Factory Solar 5 MWp ZA — Use Case & TCO

Verdict (5 MWp DC factory rooftop PV, Gauteng/Highveld, Eskom grid-tied, 25-year horizon, evidence date 2026-09-22): NPV = ZAR 91,153,381.94; simple payback 3.03 years; discounted payback 3.77 years at a 10.00% WACC; LCOE = 0.7032 ZAR/kWh (excl. VAT); IRR = 33.85%. Equipment commit: LONGi Hi-MO 5m LR5-72HBD-550M bifacial mono-PERC module paired with Huawei SUN2000-330KTL-H1 (330 kW, 1500 V DC, 8-MPPT) string inverter. Limitation: figures are bound to the scenario model's stated inputs (specific yield 1,650 kWh/kWp/yr after 6% rooftop derating, 0.5%/yr linear module degradation, 85% self-consumption ratio, 0.0%/yr real tariff escalation); see Inputs table for the full bound.

Decision Table (base case, 10.00% WACC, 25-year horizon)

MetricValue
NPVZAR 91,153,381.94
IRR33.85%
Simple payback3.03 years
Discounted payback3.77 years
LCOE (excl. VAT)0.7032 ZAR/kWh
Total discounted cost (PV of costs)ZAR 50,754,836.10
Total discounted benefitZAR 141,908,218.04
Total undiscounted costZAR 76,002,146.64
Total undiscounted benefitZAR 418,502,814.19
Discount rate / currency10.00% nominal / ZAR

1. Inputs Table (model assumption unless cited)

InputValueBasis
System size5,000 kWp (DC)Model assumption: 5 MWp factory-rooftop class.
Commit moduleLONGi Hi-MO 5m LR5-72HBD-550M (550 Wp bifacial mono-PERC, 144 half-cell)Public product page: https://www.longi.com/en/products/modules/hi-mo-5m/; module family datasheet LONGi Hi-MO 5m.
Commit inverterHuawei SUN2000-330KTL-H1 (330 kW, 1500 V DC, 8-MPPT, 3-phase, IP66)Public product page: https://solar.huawei.com/en/products/sun2000-330ktl-h1.
Specific yield (year 1)1,650 kWh/kWp/yrEU PVGIS-SARAH2 Highveld baseline for Gauteng industrial-roof band, reduced 6% for rooftop tilt/azimuth derating (https://re.jrc.ec.europa.eu/pvg_tools/en/).
Degradation0.5%/yr linear (modules)Model assumption, within IEA PVPS Trends in PV Applications 2024 tier-1 median band (https://iea-pvps.org/trends-reports/trends-in-pv-applications-2024/).
Discount rate (WACC)10.00% nominalModel assumption for SA corporate green-tech capex.
Horizon25 yearsModel assumption, aligned with module service life.
Tariff scenarios (excl. VAT)ZAR 1.40 / 1.85 / 2.40 per kWhEskom Megaflex low / weighted ToU / peak-heavy ToU reference bands per Eskom Distribution Tariffs & Charges hub (https://www.eskom.co.za/distribution/tariffs-and-charges/) and NERSA pricing reference (https://www.nersa.org.za/electricity/pricing-and-tariffs/). Confirm current schedule at RFQ.
Self-consumption ratio85% of generationModel assumption for SA factory daytime load vs. solar curve.
Export tariff (residual 15%)ZAR 0.78/kWh (excl. VAT)Model assumption, aligned to Eskom Megaflex off-peak reference band (https://www.eskom.co.za/distribution/tariffs-and-charges/).
Inverter replacement reserveZAR 900,000 at year 12Model assumption: Huawei SUN2000-330KTL-H1 string-inverter replacement at end of OEM warranty envelope.
Asset residual value (model default)Not credited at horizon endModel assumption: residual_value.amount = 0 ZAR; residual_value.year = 25.
PV-tariff escalation (model default)0.0%/yr above CPI (i.e. real tariff held constant)Model assumption: asset.pv.tariff_escalation_pct = 0; SARB 3–6% CPI target band cited (https://www.resbank.co.za/en/home/what-we-do/monetary-policy).

2. CAPEX Build-up (model basis; sums reconcile to the computed Year-0 cost line)

LineRate (ZAR/Wp)kWpSubtotal (ZAR)
Modules (LONGi Hi-MO 5m LR5-72HBD-550M)1.555,0007,750,000
Inverter (Huawei SUN2000-330KTL-H1, AC-side)0.955,000 (Wp DC scaled)4,750,000
Racking + BoS1.855,0009,250,000
EPC + margin2.405,00012,000,000
Hardware + EPC subtotal6.755,00033,750,000
Grid-interconnection + metering——2,250,000
Project-development (sunk, amortised)——1,500,000
Total CAPEX (excl. VAT)——37,500,000
Contingency 8%——3,000,000
Total installed CAPEX (excl. VAT) — Year-0 cost line——40,500,000
VAT 15% (recoverable in many cases — shown separately)——6,075,000

3. TCO Summary (scenario model output, copy verbatim)

TCO summary
MetricValue
CurrencyZAR
Horizon (years)25
Discount rate10.00 %
Total undiscounted cost (ZAR)76,002,146.64
Total discounted cost / PV of costs (ZAR)50,754,836.10
Total undiscounted benefit (ZAR)418,502,814.19
Total discounted benefit (ZAR)141,908,218.04
NPV (ZAR)91,153,381.94
IRR0.3385
Simple payback (year)3.03
Discounted payback (year)3.77
LCOE (ZAR/kWh)0.7032

4. Year-by-year Cash Flow (scenario model output, copy verbatim)

Year-by-year cash flow
YearCost (ZAR)Benefit (ZAR)Net (ZAR)Discount factorDiscounted net (ZAR)Energy (kWh)
040,500,000.000.0000-40,500,000.001.00-40,500,000.000.0000
1725,000.0013,938,375.0013,213,375.000.909112,012,159.098,250,000.00
2761,250.0014,146,056.7913,384,806.790.826411,061,823.798,208,750.00
3799,312.5014,356,833.0313,557,520.530.751310,185,965.848,167,706.25
4839,278.1314,570,749.8513,731,471.720.68309,378,779.958,126,867.72
5881,242.0314,787,854.0213,906,611.990.62098,634,911.918,086,233.38
6925,304.1315,008,193.0414,082,888.910.56457,949,423.658,045,802.21
7971,569.3415,231,815.1214,260,245.780.51327,317,760.898,005,573.20
81,020,147.8115,458,769.1714,438,621.360.46656,735,723.427,965,545.34
91,071,155.2015,689,104.8314,617,949.630.42416,199,437.627,925,717.61
101,124,712.9615,922,872.4914,798,159.530.38555,705,331.107,886,089.02
111,180,948.6016,160,123.2914,979,174.680.35055,250,109.357,846,658.58
122,139,996.0316,400,909.1214,260,913.090.31864,543,966.407,807,425.28
131,301,995.8416,645,282.6715,343,286.830.28974,444,403.667,768,388.16
141,367,095.6316,893,297.3815,526,201.750.26334,088,534.187,729,546.22
151,435,450.4117,145,007.5115,709,557.100.23943,760,743.077,690,898.49
161,507,222.9317,400,468.1315,893,245.200.21763,458,833.227,652,443.99
171,582,584.0817,659,735.1016,077,151.020.19783,180,778.627,614,181.77
181,661,713.2817,922,865.1516,261,151.870.17992,924,711.107,576,110.86
191,744,798.9418,189,915.8416,445,116.900.16352,688,908.027,538,230.31
201,832,038.8918,460,945.5916,628,906.700.14862,471,781.027,500,539.16
211,923,640.8418,736,013.6816,812,372.840.13512,271,865.547,463,036.46
222,019,822.8819,015,180.2816,995,357.410.12282,087,811.237,425,721.28
232,120,814.0219,298,506.4717,177,692.450.11171,918,373.057,388,592.67
242,226,854.7219,586,054.2217,359,199.490.10151,762,403.117,351,649.71
252,338,197.4619,877,886.4217,539,688.960.09231,618,843.107,314,891.46

5. Cert / Standards Block (commit equipment)

ItemStandardCitation
Modules — LONGi Hi-MO 5m LR5-72HBD-550MIEC 61215-1:2021 ed2 (design qualification); IEC 61215-1-1:2021 ed2 (c-Si specific); IEC 61730-1:2016 ed2 (PV module safety — construction)IEC Webstore IEC 61215-1:2021 ed2; IEC 61215-1-1:2021 ed2; IEC 61730-1:2016 ed2; UL 61730-1 product page UL 61730-1.
Inverter — Huawei SUN2000-330KTL-H1 (330 kW, 1500 V DC, 8-MPPT, IP66)IEC 62109-1:2010 (PCE safety, general); IEC 62109-2:2011 (PCE safety, inverters); NRS 097-2-1 (SA grid code)IEC Webstore IEC 62109-1:2010; IEC 62109-2:2011; Huawei product page SUN2000-330KTL-H1.
InstallationSANS 10142-1; SANS 10186To be verified by EPC.
SafetyOccupational Health and Safety Act (OHS Act), Construction Regulations 2014To be verified by EPC.

6. HS Code & Duty (lookup PENDING)

ComponentHS code (likely)Duty rate (SA)Status
PV modules (silicon)8541.43PENDINGLookup via SARS Customs & Excise Tariff (https://www.sars.gov.za/customs-and-excise/tariff/); SARS homepage https://www.sars.gov.za/.
Inverters (static converters)8504.40PENDINGLookup via SARS Customs & Excise Tariff (https://www.sars.gov.za/customs-and-excise/tariff/); SARS homepage https://www.sars.gov.za/.
Mounting structures (aluminium / steel)7610.90 / 7326.90PENDINGLookup via SARS Customs & Excise Tariff (https://www.sars.gov.za/customs-and-excise/tariff/); classify by base metal.

Disclaimer: HS classifications and duty rates above are lookup placeholders only and are not asserted as fact. Confirm via the official SARS Tariff Search before procurement.

7. Call-to-Action

Request a written RFQ for a 5 MWp factory rooftop solar PV system in South Africa

8. Sources

ClaimCitation (URL)
EU PVGIS-SARAH2 Highveld year-1 specific yield baselinehttps://re.jrc.ec.europa.eu/pvg_tools/en/
IEA PVPS tier-1 module degradation bandhttps://iea-pvps.org/trends-reports/trends-in-pv-applications-2024/
Eskom Distribution Tariffs & Charges hub (Megaflex reference)https://www.eskom.co.za/distribution/tariffs-and-charges/
NERSA electricity pricing & tariffs (Eskom schedule decisions)https://www.nersa.org.za/electricity/pricing-and-tariffs/
Stats SA CPI mid-cycle / SARB inflation target band (3–6%)https://www.resbank.co.za/en/home/what-we-do/monetary-policy
LONGi Hi-MO 5m module family (commit LR5-72HBD-550M)https://www.longi.com/en/products/modules/hi-mo-5m/
Huawei SUN2000-330KTL-H1 string inverter (330 kW, 1500 V DC, 8-MPPT, 3-phase)https://solar.huawei.com/en/products/sun2000-330ktl-h1
IEC 61215-1:2021 ed2 — PV module design qualification (Part 1: test requirements)https://webstore.iec.ch/en/publication/61345
IEC 61215-1-1:2021 ed2 — c-Si specific requirementshttps://webstore.iec.ch/en/publication/61346
IEC 61730-1:2016 ed2 — PV module safety (Part 1: construction)https://webstore.iec.ch/en/publication/25674
IEC 62109-1:2010 — PCE safety general requirementshttps://webstore.iec.ch/en/publication/6470
IEC 62109-2:2011 — PCE safety, invertershttps://webstore.iec.ch/en/publication/6471
UL 61730-1 PV module safety qualification (product page)https://www.shopulstandards.com/ProductDetail.aspx?productId=UL61730-1
SARS customs tariff lookup (homepage)https://www.sars.gov.za/
SARS Customs & Excise Tariff (ZA tariff docs)https://www.sars.gov.za/customs-and-excise/tariff/
RFQ submission (site path only)/rfq/