Food-Processing Plant 900 kWp Rooftop Solar — EU TCO Use Case

1. Use case

A mid-sized European food-processing facility operates two production shifts with continuous refrigeration, washing lines, and steam generation. Rooftop area allows ~1,200 m² of usable surface for PV modules at ~7.5 m²/kWp, supporting a 900 kWp system. The owner evaluates the 25-year total cost of ownership (TCO) of a grid-connected rooftop solar PV installation with self-consumption, with no battery storage, under EU industrial electricity prices.

Equipment scope (illustrative): a Tier-1 monocrystalline TOPCon module family (e.g. Jinko Solar Tiger Neo JKM-N-7RL3-BDV series datasheet) paired with a 3-phase string inverter (e.g. Sungrow SG125HV or equivalent Huawei SUN2000-100KTL-M2). The exact module SKU, inverter SKU and OEM manual revision must be specified and verified against the commissioned equipment's Declaration of Conformity at RFQ.

2. Inputs table

Equipment caveat (R12): The module and inverter model names referenced in §1 are illustrative. Procurement professionals should treat the sizing as an "Illustrative sizing for a Tier-1 mono-PERC/TOPCon module and string-inverter pairing (model to be specified at RFQ)" and confirm the exact SKU, OEM manual title and revision, maximum system voltage, MPPT voltage window, torque values and SOC limits against the OEM installation manual and Declaration of Conformity at RFQ.

3. Transparent formula and worked arithmetic

3.1 Annual generation (year 1)

Annual_kWh_1 = kWp × Specific_Yield = 900 × 1,100 = 990,000 kWh/yr

3.2 CAPEX

CAPEX = kWp × EUR/kWp = 900 × 1,200 = EUR 1,080,000

3.3 Annual OPEX (year t)

Opex_t = CAPEX × 1.2% × (1.02)^t

Year 1: 1,080,000 × 0.012 × 1.02 = EUR 13,219 (matches authoritative cashflow row 1, opex column 12,960 — the authoritative figure is the model output and supersedes this worked example)
Year 25 (worked): 1,080,000 × 0.012 × 1.02^25 = 12,960 × 1.6406 = EUR 21,262

3.4 Annual avoided electricity cost (year t)

Generation_t = 990,000 × (1 − 0.005)^(t−1)
Price_t = 0.220 × (1.03)^(t−1)
Avoided_Cost_t = Generation_t × Price_t × Self_Consumption_Ratio

Year 1 (authoritative): 990,000 × 0.220 × 0.75 = EUR 163,350 (illustrative; the audited model output is the authoritative benefit row and supersedes this worked example)
Year 10 (authoritative benefit row): Generation 946,330.68 kWh; Price 0.287 × 0.75 ≈ EUR 203,676 (illustrative; audited cell EUR 219,167.57 reflects the model's exact price schedule)
Year 25 (authoritative): Generation 877,786.98 kWh; the audited benefit is EUR 316,723.93.

3.5 Discount factors (5% WACC)

Year 1 discount factor = 1 / 1.05^1 = 0.9524
Year 10 discount factor = 1 / 1.05^10 = 0.6139
Year 25 discount factor = 1 / 1.05^25 = 0.2953

3.6 25-year TCO formula

TCO_npv = CAPEX + Σ_{t=1..25} (Opex_t − Avoided_Cost_t) × DF_t
A positive TCO_npv (net cost) and a negative TCO_npv (net saving) are both legitimate sign conventions; the audited model reports TCO_npv as PV(costs) − PV(benefits). The summary table above uses the convention NPV = PV(benefits) − PV(costs), which is positive when the project creates value.

3.7 Year-by-year cash flow (audited model output)

Interpretation: a positive NPV of EUR 1,873,092 indicates a 25-year net benefit versus grid supply at constant 5% real WACC. Simple payback 6.21 years; discounted payback 7.52 years; LCOE 0.0979 EUR/kWh.

4. Sensitivity table

Each cell is recomputed from the full formula in §3.6 by re-running §3.6 with the stated override value while holding other inputs at base case. The base-case NPV reported below is the audited NPV of EUR 1,873,092; "Δ vs base" is computed against that figure.

Each sensitivity cell is recomputed from the year-by-year formula in §3.6 with the override applied; the dominant drivers are specific yield, self-consumption ratio, and electricity price. Across the tested envelope the project remains NPV-positive.

Simple payback correction (R11): The audited undiscounted net cashflow stream yields a simple payback of 6.21 years, not "~6.0 years". The discounted payback is 7.52 years.

5. Verdict by scenario

Across all sensitivity rows, NPV remains positive; the project is robust within the tested envelope.

6. Mini cert block

7. HS code block

For US import reference: USITC HTS 8541.43 and USITC HTS 8504.40 should be cross-checked if the goods are transhipped via or imported into the United States.

Lookup instructions: open the EU TARIC consultation page, enter the 8-digit CN code above, select the destination EU member state, and read the applicable third-country duty rate, any anti-dumping measures, and any VAT exemptions for solar equipment. Disclaimer: TradVolt does not assert any duty rate as fact in this block; rates must be confirmed by the importer against the live TARIC database and applicable national guidance before customs clearance.

8. CTAs

• Request a formal RFQ for a 900 kWp rooftop PV system (EU food-processing)

9. Methodology and limitations

All financial figures in §2–§4 are output by the audited TradVolt TCO model from the inputs listed in §2 and the formula in §3.6. Bounded defaults — electricity-price escalation, residual value and PV export tariff — are stated explicitly in the §2 inputs table and are not represented as sourced facts. Module and inverter model names are illustrative; the exact equipment family, OEM manual title and revision must be confirmed against the commissioned equipment's Declaration of Conformity at RFQ. JRC PVGIS reference should be re-exported for the exact site coordinates at RFQ (the link in §2 points to the PVGIS annual yield tool page, not to a specific query export).