How does photovoltaics work, and is it worth installing?

Where will photovoltaics work best?

Photovoltaic installations convert solar energy into electricity using photovoltaic cells. This ecological and relatively cost-effective solution is used by both individual consumers and businesses. Photovoltaics has a broad range of applications, spanning from households to heavy industry. It is sometimes proposed as a universal element of the decarbonization strategy in industrial companies, as it can be implemented almost anywhere and consistently provides savings as an independent energy source.

For single-family homes, a photovoltaic installation helps cover part of the electricity demand, reducing energy bills and increasing energy independence. In companies, particularly those with high energy consumption, such as industrial plants, photovoltaics can be part of a cost-saving strategy. Thanks to photovoltaic installations, businesses can reduce energy expenses and lower carbon dioxide emissions.

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

How do photovoltaic panels work?

Photovoltaics is based on using solar energy to generate electricity. The core component of the system is photovoltaic panels, which consist of semiconductor cells, most commonly made of silicon. These cells operate based on the photovoltaic effect, a phenomenon where light energy is converted into electrical energy. When sunlight strikes the cells, photons (light particles) transfer energy to electrons in the semiconductor material, causing the electrons to be released and flow, generating an electric current.

Photovoltaic cells are connected into larger modules that form photovoltaic panels. These panels generate direct current (DC), which is then converted into alternating current (AC) by an inverter and used to power electrical devices. Any surplus energy can be fed into the power grid. This allows the photovoltaic system to serve as both an energy supplier for a company and a source of income through surplus energy sales.

What is the payback period for photovoltaics?

The average payback period for photovoltaic investments in companies is typically 7–8 years. In regions with high solar radiation (e.g., Spain or Greece), this period may be shorter, while in areas with lower solar exposure, it can extend to 8–9 years. Several factors influence the payback period, including:

• angle and orientation - selecting the optimal panel tilt and orientation maximizes energy production and self-consumption;
• self-consumption of energy - the more energy is used on-site, the faster the system pays off;
• energy storage capability - storing energy increases self-consumption and enables usage when electricity prices are highest;
• installation size - larger installations generate greater savings on energy bills but also involve higher initial costs;
• electricity prices - rising energy prices accelerate the return on investment, as the company recovers its funds more quickly;
• subsidies and financial support - taking advantage of available funding programs can significantly reduce investment costs.

Financial support for photovoltaic installations

In Poland, entrepreneurs can benefit from various subsidies for photovoltaic installations, which significantly reduce investment costs and shorten the payback period. The following support programs will be available in 2025:

Regional operational programs

Depending on the province, regional operational programs offer financial support for entrepreneurs investing in renewable energy sources. It is worth checking regional funding opportunities, which may include additional subsidies or loans for photovoltaic projects.

National Reconstruction Plan

The National Reconstruction Plan provides funds to support investments in renewable energy sources, including photovoltaics. Entrepreneurs can apply for loans or grants to implement renewable energy projects.

Bank and financial institution programs

Some banks and financial institutions offer preferential loans or leasing options for photovoltaic installations. It is worth reviewing current offers from banks that collaborate with government or EU programs to provide favorable financing conditions.

What are the advantages of photovoltaics?

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

• reduction of energy costs - a photovoltaic installation allows for a significant decrease in electricity bills, which is particularly important for companies with high energy consumption. Typical savings can reach up to 30% per year;
• independence from rising energy prices - producing your own electricity ensures the stability of operating costs and limits the impact of unpredictable increases in energy prices on the 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;
• the possibility of selling surplus energy - energy that is not used for the company's needs can be sold to the power grid, generating additional revenue. However, it is most beneficial to use all the energy produced for internal needs;
• long-term energy stability - photovoltaic installations are highly durable and have low operating costs, ensuring long-term efficiency and reliability.

What are the disadvantages of photovoltaics?

• high initial investment cost - purchasing and installing photovoltaic panels require significant upfront expenses, which may be a barrier for some companies;
• need for an appropriate mounting surface - a photovoltaic installation requires adequate space, which can be problematic if there is limited roof area or land available around the facility. Additionally, insufficient roof load-bearing capacity may make installation impossible;
• dependence on weather conditions - the efficiency of photovoltaic panels depends on sunlight, meaning energy production is lower on cloudy days. Proper panel positioning relative to the sun is also necessary;
• need for regular maintenance and monitoring - to ensure optimal efficiency, regular maintenance and monitoring are required, which entails additional costs and responsibilities;
• potential fire risk - improperly installed or damaged photovoltaic systems may pose a fire hazard, requiring special attention during design and installation;
• environmental regulations and spatial planning - for larger photovoltaic installations, it may be necessary to obtain environmental permits and ensure compliance with the local development plan.

,,The decision to implement photovoltaics in an industrial company should be preceded by a thorough analysis of the company's energy needs, electricity consumption profile, and the technical feasibility of the installation. Our experience shows that investing in photovoltaics is a beneficial step that always brings advantages, provided the installation is well designed. Photovoltaics in industrial plants is most cost-effective when intended for self-consumption – meaning the generated energy is used entirely on-site rather than sold to the grid." - says Przemysław Kurylas, Operations Director at DB Energy.

Having its own energy sources, such as photovoltaic installations combined with energy storage systems, significantly increases a company’s energy independence. This allows for better control over operating costs and reduces reliance on external energy suppliers. However, such investments require a thorough analysis of technical and environmental conditions, as well as an estimation of the payback period. Given the increasing focus on decarbonization and energy independence, these solutions can enhance a company's competitive advantage, ensuring operational stability even in challenging market conditions.