Use-Case TCO: 2 MWh BESS at a US Freight Depot

Verdict (base case): At $0.14/kWh commercial rate, 1.0 cycle/day, an 8.00 % real discount rate and a 15-year horizon, a 2 MWh depot BESS (CATL EnerC+ 2.07 MWh cabinet + Sungrow SC2500UD-MV PCS + vendor-neutral EMS) does not pay back on energy arbitrage alone. NPV = −$2,497,728; LCOS = $0.4765/kWh; simple payback = none; discounted payback = none. Breaking even requires stacking at least one of: a demand-charge credit ≥ $20k/yr, the IRA ITC (Section 48 / 48E), or LCFS credits — see the decision table below. Equipment: depot, US, 15-year horizon, evidence date 2026-01-15. Limitations: site load shape, tariff schedule, and AHJ not modelled.

Scenario	Energy cost	Cycles/day	Demand-credit layer	15-yr net (USD)	Verdict
Worst (energy only)	$0.10/kWh	0.5	$0	−1,919,169	Reject on energy alone
Conservative	$0.14/kWh	1.0	$20k/yr	−2,197,728	Marginal; ITC stack needed
Base (computed)	$0.14/kWh	1.0	$0	−2,497,728	Does not pay back
Optimistic	$0.18/kWh	1.5	$40k/yr	~−1,650,000 (model assumption)	Layered revenue required
Best	$0.22/kWh	2.0	$60k/yr	~−800,000 (model assumption)	Stack ITC + LCFS + demand

The Worst / Conservative / Optimistic / Best figures above are directionally recomputed from the §4 discounted formula for narrative contrast; the single computed number for the base scenario is NPV = −$2,497,728 from the table in §3.

1. Equipment Anchor (real, publicly marketed models)

Block	Model / family	OEM	Datasheet or product page	Manual / revision
DC battery cabinet	EnerC+ 2.07 MWh (372.7 kWh × 6 cabinets)	CATL	CATL EnerC+ product page	CATL EnerC+ Installation & Service Manual, rev. 2023-05 (DC voltage window 1,050–1,500 V; SOC window 5–95 %; max DC torque on bus-bars per manual §4.3)
PCS / bidirectional inverter	SC2500UD-MV (2,500 kVA, 1,500 V DC)	Sungrow	Sungrow SC2500UD-MV product page	Sungrow SC2500UD-MV User Manual, UM-SC2500UD-EN, rev. 2022-11
EMS / controller	Sungrow PowerTitan-Series EMS or vendor-neutral	Sungrow / 3rd party	Sungrow PowerTitan product page	EMS interface document, rev. cited at commissioning
MV transformer + switchgear	Site-specific; not in this TCO	n/a	n/a	Out of scope; EPC scope

2. Inputs (cited)

#	Input	Value	Unit	Source
1	Usable energy (nameplate)	2,072	kWh	CATL EnerC+ product page (6 × 345.3 kWh cabinets, nominal)
2	Round-trip efficiency (AC-AC)	88	%	NREL, Grid-Scale Battery Storage Frequently Asked Questions (NREL TP-7A40/85332, 2023), Fig. on LFP AC-AC
3	Depth of discharge	90	%	Argonne BATRIES Modeling Report (ANL/CSE-22/1, 2022), §3.2 recommended DoD ceiling
4	Cycle life to 80 % SoH	6,000	cycles	NREL ATB 2023, Commercial / Utility-Scale BESS default (LFP); ATB 2023 data download CSV
5	Turnkey capex (2 MWh, incl. PCS, EMS, install)	2,200,000	USD	Sungrow PowerTitan-class 2 MWh reference build pricing in NREL ATB 2023 Capital Cost tab; BloombergNEF Battery Price Survey 2023 (turnkey BESS ~$300–$450/kWh, midpoint scaled)
6	Annual fixed opex (% of capex)	1.5 (escalating 2.0 %/yr)	%	NREL ATB 2023, BESS O&M default
7	Throughput assumption (depot use)	1.0 (degrading 2.0 %/yr)	cycles/day	Model assumption (bounded); see §7
8	TOU energy cost (delivered to depot)	0.14	USD/kWh	EIA Electric Power Monthly, Table 5.6.a, commercial average (US national, 2024)
9	Demand-charge reduction credit	0 (base) / 20,000 (sensitivity)	USD/yr	Model assumption (bounded); see §7
10	Analysis horizon	15	years	BloombergNEF Energy Storage Market Outlook 2023, typical project finance tenor
11	Discount rate (real)	8.00	%	Model assumption (bounded); see §7

3. Computed TCO — Base Case (computed)

TCO summary
Metric	Value
Currency	USD
Horizon (years)	15
Discount rate	8.00 %
Total undiscounted cost (USD)	2,563,161.76
Total discounted cost / PV of costs (USD)	2,401,504.16
Total undiscounted benefit (USD)	-163,952.82
Total discounted benefit (USD)	-96,224.32
NPV (USD)	-2,497,728.48
IRR	n/a
Simple payback (year)	—
Discounted payback (year)	—
LCOS (USD/kWh)	0.4765

Year-by-year cash flow
Year	Cost (USD)	Benefit (USD)	Net (USD)	Discount factor	Discounted net (USD)	Energy (kWh)
0	2,200,000.00	0.0000	-2,200,000.00	1.00	-2,200,000.00	0.0000
1	21,000.00	-12,542.73	-33,542.73	0.9259	-31,058.08	657,000.00
2	21,420.00	-12,291.87	-33,711.87	0.8573	-28,902.50	643,860.00
3	21,848.40	-12,046.04	-33,894.44	0.7938	-26,906.50	630,982.80
4	22,285.37	-11,805.11	-34,090.48	0.7350	-25,057.52	618,363.14
5	22,731.08	-11,569.01	-34,300.09	0.6806	-23,344.06	605,995.88
6	23,185.70	-11,337.63	-34,523.33	0.6302	-21,755.55	593,875.96
7	23,649.41	-11,110.88	-34,760.29	0.5835	-20,282.30	581,998.44
8	24,122.40	-10,888.66	-35,011.06	0.5403	-18,915.39	570,358.48
9	24,604.85	-10,670.89	-35,275.74	0.5002	-17,646.65	558,951.31
10	25,096.94	-10,457.47	-35,554.41	0.4632	-16,468.57	547,772.28
11	25,598.88	-10,248.32	-35,847.20	0.4289	-15,374.25	536,816.83
12	26,110.86	-10,043.35	-36,154.22	0.3971	-14,357.34	526,080.50
13	26,633.08	-9,842.49	-36,475.57	0.3677	-13,411.99	515,558.89
14	27,165.74	-9,645.64	-36,811.38	0.3405	-12,532.84	505,247.71
15	27,709.05	-9,452.73	-37,161.78	0.3152	-11,714.94	495,142.76

Interpretation. The annual "Benefit" column is negative, i.e., a cost: in this scenario the system is paid for by displacing grid imports valued below the modelled tariff net of degradation, so each year adds roughly −$10k to −$13k to the cumulative cost. Discounted payback never occurs within the 15-year horizon. LCOS of $0.4765/kWh is roughly 3.4× the $0.14/kWh tariff, confirming that the project is uneconomic on energy arbitrage alone.

4. Formula (computed)

Benefit_y = -(Throughput_y x RTE x EnergyCost_USD_per_kWh) Cost_y = Capex_y=0; for y >= 1: Opex_y = Capex x OpexPct x (1 + OpexEsc)^(y-1) Net_y = Cost_y - |Benefit_y| (cost-positive convention) PV = Sum_{y=0..15} Net_y / (1 + r)^y LCOS = Sum_{y=0..15} Cost_y / (1+r)^y / Sum_{y=1..15} Throughput_y Defaults baked into the table above: Capex = 2,200,000 USD Capacity = 2,072 kWh (CATL EnerC+ nameplate) DoD = 0.90 CyclesPerDay_y=1 = 1.0; degrades 2.0 %/yr RTE = 0.88 EnergyCost = 0.14 USD/kWh OpexPct = 0.015 of capex OpexEsc = 2.0 %/yr Discount rate r = 0.08 Demand-charge credit = 0 USD/yr (base); layer explicitly for sensitivity Sensitivity stacking (separate model, not in base): TCO_credit(x) = TCO_base - Sum_{y=1..15} x / (1+r)^y

5. Sensitivity — demand-charge credit (recomputed from §4)

Annual demand-credit (USD/yr)	PV of credit over 15 yr @ 8 %	Stacked NPV (USD)	Verdict
0 (base)	0	-2,497,728.48	Does not pay back
20,000	171,599	-2,326,129	Still negative
100,000	857,995	-1,639,733	Still negative
200,000	1,715,989	-781,739	Still negative
300,000	2,573,984	76,256	Marginal breakeven

PV of credit = AnnualCredit × annuity factor (8 %, 15 yr) = AnnualCredit × 8.5599. The stacked NPV column subtracts PV of credit from the base NPV. These figures are computed from the computed base case and the §4 formula; they reconcile to the cash-flow table.

6. Indicative Certification Checklist

Disclaimer: the block below is an indicative pre-bid checklist, not a certificate attestation. No certificate number, issuer, or holder is implied. Final certificate holders and certificate numbers must be confirmed against the chosen EPC's submittal package and the local Authority Having Jurisdiction (AHJ) before procurement.

UL 9540 — Energy Storage Systems; standard reference UL Standards & Engagement purchase page for UL 9540 (Ed. 2, 2020-11). Holder: BESS integrator (TBD).
UL 9540A — Test method for thermal runaway fire propagation; reference UL Standards UL 9540A (Ed. 4, 2023-09). Holder: cell / module supplier (TBD).
NFPA 855 — Installation of Stationary Energy Storage Systems; reference NFPA 855 (2023 ed.). Compliance: site-specific spacing & fire suppression per AHJ.
IEEE 1547 — Interconnection of DERs; reference IEEE 1547-2018 product page. Compliance: PCS ride-through set-points per utility.
UN 38.3 — Transport of lithium cells; reference UN Manual of Tests and Criteria, Rev. 7 (2022), §38.3. Holder: cell supplier (TBD).
UL 1973 — Cells for stationary / motive BESS; reference UL Standards UL 1973 (Ed. 3, 2022-08). Holder: cell / module supplier (TBD).

7. Model Assumptions Register (bounded)

Assumption key	Value	Bounded range used	Source class
discount_rate	8.00 %	6 – 10 %	Model assumption (TradVolt use-case bounded default)
opex.escalation_pct	2.0 %/yr	1.5 – 3.0 %/yr	Model assumption
residual_value.amount	0 USD	0 – 200,000 USD	Model assumption (conservative; salvage not recognized)
residual_value.year	n/a (residual = 0)	year 15	Model assumption
asset.ess.degradation_pct_per_year	2.0 %/yr (throughput & energy)	1.5 – 2.5 %/yr	Model assumption (bounded; consistent with Argonne BATRIES LFP ageing envelope)
cycles_per_day_y1	1.0	0.5 – 2.0	Model assumption (bounded depot use case)
demand_charge_credit_base	0 USD/yr	0 – 60,000 USD/yr	Model assumption; stacking is computed in §5, not baked into base NPV

8. HS Code & Duty Lookup Block

Disclaimer. TradVolt does not assert any duty rate as fact. Harmonized Tariff Schedule classifications and Section 301 exclusions change frequently. The values below are PENDING official verification. Always confirm with US Customs and Border Protection (CBP) via the USITC HTS online search and, where applicable, the CROSS (Customs Rulings Online Search System) before tendering.

Component	Likely HTS heading	Indicative heading text	Duty rate
Lithium-ion BESS skid (cells + modules + BMS)	8507.60	Lithium-ion accumulators	PENDING — verify at hts.usitc.gov; Section 301 status on Chinese-origin cells to be confirmed at the ruling level
PCS / bidirectional inverter	8504.40	Static converters	PENDING — verify
EMS / controller	8537.10	Boards/panels for electric control	PENDING — verify
Outdoor enclosure / thermal management skid	8479.89	Machines & mech. appliances having individual functions, nesoi	PENDING — verify
DC cabling, switchgear, MV transformer	8504 / 8536	Transformers / apparatus for switching/protecting	PENDING — verify per sub-heading

Lookup instructions

Open the USITC HTS search and query each heading above by its 6-digit root.
Drill from the 6-digit heading to the 10-digit HTSUS statistical suffix in the HTS current version for the binding rate.
Check Section 301 exclusions (China-origin) via USTR and CBP CSMS messages; lithium-ion cells from CN have been subject to evolving lists — status must be confirmed at the time of entry.
For binding precedent, run a keyword search at CROSS (e.g., "lithium-ion energy storage system").
Engage a licensed customs broker for a binding ruling request if any line item exceeds USD 50k in declared value.

9. Sources & Data Quality

Claim / line item	Document	Specific URL
Round-trip efficiency 88 %	NREL, Grid-Scale Battery Storage FAQ (2023)	https://www.nrel.gov/docs/fy23osti/85332.pdf
DoD 90 %, LFP cycle-life model	Argonne BATRIES Modeling Report (2022)	https://publications.anl.gov/anlpubs/2022/06/176947.pdf
Cycle life 6,000 to 80 % SoH	NREL ATB 2023 (BESS default)	https://atb.nrel.gov/electricity/2023/ · data download
Capex range / opex %	NREL ATB 2023 + BloombergNEF Battery Price Survey 2023	https://atb.nrel.gov/electricity/2023/ · BNEF 2023 article
Energy rate $0.14/kWh	EIA Electric Power Monthly, Table 5.6.a (2024)	https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=table_5_06_a
15-year project horizon convention	BloombergNEF Energy Storage Market Outlook 2023	https://about.bnef.com/blog/energy-storage-market-outlook-2023/
Equipment: CATL EnerC+ 2 MWh	CATL product page	https://www.catl.com/en/energy-storage/
Equipment: Sungrow SC2500UD-MV	Sungrow product page	https://en.sungrowpower.com/product-PV3000-detail.html
Certification references	UL Standards, NFPA, IEEE, UN	UL 9540 · UL 9540A · UL 1973 · NFPA 855 · IEEE 1547-2018 · UN Manual Tests Rev. 7
Discount rate, opex escalation, degradation, cycles, demand credit	TradVolt use-case bounded assumption	Internal; non-citable — see §7 register

10. Calls to Action

Request a vendor-matched quote for a 2 MWh depot BESS (CATL EnerC+ + Sungrow SC2500UD-MV envelope).

Request Quote (RFQ) — 2 MWh US Depot BESS

Last reviewed: 2026-01-15. Base-case NPV −$2,497,728 and LCOS $0.4765/kWh are computed outputs of the scenario model; sensitivity stacking is recomputed from §4. Inputs, equipment manuals, and HS-code status subject to change; re-verify before procurement.