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Financial

ROI (Return on Investment)

A measure of profitability calculated as (Net Profit / Cost of Investment) × 100. In home energy, ROI tells you how quickly your upgrade pays for itself and continues saving money.

Example

A $10,000 solar system that saves $2,000/year has a 20% annual ROI.

Related Terms

Payback PeriodNet Present ValueCost-Benefit Analysis