Resort Solar 2 MWp in LATAM — Use-case & Total Cost of Ownership
Verdict: at the scenario inputs stated below, a 2 MWp PV plant serving a tropical LATAM resort is economically viable — NPV ≈ USD 1,842,748, IRR ≈ 20.85 %, discounted payback ≈ 6.67 yr, simple payback ≈ 4.89 yr, LCOE ≈ 0.0698 USD/kWh (6.98 ¢/kWh) at a 9.00 % discount rate over a 25-year horizon. Equipment family: PV modules (LONGi Hi-MO 5 / Hi-MO 6, Jinko Tiger Neo, Trina Vertex S+) — confirm exact SKU at RFQ (LONGi, JinkoSolar, Trina Solar); string inverters (Sungrow SG110CX / SG250HX, Huawei SUN2000-330KTL, Growatt MAX 215KTL) — confirm SKU at RFQ (Sungrow, Huawei FusionSolar, Growatt); mounting (K2 Systems rail/kit, exact model and manual revision confirmed at RFQ). Location archetype: Caribbean coast / NE Brazil / Yucatán-type tropical resort corridor. Horizon: 25 years. Evidence date: 2026-09-22. Limitation: this is a use-case scenario, not a site-specific engineering, customs or financial commitment.
Decision table
| Decision criterion | Result | Reference |
|---|---|---|
| NPV (25 yr, 9 %) | USD 1,842,748 | TCO summary table |
| IRR | 20.85 % | TCO summary table |
| Simple payback | 4.89 yr | TCO summary table |
| Discounted payback | 6.67 yr | TCO summary table |
| LCOE | 0.0698 USD/kWh (6.98 ¢/kWh) | TCO summary table |
| PV of costs (25 yr) | USD 1,980,048.96 | TCO summary table |
| PV of benefits (25 yr) | USD 3,822,797.35 | TCO summary table |
| Undiscounted total cost | USD 2,663,848.39 | TCO summary table |
| Undiscounted total benefit | USD 10,358,701.85 | TCO summary table |
| Verdict | GO at stated inputs | scenario TCO model |
1. Scenario inputs (bounded model assumptions)
| Parameter | Value | Bounded model assumption / status |
|---|---|---|
| DC capacity | 2.0 MWp | Model assumption (project brief) |
| Location archetype | Caribbean coast / NE Brazil / Yucatán-type tropical | Model assumption (resort corridor) |
| Specific yield (year 1) | 1,500 kWh/kWp/yr | Model assumption (regional median) |
| Performance ratio | 0.80 | Model assumption (ground-mount commercial) |
| Degradation | 0.5 %/yr linear | Model assumption (mono-PERC tier-1 warranty median) |
| Tariff offset (grid) | 0.18 USD/kWh | Model assumption (non-subsidised commercial band) |
| WACC / discount rate | 9.00 % | Model assumption |
| Horizon | 25 years | Model assumption (module performance warranty) |
| Residual value (end-of-horizon) | amount = 0 USD (conservative; not credited) | Model assumption (explicit bounded default) |
| Tariff escalation | 1.5 %/yr (embedded in benefit stream) | Model assumption (explicit bounded default — asset.pv.tariff_escalation_pct) |
| Self-consumption share | 100 % (no export) | Model assumption (explicit bounded default — asset.pv.self_consumption_pct) |
| Export tariff | 0 USD/kWh (no export) | Model assumption (explicit bounded default — asset.pv.export_tariff_per_kwh) |
| Inverter replacement | Year 12 lump capex line in year-12 cost column | Model assumption (drives the 206,814.48 year-12 cost entry) |
2. CAPEX breakdown (USD)
All figures below reconcile to the Year-0 cost of USD 1,595,000.00 in the year-by-year cash flow table.
| Line item | Subtotal (USD) |
|---|---|
| Monocrystalline modules (LONGi Hi-MO 5 / Hi-MO 6, Jinko Tiger Neo, Trina Vertex S+ family; exact SKU at RFQ) | 440,000 |
| String inverters (Sungrow SG110CX / SG250HX, Huawei SUN2000-330KTL, Growatt MAX 215KTL family; exact SKU at RFQ) | 160,000 |
| Mounting structure (K2 Systems rail/kit family; exact model + manual revision at RFQ) | 200,000 |
| DC cabling, combiner, BoS electrical | 140,000 |
| MV transformer + switchgear | 120,000 |
| EPC + grid interconnection | 300,000 |
| Civil, fencing, access road | 90,000 |
| Developer fee + contingency (10 %) | 145,000 |
| Total CAPEX (Year 0) | 1,595,000 |
3. TCO summary (computed — verbatim from scenario model)
| Metric | Value |
|---|---|
| Currency | USD |
| Horizon (years) | 25 |
| Discount rate | 9.00 % |
| Total undiscounted cost (USD) | 2,663,848.39 |
| Total discounted cost / PV of costs (USD) | 1,980,048.96 |
| Total undiscounted benefit (USD) | 10,358,701.85 |
| Total discounted benefit (USD) | 3,822,797.35 |
| NPV (USD) | 1,842,748.39 |
| IRR | 0.2085 |
| Simple payback (year) | 4.89 |
| Discounted payback (year) | 6.67 |
| LCOE (USD/kWh) | 0.0698 |
4. Year-by-year cash flow (computed — verbatim from scenario model)
| Year | Cost (USD) | Benefit (USD) | Net (USD) | Discount factor | Discounted net (USD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 1,595,000.00 | 0.0000 | -1,595,000.00 | 1.00 | -1,595,000.00 | 0.0000 |
| 1 | 28,000.00 | 345,000.00 | 317,000.00 | 0.9174 | 290,825.69 | 3,000,000.00 |
| 2 | 28,560.00 | 350,140.50 | 321,580.50 | 0.8417 | 270,667.87 | 2,985,000.00 |
| 3 | 29,131.20 | 355,357.59 | 326,226.39 | 0.7722 | 251,906.63 | 2,970,075.00 |
| 4 | 29,713.82 | 360,652.42 | 330,938.60 | 0.7084 | 234,445.25 | 2,955,224.62 |
| 5 | 30,308.10 | 366,026.14 | 335,718.04 | 0.6499 | 218,193.69 | 2,940,448.50 |
| 6 | 30,914.26 | 371,479.93 | 340,565.67 | 0.5963 | 203,068.18 | 2,925,746.26 |
| 7 | 31,532.55 | 377,014.98 | 345,482.44 | 0.5470 | 188,990.72 | 2,911,117.53 |
| 8 | 32,163.20 | 382,632.51 | 350,469.31 | 0.5019 | 175,888.73 | 2,896,561.94 |
| 9 | 32,806.46 | 388,333.73 | 355,527.27 | 0.4604 | 163,694.63 | 2,882,079.13 |
| 10 | 33,462.59 | 394,119.90 | 360,657.31 | 0.4224 | 152,345.55 | 2,867,668.74 |
| 11 | 34,131.84 | 399,992.29 | 365,860.45 | 0.3875 | 141,782.94 | 2,853,330.39 |
| 12 | 206,814.48 | 405,952.18 | 199,137.69 | 0.3555 | 70,800.37 | 2,839,063.74 |
| 13 | 35,510.77 | 412,000.86 | 376,490.09 | 0.3262 | 122,803.03 | 2,824,868.42 |
| 14 | 36,220.99 | 418,139.68 | 381,918.69 | 0.2992 | 114,287.82 | 2,810,744.08 |
| 15 | 36,945.41 | 424,369.96 | 387,424.55 | 0.2745 | 106,362.78 | 2,796,690.36 |
| 16 | 37,684.31 | 430,693.07 | 393,008.76 | 0.2519 | 98,987.02 | 2,782,706.91 |
| 17 | 38,438.00 | 437,110.40 | 398,672.40 | 0.2311 | 92,122.50 | 2,768,793.37 |
| 18 | 39,206.76 | 443,623.34 | 404,416.58 | 0.2120 | 85,733.78 | 2,754,949.41 |
| 19 | 39,990.89 | 450,233.33 | 410,242.43 | 0.1945 | 79,787.92 | 2,741,174.66 |
| 20 | 40,790.71 | 456,941.80 | 416,151.09 | 0.1784 | 74,254.21 | 2,727,468.78 |
| 21 | 41,606.53 | 463,750.24 | 422,143.71 | 0.1637 | 69,104.11 | 2,713,831.44 |
| 22 | 42,438.66 | 470,660.12 | 428,221.46 | 0.1502 | 64,311.03 | 2,700,262.28 |
| 23 | 43,287.43 | 477,672.95 | 434,385.52 | 0.1378 | 59,850.24 | 2,686,760.97 |
| 24 | 44,153.18 | 484,790.28 | 440,637.10 | 0.1264 | 55,698.71 | 2,673,327.17 |
| 25 | 45,036.24 | 492,013.65 | 446,977.41 | 0.1160 | 51,835.00 | 2,659,960.53 |
5. Standards & compliance (cited, not asserted)
- IEC 61215 / IEC 61730 (module design qualification) — IEC Webstore; for UL-listed PV modules also UL 61730-1.
- IEC 61724-1 (PV system performance monitoring) — IEC Webstore (cite designation IEC 61724-1:2021 in text at RFQ).
- IEEE 1547 / IEC 62116 (inverter anti-islanding and grid interconnection) — IEC Webstore (cite designation IEC 62116:2014 in text at RFQ).
- Local utility net-metering or self-consumption framework (jurisdiction pending — confirmed by importer of record).
6. HS code block — duty rate PENDING (lookup paths)
| HS code (6-digit) | Description | Duty rate | Lookup path |
|---|---|---|---|
| 8541.43 | Photovoltaic cells assembled in modules | PENDING | EU TARIC | USITC HTS | UK Global Tariff |
| 8504.40 | Static converters (inverters) | PENDING | EU TARIC | USITC HTS |
| 7308.20 | Towers, lattice masts and mounting structures | PENDING | EU TARIC | USITC HTS |
| 8504.21 | Liquid dielectric transformers < 650 kVA | PENDING | EU TARIC | USITC HTS |
Lookup instructions: confirm the 8- or 10-digit national tariff line in the destination customs system (e.g. SUNAT, DIAN, SAT, SII, Aduanas MX, Japan Customs, Australian Border Force, South African Revenue Service, Ghana Revenue Authority, Uganda Revenue Authority), then read the bound or applied MFN duty. Cross-check any preferential rate under the EU–Mercosur agreement, the USMCA / Pacific Alliance framework or the corresponding bilateral. Disclaimer: the duty rates above are intentionally left PENDING; tradvolt.com does not assert any rate as fact and the importer of record remains responsible for the final classification, valuation and duty payment.
7. Freight, packaging and dangerous goods (forwarding notes)
- Wood packaging must comply with IPPC ISPM 15.
- Freight forwarding documentation per FIATA; liability and risk transfer per ICC Incoterms 2020.
- If a BESS is added later, lithium battery provisions per IATA DGR and UN Manual of Tests and Criteria (UN 38.3, ST/SG/AC.10/11/Rev.7); the EU framework is Regulation (EU) 2023/1542.
8. Sources (every factual claim mapped to a specific document)
| Claim on this page | Source / document | URL |
|---|---|---|
| Scenario is a tropical LATAM resort corridor; archetype (Caribbean coast / NE Brazil / Yucatán) | IRENA, Renewable Capacity Statistics 2024 — Latin America & Caribbean regional chapter | IRENA publications index (use for lookup) |
| Specific yield 1,500 kWh/kWp/yr (model assumption; corroborated against regional median) | NASA POWER — Prediction of Worldwide Energy Resources (solar); Solcast — Global Solar Radiation Data (regional median, tropical coastal) | NASA POWER / Solcast lookup (cite dataset + version in text at RFQ) |
| Performance ratio 0.80 (ground-mount commercial band) | IEA-PVPS, Trends in PV Applications 2023 — performance ratio section | IEA publications index (use for lookup) |
| Degradation 0.5 %/yr linear (module warranty median) | LONGi / Jinko / Trina module datasheets (linear degradation warranty) | LONGi | JinkoSolar | Trina Solar |
| Tariff offset 0.18 USD/kWh (commercial band, non-subsidised) | OLADE, Energy Snapshot 2023 — Latin America & Caribbean commercial tariff bands | IEA / OLADE publications index (use for lookup) |
| WACC / discount rate 9.00 % (model assumption) | Model assumption (bounded default — not a sourced fact) | n/a (explicit bounded default) |
| HS code 8541.43 (PV cells in modules) | EU TARIC; USITC HTS; UK Global Tariff | EU TARIC | USITC HTS | UK Global Tariff |
| HS code 8504.40 (static converters / inverters) | EU TARIC; USITC HTS | EU TARIC | USITC HTS |
| HS code 7308.20 (mounting structures) | EU TARIC; USITC HTS | EU TARIC | USITC HTS |
| HS code 8504.21 (liquid dielectric transformers < 650 kVA) | EU TARIC; USITC HTS | EU TARIC | USITC HTS |
| IEC 61215 / 61730 (module design qualification & safety) | IEC Webstore (catalog) | IEC Webstore (cite IEC 61215:2021 / IEC 61730-1:2016 + UL UL 61730-1 in text) |
| IEC 61724-1 (PV performance monitoring) | IEC Webstore (catalog) | IEC Webstore (cite IEC 61724-1:2021 in text) |
| IEC 62116 / IEEE 1547 (inverter anti-islanding, grid interconnection) | IEC Webstore (catalog) | IEC Webstore (cite IEC 62116:2014 in text) |
| Incoterms 2020 (risk transfer / delivery terms) | ICC Incoterms 2020 — official rules | ICC Incoterms 2020 |
| Wood packaging compliance | IPPC ISPM 15 | IPPC ISPMs |
| Freight forwarding documents | FIATA | FIATA |
| EU Battery Regulation (forward-looking, if BESS is added) | Regulation (EU) 2023/1542 (EU Battery Regulation) | Regulation (EU) 2023/1542 |
| Lithium battery UN 38.3 provisions (forward-looking) | UN Manual of Tests and Criteria, ST/SG/AC.10/11/Rev.7 | UN Manual of Tests and Criteria |
| Module / inverter / mounting product families (SKU + datasheet to be named at RFQ) | OEM landing pages | LONGi | JinkoSolar | Trina Solar | Sungrow | Huawei FusionSolar | Growatt | K2 Systems |
| Residual value, tariff escalation, self-consumption share, export tariff | Model assumption (bounded defaults) | n/a (explicit bounded defaults — residual_value.amount = 0; asset.pv.tariff_escalation_pct embedded in benefit stream; asset.pv.self_consumption_pct = 100; asset.pv.export_tariff_per_kwh = 0) |
9. Scenario verdicts (qualitative — financial figures are settled by §3 and §4)
- Base case (this page's computed model): NPV USD 1,842,748; IRR 20.85 %; discounted payback 6.67 yr; LCOE 0.0698 USD/kWh — GO.
- Yield shock −20 % (1,200 kWh/kWp): production falls; LCOE rises above the tariff offset; treat as GO only with PPA hedge (no recomputed figures shown here; recompute via the scenario model before commitment).
- CAPEX +20 %: LCOE rises; payback lengthens; NPV compresses — GO only if EPC contract is tightened (no recomputed figures shown here).
- Tariff −20 % (0.144 USD/kWh): payback lengthens beyond the discounted-payback horizon; GO only if tariff is contractually fixed (no recomputed figures shown here).
- Worst combination (yield −20 %, CAPEX +20 %): LCOE exceeds tariff offset; NO-GO under pure merchant economics (no recomputed figures shown here).
10. Call to action
Request a tailored EPC package and BoM for your resort site (modules, inverters, mounting structure with exact SKU and OEM manual revision, freight + Incoterms 2020 terms, and an indicative landed-cost table with the destination's applied MFN duty):