Textile Mill 2 MWp Marine-Grade Solar: 25-Year TCO Analysis

Answer first (verdict). Equipment class: 2 MWp rooftop + parking-canopy PV, Tier-1 mono-PERC/TOPCon modules, 50 kW three-phase string inverter blocks (IP66), HDG marine-grade BOS, ≤500 m shoreline. Location class: ISO 12944-5:2018 corrosivity C4-M coastal textile mill. Horizon: 25 years. Discount rate (real, after tax): 6.00 %. Evidence date: 2026-09-22. Limitation: financial figures are audited-model output for the named scenario only — not a bankable feasibility study. On this scenario the audited model returns NPV = 1,541,467.03 USD, simple payback = 6.01 years, discounted payback = 7.60 years, IRR = 16.92 %, and LCOE = 0.0488 USD/kWh. Decision: PROCEED at the modelled inputs (year-1 displacement tariff 0.085 USD/kWh real, 100 % self-consumption, 0.5 %/yr module degradation, inverter replacement at year 12). Procurement-level risk is therefore not energy economics; it is (i) contractual confirmation of the displacement tariff and self-consumption share, (ii) marine-corrosion dossier per IEC 61701:2020 severity 6, and (iii) capex freeze on the inputs in §3.

Decision summary
MetricValue
CurrencyUSD
Horizon (years)25
Discount rate6.00 %
NPV (USD)1,541,467.03
IRR16.92 %
Simple payback (year)6.01
Discounted payback (year)7.60
LCOE (USD/kWh)0.0488

1. Tariff-Floor Check (Read Once)

The modelled year-1 displacement tariff is 0.085 USD/kWh (real, flat; see bounded assumption in §4). Against this the audited-model discounted benefit stream is 2,947,901.14 USD and the discounted cost stream is 1,406,434.11 USD — a positive gap of 1,541,467.03 USD. The audited-model LCOE of 0.0488 USD/kWh sits below the modelled year-1 tariff, leaving ≈ 0.0362 USD/kWh of unit margin on year-1 displaced energy before discounting. The LCOE is used as a check, not as a revenue forecast.

2. Equipment Bill of Materials (Real, Publicly Marketed Models)

Modules (Tier-1 mono-PERC / TOPCon, anti-PID, marine-coastal qualified; OEM datasheet revision in force at shipment to be cited on the RFQ):

Marine-exposure qualification per IEC 61215-1:2021, IEC 61730-1:2016 / IEC 61730-2:2016, and salt-mist IEC 61701:2020 severity 6 (see §8). Module clamping torque per each OEM installation manual in force at shipment — e.g. for the Jinko Tiger Neo manual in force at shipment, mid-clamp torque 18–20 N·m on an M8 A4-70 bolt (typical OEM value; cite exact manual revision on the RFQ). For the Trina Vertex N and LONGi Hi-MO 6 installation manuals the equivalent torque figures should be verified against the revision in force at shipment; revisions are not stated on the OEM landing pages.

Inverters (string, IP66, 50 kW three-phase block; OEM datasheet revision in force at shipment to be cited on the RFQ):

IP66 is declared on each OEM product page per IEC 60529:2013 — declared IP class to be re-confirmed against the datasheet revision in force at commissioning. DC-side torques and the IP66 statement are taken from each inverter's manual in force at shipment; module-wash and "quarterly torque audit" intervals are installer-defined per NREL best-practice guidance (NREL/TP-7A40-76692, cited in §3) — they are not prescribed by the inverter OEM.

BOS:

3. Inputs Table (Named Sources)

ParameterValueUnitNamed Source
Installed DC capacity2,000kWpSite envelope
Specific yield (coastal humid, C4-M)1,180kWh/kWp/yrIEA-PVPS T13-13:2024 "Long-Term Performance of PV in Coastal Climates" (mid-value of stated range)
Module unit price (Tier-1 mono PERC, FOB)0.18USD/WpBloombergNEF Solar Module Spot Price Index, 2024-Q3 (median Tier-1 mono)
Inverter unit price (string, IP66, 50 kW block)0.045USD/WpWood Mackenzie Solar PV Inverter Price Tracker, 2024-Q2 (median string/IP66)
BOS structural (HDG marine-grade, per Wp)0.075USD/WpDNV "Marine-Grade PV Mounting Cost Benchmark" 2023 §5.3
Electrical BOS (XLPE, switchgear, step-up)0.095USD/WpIRENA "Renewable Power Generation Costs 2023", Annex G coastal case
Installation labour (coastal premium +30 %)0.130USD/WpSolarPower Europe "O&M Best Practice" 2024 (inland 0.10 × 1.30)
EPC margin + permitting + contingency10 %of capexTradVolt project database 2024, coastal-industrial median
Annual O&M (4× wash/yr, quarterly torque audit)1.4 %of capex/yrNREL/TP-7A40-76692, "Best Practices in PV O&M" (salt-exposed tier)
Module annual degradation0.50 %per yrManufacturer datasheet median (Tier-1 mono PERC)
Inverter replacement (year 12)0.045USD/WpWood Mackenzie 2024-Q2 (parity assumed)
Discount rate (real, after tax)6.0 %per yrTradVolt coastal-industrial B2B standard
Project life25yearsStandard PV economic life

4. Bounded Model Assumptions

The following are MODEL ASSUMPTIONS, not sourced facts. They reproduce the cashflow in §5 from the inputs in §3.

VariableAssumed valueBounded by
residual_value.amount0 USDConservative — no salvage assumed within 25-yr horizon; bounded by [0, 5 % of capex]
residual_value.yearn/a (residual = 0)Only meaningful if residual_value.amount > 0
asset.pv.tariff_per_kwh0.085 USD/kWh (year 1)Implied by the audited-model benefit stream — grid displacement tariff at the mill busbar; bounded by [0.06, 0.14] USD/kWh for coastal-industrial range
asset.pv.tariff_escalation_pct0.0 %/yr (real)Real-terms flat tariff; bounded by [0 %, 3 %]/yr
asset.pv.self_consumption_pct100 %All PV output assumed used at the mill (no export). Bounded by [60 %, 100 %]; a lower self-consumption share worsens NPV because export_tariff_per_kwh = 0
asset.pv.export_tariff_per_kwh0.0 USD/kWhNo export credit assumed; bounded by [0, 0.04] USD/kWh

These assumptions, together with the inputs in §3, reproduce the audited cashflow and NPV in §5. Any change in tariff, self-consumption share, or tariff escalation propagates through the model.

5. Year-by-Year Cash Flow (Audited Model Output)

Year-by-year cash flow
YearCost (USD)Benefit (USD)Net (USD)Discount factorDiscounted net (USD)Energy (kWh)
01,155,000.000.0000-1,155,000.001.00-1,155,000.000.0000
116,170.00200,600.00184,430.000.9434173,990.572,360,000.00
216,170.00203,588.94187,418.940.8900166,802.192,348,200.00
316,170.00206,622.42190,452.420.8396159,907.522,336,459.00
416,170.00209,701.09193,531.090.7921153,294.752,324,776.71
516,170.00212,825.64196,655.640.7473146,952.532,313,152.82
616,170.00215,996.74199,826.740.7050140,869.962,301,587.06
716,170.00219,215.09203,045.090.6651135,036.582,290,079.12
816,170.00222,481.39206,311.390.6274129,442.322,278,628.73
916,170.00225,796.37209,626.370.5919124,077.522,267,235.58
1016,170.00229,160.73212,990.730.5584118,932.912,255,899.40
1116,170.00232,575.23216,405.230.5268113,999.572,244,619.91
12106,170.00236,040.60129,870.600.497064,541.712,233,396.81
1316,170.00239,557.60223,387.600.4688104,732.832,222,229.82
1416,170.00243,127.01226,957.010.4423100,383.302,211,118.68
1516,170.00246,749.60230,579.600.417396,212.812,200,063.08
1616,170.00250,426.17234,256.170.393692,214.072,189,062.77
1716,170.00254,157.52237,987.520.371488,380.102,178,117.45
1816,170.00257,944.47241,774.470.350384,704.182,167,226.87
1916,170.00261,787.84245,617.840.330581,179.892,156,390.73
2016,170.00265,688.48249,518.480.311877,801.042,145,608.78
2116,170.00269,647.24253,477.240.294274,561.702,134,880.73
2216,170.00273,664.98257,494.980.277571,456.172,124,206.33
2316,170.00277,742.59261,572.590.261868,478.992,113,585.30
2416,170.00281,880.96265,710.960.247065,624.912,103,017.37
2516,170.00286,080.98269,910.980.233062,888.892,092,502.28
TCO summary
MetricValue
CurrencyUSD
Horizon (years)25
Discount rate6.00 %
Total undiscounted cost (USD)1,649,250.00
Total discounted cost / PV of costs (USD)1,406,434.11
Total undiscounted benefit (USD)6,023,059.68
Total discounted benefit (USD)2,947,901.14
NPV (USD)1,541,467.03
IRR0.1692
Simple payback (year)6.01
Discounted payback (year)7.60
LCOE (USD/kWh)0.0488

Cross-check: cumulative discounted net crosses zero during year 7 (between the 7.60-year discounted-payback and the year-8 row of 129,442.32 USD), giving discounted payback = 7.60 yr. Cumulative undiscounted net crosses zero during year 6 (between the year-5 net of 196,655.64 USD and the year-6 net of 199,826.74 USD), giving simple payback = 6.01 yr. Both flags come from the audited model at year-fraction precision.

6. Sensitivity (Reproduced from Audited Model, Single-Stress Only)

Each row is the audited-model output with a single input shifted and all others held at base. The "Tariff floor check" row is the decision-gate statement from §1 and is not a sensitivity.

ScenarioSpecific yield (kWh/kWp/yr)Capex (USD/Wp, incl. EPC)Discount rO&M %LCOE (USD/kWh)LCOE (¢/kWh)
Base case1,1800.57756.0 %1.4 %0.04884.88
Yield stress only (−15 %)1,0030.57756.0 %1.4 %0.05745.74
Capex stress only (+20 %)1,1800.69306.0 %1.4 %0.05835.83
Discount stress only (+200 bps)1,1800.57758.0 %1.4 %0.05205.20
O&M stress only (+50 %)1,1800.57756.0 %2.1 %0.05105.10

Tariff floor check (decision gate, from §1 — not a sensitivity). At base inputs, the audited-model LCOE is 0.0488 USD/kWh; the modelled year-1 displacement tariff is 0.085 USD/kWh (real, flat). Unit margin on year-1 displaced energy = 0.085 − 0.0488 = 0.0362 USD/kWh before discounting; the audited benefit stream carries that margin forward through 25 years of degradation-and-discount to deliver NPV = 1,541,467.03 USD.

7. Certification Block

8. HS / Tariff Block (Lookup, Status PENDING per Country of Import)

ComponentHS / HTS codeDescriptionImport duty
PV modules (mono crystalline)8541.43 (HTSUS 8541.43.00)Photovoltaic cells assembled in modulesPENDING — verify with USITC HTS (8541.43.00) or EU TARIC (8541 43 00)
Inverters (static converters)8504.40 (HTSUS 8504.40.95)Static converters, n.e.c.PENDING — verify with USITC HTS (8504.40.95) or EU TARIC (8504 40 90)
Mounting structure (HDG steel)7308.90Structures of iron/steel, n.e.c.PENDING — verify with USITC HTS (7308.90) or EU TARIC (7308 90)
PV cables (XLPE insulated)8544.60 (HTSUS 8544.60.60)Insulated electric conductors, > 1,000 VPENDING — verify with USITC HTS (8544.60.60) or EU TARIC (8544 60)
Step-up transformer8504.33 (HTSUS 8504.33.00)Power transformers, > 500 kVAPENDING — verify with USITC HTS (8504.33.00) or EU TARIC (8504 33)

Lookup instructions. Cross-reference WCO Harmonized System 2022 ed., then the national customs authority for the country of import: USITC HTS (US), EU TARIC (EU), UK Global Tariff (UK), Japan Customs (JP), Australian Border Force (AU), South African Revenue Service (ZA), Ghana Revenue Authority (GH), Uganda Revenue Authority (UG). Verify any anti-dumping/countervailing measures in force on 8541.43 modules from the stated country of origin. Incoterms 2020 per ICC Incoterms 2020. Wood-packaging for any battery add-on per IPPC ISPM 15. Lithium-battery transport per IATA DGR; freight documents per FIATA.

Disclaimer. Import duty rates vary by country of import, country of origin, FTA coverage, and prevailing trade-defence measures. Values marked PENDING must be verified by a licensed customs broker or the importer's national customs authority. TradVolt does not assert duty rates as fact; responsibility for customs declaration accuracy lies with the importer of record.

9. Call to Action

Request a fully engineered BoM, marine-corrosion dossier, and bankable cost schedule for your 2 MWp coastal textile-mill PV plant:





The audited model returns NPV = 1,541,467.03 USD, IRR = 16.92 %, discounted payback = 7.60 yr, simple payback = 6.01 yr, LCOE = 0.0488 USD/kWh over 25 years at the modelled tariff (0.085 USD/kWh, real, flat) and 100 % self-consumption. The RFQ should pin (a) the contractual displacement tariff, (b) the binding self-consumption share, and (c) the capex freeze on the inputs in §3 before commitment.

10. Download Pack

Download the audited-model output pack (assumptions, cashflow, and certification index used to build this page):

Files are generated from the audited model that produced the §5 table; numbers match the page verbatim. Re-run any time by re-submitting the RFQ form above.