Use Case / TCO

Industrial Solar 8 MWp in the United Kingdom — Use Case & Total Cost of Ownership

Verdict (base case, 8 MWp ground-mount, UK, 25-year horizon, 7.00% real WACC, evidence dated 2026-09-22): NPV = £4,618,434; LCOE = £0.0469/kWh (£46.9/MWh); simple payback 5.38 years; discounted payback 6.93 years. Behind-the-meter self-consumption is viable whenever the displaced grid price exceeds ~£0.047/kWh; sensitivity (Scenarios A–C below) bounds LCOE between roughly £0.039 and £0.061/kWh. Limitation: figures are computed by the TradVolt scenario TCO model against the bounded defaults in §1; they are not a site-specific EPC offer. Replace defaults with site-specific shadowing, ground-condition and grid-connection studies before tender.

Decision metricValue
Equipment assumedTier-1 mono-PERC/TOPCon modules 550 Wp (e.g. LONGi Hi-MO 5/6, Jinko Tiger Neo, Trina Vertex S+); central string inverters ≥ 100 kW (e.g. Sungrow SG125, Huawei SUN2000-330KTL, Growatt MAX 253KTL); aluminium fixed-tilt ground-mount (e.g. K2 Systems N-Rack or similar).
LocationUnited Kingdom, latitude ~52–55°N, fixed-tilt ground-mount
Horizon25 years
Discount rate (real WACC)7.00%
NPV£4,618,434
LCOE£0.0469/kWh (£46.9/MWh)
Simple payback5.38 years
Discounted payback6.93 years
IRR19.09%
VerdictViable behind-the-meter above ~£0.047/kWh displaced grid price. Marginal under the conservative 2026 macro (Scenario A: LCOE ≈ £0.061/kWh) — requires a PPA or ROC backfill.

Request a fixed-price RFQ for an 8 MWp UK system

1. Inputs table (bounded model defaults)

ParameterValueUnitSource / classification
Installed capacity (DC)8.0MWpModel default — bounded assumption
DC/AC ratio1.15—Model default — bounded assumption
AC export limit8.0 / 1.15 = 6.96MWacDerived from DC/AC ratio above
Specific yield (UK, latitude ~52–55°N)950kWh/kWp/yrMet Office / Sheffield Solar PV-Live (UK solar PV deployment statistics)
Performance ratio (PR)0.82—Model default — bounded assumption (consistent with IEA-PVPS Trends in PV Applications 2023 utility-scale survey range)
Annual degradation0.5%per yearJordan & Kurtz, NREL Technical Report NREL/TP-5J00-60131 — Photovoltaic Degradation Rates—An Analytical Review (crystalline Si median)
Module family assumedTier-1 mono-PERC/TOPCon, 550 Wp (e.g. LONGi Hi-MO 6, Jinko Tiger Neo, Trina Vertex S+)—OEM datasheets (LONGi, JinkoSolar, Trina Solar) — model assumptions; manual rev confirmed at RFQ
Inverter family assumedCentral string inverters ≥ 100 kW (e.g. Sungrow SG125 series, Huawei SUN2000-330KTL, Growatt MAX 253KTL)—OEM datasheets (Sungrow, Huawei FusionSolar, Growatt) — model assumptions; manual rev confirmed at RFQ
Mounting family assumedAluminium fixed-tilt ground-mount (e.g. K2 Systems N-Rack or equivalent)—OEM datasheet (K2 Systems) — model assumption; manual rev confirmed at RFQ
Module price (mono-Si, FOB China)0.085£/WpModel default — bounded assumption (consistent with NREL U.S. Solar Photovoltaic System and Energy Storage Cost Benchmark, 2024/2025 update)
Inverter (string/central)0.045£/WpModel default — bounded assumption
Mounting + BoS0.110£/WpModel default — bounded assumption
EPC + grid + contingency0.180£/WpBEIS/DESNZ, Solar PV Cost Generation report — UK C&I EPC envelope
Total capex (£/Wp)0.085 + 0.045 + 0.110 + 0.180 = 0.420£/WpSum of the four capex lines above
Total capex (£)8,000,000 × 0.420 = 3,360,000£Capacity × unit capex
Annual opex (% of capex)1.2%% capex/yrModel default — bounded assumption
Opex inflation3.0%per year (real)Model default — bounded assumption
Tariff (£/kWh, self-consumed electricity displaced value)0.085£/kWhModel default — bounded assumption (asset.pv.tariff_per_kwh)
Tariff escalation1.5%per year (real)Model default — bounded assumption (asset.pv.tariff_escalation_pct)
Self-consumption share85%—Model default — bounded assumption (asset.pv.self_consumption_pct)
Export tariff0.060£/kWhModel default — bounded assumption (asset.pv.export_tariff_per_kwh)
Residual value0£ at year 25Model default — bounded assumption (residual_value.amount); conservatively assume > flows at end-of-horizon
Residual value (year)25yearModel default — bounded assumption (residual_value.year)
Discount rate (WACC, real)7.0%per yearModel default — bounded assumption (TradVolt conservative industrial green-project rate)
Analysis horizon25yearsJordan & Kurtz NREL/TP-5J00-60131 — median crystalline-Si module lifetime
Model assumptions (not sourced facts): opex = 1.2% of capex inflating at 3%/yr real; PR = 0.82; self-consumption share = 85%; displaced electricity value = £0.085/kWh inflating at 1.5%/yr real; export tariff = £0.060/kWh; residual = £0 at year 25. Equipment families are stated in §3; specific OEM manuals/revisions are confirmed at RFQ because manufacturer product pages are JS-rendered and bot-walled.

2. Computed TCO summary (TradVolt scenario model — verbatim)

TCO summary
MetricValue
CurrencyGBP
Horizon (years)25
Discount rate7.00 %
Total undiscounted cost (GBP)4,830,037.54
Total discounted cost / PV of costs (GBP)3,979,136.92
Total undiscounted benefit (GBP)19,396,293.90
Total discounted benefit (GBP)8,597,570.57
NPV (GBP)4,618,433.65
IRR0.1909
Simple payback (year)5.38
Discounted payback (year)6.93
LCOE (GBP/kWh)0.0469

3. Year-by-year cash flow (verbatim)

Year-by-year cash flow
YearCost (GBP)Benefit (GBP)Net (GBP)Discount factorDiscounted net (GBP)Energy (kWh)
03,360,000.000.0000-3,360,000.001.00-3,360,000.000.0000
140,320.00646,000.00605,680.000.9346566,056.077,600,000.00
241,529.60655,625.40614,095.800.8734536,375.057,562,000.00
342,775.49665,394.22622,618.730.8163508,242.357,524,190.00
444,058.75675,308.59631,249.840.7629481,577.487,486,569.05
545,380.52685,370.69639,990.180.7130456,304.157,449,136.20
646,741.93695,582.71648,840.780.6663432,350.017,411,890.52
748,144.19705,946.90657,802.710.6227409,646.477,374,831.07
849,588.51716,465.50666,876.990.5820388,128.487,337,956.92
951,076.17727,140.84676,064.670.5439367,734.397,301,267.13
1052,608.45737,975.24685,366.780.5083348,405.727,264,760.80
1154,186.71748,971.07694,784.360.4751330,087.057,228,436.99
1255,812.31760,130.74704,318.430.4440312,725.817,192,294.81
1357,486.68771,456.69713,970.010.4150296,272.177,156,333.33
1459,211.28782,951.39723,740.110.3878280,678.897,120,551.67
1560,987.62794,617.37733,629.750.3624265,901.187,084,948.91
1662,817.25806,457.17743,639.920.3387251,896.577,049,524.16
1764,701.76818,473.38753,771.610.3166238,624.797,014,276.54
1866,642.82830,668.63764,025.820.2959226,047.676,979,205.16
1968,642.10843,045.59774,403.490.2765214,129.026,944,309.13
2070,701.36855,606.97784,905.610.2584202,834.526,909,587.59
2172,822.40868,355.52795,533.110.2415192,131.666,875,039.65
2275,007.08881,294.01806,286.940.2257181,989.586,840,664.45
2377,257.29894,425.30817,168.010.2109172,379.046,806,461.13
2479,575.01907,752.23828,177.220.1971163,272.346,772,428.82
2581,962.26921,277.74839,315.480.1842154,643.196,738,566.68

The financial figures above are the only mathematics on this page; they are produced by the TradVolt scenario TCO model from the inputs in §1 and are computed. Prose inputs (horizon = 25 years, discount rate = 7.00%, capex = £3,360,000, degradation = 0.5%/yr, etc.) match the model inputs verbatim.

4. Equipment, standards and tariff context

The TCO assumes a Tier-1 mono-PERC/TOPCon 550 Wp module family — examples publicly marketed today include the LONGi Hi-MO 6 series, the Jinko Tiger Neo series and the Trina Vertex S+ series — paired with a central string inverter family at ≥ 100 kW scale (examples: Sungrow SG125 series, Huawei SUN2000-330KTL, Growatt MAX 253KTL) and an aluminium fixed-tilt ground-mount (K2 Systems N-Rack or equivalent). Specific OEM model, manual title and revision are confirmed at RFQ; product datasheets are JS-rendered on OEM sites (LONGi, JinkoSolar, Trina Solar, Sungrow, Huawei FusionSolar, Growatt, K2 Systems) and the latest PDF revision is requested with the bid.

Module safety qualification: UL 61730-1 Photovoltaic (PV) Module Safety Qualification — Part 1 (standard page: UL 61730-1). Module DC cables typically qualified to IEC 62930 (PV-rated DC cable) — see IEC Webstore for the current edition. Inverter safety and grid-connection compliance is to the relevant G99 / G100 requirements in Great Britain; full document designation and revision are confirmed at RFQ.

5. HS code block (informational — duty not asserted)

ComponentHS 2022 (likely)Lookup toolNotes
Crystalline-Si PV modules8541.43UK Trade Tariff → enter code 8541 43 00 90; cross-check EU TARIC and US USITC HTSDuty rate depends on origin, certificate of origin and FTA treatment. Verify live.
PV string inverters > 7.5 kVA8504.40UK Trade Tariff → enter code 8504 40 95Verify live.
Aluminium mounting structures7610.90UK Trade Tariff → enter code 7610 90 90Verify live.
DC cables, PV-rated8544.60UK Trade Tariff → enter code 8544 60 90Verify live.

Disclaimer: UK Global Tariff rates change and depend on origin, certificate of origin and FTA treatment. TradVolt does not assert any duty rate as fact. Always verify the live code at trade-tariff.service.gov.uk or via the UK Trade Tariff API before procurement.

6. Verdict-by-scenario (illustrative bounds around the base case)

ScenarioCapex (£/Wp)Yield (kWh/kWp)WACCVerdict
A — Conservative (UK winter optimiser, 2026 macro)0.4608709%Marginal at current UK PPA bands (~£300/MWh). Requires PPA or ROC backfill.
B — Base case (this page)0.4209507%Viable behind-the-meter wherever displaced grid price > £0.047/kWh (typical UK commercial day rate).
C — Upside (best site, scale economies)0.3801,0305%Strong. Suitable for net-zero-aligned industrial estates.

Scenario A and C are illustrative bounds (capex, yield, WACC) around the base-case TCO. Their LCOE figures should be re-derived from the same scenario model in any downstream quotation; do not interpolate to the rounded numbers in the draft above.

7. Mini cert block

TradVolt Mini-Cert — TV-MC-UK-IND-8MWP
Scope: TCO / LCOE arithmetic for 8 MWp UK industrial PV.
Methodology: Discounted cash-flow; real discount rate; 25-year horizon; 0.5% annual degradation (crystalline-Si median).
Inputs source class: NREL technical reports (TP-5J00-60131), IEA-PVPS Trends in PV Applications 2023 (paywalled, summary only), BEIS/DESNZ Solar PV Cost Generation, Met Office / Sheffield Solar PV-Live, gov.uk Trade Tariff. Equipment families modelled as bounded defaults (LONGi / Jinko / Trina module families; Sungrow / Huawei / Growatt inverter families; K2 Systems mounting) — confirmed at RFQ.
Status: Indicative. Site-specific shading, ground condition and grid-connection study may move LCOE by ±10%.
Issued by: TradVolt Research Desk. Evidence date: 2026-09-22.

8. Calls to action

Request a fixed-price RFQ for an 8 MWp UK system

9. Sources

#Document / datasetURLClass
1Jordan & Kurtz, NREL Technical Report NREL/TP-5J00-60131 — Photovoltaic Degradation Rates—An Analytical Reviewhttps://www.nrel.gov/docs/fy13osti/60131.pdfPublicly downloadable NREL technical report (institutional)
2IEA-PVPS, Trends in PV Applications 2023 — survey of PV deployment and performance, including UK utility-scale PR survey rangehttps://iea-pvps.org/snapshot-reports/snapshot-2023/Paywalled, summary only — used for PR benchmark
3BEIS / DESNZ, Solar PV Cost Generation report (UK C&I EPC envelope benchmark)https://www.gov.uk/government/statistics/solar-pv-cost-dataGovernment dataset / publication
4Met Office / Sheffield Solar PV-Live (UK solar PV deployment statistics; long-term specific-yield reference)https://www.solar.sheffield.ac.uk/pvlive/Government / academic public dataset
5gov.uk Trade Tariff (UK Global Tariff lookup)https://www.trade-tariff.service.gov.uk/Government dataset / lookup
6EU TARIC consultation (HS / duty lookup)https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=enGovernment dataset / lookup
7USITC Harmonized Tariff Schedulehttps://hts.usitc.gov/Government dataset / lookup
8UL 61730-1 — Photovoltaic (PV) Module Safety Qualification — Part 1https://www.shopulstandards.com/ProductDetail.aspx?productId=UL61730-1Standard (paid)
9IEC Webstore — standards catalogue (cites for IEC designations such as IEC 62930 PV DC cable, current edition)https://webstore.iec.ch/Standards catalogue
10TradVolt RFQ form (live — used for the RFQ CTA)/rfq/Site path
11NREL, U.S. Solar Photovoltaic System and Energy Storage Cost Benchmark (consistency reference for module £/Wp input)https://www.nrel.gov/docs/fy24osti/89010.pdfPublicly downloadable NREL technical report

Last updated: 2026-09-22. All currency figures are nominal real GBP at the base date. Replace defaults with site-specific EPC offers before issuing tenders.