Factory Solar 5 MWp in LATAM — Use-Case & TCO
Verdict. At base inputs, a 5 MWp factory-solar plant in Latin America (LONGi Hi-MO 5m bifacial modules + Huawei SUN2000-330KTL-H1 string inverters on a K2 Systems N-Rack mounting system) returns an NPV ≈ USD 6.45 M over a 25-year horizon at a 9.00% WACC, with discounted payback ≈ 5.63 yr (simple payback 4.31 yr — undiscounted reference only), IRR ≈ 24.67%, and LCOE ≈ USD 0.0524/kWh versus a USD 0.115/kWh baseline industrial tariff. Decision: proceed, subject to site-yield validation (Solargis/PVGIS bankable study before FID). Equipment family: LONGi Hi-MO 5m LR5-72HBD/LR5-54HTH bifacial mono-PERC modules, Huawei SUN2000-330KTL-H1 3-phase 1500 V string inverters (50–330 kW units, ~15 inverters at 5 MWp DC), K2 Systems N-Rack ground-mount + S-Rack rail. Limitation: yield, degradation, performance-ratio and tariff-escalation values are model assumptions bounded to the cited references; obtain project-specific certificate numbers (e.g. IEC 61215 test report, IEC 61730, UL 61730-1) from the EPC at FID. Evidence date: 2026-01-15.
| Metric | Value |
|---|---|
| NPV (25 yr, 9.00% WACC) | USD 6,449,006.52 |
| IRR | 24.67% |
| Discounted payback | 5.63 yr (cumulative Σ PV(CF_j) crosses C0) |
| Simple payback (undiscounted reference) | 4.31 yr |
| LCOE | USD 0.0524/kWh |
| Baseline industrial tariff (assumed) | USD 0.115/kWh |
| PV of costs / PV of benefits | USD 4,118,346.74 / USD 10,567,353.25 |
1. Use-Case Snapshot
| Parameter | Value | Unit |
|---|---|---|
| Use-case | Factory solar (rooftop + ground-mount hybrid) | — |
| Location (representative) | Latin America (LATAM) — well-sited, fixed-tilt ground-mount plus rooftop | — |
| DC capacity | 5,000 | kWp |
| Module family (in scope) | LONGi Hi-MO 5m LR5-72HBD / LR5-54HTH bifacial mono-PERC, 540–550 Wp class | — |
| Inverter family (in scope) | Huawei SUN2000-330KTL-H1, 330 kW 3-phase 1500 V DC, 8-MPPT string inverter (≈15 units) | — |
| Mounting (in scope) | K2 Systems N-Rack driven-pile ground-mount + S-Rack rail (rooftop variant) | — |
| Project life | 25 | years |
2. Inputs Table (Cited)
| # | Input | Value | Unit | Source | URL |
|---|---|---|---|---|---|
| I-1 | Module family (in scope) | LONGi Hi-MO 5m LR5-72HBD / LR5-54HTH | — | LONGi Hi-MO 5m product page | https://www.longi.com/en/products/modules/hi-mo-5m/ |
| I-2 | Inverter family (in scope) | Huawei SUN2000-330KTL-H1 (330 kW, 1500 V DC, 8 MPPT) | — | Huawei FusionSolar product page | https://solar.huawei.com/en/products/sun2000-330ktl-h1 |
| I-3 | Mounting system (in scope) | K2 Systems N-Rack driven-pile + S-Rack rail | — | K2 Systems N-Rack product page | https://k2-systems.com/en/product-solutions/k2-n-rack-system/ |
| I-4 | Specific yield (LATAM average, fixed-tilt, well-sited) | 1,650 | kWh/kWp/yr | IRENA — Renewable Power Generation Costs in 2023 (LATAM annex, PV yield band) — model assumption bounded to source range | https://www.irena.org/Publications/2024/Sep/Renewable-power-generation-costs-in-2023 |
| I-5 | Module annual degradation | 0.40 | %/yr | NREL — Jordan & Kurtz, Photovoltaic Degradation Rates — An Analytical Review (NREL/CP-5200-XXXXX), p. analytical-review median for mono-PERC | https://www.nrel.gov/docs/fy22osti/80678.pdf |
| I-6 | Performance ratio (system availability / PR) | 82 | % | IEA PVPS — Trends in PV Applications 2024 (PR bands, Table – utility/C&I) | https://iea-pvps.org/trends-reports/trends-in-pv-applications-2024/ |
| I-7 | Industrial CAPEX (turnkey, 5 MWp LATAM) | 750 | USD/kWp | IRENA — Renewable Power Generation Costs in 2023 (LATAM utility-scale / commercial band) | https://www.irena.org/Publications/2024/Sep/Renewable-power-generation-costs-in-2023 |
| I-8 | Annual OPEX (O&M + insurance + inverter reserve) | 1.0 | % of CAPEX/yr | IRENA — Renewable Power Generation Costs in 2023, O&M assumptions for utility-scale PV | https://www.irena.org/Publications/2024/Sep/Renewable-power-generation-costs-in-2023 |
| I-9 | Industrial grid tariff — baseline (LATAM average) | 0.115 | USD/kWh | OLADE — Latin American Energy Organization, Panorama Energético regional tariffs | https://www.olade.org/publicaciones/panorama-energetico-de-america-latina-y-el-caribe/ |
| I-10 | Industrial tariff escalation | 3.0 | %/yr nominal | OLADE regional trend 2018–2023, applied as forward escalation assumption | https://www.olade.org/publicaciones/panorama-energetico-de-america-latina-y-el-caribe/ |
| I-11 | Discount rate (WACC, industrial PPA-backed) | 9.00 | %/yr | TradVolt editorial assumption — disclosed for transparency; user may substitute | — (model assumption) |
| I-12 | Residual value amount | 0 | USD | TradVolt editorial assumption (bounded to zero; no terminal salvage modeled) | — (model assumption) |
| I-13 | Residual value year | 25 | yr | TradVolt editorial assumption (residual measured at end of horizon) | — (model assumption) |
| I-14 | PV export tariff | 0 | USD/kWh | TradVolt editorial assumption (no export/wheeling revenue; all output offsets self-consumption); see OLADE for regulator-specific wheeling rates | https://www.olade.org/publicaciones/panorama-energetico-de-america-latina-y-el-caribe/ |
Disclaimer on OEM manuals. Module degradation 0.40%/yr and performance ratio 82% are bounded to the cited analytical review and IEA PVPS PR band; consult the LONGi Hi-MO 5m LR5-72HBD product page (above) for module-specific warranted degradation (e.g. 2-year ≥ 98%, linear to ≥ 85% at year 25) before FID. Inverter availability/prating are bounded to the SUN2000-330KTL-H1 product page (above). Mounting structural limits are bounded to the K2 Systems N-Rack product page (above); confirm ground-load and ballast with the K2 manual revision issued at the EPC award.
3. TCO Tables (Computed)
| Metric | Value |
|---|---|
| Currency | USD |
| Horizon (years) | 25 |
| Discount rate | 9.00 % |
| Total undiscounted cost (USD) | 4,687,500.00 |
| Total discounted cost / PV of costs (USD) | 4,118,346.74 |
| Total undiscounted benefit (USD) | 30,000,020.22 |
| Total discounted benefit (USD) | 10,567,353.25 |
| NPV (USD) | 6,449,006.52 |
| IRR | 0.2467 |
| Simple payback (year) | 4.31 |
| Discounted payback (year) | 5.63 |
| LCOE (USD/kWh) | 0.0524 |
| Year | Cost (USD) | Benefit (USD) | Net (USD) | Discount factor | Discounted net (USD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 3,750,000.00 | 0.0000 | -3,750,000.00 | 1.00 | -3,750,000.00 | 0.0000 |
| 1 | 37,500.00 | 868,312.50 | 830,812.50 | 0.9174 | 762,213.30 | 8,250,000.00 |
| 2 | 37,500.00 | 890,784.43 | 853,284.43 | 0.8417 | 718,192.43 | 8,217,000.00 |
| 3 | 37,500.00 | 913,837.93 | 876,337.93 | 0.7722 | 676,693.67 | 8,184,132.00 |
| 4 | 37,500.00 | 937,488.05 | 899,988.05 | 0.7084 | 637,574.23 | 8,151,395.47 |
| 5 | 37,500.00 | 961,750.24 | 924,250.24 | 0.6499 | 600,699.24 | 8,118,789.89 |
| 6 | 37,500.00 | 986,640.34 | 949,140.34 | 0.5963 | 565,941.37 | 8,086,314.73 |
| 7 | 37,500.00 | 1,012,174.59 | 974,674.59 | 0.5470 | 533,180.38 | 8,053,969.47 |
| 8 | 37,500.00 | 1,038,369.67 | 1,000,869.67 | 0.5019 | 502,302.74 | 8,021,753.59 |
| 9 | 37,500.00 | 1,065,242.68 | 1,027,742.68 | 0.4604 | 473,201.28 | 7,989,666.58 |
| 10 | 37,500.00 | 1,092,811.16 | 1,055,311.16 | 0.4224 | 445,774.84 | 7,957,707.91 |
| 11 | 37,500.00 | 1,121,093.11 | 1,083,593.11 | 0.3875 | 419,927.93 | 7,925,877.08 |
| 12 | 37,500.00 | 1,150,107.00 | 1,112,607.00 | 0.3555 | 395,570.42 | 7,894,173.57 |
| 13 | 37,500.00 | 1,179,871.77 | 1,142,371.77 | 0.3262 | 372,617.28 | 7,862,596.88 |
| 14 | 37,500.00 | 1,210,406.85 | 1,172,906.85 | 0.2992 | 350,988.23 | 7,831,146.49 |
| 15 | 37,500.00 | 1,241,732.18 | 1,204,232.18 | 0.2745 | 330,607.54 | 7,799,821.91 |
| 16 | 37,500.00 | 1,273,868.21 | 1,236,368.21 | 0.2519 | 311,403.77 | 7,768,622.62 |
| 17 | 37,500.00 | 1,306,835.92 | 1,269,335.92 | 0.2311 | 293,309.48 | 7,737,548.13 |
| 18 | 37,500.00 | 1,340,656.83 | 1,303,156.83 | 0.2120 | 276,261.09 | 7,706,597.93 |
| 19 | 37,500.00 | 1,375,353.03 | 1,337,853.03 | 0.1945 | 260,198.59 | 7,675,771.54 |
| 20 | 37,500.00 | 1,410,947.17 | 1,373,447.17 | 0.1784 | 245,065.40 | 7,645,068.46 |
| 21 | 37,500.00 | 1,447,462.48 | 1,409,962.48 | 0.1637 | 230,808.13 | 7,614,488.18 |
| 22 | 37,500.00 | 1,484,922.81 | 1,447,422.81 | 0.1502 | 217,376.43 | 7,584,030.23 |
| 23 | 37,500.00 | 1,523,352.61 | 1,485,852.61 | 0.1378 | 204,722.83 | 7,553,694.11 |
| 24 | 37,500.00 | 1,562,776.98 | 1,525,276.98 | 0.1264 | 192,802.55 | 7,523,479.33 |
| 25 | 37,500.00 | 1,603,221.65 | 1,565,721.65 | 0.1160 | 181,573.35 | 7,493,385.42 |
Headline payback (5.63 yr) is computed from the discounted cash-flow series — the first year where cumulative Σ PV(CF_j) crosses C0 = USD 3,750,000. The simple payback figure (4.31 yr) is the undiscounted cumulative-cash crossing of C0 and is shown as a reference only; cost and benefit streams are both discounted in every headline figure (NPV, IRR, LCOE, discounted payback).
4. Sensitivity Table
Each scenario is recomputed from the same base inputs with only the indicated input changed. Headline figures below are derived by scaling the base NPV/LCOE/discounted-payback deltas with the input perturbation; treat as directional only — do not treat as fresh computed outputs.
| Scenario | CAPEX (USD/kWp) | Specific yield (kWh/kWp/yr) | Tariff escalation (%/yr) | Discount rate (%/yr) | NPV direction (USD) | LCOE direction (USD/kWh) | Discounted payback direction (yr) |
|---|---|---|---|---|---|---|---|
| Base | 750 | 1,650 | 3.0 | 9.00 | 6,449,007 (computed) | 0.0524 (computed) | 5.63 (computed) |
| CAPEX +10% | 825 | 1,650 | 3.0 | 9.00 | ↓ vs base | ↑ vs base | ↑ vs base |
| CAPEX −10% | 675 | 1,650 | 3.0 | 9.00 | ↑ vs base | ↓ vs base | ↓ vs base |
| Yield −15% | 750 | 1,403 | 3.0 | 9.00 | ↓↓ (likely negative) | ↑ vs base | ↑↑ vs base |
| Yield +10% | 750 | 1,815 | 3.0 | 9.00 | ↑ vs base | ↓ vs base | ↓ vs base |
| Tariff esc. 1.5% | 750 | 1,650 | 1.5 | 9.00 | ↓ vs base | = base (LCOE depends on cost side) | ↑ vs base |
| Tariff esc. 4.5% | 750 | 1,650 | 4.5 | 9.00 | ↑ vs base | = base | ↓ vs base |
| WACC 12% | 750 | 1,650 | 3.0 | 12.00 | ↓ vs base | ↑ vs base | ↑↑ vs base |
| WACC 7% | 750 | 1,650 | 3.0 | 7.00 | ↑ vs base | ↓ vs base | ↓ vs base |
Yield caveat (R12 / R15). The 0.40%/yr degradation and 82% PR are bounded to the cited NREL analytical review and the IEA PVPS Trends in PV Applications 2024 PR band; both are model assumptions bounded to the sources, not project-specific OEM-tested values. LONGi Hi-MO 5m module-level degradation warrants (per the LONGi product page) should be reviewed at FID; Huawei SUN2000-330KTL-H1 CEC/PR ratings should be confirmed against the Huawei product page datasheet at RFQ. Project-yield validation (PVGIS-SARAH2 / Solargis bankable study) is gating before FID — yield is the dominant NPV lever.
5. Verdict by Scenario
- Base case (computed): NPV USD 6,449,007; IRR 24.67%; LCOE USD 0.0524/kWh (well below the USD 0.115/kWh baseline tariff); discounted payback 5.63 yr; simple payback 4.31 yr (undiscounted reference). Recommend: proceed with standard PPA/BOOT structure, subject to site yield validation.
- CAPEX +10%: NPV direction ↓ vs base; verify EPC tender pressure or FX-linked module pricing before proceeding.
- CAPEX −10%: NPV direction ↑ vs base; highly attractive if achievable through competitive tender.
- Yield −15% (shading, soiling, or weaker resource): NPV direction ↓↓ (likely negative). Site yield validation is gating before FID.
- Yield +10%: NPV direction ↑ vs base; excellent if achievable via tracker upgrade or confirmed high-irradiation site.
- Tariff escalation 1.5%: NPV direction ↓ vs base; hedge or lock tariff via PPA where regulators allow.
- Tariff escalation 4.5%: NPV direction ↑ vs base; LATAM tariff pressure makes this plausible.
- WACC 12%: NPV direction ↓↓ vs base (likely marginal); recommend blended finance or a concessional facility to lower WACC.
- WACC 7%: NPV direction ↑↑ vs base; achievable with DFI-backed financing.
6. Compliance References (Standard Families)
| Standard family | Edition / year | Scope | Publisher | Cited URL | Certificate number |
|---|---|---|---|---|---|
| IEC 61215 (Crystalline silicon PV modules — design qualification) | Edition 2 (IEC 61215-1:2021 / -1-2:2021 / -1-3:2021 / -1-4:2021 series) | Module design qualification (LONGi Hi-MO 5m family) | IEC | https://webstore.iec.ch/ (catalog query "IEC 61215") | Project-specific — obtain from EPC at FID (e.g. TÜV Rheinland / TÜV SÜD / UL / CQC test report number) |
| IEC 61730 (PV module safety qualification) | IEC 61730-1:2016 / IEC 61730-2:2016 | Module safety (LONGi Hi-MO 5m family) | IEC | https://webstore.iec.ch/ (catalog query "IEC 61730") | Project-specific — obtain from EPC at FID |
| UL 61730-1 (PV module safety qualification — US) | UL 61730-1 (current edition) | Module safety — US market (LONGi Hi-MO 5m family) | UL Standards | https://www.shopulstandards.com/ProductDetail.aspx?productId=UL61730-1 | Project-specific — obtain from EPC at FID |
| IEC 62109 (Power converter for PV — safety) | IEC 62109-1:2010 / IEC 62109-2:2011 | Inverter safety (Huawei SUN2000-330KTL-H1) | IEC | https://webstore.iec.ch/ (catalog query "IEC 62109") | Project-specific — obtain from EPC at FID |
| IEEE 1547 / IEC 61727 (grid interconnection) | IEEE 1547-2018 / IEC 61727:2004 | Grid interconnection (where applicable) | IEEE / IEC | https://webstore.iec.ch/ (catalog query "IEC 61727") | Project-specific — obtain from EPC at FID |
| UN Manual of Tests and Criteria, ST/SG/AC.10/11/Rev.7 (UN 38.3 lithium battery provisions — only relevant if paired BESS is added later) | Rev.7 (current) | Lithium battery transport classification | UNECE | https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria | Not applicable to this PV-only scope (would apply to paired storage such as BYD Energy Storage or CATL ESS) |
Compliance disclaimer. The references above are standard families (designations + editions + publishers). They are not project-specific certificates. Obtain project-specific test report / certificate numbers (e.g. IEC 61215 test report from TÜV Rheinland / TÜV SÜD / UL / CQC; UL 61730-1 attestation) from the EPC at FID.
7. HS Code & Customs Lookup (For Buyer/Importer Reference)
| HS heading (illustrative) | Item | Lookup tool | Status |
|---|---|---|---|
| 8541.43 | Photovoltaic cells and modules (laminated) | USITC HTS · EU TARIC · UK Global Tariff · NZ Working Tariff Document · WCO HS Nomenclature 2022 | PENDING — lookup required per destination country |
| 8504.40 | Static converters (inverters) | USITC HTS · EU TARIC · UK Global Tariff · NZ Working Tariff Document · WCO HS Nomenclature 2022 | PENDING — lookup required per destination country |
| 8504.23 | Liquid dielectric transformers (MV step-up) | USITC HTS · EU TARIC · UK Global Tariff · NZ Working Tariff Document | PENDING — lookup required per destination country |
| 7610.90 | Aluminium structures (mounting) | USITC HTS · EU TARIC · UK Global Tariff | PENDING — lookup required per destination country |
| 8544.49 | Other electric conductors (DC/AC cabling) | USITC HTS · EU TARIC · UK Global Tariff | PENDING — lookup required per destination country |
HS code lookup instructions: verify the exact heading, sub-heading, and any national/regional tariff amendments in the destination-country customs tariff before quoting (e.g. Brazilian Tarifa Externa Comum — TEC; Mexican TIGIE; Colombian Arancel de Aduanas; Chilean Arancel Aduanero). TradVolt does not assert any duty rate as fact and disclaims liability for customs decisions made on unverified codes. For LATAM-EU trade, see Regulation (EU) 2023/1542 where battery / storage annexes intersect.
8. Reference Documentation (Source URLs)
- LONGi Hi-MO 5m module family — https://www.longi.com/en/products/modules/hi-mo-5m/
- Huawei SUN2000-330KTL-H1 inverter — https://solar.huawei.com/en/products/sun2000-330ktl-h1
- K2 Systems N-Rack mounting system — https://k2-systems.com/en/product-solutions/k2-n-rack-system/
- IRENA — Renewable Power Generation Costs in 2023 (LATAM annex) — https://www.irena.org/Publications/2024/Sep/Renewable-power-generation-costs-in-2023
- NREL — Jordan & Kurtz, Photovoltaic Degradation Rates — An Analytical Review — https://www.nrel.gov/docs/fy22osti/80678.pdf
- IEA PVPS — Trends in PV Applications 2024 (PR bands) — https://iea-pvps.org/trends-reports/trends-in-pv-applications-2024/
- OLADE — Panorama Energético de América Latina y el Caribe — https://www.olade.org/publicaciones/panorama-energetico-de-america-latina-y-el-caribe/
- EU PVGIS — photovoltaic calculator (SARAH2) — https://re.jrc.ec.europa.eu/pvg_tools/en/
- IEC Webstore catalogue — https://webstore.iec.ch/ (catalog queries "IEC 61215", "IEC 61730", "IEC 62109", "IEC 61727")
- UL 61730-1 product page — https://www.shopulstandards.com/ProductDetail.aspx?productId=UL61730-1
- UN Manual of Tests and Criteria (UN 38.3) — https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria
- WCO HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition
- USITC Harmonized Tariff Schedule — https://hts.usitc.gov/
- EU TARIC consultation — https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en
- UK Global Tariff — https://www.trade-tariff.service.gov.uk/
- NZ Customs Working Tariff Document — https://www.customs.govt.nz/business/tariffs/working-tariff-document/
- Fraunhofer ISE Photovoltaics Report — https://www.ise.fraunhofer.de/en/publications/studies/photovoltaics-report.html
- Bank of England Monetary Policy Report Aug 2025 (inflation context for WACC benchmark) — https://www.bankofengland.co.uk/monetary-policy-report/2025/august-2025
9. Calls to Action
Ready to scope a 5 MWp factory-solar project in LATAM? Request a formal technical-commercial proposal from TradVolt engineering: