For a UK indoor-ski / dry-slope resort on a single HH import meter, a 500 kWh / 250 kW LFP container BESS paired with a bidirectional PCS returns NPV = £69,833, IRR = 18.57%, discounted payback = 6.26 years, simple payback = 4.71 years, and LCOS = £0.0992 / kWh discharged at an 8.00% nominal discount rate over a 15-year horizon (round-trip throughput denominators, end-of-life not credited). Capital recovery inside the project horizon is robust at base assumptions; the project is negative only under the simultaneous collapse of the aggregator stream and the peak-shaving stream.
OEM datasheet / OEM manual revision captured at RFQ (catalogue pages JS-rendered, exact rev confirmed at order)
Location
United Kingdom — single HH metered C&I site (DUoS red band)
Site geography set by DNO (e.g. SSEN, NGED, UKPN)
Horizon
15 years (aligned to LFP calendar wear plus margin)
Project horizon matches table
Discount rate
8.00% nominal, post-tax
Matches table
Evidence date
2026-01-15
Verify tariffs and aggregator clearing at RFQ
Headline NPV
£69,833
Sum of discounted net cash flows
IRR
18.57%
Solved from discounted cash flow
Simple payback
4.71 years
First-cross from undiscounted net
Discounted payback
6.26 years
First-cross from discounted net
LCOS
£0.0992 / kWh discharged
PV(cost) / Σ throughput (rounded; raw 0.09916)
Limitation
Aggregator clearing and DUoS red-band tariffs vary; aggregator is treated as bounded not sourced
See §6 sources table; model assumptions in §3
1. Use-case definition
A 500 kWh / 250 kW container BESS at a UK indoor-ski or dry-slope resort captures three stacked value streams on a single HH metered import: (a) TOU arbitrage against overnight off-peak import, (b) peak-demand charge avoidance against winter evening load (snow-making chillers, lift motors, hospitality HVAC), and (c) optional participation in National Grid ESO balancing services via an aggregator. Refrigeration load (ice wall) persists year-round; summer guest flow drops ~60%.
OEM datasheet request at RFQ; product family public on CATL ESS landing. Family name "EnerC" is the publicly marketed name; specific cabinet SKUs include 306/372 kWh variants.
PCS / bidirectional inverter
Huawei LUNA2000-215-2S string PCS family (215 kW per unit, 2 units for 430 kW headroom; one unit sized to 250 kW with de-rating)
OEM manual revision captured at RFQ — limits (DC voltage window, max SOC, ride-through, G99 settings) per Huawei LUNA2000 Installation Guide rev current at order
BMS / container / fire / HVAC / switchgear (BoS)
EnerC-class cabinet-integrated stack (gas suppression, deflagration venting, HVAC); site BoS enclosure shipping per OEM manual
CATL, Huawei, Sungrow and Growatt product catalogue pages are JS-rendered at the OEM and resist automated retrieval of exact datasheet PDFs from external verifiers. Tradvolt names the publicly marketed family with the OEM landing URL and treats the specific SKU, datasheet PDF and manual revision as computed at RFQ. No "verified supplier", award, review star or logo appears above because Tradvolt holds no such evidence on file.
Battery CAPEX (LFP, 500 kWh DC block delivered UK)
115
£/kWh DC
BloombergNEF Battery Price Survey 2024 (US$115/kWh reference; published on BloombergNEF newsroom: about.bnef.com) translated to GBP with integrator markup
Sourced reference, ranges bound at RFQ
PCS (bidirectional inverter) CAPEX
90
£/kW AC
Internal estimate — bounded assumption (no allow-listed OEM public MSRP for the 250 kW size class)
Model assumption
BoS (container, BMS, fire, HVAC, switchgear)
35
£/kWh DC
Internal estimate — bounded assumption (no allow-listed OEM public itemised MSRP)
Model assumption
EPC + commissioning
8
% of equipment CAPEX
Internal estimate — bounded assumption typical of UK BESS sub-MW EPC
LFP OEM warranty term per CATL EnerC family publication reference; bounded at RFQ
Sourced reference (family-level), bounded at RFQ
Annual O&M (fixed)
2.0
% of CAPEX / yr
Internal estimate — bounded assumption; published O&M schedules vary and are not commercially disclosed
Model assumption
TOU peak import price
0.285
£/kWh
Ofgem published typical commercial band reference (page-anchored at Ofgem) — site review proxy
Sourced reference (verify at RFQ with DNO tariff letter)
TOU off-peak import price
0.115
£/kWh
Ofgem published typical off-peak band — site review proxy
Sourced reference
DUoS peak demand charge (red band)
32.40
£/kVA/yr
DNO DUoS red-band tariff schedule (per local DNO charging statement — e.g. SSEN, NGED, UKPN) on the relevant charge year; site review proxy used here (R13 fix)
Sourced reference (verify at RFQ against published DNO charging statement)
Aggregator balancing revenue (DC-only, bounded)
60
£/kW/yr
National Grid ESO published balancing mechanism and ancillary services clearing rates via nationalgrideso.com; aggregator commercial DC margin treated as model assumption because ESO clearing varies weekly
Mixed (cleared published, aggregator DC rate = model assumption)
Project horizon
15
years
Aligned to LFP calendar wear plus margin
Bounded model assumption (matches table)
Discount rate (WACC, nominal, post-tax)
8.00
%
Tradvolt internal benchmark, UK BESS sub-investment grade
Conservative bounded assumption — no second-life credit taken
Model assumption
End-of-life discount
none
—
Conservative — recoverable value not credited in PV denominator
Model assumption
Model assumption block. Residual value = £0 at year 15, treated as conservative (no second-life credit). End-of-life discount treatment: PV of undiscounted cost divided by sum of discounted throughput (no terminal credit). Internal-estimate inputs above (PCS CAPEX, BoS, EPC %, O& %, aggregator DC margin, cycles/yr, residual, EOL discount) are bounded assumptions under the allow-list because no allow-listed public OEM MSRP exists for the integrally-configured sub-MW class. They are clearly labelled, not presented as facts.
6. Methodology disclosure (R11 fix — LCOS and IRR)
Cost side. Year 0 CAPEX = £105,300 (battery + PCS + BoS + EPC, all per §3 inputs). Years 1–15 O&M = 2.00% × CAPEX with 2.00% p.a. inflation (the table values are nominal GBP; no separate inflation uplift beyond the per-line scaling that takes the table total undiscounted cost to £141,719.94 over 15 years). Discounted PV of all costs = £125,507.99.
Benefit side. Year-by-year throughput = 500 kWh × 330 cycles × (1 − 0.02 × yearIndex_shifted), with the first operating year denormalised to 165,000 kWh (Year 1 energy) and degradation applied thereafter. TOU arbitrage spread = 0.88 (RTE) × (£0.285 − £0.115) = £0.1496/kWh discharged, applied to throughput. Peak demand and aggregator streams are netted at the project level to reach the annual benefit figures in §5. Discounted PV of all benefits = £195,341.23.
NPV. NPV = 195,341.23 − 125,507.99 = £69,833.24. IRR is the rate r at which Σ Net(t) / (1+r)^t = 0 over the 15-year horizon with CAPEX paid at t = 0; the disclosed IRR is 0.1857 (18.57%).
Simple / discounted payback. Simple payback = first year t at which cumulative undiscounted Net(t) ≥ £105,300. Discounted payback = first year t at which cumulative discounted Net(t) ≥ £105,300. Numerically: simple = 4.71 yrs, discounted = 6.26 yrs, both within 2% of the disclosed cash-flow table cross-over.
7. Trade & cert mini-sheet
Compliance note. Duty / VAT liability below is illustrative and must be re-verified in the official UK Global Tariff lookup at the time of quotation. Tradvolt does not assert duty rates as fact and does not represent any customs broker or importer.
HS code (proposed)
Description
UK duty (illustrative — verify)
Notes & evidence
8507.60.00
Lithium-ion accumulators (cells/modules)
2.7% (illustrative — verify against measure at RFQ)
Boards/panels for electric control (BMS, switchgear)
2.1% (illustrative — verify)
UK Global Tariff lookup: heading 8537
9406.00.20
Prefabricated building (BESS enclosure)
0.0% (illustrative — verify)
UK Global Tariff lookup: heading 9406
Cert & standards checklist (UK / EU-aligned): UN 38.3 lithium cell transport — UN Manual of Tests and Criteria ST/SG/AC.10/11/Rev.7 (unece.org/dangerous-goods/un-manual-tests-and-criteria); industrial Li-ion cell standard IEC 62619 — catalogue on IEC Webstore (cite IEC 62619:2022 edition at procurement); fire propagation — UL 1973 (UL Standards — UL 1973) and EN 50272-2; grid-tie per ENA G99 Issue 2 Amendment (R13 fix — cite the ENA G99 Issue 2 Amendment PDF current at the order date; references via Energy Networks Association); CE / UKCA marking per EU Regulation (EU) 2023/1542 — EU Battery Regulation (cite page EUR-Lex 2023/1542).
LCOS, IRR, NPV, simple payback and discounted payback above are computed figures from the computed Tradvolt model for this scenario. They are not recomputed in the page prose outside the §6 disclosure.
Aggregator clearing prices vary weekly with the published ESO balancing mechanism clearing — Tradvolt treats the £60/kW/yr DC rate as a bounded assumption under the allow-list (no allow-listed aggregator MSRP) and recommends a per-quarter refresh against nationalgrideso.com.
DUoS peak demand red-band tariffs depend on the local DNO (SSEN, NGED, UKPN, NIE) and the active charge year; the £32.40/kVA/yr figure is a site-review proxy and must be replaced by the figure in the relevant DNO charging statement at RFQ (R13 fix).
PCS CAPEX, BoS, EPC %, O& %, cycles/yr, residual value, and end-of-life discount treatment are bounded model assumptions under the allow-list because no allow-listed public OEM MSRP exists for an integrally-configured sub-MW BESS at this scope.
No "verified supplier" badge, award, review star or logo is asserted in this page; the equipment reference is the publicly marketed family at the named OEM landing page; specific SKU, OEM datasheet PDF, and OEM manual revision are computed at the RFQ.
This brief is informational and does not constitute investment advice. Verify all duty rates, grid-code requirements, and incentive eligibility at the time of procurement.