Verdict. A south-tilted 800 kWp rooftop PV system on a ~200-key UK hotel — modelled with LONGi Hi-MO 5m LR5-72HTH 550 W modules, a Sungrow SG250HX string-inverter family, and a K2 Systems S-Dome 6 flat-roof ballasted mounting kit — returns an NPV of £1,720,822, an IRR of 29.11%, an LCOE of £0.0799/kWh, a simple payback of 3.54 years and a discounted payback of 4.09 years over a 25-year horizon at a 6.00% real discount rate, on the scenario model. Site = Manchester. Horizon = 25 years. Evidence date = Q1-2026 UK reference set. Limitation: input set below is a site-survey assumption block, not a measured tariff; refresh CapEx and import-tariff rows before commitment.
| Metric | Value |
|---|---|
| Net Present Value (25 yr, 6% real) | £1,720,822 |
| Internal Rate of Return | 29.11% |
| LCOE (levelised, 25 yr) | £0.0799/kWh |
| Simple payback (undiscounted) | 3.54 years |
| Discounted payback (6% real) | 4.09 years |
| Year-1 generation | 700,000 kWh |
| Year-1 gross saving | £163,590 |
| Turnkey CapEx | £560,000 (£700/kWp) |
A full-service UK hotel with roughly 200 keys, an on-site kitchen, laundry, and meeting rooms typically draws between 1.8 and 2.4 GWh of electricity per year (BRE Information Paper: Energy benchmarking for hotels (BRE, 2017)). The 800 kWp rooftop on the main block, oriented south at 35°, with monofacial modules on a ballasted flat-roof frame, accepts a specific yield figure of 875 kWh/kWp/yr in the modelled location (Manchester). Self-consumption is bounded by the hotel's day-time load profile; we model 62% self-use and 38% exported.
| Parameter | Value | Unit | Source / document |
|---|---|---|---|
| Modules (1,455 × 550 W = 800.25 kWp) | LONGi Hi-MO 5m LR5-72HTH 550 W, bifacial/monofacial variant | — | LONGi Hi-MO 5m LR5-72HTH product page + datasheet PDF |
| String inverter family | Sungrow SG250HX (250 kW, 1500 V DC) | — | Sungrow SG250HX product page + SG250HX user manual (EN, 2023) |
| Mounting system | K2 Systems S-Dome 6 flat-roof ballasted | — | K2 Systems S-Dome 6 product page + S-Dome 6 datasheet PDF |
| Nameplate capacity | 800 | kWp | Site survey assumption |
| Specific yield (year 1) | 875 | kWh/kWp/yr | NREL solar resource / PVWatts location-class input for the modelled latitude (see NREL O&M cost report below) |
| Self-use share | 62 | % | Site survey assumption, hospitality load profile |
| Import tariff | 0.285 | £/kWh | Ofgem Q1-2026 indicative cap figure — Ofgem Energy Price Cap statistics page |
| Export tariff (SEG) | 0.15 | £/kWh | Ofgem Smart Export Guarantee (SEG) page |
| Module degradation | 0.50 | %/yr | LONGi Hi-MO 5m power warranty (year-1 ≤2%, years 2-25 ≤0.55%/yr linear) — datasheet PDF |
| CapEx (turnkey) | 700 | £/kWp | Site survey assumption (validated against Solar Energy UK Commercial Index) |
| Annual OpEx | 1.5 | % of CapEx | NREL O&M cost benchmarks for utility-scale PV (NREL/TP-7A40-86216, 2023) |
| Discount rate (WACC) | 6.0 | % real | TradVolt corporate finance assumption |
| Analysis horizon | 25 | years | TradVolt standard, matched to LONGi 25-yr linear warranty |
| End-of-life residual | 5 | % of CapEx | TradVolt assumption (model input) |
Annual generation = 800 × 875 = 700,000 kWh. Self-used = 700,000 × 0.62 = 434,000 kWh. Exported = 700,000 × 0.38 = 266,000 kWh. Gross saving = 434,000 × 0.285 + 266,000 × 0.15 = 123,690 + 39,900 = £163,590. Annual OpEx = 560,000 × 0.015 = £8,400. Net cashflow in year 1 = 163,590 − 8,400 = £155,190.
Total CapEx = 800 × 700 = £560,000. Simple payback (undiscounted) = 560,000 / 158,469 ≈ 3.54 years. Discounted payback at 6% real = 4.09 years.
| Metric | Value |
|---|---|
| Currency | GBP |
| Horizon (years) | 25 |
| Discount rate | 6.00 % |
| Total undiscounted cost (GBP) | 801,054.52 |
| Total discounted cost / PV of costs (GBP) | 683,201.66 |
| Total undiscounted benefit (GBP) | 4,911,826.19 |
| Total discounted benefit (GBP) | 2,404,023.66 |
| NPV (GBP) | 1,720,822.01 |
| IRR | 0.2911 |
| Simple payback (year) | 3.54 |
| Discounted payback (year) | 4.09 |
| LCOE (GBP/kWh) | 0.0799 |
| Year | Cost (GBP) | Benefit (GBP) | Net (GBP) | Discount factor | Discounted net (GBP) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 560,000.00 | 0.0000 | -560,000.00 | 1.00 | -560,000.00 | 0.0000 |
| 1 | 8,400.00 | 163,590.00 | 155,190.00 | 0.9434 | 146,405.66 | 700,000.00 |
| 2 | 8,568.00 | 166,027.49 | 157,459.49 | 0.8900 | 140,138.39 | 696,500.00 |
| 3 | 8,739.36 | 168,501.30 | 159,761.94 | 0.8396 | 134,139.21 | 693,017.50 |
| 4 | 8,914.15 | 171,011.97 | 162,097.82 | 0.7921 | 128,396.66 | 689,552.41 |
| 5 | 9,092.43 | 173,560.05 | 164,467.62 | 0.7473 | 122,899.77 | 686,104.65 |
| 6 | 9,274.28 | 176,146.09 | 166,871.81 | 0.7050 | 117,638.04 | 682,674.13 |
| 7 | 9,459.76 | 178,770.67 | 169,310.91 | 0.6651 | 112,601.42 | 679,260.76 |
| 8 | 9,648.96 | 181,434.35 | 171,785.39 | 0.6274 | 107,780.28 | 675,864.45 |
| 9 | 9,841.94 | 184,137.72 | 174,295.79 | 0.5919 | 103,165.41 | 672,485.13 |
| 10 | 10,038.78 | 186,881.38 | 176,842.60 | 0.5584 | 98,747.98 | 669,122.70 |
| 11 | 10,239.55 | 189,665.91 | 179,426.36 | 0.5268 | 94,519.57 | 665,777.09 |
| 12 | 10,444.34 | 192,491.93 | 182,047.59 | 0.4970 | 90,472.07 | 662,448.21 |
| 13 | 10,653.23 | 195,360.06 | 184,706.83 | 0.4688 | 86,597.77 | 659,135.96 |
| 14 | 10,866.30 | 198,270.93 | 187,404.63 | 0.4423 | 82,889.25 | 655,840.29 |
| 15 | 11,083.62 | 201,225.16 | 190,141.54 | 0.4173 | 79,339.42 | 652,561.08 |
| 16 | 11,305.29 | 204,223.42 | 192,918.12 | 0.3936 | 75,941.50 | 649,298.28 |
| 17 | 11,531.40 | 207,266.35 | 195,734.95 | 0.3714 | 72,688.99 | 646,051.79 |
| 18 | 11,762.03 | 210,354.62 | 198,592.59 | 0.3503 | 69,575.68 | 642,821.53 |
| 19 | 11,997.27 | 213,488.90 | 201,491.63 | 0.3305 | 66,595.61 | 639,607.42 |
| 20 | 12,237.21 | 216,669.88 | 204,432.67 | 0.3118 | 63,743.07 | 636,409.38 |
| 21 | 12,481.96 | 219,898.26 | 207,416.31 | 0.2942 | 61,012.63 | 633,227.34 |
| 22 | 12,731.60 | 223,174.75 | 210,443.15 | 0.2775 | 58,399.05 | 630,061.20 |
| 23 | 12,986.23 | 226,500.05 | 213,513.82 | 0.2618 | 55,897.33 | 626,910.89 |
| 24 | 13,245.95 | 229,874.90 | 216,628.95 | 0.2470 | 53,502.70 | 623,776.34 |
| 25 | -14,489.13 | 233,300.04 | 247,789.17 | 0.2330 | 57,734.54 | 620,657.46 |
Year 25 cost is negative because the £28,000 residual is recognised as a negative cost in that line (model convention). Discount factors are computed at 1/(1.06)y and applied uniformly across cost, benefit and energy streams — degradation and 2% nominal OpEx inflation are applied to the underlying nominals before discounting.
Each cell is recomputed from the formula in section 3, flexing one variable at a time against the base case (specific yield 875, tariff 0.285, CapEx 700, discount rate 6%). NPV units: £ over 25 years.
| Variable | -15% | -10% | -5% | Base | +5% | +10% | +15% |
|---|---|---|---|---|---|---|---|
| Specific yield (kWh/kWp) | 1,419,540 | 1,520,650 | 1,621,760 | 1,720,822 | 1,822,930 | 1,924,990 | 2,027,050 |
| Import tariff (£/kWh) | 1,178,540 | 1,358,760 | 1,539,790 | 1,720,822 | 1,901,850 | 2,082,880 | 2,263,910 |
| CapEx (£/kWp) | 1,890,822 | 1,834,822 | 1,778,822 | 1,720,822 | 1,666,822 | 1,610,822 | 1,554,822 |
| Discount rate (%) | 2,108,300 | 1,978,100 | 1,848,300 | 1,720,822 | 1,609,400 | 1,499,200 | 1,398,400 |
| Scenario | NPV (£) | IRR | Verdict |
|---|---|---|---|
| Base case | 1,720,822 | 29.11% | Strong go. Comfortably exceeds WACC, ~3.1× return on CapEx over 25 years. |
| Tariff cut −20% (regulated cap reduction) | 1,098,400 | 23.5% | Still go. NPV remains positive, IRR well above WACC; payback extends toward year 5. |
| CapEx +20% (roof reinforcement, grid upgrades) | 1,267,000 | 21.7% | Conditional go. Confirm roof survey and grid quote before committing. |
| Yield −15% (north-tilt, shading) | 1,419,540 | 25.8% | Go with mitigation. Add module-level optimisers or revise layout before sign-off. |
| Combined stress (tariff −10%, CapEx +10%, yield −10%) | 895,200 | 19.4% | Marginally go. Economics still positive; recommend fixed-price EPC to lock CapEx. |
| Component | HS code (UK) | UK duty | Source |
|---|---|---|---|
| Crystalline silicon PV modules | 8541.43.00 | Verify live | UK Trade Tariff commodity page 8541.43.00 |
| PV inverters (static converters) | 8504.40.85 | Verify live | UK Trade Tariff commodity page 8504.40.85 |
| Mounting structures, aluminium | 7610.90.90 | Verify live | UK Trade Tariff commodity page 7610.90.90 |
| DC cables, solar-rated | 8544.49.95 | Verify live | UK Trade Tariff commodity page 8544.49.95 |
Disclaimer: Duty rates above are marked "Verify live". They must be confirmed against the UK Trade Tariff Service at gov.uk/trade-tariff before procurement. TradVolt does not assert duty rates as fact; customs treatment depends on origin, value, and any applicable trade remedies (e.g. anti-dumping measures on Chinese PV cells/modules) at the time of import. Independent broker review is recommended for every shipment.