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 metricValueBenchmarkPass?
NPV (AUD)9,904,602> 0Yes
IRR29.67%> WACC 7.00%Yes
Simple payback (yr)3.47< 7Yes
Discounted payback (yr)4.10< 8Yes
LCOE (AUD/kWh)0.0679< 0.28 (avoided grid tariff)Yes

1. Computed TCO summary (AUD)

TCO summary
MetricValue
CurrencyAUD
Horizon (years)25
Discount rate7.00 %
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
IRR0.2967
Simple payback (year)3.47
Discounted payback (year)4.10
LCOE (AUD/kWh)0.0679

2. Year-by-year cash flow (AUD)

Year-by-year cash flow
YearCost (AUD)Benefit (AUD)Net (AUD)Discount factorDiscounted net (AUD)Energy (kWh)
03,600,000.000.0000-3,600,000.001.00-3,600,000.000.0000
168,000.001,086,000.001,018,000.000.9346951,401.876,000,000.00
269,360.001,102,181.401,032,821.400.8734902,106.215,970,000.00
370,747.201,118,603.901,047,856.700.8163855,363.205,940,150.00
472,162.141,135,271.101,063,108.960.7629811,040.735,910,449.25
573,605.391,152,186.641,078,581.250.7130769,013.535,880,897.00
675,077.491,169,354.221,094,276.730.6663729,162.795,851,492.52
776,579.041,186,777.601,110,198.550.6227691,375.865,822,235.06
878,110.631,204,460.591,126,349.960.5820655,545.935,793,123.88
979,672.841,222,407.051,142,734.210.5439621,571.705,764,158.26
1081,266.291,240,620.911,159,354.620.5083589,357.105,735,337.47
1182,891.621,259,106.161,176,214.540.4751558,811.065,706,660.78
1284,549.451,277,866.851,193,317.390.4440529,847.195,678,127.48
1386,240.441,296,907.061,210,666.620.4150502,383.615,649,736.84
1487,965.251,316,230.981,228,265.730.3878476,342.635,621,488.16
1589,724.561,335,842.821,246,118.260.3624451,650.605,593,380.72
1691,519.051,355,746.881,264,227.830.3387428,237.715,565,413.81
1793,349.431,375,947.511,282,598.080.3166406,037.705,537,586.74
1895,216.421,396,449.121,301,232.710.2959384,987.805,509,898.81
1997,120.741,417,256.221,320,135.470.2765365,028.465,482,349.32
2099,063.161,438,373.331,339,310.170.2584346,103.205,454,937.57
21101,044.421,459,805.101,358,760.670.2415328,158.485,427,662.88
22103,065.311,481,556.191,378,490.880.2257311,143.545,400,524.57
23105,126.621,503,631.381,398,504.760.2109295,010.225,373,521.94
24107,229.151,526,035.491,418,806.340.1971279,712.875,346,654.33
25109,373.731,548,773.421,439,399.680.1842265,208.215,319,921.06

3. Model inputs (as used by the computed tables)

InputValueUnitSource / classification
DC capacity4,000kWpCustomer-scope (4 MWp freight-hub roof).
Year-1 generation6,000,000kWhImplied by table (1,500 kWh/kWp/yr specific yield).
Annual degradation0.5%/yrManufacturer-datasheet envelope (linear).
Capex (turnkey, Year 0)3,600,000AUD900 AUD/kWp DC × 4,000 kWp.
Year-1 opex (O&M + insurance)68,000AUDImplied by table (escalates 2%/yr to Year-25 109,373.73).
Self-consumption share55%Model assumption (bounded; day-shift freight sortation).
Imported grid tariff (avoided)0.28AUD/kWhCustomer-scope (AU C&I tariff envelope).
Export tariff0.06AUD/kWhModel assumption (bounded; verify per DNSP).
Discount rate (WACC proxy)7.00%Customer WACC assumption.
Horizon25yearsStandard PV financial lifetime.
Residual value amount0AUDModel default assumption (bounded); no terminal salvage credited.
Residual value yearn/a—Model default assumption (bounded); not applied.
PV tariff escalation1.5%/yrModel default assumption (bounded); explains Year-1 → Year-25 benefit growth from 1,086,000 to 1,548,773.42.
Insurance3AUD/kWp/yrIndustry broker envelope, AU commercial PV.
O&M14AUD/kWp/yrAPVI 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:

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.

© tradvolt.com — illustrative commercial study. Not investment advice. Evidence date: 2026-09-22.