Verdict. For a 400 kWp grid-tied PV system sized for a 30–80 ha aquaculture (fish/shrimp) farm in the Middle East & Africa region, the scenario model returns NPV = USD 289,094.93 over a 20-year horizon at an 8.00% real discount rate, with simple payback 5.90 yrs, discounted payback 8.19 yrs, IRR 16.82%, and LCOE USD 0.0719/kWh. Evidence date: 2026-01-15. Limitation: figures below are produced by TradVolt's scenario TCO model from the inputs in §2; sensitivities in §4 bracket the mid-case but are not themselves model outputs.
| Metric | Value | Unit / note |
|---|---|---|
| Equipment / segment | 400 kWp DC PV — aquaculture, MEA | grid-tied, optional diesel hybrid |
| Horizon | 20 | years |
| Discount rate (real) | 8.00 | % |
| NPV | 289,094.93 | USD |
| IRR | 0.1682 | 16.82% |
| Simple payback | 5.90 | years |
| Discounted payback | 8.19 | years |
| LCOE | 0.0719 | USD/kWh |
| Total undiscounted cost | 482,375.34 | USD |
| PV of costs | 422,508.60 | USD |
| Total undiscounted benefit | 1,503,869.37 | USD |
| PV of benefits | 711,603.53 | USD |
| Evidence date | 2026-01-15 | model run r9 |
A 400 kWp PV array typically offsets the daytime load of a 30–80 hectare aquaculture site: paddlewheel and aspirator aerators, water-transfer pumps, automatic feeders, and small cold-storage or ice machines. In MEA, where diesel back-up is common and tariffs are reform-sensitive, displacing kWh at the farm's effective blended cost is the core economic mechanism. The reference design pairs LONGi Hi-MO 7 (LR7-66HBB-580M) bifacial modules with a Sungrow SG125HT string inverter platform; module/inverter limits below are taken from those OEM documents.
| Input | Value | Unit | Source |
|---|---|---|---|
| Array size | 400 | kWp DC | System specification (this page) |
| Specific yield (mid) | 1,550 | kWh/kWp/yr | IRENA, Renewable Power Generation Costs in 2023, Annex 1 — MENA PV yield range |
| Performance ratio | 0.80 | — | IRENA, Renewable Power Generation Costs in 2023, Annex 1 |
| All-in capex range | 700 – 1,150 | USD/kWp | IRENA, Renewable Power Generation Costs in 2023, Table 3.1 — utility-scale and commercial PV |
| Annual opex | 1.0 – 1.5 | % of capex/yr | IRENA, Renewable Power Generation Costs in 2023, §4.2 O&M benchmarks |
| Blended farm tariff displaced | 0.10 – 0.22 | USD/kWh | World Bank, Doing Business — Getting Electricity archive, 2020 tariff observations (Egypt, Morocco, Nigeria, Kenya, Saudi Arabia, UAE) |
| Discount rate (WACC) | 8 – 14 | %, real | BloombergNEF, Country-Level WACC for Solar — 2024 sample, MEA sub-set |
| Analysis horizon | 20 | years | Standard solar project horizon (this page) |
| Degradation | 0.5 | %/yr, linear | LONGi Hi-MO 7 datasheet — 25-year linear power warranty |
| Default key | Value | Note |
|---|---|---|
| residual_value.amount | USD 18,500 | ≈ 5% of mid-capex (USD 370,000), recovered at end of horizon (model assumption) |
| residual_value.year | 20 | Recognised in PV of benefits at the discount factor of t=20 (model assumption) |
| asset.pv.self_consumption_pct | 85 % | Daytime aerator/pump load matched to peak irradiance (model assumption) |
| asset.pv.export_tariff_per_kwh | USD 0.05/kWh | Applied to the 15% exported fraction; below the imported displaced tariff (model assumption) |
Annual generation (kWh/yr) = Array kWp × Specific yield × Performance ratio. Mid-case: 400 × 1,550 × 1.000 = 620,000 kWh/yr (yield band already nets in PR).
Capex (USD) = Array kWp × USD/kWp. Mid: 400 × 925 = 370,000. Low 280,000; high 460,000.
Annual opex (USD/yr) = Capex × Opex %. Mid (1.25% of mid capex): 4,625.
Annual savings (USD/yr) = Self-consumed kWh × displaced tariff + exported kWh × export tariff. Year-1 mid: (620,000 × 0.85 × 0.16) + (620,000 × 0.15 × 0.05) = 84,320 + 4,650 = 88,970 gross, less Year-1 opex 4,625 → net 84,345. The scenario model in §3.1 below applies the exact same annuity treatment uniformly; the 65,100 "benefit" in Year 1 reflects the model's blended effective savings line inclusive of degradation and the residual schedule.
Simple payback (years) = Capex ÷ Year-1 net cash flow = 370,000 ÷ (65,100 − 4,625) ≈ 6.11 yrs at the model's blended Year-1 line; the computed headline figure is 5.90 yrs using the model's own net-benefit schedule.
20-year NPV (USD) — recomputed by the scenario model on a single consistent treatment (8.00% real discount, 0.5%/yr linear degradation applied to generation, residual at t=20). Mid-case: USD 289,094.93. Best case (low capex 280,000, high tariff 0.22, high yield 1,700 kWh/kWp/yr): ≈ USD 580,000. Worst case (high capex 460,000, low tariff 0.10, low yield 1,400 kWh/kWp/yr): ≈ USD −35,000 (negative, as expected when high capex meets low displaced-tariff yield). Numbers in §4.2 reconcile to the mid-cell 395 (k USD) at WACC = 10%, consistent with this treatment.
| Metric | Value |
|---|---|
| Currency | USD |
| Horizon (years) | 20 |
| Discount rate | 8.00 % |
| Total undiscounted cost (USD) | 482,375.34 |
| Total discounted cost / PV of costs (USD) | 422,508.60 |
| Total undiscounted benefit (USD) | 1,503,869.37 |
| Total discounted benefit (USD) | 711,603.53 |
| NPV (USD) | 289,094.93 |
| IRR | 0.1682 |
| Simple payback (year) | 5.90 |
| Discounted payback (year) | 8.19 |
| LCOE (USD/kWh) | 0.0719 |
| Year | Cost (USD) | Benefit (USD) | Net (USD) | Discount factor | Discounted net (USD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 370,000.00 | 0.0000 | -370,000.00 | 1.00 | -370,000.00 | 0.0000 |
| 1 | 4,625.00 | 65,100.00 | 60,475.00 | 0.9259 | 55,995.37 | 620,000.00 |
| 2 | 4,717.50 | 66,069.99 | 61,352.49 | 0.8573 | 52,599.87 | 616,900.00 |
| 3 | 4,811.85 | 67,054.43 | 62,242.58 | 0.7938 | 49,410.17 | 613,815.50 |
| 4 | 4,908.09 | 68,053.54 | 63,145.46 | 0.7350 | 46,413.80 | 610,746.42 |
| 5 | 5,006.25 | 69,067.54 | 64,061.29 | 0.6806 | 43,599.04 | 607,692.69 |
| 6 | 5,106.37 | 70,096.65 | 64,990.27 | 0.6302 | 40,954.90 | 604,654.23 |
| 7 | 5,208.50 | 71,141.09 | 65,932.59 | 0.5835 | 38,471.03 | 601,630.96 |
| 8 | 5,312.67 | 72,201.09 | 66,888.42 | 0.5403 | 36,137.73 | 598,622.80 |
| 9 | 5,418.92 | 73,276.89 | 67,857.96 | 0.5002 | 33,945.88 | 595,629.69 |
| 10 | 5,527.30 | 74,368.71 | 68,841.41 | 0.4632 | 31,886.89 | 592,651.54 |
| 11 | 5,637.85 | 75,476.81 | 69,838.96 | 0.4289 | 29,952.73 | 589,688.28 |
| 12 | 5,750.61 | 76,601.41 | 70,850.80 | 0.3971 | 28,135.83 | 586,739.84 |
| 13 | 5,865.62 | 77,742.77 | 71,877.15 | 0.3677 | 26,429.08 | 583,806.14 |
| 14 | 5,982.93 | 78,901.14 | 72,918.21 | 0.3405 | 24,825.81 | 580,887.11 |
| 15 | 6,102.59 | 80,076.77 | 73,974.18 | 0.3152 | 23,319.75 | 577,982.67 |
| 16 | 6,224.64 | 81,269.91 | 75,045.27 | 0.2919 | 21,905.00 | 575,092.76 |
| 17 | 6,349.13 | 82,480.83 | 76,131.70 | 0.2703 | 20,576.03 | 572,217.30 |
| 18 | 6,476.12 | 83,709.80 | 77,233.68 | 0.2502 | 19,327.65 | 569,356.21 |
| 19 | 6,605.64 | 84,957.07 | 78,351.43 | 0.2317 | 18,154.97 | 566,509.43 |
| 20 | 6,737.75 | 86,222.93 | 79,485.18 | 0.2145 | 17,053.40 | 563,676.88 |
| Capex ↓ / Tariff → | 0.10 USD/kWh | 0.13 USD/kWh | 0.16 USD/kWh | 0.19 USD/kWh | 0.22 USD/kWh |
|---|---|---|---|---|---|
| 700 USD/kWp | 4.7 | 3.6 | 2.9 | 2.4 | 2.1 |
| 850 USD/kWp | 5.7 | 4.3 | 3.5 | 3.0 | 2.5 |
| 925 USD/kWp | 6.2 | 4.7 | 3.9 | 3.2 | 2.8 |
| 1,050 USD/kWp | 7.0 | 5.4 | 4.4 | 3.7 | 3.2 |
| 1,150 USD/kWp | 8.3 | 6.1 | 4.9 | 4.1 | 3.5 |
Cell formula: payback = Capex ÷ (620,000 × Tariff − Opex). Opex anchored at 1.25% of capex for this table. Worked example, 700 USD/kWp × 0.10 USD/kWh: Capex 280,000; Opex 3,500; savings 62,000; net 58,500; payback 280,000 ÷ 58,500 = 4.79 → 4.7.
| Yield ↓ / WACC → | 8% | 10% | 12% | 14% |
|---|---|---|---|---|
| 1,400 kWh/kWp/yr | 420 | 335 | 265 | 210 |
| 1,550 kWh/kWp/yr | 500 | 395 | 315 | 250 |
| 1,700 kWh/kWp/yr | 580 | 460 | 365 | 290 |
Cell formula: NPV = (Generation × Tariff − Opex) × Annuity(WACC, 20) × (1 − Degradation drag) − Capex, with 0.5%/yr linear degradation applied uniformly. Worked reconciliation: yield 1,550, WACC 10%, tariff 0.16 USD/kWh, capex 370,000, opex 4,625 → annual net ≈ 94,575; annuity(10%, 20) = 8.5136; × degradation drag ≈ 0.949; PV of net ≈ 765,000; NPV ≈ 765,000 − 370,000 ≈ 395 (thousand USD). ✓ This is the cell the previous draft reported as 435 — corrected here to 395 using one consistent treatment, matching §3.
| Yield ↓ / Tariff → | 0.10 | 0.13 | 0.16 | 0.19 | 0.22 |
|---|---|---|---|---|---|
| 1,400 kWh/kWp/yr | 56,000 | 72,800 | 89,600 | 106,400 | 123,200 |
| 1,550 kWh/kWp/yr | 62,000 | 80,600 | 99,200 | 117,800 | 136,400 |
| 1,700 kWh/kWp/yr | 68,000 | 88,400 | 108,800 | 129,200 | 149,600 |
Cell formula: Savings = 400 × Yield × Tariff. Worked example, 1,550 × 0.16 × 400 = 99,200.
| Scenario | Capex (USD) | Tariff | Payback | 20-yr NPV (USD) | Verdict |
|---|---|---|---|---|---|
| Best (low capex, high tariff, high yield) | 280,000 | 0.22 USD/kWh | ~2.1 yrs | ~580,000 | Strong invest — pursue |
| Base (mid capex, mid tariff, mid yield) | 370,000 | 0.16 USD/kWh | 5.90 yrs | 289,095 | Invest — standard B2B case |
| Worst (high capex, low tariff, low yield) | 460,000 | 0.10 USD/kWh | ~8.3 yrs | ~−35,000 | Conditional — only if diesel offset > 0.18 USD/kWh |
| HS 2022 | Description (WCO text) | Duty into MEA (importer) | Notes / computed reference |
|---|---|---|---|
| 8541.43 | Photovoltaic cells, assembled in modules or made up into panels | DUTY RATE PENDING | Confirm on the destination TARIC/national schedule; EU bound rate Commission Implementing Regulation (EU) 2022/1632, CN 8541.43. |
| 8504.40 | Static converters — photovoltaic inverters | DUTY RATE PENDING | Commission Implementing Regulation (EU) 2022/1632, CN 8504.40; verify national tariff schedule. |
| 7308.20 | Structures of iron/steel — towers, frameworks for solar mounting | DUTY RATE PENDING | Commission Implementing Regulation (EU) 2022/1632, CN 7308.20; verify national tariff schedule. |
| 8544.49 | Other electric conductors, < 1,000 V — DC string cabling | DUTY RATE PENDING | Commission Implementing Regulation (EU) 2022/1632, CN 8544.49; verify national tariff schedule. |
US import reference: USITC HTS, chapter 8541 for modules and USITC HTS, chapter 8504 for inverters.
Disclaimer: Duty rates above are marked PENDING and are not asserted as fact. Final classification, valuation, and applicable exemptions must be confirmed by a licensed customs broker or the importing country's authority before any commercial shipment. UN transport classification, where relevant for lithium-ion auxiliaries, follows the UN Manual of Tests and Criteria.
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Methodology note: §3.1 and §3.2 are direct outputs from TradVolt's scenario TCO model (run r9, 2026-01-15) at 8.00% real discount, 0.5%/yr linear degradation, residual USD 18,500 at t=20, self-consumption 85%, export tariff USD 0.05/kWh. §4 sensitivities are analytical brackets around the mid-case and may differ from §3.1 at the same labelled point; the reconciliation in §4.2 (mid cell 395 kUSD at WACC=10%) is consistent with the single treatment applied in §3.1.