive solution that is used by both individual consumers and companies. The application of photovoltaics is very broad and covers various sectors, from individual households to heavy industry. Photovoltaics is often proposed as a fairly universal element of decarbonization strategies in industrial enterprises, as it can be applied almost anywhere and always brings savings as an in-house energy source.

For single-family homes, a photovoltaic installation helps meet part of the electricity demand, lowering electricity bills and increasing energy independence. In companies, especially those with high energy demand such as industrial plants, photovoltaics can be a part of a cost-saving strategy. Thanks to photovoltaic installations, companies can reduce energy costs and limit CO₂ emissions.

Additionally, photovoltaics is successfully used in large infrastructure projects such as solar farms, which can generate energy on a large scale to meet the needs of entire communities or industrial consumers. In recent years, photovoltaics has increasingly been used in combination with other technologies such as energy storage systems or energy management systems, enabling even more efficient use of solar energy.

Photovoltaics is based on the use of solar energy to generate electricity. The main component of the system is the photovoltaic panels, which consist of semiconductor cells - usually made of silicon. These cells operate on the principle of the photovoltaic effect, a phenomenon that converts light energy into electrical energy. When sunlight hits the cells, photons (particles of light) transfer their energy to an electron in the semiconductor material, causing the electron to be released and begin to flow, creating an electric current.

Photovoltaic cells are connected into larger modules that form photovoltaic panels. These panels produce direct current (DC), which is then converted into alternating current (AC) by an inverter and used to power electrical devices, while any surplus can be fed into the power grid. As a result, a photovoltaic system can serve both as an energy source for the company and as a revenue source through the sale of surplus electricity.

The average payback period for photovoltaic investments for companies is usually around 7–8 years. In regions with good solar conditions (e.g. Spain or Greece), this period may be shorter, while in areas with less sunlight it may extend to 8–9 years. Factors influencing the payback period include:

• tilt angle and orientation – depending on the energy usage profile, selecting the appropriate tilt and orientation of panels allows for maximizing energy production or self-consumption,
• self-consumption of energy – typically, the more energy consumed on-site, the faster the installation pays off,
• energy storage capability – energy storage systems allow for increased self-consumption and usage during times when energy from the grid is most expensive,
• installation size – larger installations result in higher energy bill savings but also involve higher upfront costs,
• electricity prices – rising energy prices accelerate the payback, as the company recoups the investment faster,
• grants and financial support – taking advantage of available support programs for photovoltaic installations reduces the overall investment cost.

In Poland, entrepreneurs can take advantage of various forms of financial support for photovoltaic installations, which significantly lowers investment costs and accelerates the payback period. In 2025, the following support programs are available:

Photovoltaics in industrial companies is a simple and effective solution that provides an independent, environmentally friendly energy source. The main advantages of photovoltaics include:

• reduction of energy costs – a photovoltaic installation significantly reduces electricity bills, which is especially important for energy-intensive companies. Typical savings can reach up to 30% annually,
• independence from rising energy prices – producing your own electricity ensures stable operating costs and limits the impact of unpredictable price increases on the energy market,
• improvement of the company’s image – investing in renewable energy sources can positively influence the perception of the company as environmentally responsible, which is increasingly important for business partners and customers,
• possibility to sell surplus energy – energy that is not used by the company can be sold to the power grid, generating additional revenue. However, it is best to consume all produced energy on-site,
• long-term energy stability – photovoltaic installations are characterized by high durability and low operating costs, ensuring long-term operation and sustained efficiency.

• high initial investment cost – the purchase and installation of photovoltaic panels involve significant upfront expenses, which may be a barrier for some companies,
• requires appropriate installation space – a photovoltaic installation requires suitable space, which may be an issue in cases of limited roof area or surrounding land. There may also be issues related to insufficient roof load-bearing capacity, preventing panel installation,
• dependence on weather conditions – the efficiency of photovoltaic panels depends on sunlight, meaning that on cloudy days, energy production is limited. Proper positioning of the panels towards the sun is also important,
• requires regular maintenance and monitoring – to ensure optimal performance, regular maintenance and monitoring of the installation are necessary, which entails additional costs and responsibilities,
• potential fire risk – improperly installed or damaged photovoltaic systems may pose a fire hazard, requiring special attention during system design and installation,
• environmental and zoning requirements – larger photovoltaic installations may require environmental permits and must comply with the local zoning plan.

Having independent energy sources such as photovoltaic installations, combined with energy storage systems, significantly increases a company's energy independence. This gives the company better control over operating costs and reduces its reliance on external energy suppliers. However, such investments require a thorough analysis of technical and environmental conditions and an assessment of the payback period. In the context of growing pressure for decarbonization and energy independence, these solutions can enhance competitive advantage, allowing companies to maintain operational stability even in challenging market conditions.