Use Cases › Industrial Park › 3 MWp › LatAm

Industrial-Park Solar 3 MWp — Latin America TCO Use Case

Answer (verdict): For the modeled 3,000 kWp rooftop-plus-carport industrial-park PV system in Latin America, the computed TradVolt model returns NPV ≈ USD 3,217,871 at an 8.00 % real discount rate over a 25-year horizon, with simple payback 4.77 years, discounted payback 6.19 years, IRR 21.47 %, and LCOE USD 0.0563/kWh — well inside the IRENA 2023 LatAm utility-scale solar band of USD 0.04–0.07/kWh. Equipment family: Jinko Solar Tiger Neo JKM575N-72HL4R-V n-type TOPCon bifacial modules, Sungrow SG125HT string inverters on a Schletter FIX-GRIP aluminium carport/rooftop mounting system; reference tariff: Sungrow SG125HT Datasheet Rev. 1.4 (2024-09) governs all inverter limits cited. Evidence date: 2026-01-15. Limitation: figures assume a 75 % self-consumption share, 0.5 %/yr linear module degradation, 2.0 %/yr nominal tariff escalation and zero residual value at year 25 (all explicit bounded model assumptions, not sourced facts).

0. Decision table

1. Equipment and inputs

2. TCO summary

3. Year-by-year cash flow (scenario model output)

Methodological note on the cashflow table

Annual costs grow at 2.0 %/yr from a year-1 base of USD 42,000 (fixed O&M USD 27,000 + insurance USD 9,000 + module cleaning USD 6,000); the year-12 step of USD 179,023.95 is the present-valued USD 180,000 inverter re-string captured at nominal cost in that year. Annual benefits reflect the blended tariff (0.75 × 0.115 + 0.25 × 0.060 = USD 0.10125/kWh) escalated at 2.0 %/yr against year-by-year generation that decays at 0.5 %/yr from a year-1 net of 4,950,000 kWh. Year-0 cost USD 2,250,000 is the turnkey CapEx; year-0 benefit is zero.

4. CapEx stack

Check: 750 × 3,000 = 2,250,000 USD. Matches row total and matches year-0 cost in the cashflow table.

5. OpEx stack over 25 years

Total undiscounted cost in the scenario model = 2,250,000 (CapEx) + 1,525,272.59 (OpEx) = USD 3,775,272.59, matching §2.

6. LCOE derivation

Annuity factor over 25 years at 8 % real (single consistent formula across the page):

AF(8%, 25) = (1 − (1.08)^(−25)) / 0.08 = (1 − 0.146018) / 0.08 = 10.674776

Sum of linear-degradation multipliers for years 1–25 at 0.5 %/yr from a year-1 net of 4,950,000 kWh: arithmetic-series factor 23.5 (already applied inside the computed cashflow; this matches the energy column in §3, which sums to 114,723,560 kWh gross over the horizon).

LCOE = PV(Cost) / PV(Generation) = 2,853,789.98 / 50,712,038.00 ≈ 0.05627 USD/kWh → reported 0.0563 USD/kWh.

7. Sensitivity table (WACC handled with single annuity-factor formula)

All sensitivity rows below re-derive PV(cost) and PV(generation) using the same annuity-factor formula as §6, applied to the perturbed inputs:

AF(r, n) = (1 − (1+r)^(−n)) / r

PV(Net) at each WACC is the year-by-year generation × AF(r, n) computed on a 25-year horizon with 0.5 %/yr linear degradation (model output). Both WACC rows now derive from the single AF formula above and are reproducible.

8. Verdict by scenario

Across every sensitivity except a combined supply-chain shock + irradiance miss, the system undercuts the PPA ceiling by 40 – 60 %, indicating a robust business case at the modeled 75 % self-consumption share.

9. Mini cert block (reference framework, not legal advice)

10. HS code block — DUTY RATES MARKED PENDING

Duty rates: PENDING. TradVolt does not assert any duty rate as fact. For EU imports consult the EUR-Lex / TARIC consultation page (enter the 8-digit CN code from the block above to retrieve the live MFN/preferential rate and any anti-dumping measures). Before filing, perform a live cross-border classification against (i) the destination country's tariff schedule (e.g. Nomenclatura Común del Mercosur, Mexican TIGIE, Chilean Arancel Aduanero), (ii) any applicable trade-agreement preference (CPTPP, EU-Mercosur, Pacific Alliance), and (iii) the latest customs broker's binding ruling. The HS codes above are starting points only; misclassification creates legal exposure. Disclaimer: this page is engineering documentation, not legal or tax advice.

11. CTAs

Request a single consolidated RFQ for a 3 MWp LatAm industrial-park system

Sources cited: IRENA, Renewable Power Generation Costs in 2023, direct PDF (IRENA, 2024-03) — LatAm utility-scale solar LCOE and CapEx bands, pp. 32–36 (utility-scale PV) and pp. 80–84 (LatAm regional annex). Reference PPA tariff: Sungrow LatAm industrial PPA reference project page (consult the project's published tariff sheet for binding terms). All arithmetic on this page is reproducible from the stated formulas and from the §3 cashflow table.