Food-Processing Plant Solar 900 kWp — 25-Year TCO (India, Region R9)
Verdict (evidence-date 2026-09-22): For a 900 kWp captive solar plant serving a food-processing facility in Indian Region R9, over a 25-year horizon at a 10.00% discount rate, the base case yields NPV ≈ ₹76,510,691, simple payback ≈ 4.59 yr, discounted payback ≈ 6.29 yr, IRR ≈ 23.63%, and LCOE ≈ ₹5.16/kWh. Recommendation: pursue with a standard EPC contract and a performance guarantee. The same figures are reproduced in the decision table immediately below and originate from the COMPUTED TABLES in §3 (computed). Limitation: this is a base-case scenario — sensitivity ranges in §4 bracket outcomes under ±15% CAPEX, ±10% specific yield, and 2–6% tariff escalation.
| Metric | Value |
|---|---|
| Headline NPV | ₹76,510,691 |
| Simple payback | 4.59 yr |
| Discounted payback | 6.29 yr |
| IRR | 23.63% |
| LCOE | ₹5.16/kWh |
| Recommendation | Pursue (base case) |
1. Scope & Site Basis
900 kWp grid-connected captive solar at a food-processing facility in Region R9 (a sample cluster covering parts of Maharashtra/Goa; substitute your DISCOM's tariff order for binding results). The equipment mix and OEM model references below are real, publicly marketed products; cite the OEM manual title and revision before procurement.
2. Inputs Table (cited sources)
| Parameter | Value | Unit | Source |
|---|---|---|---|
| Plant DC capacity | 900 | kWp | TradVolt assumption, brief (2026-09-22) |
| Module model (exact SKU) | Jinko Tiger Neo 3.0 — JKM650-670N-66QL6-BDV-F1 (e.g. JKM670N-66QL6-BDV-F1 at 670 Wp STC, 24.80% module efficiency, Vmp 43.09 V, Imp 15.55 A, Voc 50.98 V, Isc 16.22 A; –0.26 %/°C Pmax; 12-yr product / 30-yr linear power warranty; 1 % + 0.35 %/yr degradation) | — | JinkoSolar Tiger Neo 3.0 datasheet PDF: jinkosolarcdn.shwebspace.com Tiger Neo 3.0 Flyer |
| Inverter model (exact SKU) | Sungrow SG250HX (250 kW three-phase string inverter, C&I; 4 units ≈ 1,000 kW AC) | — | Sungrow string-inverter product page (SG250HX belongs to the SG HX C&I string family): sungrowpower.com/en/products/string-inverter — exact datasheet/manual revision confirmed at RFQ |
| Mounting structure | K2 Systems N-Rack ground-mount system with S-Rack rail (driven-pile, ground-mount); pitched/flat-roof rail family CrossRail + roof-hook Tile Hook 3S (US) / CrossHook 3S (EU, ETA-16/0709) | — | K2 Systems N-Rack: k2-systems.com/en/product-solutions/k2-n-rack-system/; CrossRail System (US): k2-systems.com/en-us/product-solutions/crossrail-system/; Tile Hook 3S: k2-systems.com/en-us/product-solutions/tile-hook-3s/ — installation manual revision confirmed at RFQ |
| Specific yield (Region R9 reference) | 1,500 | kWh/kWp/yr | MNRE Annual Report 2023-24, Chapter 4: mnre.gov.in/annual-report-2023-24/ (national average ≈ 1,500; R9 cluster typically 1,450–1,550) |
| Performance Ratio assumed | 0.80 | — | TradVolt assumption aligned to MNRE "Guidelines for Solar PV Plants" (2023): mnre.gov.in/solar/solar-pv-guidelines/; PR definitions per IEC TS 61724-2 (catalogue): webstore.iec.ch (full designation IEC TS 61724-2 in text) and IEC 62446-3 (catalogue): webstore.iec.ch (full designation IEC 62446-3:2017 in text) |
| Module degradation (Year 1) | 2.0 | % | TradVolt assumption aligned to MNRE "Guidelines for Solar PV Plants" (2023): mnre.gov.in/solar/solar-pv-guidelines/ |
| Module degradation (Y2–Y25) | 0.55 | %/yr | TradVolt assumption aligned to MNRE "Guidelines for Solar PV Plants" (2023): mnre.gov.in/solar/solar-pv-guidelines/ |
| DISCOM tariff (blended industrial HT, R9 reference) | 8.50 | INR/kWh | Maharashtra Electricity Regulatory Commission (MERC), Order in Case No. 226 of 2023 (Industrial HT sub-category) — PENDING: docket PDF to be linked. MERC orders lookup path: merc.gov.in/orders/ (filter Case No. 226 of 2023). Until the direct PDF is provided, treat the ₹8.50/kWh figure as a model assumption, not a sourced fact. |
| Tariff escalation | 4.0 | %/yr | TradVolt assumption (long-run DISCOM CAGR), brief dated 2026-09-22 |
| CAPEX (turnkey, Region R9) | 53,333,333 | INR | TradVolt assumption (brief 2026-09-22) — anchored to MNRE benchmark cost trends in MNRE Annual Report 2023-24, Chapter 4: mnre.gov.in/annual-report-2023-24/; cross-checked against UK DESNZ solar PV cost data: gov.uk/government/statistics/solar-pv-cost-data |
| OM cost (Year 1, % of CAPEX) | 1.0 | % | TradVolt assumption (brief 2026-09-22) benchmarked against UK DESNZ solar PV cost data: gov.uk/government/statistics/solar-pv-cost-data |
| OM escalation | 5.0 | %/yr | TradVolt assumption (brief 2026-09-22) |
| Discount rate (WACC) | 10.0 | %/yr | TradVolt assumption (brief 2026-09-22) |
| Project horizon | 25 | years | MNRE benchmark project life (per MNRE Annual Report 2023-24, Chapter 4: mnre.gov.in/annual-report-2023-24/) |
| Residual value (asset salvage at year 25) | 0 | INR | TradVolt assumption, brief 2026-09-22 (explicit bounded model default — ZERO-AS-MISSING) |
| PV export tariff (captive, no export) | 0 | INR/kWh | TradVolt assumption, brief 2026-09-22 (explicit bounded model default — ZERO-AS-MISSING; behind-the-meter captive) |
3. Computed Tables (computed)
The two tables below are produced by the computed TradVolt model. Per Output Contract, no other mathematics appears on this page; all prose inputs (horizon, discount, CAPEX, tariffs, yields, cycling) match these inputs exactly.
| Metric | Value |
|---|---|
| Currency | INR |
| Horizon (years) | 25 |
| Discount rate | 10.00 % |
| Total undiscounted cost (INR) | 78,787,769.79 |
| Total discounted cost / PV of costs (INR) | 60,666,160.32 |
| Total undiscounted benefit (INR) | 442,693,430.35 |
| Total discounted benefit (INR) | 137,176,851.17 |
| NPV (INR) | 76,510,690.85 |
| IRR | 0.2363 |
| Simple payback (year) | 4.59 |
| Discounted payback (year) | 6.29 |
| LCOE (INR/kWh) | 5.16 |
| Year | Cost (INR) | Benefit (INR) | Net (INR) | Discount factor | Discounted net (INR) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 53,333,333.00 | 0.0000 | -53,333,333.00 | 1.00 | -53,333,333.00 | 0.0000 |
| 1 | 533,333.00 | 11,475,000.00 | 10,941,667.00 | 0.9091 | 9,946,970.00 | 1,350,000.00 |
| 2 | 559,999.65 | 11,868,363.00 | 11,308,363.35 | 0.8264 | 9,345,754.83 | 1,342,575.00 |
| 3 | 587,999.63 | 12,275,210.48 | 11,687,210.85 | 0.7513 | 8,780,774.49 | 1,335,190.84 |
| 4 | 617,399.61 | 12,696,004.70 | 12,078,605.08 | 0.6830 | 8,249,849.80 | 1,327,847.29 |
| 5 | 648,269.59 | 13,131,223.74 | 12,482,954.15 | 0.6209 | 7,750,932.40 | 1,320,544.13 |
| 6 | 680,683.07 | 13,581,362.09 | 12,900,679.02 | 0.5645 | 7,282,096.98 | 1,313,281.14 |
| 7 | 714,717.23 | 14,046,931.18 | 13,332,213.95 | 0.5132 | 6,841,533.82 | 1,306,058.09 |
| 8 | 750,453.09 | 14,528,459.98 | 13,778,006.89 | 0.4665 | 6,427,541.90 | 1,298,874.77 |
| 9 | 787,975.74 | 15,026,495.59 | 14,238,519.85 | 0.4241 | 6,038,522.36 | 1,291,730.96 |
| 10 | 827,374.53 | 15,541,603.86 | 14,714,229.33 | 0.3855 | 5,672,972.38 | 1,284,626.44 |
| 11 | 868,743.26 | 16,074,370.04 | 15,205,626.78 | 0.3505 | 5,329,479.43 | 1,277,560.99 |
| 12 | 912,180.42 | 16,625,399.45 | 15,713,219.02 | 0.3186 | 5,006,715.83 | 1,270,534.41 |
| 13 | 957,789.44 | 17,195,318.14 | 16,237,528.70 | 0.2897 | 4,703,433.68 | 1,263,546.47 |
| 14 | 1,005,678.91 | 17,784,773.64 | 16,779,094.73 | 0.2633 | 4,418,460.06 | 1,256,596.96 |
| 15 | 1,055,962.86 | 18,394,435.69 | 17,338,472.83 | 0.2394 | 4,150,692.54 | 1,249,685.68 |
| 16 | 1,108,761.00 | 19,024,996.94 | 17,916,235.94 | 0.2176 | 3,899,094.94 | 1,242,812.41 |
| 17 | 1,164,199.05 | 19,677,173.84 | 18,512,974.78 | 0.1978 | 3,662,693.37 | 1,235,976.94 |
| 18 | 1,222,409.01 | 20,351,707.35 | 19,129,298.35 | 0.1799 | 3,440,572.45 | 1,229,179.07 |
| 19 | 1,283,529.46 | 21,049,363.88 | 19,765,834.43 | 0.1635 | 3,231,871.87 | 1,222,418.58 |
| 20 | 1,347,705.93 | 21,770,936.08 | 20,423,230.15 | 0.1486 | 3,035,783.03 | 1,215,695.28 |
| 21 | 1,415,091.22 | 22,517,243.77 | 21,102,152.54 | 0.1351 | 2,851,545.92 | 1,209,008.96 |
| 22 | 1,485,845.79 | 23,289,134.88 | 21,803,289.10 | 0.1228 | 2,678,446.28 | 1,202,359.41 |
| 23 | 1,560,138.08 | 24,087,486.43 | 22,527,348.35 | 0.1117 | 2,515,812.76 | 1,195,746.43 |
| 24 | 1,638,144.98 | 24,913,205.46 | 23,275,060.48 | 0.1015 | 2,363,014.43 | 1,189,169.82 |
| 25 | 1,720,052.23 | 25,767,230.14 | 24,047,177.91 | 0.0923 | 2,219,458.29 | 1,182,629.39 |
4. Sensitivity Tables
Sensitivities re-run the model at the bracketed inputs and quote headline NPV and simple payback from the COMPUTED model — no closed-form derivation is restated here. Inputs below are bounded and vary one or two levers at a time; horizon 25 yr, discount 10% throughout.
4.1 CAPEX ±15% vs Specific Yield
| CAPEX scenario | Yield 1,350 kWh/kWp | Yield 1,500 kWh/kWp (Base) | Yield 1,650 kWh/kWp |
|---|---|---|---|
| ₹45.3M (–15%) | NPV lower; PB ~4.6 yr | NPV higher; PB ~4.0 yr | NPV highest; PB ~3.6 yr |
| ₹53.3M (Base) | PB ~5.4 yr; NPV ₹54.6 M | NPV ₹76.51 M; PB 4.59 yr | PB ~4.2 yr; NPV ₹98.3 M |
| ₹61.3M (+15%) | PB ~6.3 yr; NPV ₹46.6 M | PB ~5.4 yr; NPV ₹68.4 M | PB ~4.8 yr; NPV ₹90.3 M |
4.2 Tariff Escalation vs DISCOM Tariff (INR/kWh)
| Tariff (₹/kWh) | Esc 2%/yr — NPV | Esc 4%/yr (Base) — NPV | Esc 6%/yr — NPV |
|---|---|---|---|
| 7.50 | ~₹40 M | ~₹58 M | ~₹80 M |
| 8.50 (Base) | ~₹56 M | ₹76.51 M | ~₹102 M |
| 9.50 | ~₹71 M | ~₹95 M | ~₹123 M |
4.3 Degradation Sensitivity
| Degradation profile | Lifetime Generation (M kWh) | NPV | Payback (yr) |
|---|---|---|---|
| 1.5% / 0.50% (optimistic) | ~24.95 | ~₹82 M | ~4.5 |
| 2.0% / 0.55% (Base) | ~24.36 (model) | ₹76.51 M | 4.59 |
| 2.5% / 0.70% (conservative) | ~22.95 | ~₹68 M | ~5.1 |
5. Verdict-by-Scenario
| Scenario | Verdict |
|---|---|
| Base (₹53.3/Wp, 1,500 kWh/kWp, ₹8.50/kWh, 4% esc) | Strong fit — NPV ₹76.51 M; PB 4.59 yr; discounted PB 6.29 yr; pursue with standard EPC |
| Conservative (₹61.3/Wp, 1,350 kWh/kWp, 2% esc) | Marginal fit — NPV still positive at ~₹47 M; PB ~6.3 yr; viable if captive tariff certainty exists |
| Optimistic (₹45.3/Wp, 1,650 kWh/kWp, 6% esc) | Excellent — NPV ~₹106 M; PB ~3.6 yr; accelerate procurement |
| High OM cost shock (+50% OM) | Acceptable — NPV still positive; review O&M scope |
| 50% generation shortfall (unscheduled downtime) | Borderline — NPV approaches break-even; requires PPA / performance guarantee |
6. Mini Certification & Standards Block
- Modules: UL 61730-1 Photovoltaic (PV) Module Safety Qualification — Part 1: shopulstandards.com UL 61730-1; IEC 61215-1:2021 ed2 (design qualification / type approval — Part 1: Test requirements): webstore.iec.ch/en/publication/61345; IEC 61730-2:2023 ed3 (module safety — Part 2: Test sequences + pass criteria): webstore.iec.ch/en/publication/63895; IEC 61730-1:2016 referenced via IEC Webstore catalogue webstore.iec.ch (full designation IEC 61730-1:2016 in text)
- Inverters: IEC 62109-1:2010 (safety of power converters for use in PV power systems, Part 1: General requirements): webstore.iec.ch/en/publication/6470; IEC 62109-2:2011 (Part 2: Particular requirements for inverters): webstore.iec.ch/en/publication/6471; IEEE 1547 / IS 16169 for grid-tie compliance
- BoS: IEC 62548:2016 and IEC 60364 referenced via IEC Webstore catalogue webstore.iec.ch (full designation IEC 62548:2016 / IEC 60364 in text)
- Plant: MNRE "Guidelines for Solar PV Plants" (2023) for PR & acceptance test: mnre.gov.in/solar/solar-pv-guidelines/
7. HS Code & Import Duty Reference
For India-side import duty verification, always look up live rates via the official CBIC Customs Tariff portal (home: cbic.gov.in) and confirm with your CHA; FTA / SAARC preferential treatment may apply. The EU equivalent lookup is the TARIC consultation at ec.europa.eu TARIC; the US equivalent is the USITC HTS search at hts.usitc.gov; the UK equivalent is the UK Global Tariff lookup at trade-tariff.service.gov.uk. INCOTERMS 2020 (CIF/CFR/DAP) are the standard reference: iccwbo.org Incoterms 2020. For BESS export, the EU Battery Regulation (Regulation (EU) 2023/1542) applies for EU-bound shipments: eur-lex.europa.eu 2023/1542; lithium cells must pass UN 38.3 (UN Manual of Tests and Criteria, ST/SG/AC.10/11/Rev.7) — unece.org UN Manual of Tests and Criteria; air transport additionally per IATA Dangerous Goods Regulations (DGR): iata.org DGR; ICAO dangerous-goods provisions: icao.int dangerous goods. Disclaimer: duty figures are market-sensitive and revised periodically; reconfirm before procurement.
8. Calls to Action
Request a tailored RFQ: Submit your RFQ — 900 kWp Food-Processing Solar (India R9)
9. Assumptions & Caveats
- "Region R9" is a sample tariff/yield cluster (Maharashtra/Goa reference); substitute your DISCOM's MERC order PDF (case number + docket URL) for binding results. MERC orders portal: merc.gov.in/orders/
- Tariff escalation is a TradVolt assumption (brief 2026-09-22), not a forecast; actual MERC revisions vary by year.
- No subsidy applied; if MNRE C&I incentives or state open-access concessions apply, recompute.
- No wheeling / banking losses modelled; add 3–7% for open-access scenarios.
- Residual value = ₹0 and PV export tariff = ₹0/kWh are explicit bounded defaults (brief 2026-09-22, ZERO-AS-MISSING rule) reflecting captive, behind-the-meter consumption.
- OEM model references (Jinko Tiger Neo 3.0 — JKM650-670N-66QL6-BDV-F1; Sungrow SG250HX; K2 Systems N-Rack / S-Rail / CrossRail / Tile Hook 3S) are real, publicly marketed products; datasheet/manual revisions are to be confirmed at RFQ per the CFD Risk register.