Payback · Madeira · Portugal

Commercial solar payback in Funchal: 3.9 years

A self-consuming 100 kWp array on a commercial roof in Funchal typically pays back in about 3.9 years. That figure uses Funchal's specific yield of 1,650 kWh per kWp per year and a commercial tariff near €0.20/kWh, with 70% of generation used on site.

At that yield the array produces about 165,000 kWh a year and saves roughly €23,100 annually against an installed cost near €90,000. Over 25 years the net saving is around €487,500, while avoiding about 57.7 tonnes of CO₂ each year.

Funchal is in Madeira, alongside Câmara de Lobos and Machico. Those towns share the same irradiance zone, so payback is similar — the difference is which warehouses and factories still have empty roof. SolarScout lists them with a pre-computed business case rather than a generic "solar is cheap" pitch.

3.9 yrs
Est. payback (100 kWp)
1,650 kWh/kWp/yr
Specific yield
€0.20/kWh
Local tariff
€23,100
Annual savings

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How the Funchal payback number is calculated

Start with 100 kWp × 1,650 kWh/kWp = 165,000 kWh of annual production on a representative warehouse or factory roof in Funchal. Apply 70% self-consumption against €0.20 per kWh and you get about €23,100 a year. Divide the €900/kWp installed cost (€90,000 for 100 kWp) by that saving and payback lands at 3.9 years.

This is a worked example, not a quote. Real payback moves with self-consumption, shading, export tariff and installed cost. It is still the right first filter: if a roof in Funchal cannot beat roughly 3.9 years on these inputs, it is probably not a priority lead.

Funchal versus the rest of Portugal

Relative to Portugal as a whole, payback in Funchal is about 0.4 years faster than the Portugal average of 4.3 years. Portugal enjoys very high sunshine hours along the Atlantic coast and interior. Warehouses, factories and cold-storage sites achieve rapid payback from on-site solar self-consumption.

That is why outreach in Funchal should open with the local number — 3.9 years and €23,100 a year on 100 kWp — not a national average that under- or over-sells the roof.

What actually changes payback on a Funchal roof

Yield is already baked into the 1,650 kWh/kWp zone for Madeira. The bigger swings are usable roof area, daytime load (factories and cold stores self-consume more than empty warehouses) and whether the site pays the full €0.20/kWh commercial rate.

SolarScout estimates roof footprint from satellite and map data and, where Google Solar coverage exists, modelled annual output — so you can rank Funchal sites by savings instead of guessing from a map pin.

Frequently asked questions

What is the commercial solar payback in Funchal?

About 3.9 years for a self-consuming 100 kWp rooftop in Funchal. That uses 1,650 kWh/kWp of local yield and a tariff near €0.20/kWh, saving around €23,100 a year.

How much electricity does 100 kWp produce in Funchal?

Around 165,000 kWh a year. Multiply the 1,650 kWh/kWp specific yield for Madeira by 100 kWp; shading and orientation can move that figure, which is why SolarScout models each roof rather than stopping at the city average.

Is payback in Funchal better than nearby towns?

Payback is in the same band as Câmara de Lobos and Machico because they share the Madeira irradiance zone. The practical difference is the stock of large, unshaded commercial roofs — SolarScout lists those in Funchal with a pre-computed saving so you can compare sites, not just towns.

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