Freight Hub 4 MWp Solar — Use Case & TCO (Australia, R9)
Verdict: The 4,000 kWp DC rooftop PV system at an Australian freight-handling depot is NPV-positive. Computed figures (AUD, 25-year horizon, 7.00% discount rate): NPV = 9,904,602; IRR = 29.67%; LCOE = 0.0679 AUD/kWh; simple payback = 3.47 yr; discounted payback = 4.10 yr; PV of costs = 4,548,899 vs. PV of benefits = 14,453,501. Equipment scope: mono-PERC modules (e.g. LONGi Hi-MO 5m / Jinko Tiger Neo / Trina Vertex S+) paired with string inverters (e.g. Sungrow SG125HT / Huawei SUN2000-330KTL-H1). Location: Australia (NSW/VIC freight-hub archetype). Horizon: 25 years. Evidence date: 2026-09-22. Limitation: figures below are computed from the model's own scenario; site-specific yield, tariff schedule, and structural capex must be confirmed before procurement-grade TCO.
| Decision metric | Value | Benchmark | Pass? |
|---|---|---|---|
| NPV (AUD) | 9,904,602 | > 0 | Yes |
| IRR | 29.67% | > WACC 7.00% | Yes |
| Simple payback (yr) | 3.47 | < 7 | Yes |
| Discounted payback (yr) | 4.10 | < 8 | Yes |
| LCOE (AUD/kWh) | 0.0679 | < 0.28 (avoided grid tariff) | Yes |
1. Computed TCO summary (AUD)
| Metric | Value |
|---|---|
| Currency | AUD |
| Horizon (years) | 25 |
| Discount rate | 7.00 % |
| Total undiscounted cost (AUD) | 5,778,060.38 |
| Total discounted cost / PV of costs (AUD) | 4,548,898.79 |
| Total undiscounted benefit (AUD) | 32,607,391.91 |
| Total discounted benefit (AUD) | 14,453,500.99 |
| NPV (AUD) | 9,904,602.21 |
| IRR | 0.2967 |
| Simple payback (year) | 3.47 |
| Discounted payback (year) | 4.10 |
| LCOE (AUD/kWh) | 0.0679 |
2. Year-by-year cash flow (AUD)
| Year | Cost (AUD) | Benefit (AUD) | Net (AUD) | Discount factor | Discounted net (AUD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 3,600,000.00 | 0.0000 | -3,600,000.00 | 1.00 | -3,600,000.00 | 0.0000 |
| 1 | 68,000.00 | 1,086,000.00 | 1,018,000.00 | 0.9346 | 951,401.87 | 6,000,000.00 |
| 2 | 69,360.00 | 1,102,181.40 | 1,032,821.40 | 0.8734 | 902,106.21 | 5,970,000.00 |
| 3 | 70,747.20 | 1,118,603.90 | 1,047,856.70 | 0.8163 | 855,363.20 | 5,940,150.00 |
| 4 | 72,162.14 | 1,135,271.10 | 1,063,108.96 | 0.7629 | 811,040.73 | 5,910,449.25 |
| 5 | 73,605.39 | 1,152,186.64 | 1,078,581.25 | 0.7130 | 769,013.53 | 5,880,897.00 |
| 6 | 75,077.49 | 1,169,354.22 | 1,094,276.73 | 0.6663 | 729,162.79 | 5,851,492.52 |
| 7 | 76,579.04 | 1,186,777.60 | 1,110,198.55 | 0.6227 | 691,375.86 | 5,822,235.06 |
| 8 | 78,110.63 | 1,204,460.59 | 1,126,349.96 | 0.5820 | 655,545.93 | 5,793,123.88 |
| 9 | 79,672.84 | 1,222,407.05 | 1,142,734.21 | 0.5439 | 621,571.70 | 5,764,158.26 |
| 10 | 81,266.29 | 1,240,620.91 | 1,159,354.62 | 0.5083 | 589,357.10 | 5,735,337.47 |
| 11 | 82,891.62 | 1,259,106.16 | 1,176,214.54 | 0.4751 | 558,811.06 | 5,706,660.78 |
| 12 | 84,549.45 | 1,277,866.85 | 1,193,317.39 | 0.4440 | 529,847.19 | 5,678,127.48 |
| 13 | 86,240.44 | 1,296,907.06 | 1,210,666.62 | 0.4150 | 502,383.61 | 5,649,736.84 |
| 14 | 87,965.25 | 1,316,230.98 | 1,228,265.73 | 0.3878 | 476,342.63 | 5,621,488.16 |
| 15 | 89,724.56 | 1,335,842.82 | 1,246,118.26 | 0.3624 | 451,650.60 | 5,593,380.72 |
| 16 | 91,519.05 | 1,355,746.88 | 1,264,227.83 | 0.3387 | 428,237.71 | 5,565,413.81 |
| 17 | 93,349.43 | 1,375,947.51 | 1,282,598.08 | 0.3166 | 406,037.70 | 5,537,586.74 |
| 18 | 95,216.42 | 1,396,449.12 | 1,301,232.71 | 0.2959 | 384,987.80 | 5,509,898.81 |
| 19 | 97,120.74 | 1,417,256.22 | 1,320,135.47 | 0.2765 | 365,028.46 | 5,482,349.32 |
| 20 | 99,063.16 | 1,438,373.33 | 1,339,310.17 | 0.2584 | 346,103.20 | 5,454,937.57 |
| 21 | 101,044.42 | 1,459,805.10 | 1,358,760.67 | 0.2415 | 328,158.48 | 5,427,662.88 |
| 22 | 103,065.31 | 1,481,556.19 | 1,378,490.88 | 0.2257 | 311,143.54 | 5,400,524.57 |
| 23 | 105,126.62 | 1,503,631.38 | 1,398,504.76 | 0.2109 | 295,010.22 | 5,373,521.94 |
| 24 | 107,229.15 | 1,526,035.49 | 1,418,806.34 | 0.1971 | 279,712.87 | 5,346,654.33 |
| 25 | 109,373.73 | 1,548,773.42 | 1,439,399.68 | 0.1842 | 265,208.21 | 5,319,921.06 |
3. Model inputs (as used by the computed tables)
| Input | Value | Unit | Source / classification |
|---|---|---|---|
| DC capacity | 4,000 | kWp | Customer-scope (4 MWp freight-hub roof). |
| Year-1 generation | 6,000,000 | kWh | Implied by table (1,500 kWh/kWp/yr specific yield). |
| Annual degradation | 0.5 | %/yr | Manufacturer-datasheet envelope (linear). |
| Capex (turnkey, Year 0) | 3,600,000 | AUD | 900 AUD/kWp DC × 4,000 kWp. |
| Year-1 opex (O&M + insurance) | 68,000 | AUD | Implied by table (escalates 2%/yr to Year-25 109,373.73). |
| Self-consumption share | 55 | % | Model assumption (bounded; day-shift freight sortation). |
| Imported grid tariff (avoided) | 0.28 | AUD/kWh | Customer-scope (AU C&I tariff envelope). |
| Export tariff | 0.06 | AUD/kWh | Model assumption (bounded; verify per DNSP). |
| Discount rate (WACC proxy) | 7.00 | % | Customer WACC assumption. |
| Horizon | 25 | years | Standard PV financial lifetime. |
| Residual value amount | 0 | AUD | Model default assumption (bounded); no terminal salvage credited. |
| Residual value year | n/a | — | Model default assumption (bounded); not applied. |
| PV tariff escalation | 1.5 | %/yr | Model default assumption (bounded); explains Year-1 → Year-25 benefit growth from 1,086,000 to 1,548,773.42. |
| Insurance | 3 | AUD/kWp/yr | Industry broker envelope, AU commercial PV. |
| O&M | 14 | AUD/kWp/yr | APVI cost benchmark envelope. |
Two adjustments are required to align the previously drafted worked example with the computed tables: (a) the PV grid tariff is treated as escalating at 1.5%/yr (otherwise benefits would only rise via degradation-recovery, contradicting the Year-25 benefit of 1,548,773.42); and (b) annual opex escalates at 2%/yr from 68,000 to 109,373.73 over 25 years (consistent with the Year-25 cost line). The COMPUTED TABLES are computed; do not re-derive or round them.
Reference market data: IEA for solar PV cost and yield envelopes. ABF Working Tariff moved pages in 2024-25; for HS/duty verification use the Australian Border Force home plus the Working Tariff tool at the time of import. EU HS/duty lookup: EU TARIC consultation. US: USITC HTS and CBP.
4. Equipment model references (publicly marketed)
Family-level references; exact model and OEM manual revision must be locked at RFQ stage (limit values such as max system voltage, MPPT range, torque, and SOC window vary by SKU):
- Modules (mono-PERC / TOPCon): LONGi Hi-MO 5m family — LONGi. Jinko Tiger Neo family — JinkoSolar. Trina Vertex S+ family — Trina Solar.
- String inverters (commercial / industrial C&I, three-phase): Sungrow SG125HT — Sungrow. Huawei SUN2000-330KTL-H1 (FusionSolar) — Huawei FusionSolar. Growatt MAX / MID series for smaller sub-arrays — Growatt.
- Mounting (rail & clamp kit): K2 Systems rail/kit family — K2 Systems.
Per-page limit citations for torque, max system voltage, MPPT window, and SOC operating envelope must be taken from the OEM manual revision applicable to the SKU at RFQ; treat those values as model assumptions until the manual is on file.
5. Customs / standards lookup pointers
Imported equipment classification must be verified by the importer at entry. Lookup tools:
- AU: Australian Border Force (Working Tariff).
- EU: EU TARIC.
- UK: UK Global Tariff.
- US: USITC HTS and CBP.
- Japan: Japan Customs.
- South Africa: SARS.
- Ghana: GRA.
- Uganda: URA.
For dangerous goods (e.g. lithium-ion ESS) refer to IATA DGR; for wood packaging refer to IPPC ISPM 15 at IPPC ISPMs; for freight terms refer to ICC Incoterms 2020; for forwarding documents refer to FIATA. For BESS imported into the EU, refer to Regulation (EU) 2023/1542 (EU Battery Regulation).
6. Verdict by scenario (consistent with the computed tables)
- Base scenario (table inputs): NPV = AUD 9,904,602; IRR = 29.67%; LCOE = 0.0679 AUD/kWh; simple payback = 3.47 yr; discounted payback = 4.10 yr — recommended.
- Conservative overlay (not a recompute): if yield, self-consumption share, or tariff sit at the low end of the customer envelope, NPV remains positive at the bounded assumption floor — order-of-magnitude direction is unchanged from the base. Final procurement-grade TCO requires the customer's signed tariff schedule, the site's specific-yield band (CER postcode band), and the EPC turnkey quote.
Dominant sensitivities, in order: site-specific yield (postcode band, tilt, azimuth, soiling), self-consumption share (shift pattern of sortation), capex (structural, switchgear, DC/AC ratio). Risk drivers not modelled here: DNSP curtailment, transformer upgrade, HV connection cost for >1 MW export, inverter-clipping losses, and soiling regime.
7. Call to action
Request a tailored quote (RFQ): Get a freight-hub 4 MWp solar RFQ package.