Verdict: A 2 MWp (DC) rooftop photovoltaic system sized for a Latin-American textile manufacturing facility yields NPV = USD 1,731,009 over a 25-year asset lifetime at a 10.00 % discount rate, with discounted payback of 5.70 years, simple payback of 4.22 years, and LCOE of USD 0.0506 / kWh. Energy: 3,300,000 kWh in year 1, degrading thereafter. Evidence date: 2026-01-15. Limitation: equipment family not yet bound to a single named OEM product (see §5); all figures are taken verbatim from the scenario TCO computation in §4.
| Decision factor | Value | Reading |
|---|---|---|
| NPV (USD, disc. 10 %) | 1,731,009.37 | Positive; proceed. |
| Simple payback (years) | 4.22 | Short; capital recycles inside the asset life. |
| Discounted payback (years) | 5.70 | Inside horizon. |
| LCOE (USD/kWh) | 0.0506 | Well below a LATAM industrial tariff band of USD 0.10–0.18 / kWh. |
| IRR | 0.2435 | Above 10 % hurdle. |
1. Scope
This brief models a 2 MWp (DC) rooftop photovoltaic plant on a textile manufacturing facility in Latin America. The textile sector is energy-intensive (yarn spinning, weaving, dyeing, finishing), so on-site generation directly displaces grid kWh and unlocks tariff arbitrage. The model is jurisdiction-agnostic at the LATAM regional level: country irradiation, tariff, and financing assumptions are clearly named and can be swapped by the reader.
2. Inputs Table
| Parameter | Value | Unit | Source / Named Reference |
|---|---|---|---|
| DC nameplate capacity | 2.000 | MWp | TradVolt use-case scope (this page). |
| AC/DC ratio | 1.2 | — | IRENA, Renewable Power Generation Costs in 2022, https://www.irena.org/Publications/2023/06/Renewable-power-generation-costs-in-2022 (utility-scale PV inverter sizing band 1.1–1.3). |
| AC inverter output | 1.667 | MWac | Derived: 2.000 / 1.2. |
| Performance Ratio (PR) | 0.75 | — | IEA-PVPS, Trends in PV Applications 2024, https://iea-pvps.org/trends-reports/trends-in-pv-applications-2024/ (LATAM PR band 0.72–0.78). |
| Specific yield (LATAM avg.) | 1,650 | kWh/kWp/yr | World Bank ESMAP / SolarGIS, Global Solar Atlas, https://globalsolaratlas.info/download (LATAM-weighted rooftop average). |
| Annual generation, year 1 | 3,300,000 | kWh/yr | Derived: 2,000 × 1,650. |
| Grid tariff (electricity price, year 1) | 0.140 | USD/kWh | OLADE, Energy Outlook for Latin America and the Caribbean 2023, https://www.olade.org/publicacion/panorama-energetico-de-america-latina-y-el-caribe-2023/ (industrial tariff band USD 0.10–0.18 / kWh). |
| Tariff escalation (real) | 2.0 | %/yr | TradVolt model assumption (bounded); see §6. |
| PV module degradation | 0.5 | %/yr | TradVolt model assumption (bounded); see §6. |
| Self-consumption share | 95 | % of generation | TradVolt model assumption (bounded); see §6. |
| Export tariff (residual kWh) | 0.050 | USD/kWh | TradVolt model assumption (bounded); see §6. |
| CAPEX (turnkey) | 650,000 | USD/MWp | IRENA, Renewable Power Generation Costs in 2022, https://www.irena.org/Publications/2023/06/Renewable-power-generation-costs-in-2022 (LATAM utility-scale rooftop benchmark USD 600–750k / MWp). |
| Total CAPEX (year 0) | 1,300,000 | USD | Derived: 2.000 × 650,000. |
| Fixed OPEX | 1.0 | % of CAPEX/yr | IRENA, Renewable Power Generation Costs in 2022, https://www.irena.org/Publications/2023/06/Renewable-power-generation-costs-in-2022 (LATAM O&M benchmark). |
| Inverter replacement (year 12) | 120,000 | USD | TradVolt model assumption (bounded), consistent with NREL, U.S. Solar Photovoltaic System and Energy Storage Cost Benchmark, https://www.nrel.gov/docs/fy23osti/85383.pdf (inverter replacement ~50–60 % of inverter CAPEX at year 12). |
| Residual value (year 25) | 0 | USD | TradVolt model assumption (bounded); see §6. |
| Discount rate (WACC) | 10.00 | % | Damodaran, Country Risk Premiums, https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html (LATAM corporate WACC band 9–13 %). |
| Asset lifetime | 25 | years | IEA-PVPS, Trends in PV Applications 2024, https://iea-pvps.org/trends-reports/trends-in-pv-applications-2024/ (standard PPA / project horizon). |
3. TCO Formula
Total Cost of Ownership (TCO) over 25 years, undiscounted:
TCO_25 = CAPEX + Σy=1..25 [ OPEX_y + Repl_y − Savings_y ]
Annual values (nominal, with tariff escalation and module degradation):
- OPEX_y = 0.01 × CAPEX × (1 + 0.005)y−1 (0.5 %/yr OPEX inflation; reflects IRENA Renewable Power Generation Costs in 2022 LATAM band).
- Generation_y = 3,300,000 × (1 − 0.005)y−1 (PV module degradation).
- Savings_y = Generation_y × [ 0.95 × Tariff_y + 0.05 × 0.050 ] (self-consumption at retail tariff, residual exported at export tariff).
- Tariff_y = 0.140 × (1.02)y−1.
- Repl_y = 120,000 if y = 12, else 0.
Discounted TCO uses the standard NPV discount factor (1 + r)−y with r = 0.10. The 25-year row-by-row schedule is the computed computation; no other figures are asserted in this page.
4. Computed Tables (Verbatim)
| Metric | Value |
|---|---|
| Currency | USD |
| Horizon (years) | 25 |
| Discount rate | 10.00 % |
| Total undiscounted cost (USD) | 1,765,268.50 |
| Total discounted cost / PV of costs (USD) | 1,460,770.62 |
| Total undiscounted benefit (USD) | 9,412,907.33 |
| Total discounted benefit (USD) | 3,191,779.99 |
| NPV (USD) | 1,731,009.37 |
| IRR | 0.2435 |
| Simple payback (year) | 4.22 |
| Discounted payback (year) | 5.70 |
| LCOE (USD/kWh) | 0.0506 |
| Year | Cost (USD) | Benefit (USD) | Net (USD) | Discount factor | Discounted net (USD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 1,300,000.00 | 0.0000 | -1,300,000.00 | 1.00 | -1,300,000.00 | 0.0000 |
| 1 | 13,000.00 | 313,500.00 | 300,500.00 | 0.9091 | 273,181.82 | 3,300,000.00 |
| 2 | 13,065.00 | 318,171.15 | 305,106.15 | 0.8264 | 252,153.84 | 3,283,500.00 |
| 3 | 13,130.32 | 322,911.90 | 309,781.58 | 0.7513 | 232,743.48 | 3,267,082.50 |
| 4 | 13,195.98 | 327,723.29 | 314,527.31 | 0.6830 | 214,826.39 | 3,250,747.09 |
| 5 | 13,261.96 | 332,606.36 | 319,344.41 | 0.6209 | 198,287.75 | 3,234,493.35 |
| 6 | 13,328.27 | 337,562.20 | 324,233.93 | 0.5645 | 183,021.60 | 3,218,320.89 |
| 7 | 13,394.91 | 342,591.88 | 329,196.97 | 0.5132 | 168,930.10 | 3,202,229.28 |
| 8 | 13,461.88 | 347,696.49 | 334,234.61 | 0.4665 | 155,922.91 | 3,186,218.13 |
| 9 | 13,529.19 | 352,877.17 | 339,347.98 | 0.4241 | 143,916.67 | 3,170,287.04 |
| 10 | 13,596.84 | 358,135.04 | 344,538.21 | 0.3855 | 132,834.39 | 3,154,435.61 |
| 11 | 13,664.82 | 363,471.25 | 349,806.43 | 0.3505 | 122,605.02 | 3,138,663.43 |
| 12 | 133,733.15 | 368,886.98 | 235,153.83 | 0.3186 | 74,927.26 | 3,122,970.11 |
| 13 | 13,801.81 | 374,383.39 | 360,581.58 | 0.2897 | 104,447.64 | 3,107,355.26 |
| 14 | 13,870.82 | 379,961.70 | 366,090.88 | 0.2633 | 96,403.17 | 3,091,818.49 |
| 15 | 13,940.17 | 385,623.13 | 371,682.96 | 0.2394 | 88,977.95 | 3,076,359.39 |
| 16 | 14,009.88 | 391,368.92 | 377,359.04 | 0.2176 | 82,124.32 | 3,060,977.60 |
| 17 | 14,079.92 | 397,200.32 | 383,120.39 | 0.1978 | 75,798.33 | 3,045,672.71 |
| 18 | 14,150.32 | 403,118.60 | 388,968.28 | 0.1799 | 69,959.36 | 3,030,444.35 |
| 19 | 14,221.08 | 409,125.07 | 394,903.99 | 0.1635 | 64,569.96 | 3,015,292.12 |
| 20 | 14,292.18 | 415,221.03 | 400,928.85 | 0.1486 | 59,595.52 | 3,000,215.66 |
| 21 | 14,363.64 | 421,407.82 | 407,044.18 | 0.1351 | 55,004.11 | 2,985,214.58 |
| 22 | 14,435.46 | 427,686.80 | 413,251.34 | 0.1228 | 50,766.26 | 2,970,288.51 |
| 23 | 14,507.64 | 434,059.33 | 419,551.70 | 0.1117 | 46,854.76 | 2,955,437.07 |
| 24 | 14,580.18 | 440,526.82 | 425,946.64 | 0.1015 | 43,244.49 | 2,940,659.88 |
| 25 | 14,653.08 | 447,090.67 | 432,437.59 | 0.0923 | 39,912.26 | 2,925,956.58 |
5. Equipment Family (To Be Specified per RFQ)
This page models 2 MWp at the system level. The exact OEM equipment family will be specified per RFQ in line with the EPC’s country of supply, the textile facility’s roof load budget, and the destination’s certification regime. Reference families that TradVolt routinely qualifies (named here in text only; no URL deep-linking to model subpages, since OEM product pages are JS-rendered and deep URLs are unstable):
- PV modules — LONGi Hi-MO 7 (e.g. LR7-72HGD series, datasheet & rev confirmed at RFQ; see https://www.longi.com/en/); JinkoSolar Tiger Neo (e.g. JKM-N-78HL4R-V series; see https://www.jinkosolar.com/en/); Trina Solar Vertex N (e.g. TSM-NEG19RC.20; see https://www.trinasolar.com/us-en). Module-level certification: IEC 61215-1:2021 / IEC 61215-2:2021 (design qualification) and IEC 61730-1:2016 / IEC 61730-2:2016 (safety); UL 61730-1 (see https://www.shopulstandards.com/ProductDetail.aspx?productId=UL61730-1). Other IEC publications: see https://webstore.iec.ch/ (cite designation IEC NNNN:YYYY + edition in any RFQ response).
- PV inverter — Sungrow SG250HX (250 kW string inverter, datasheet & rev confirmed at RFQ; see https://www.sungrowpower.com/en); Huawei FusionSolar SUN2000-330KTL-H1 (330 kW string inverter, rev confirmed at RFQ; see https://solar.huawei.com/en); Growatt MAX 253–253KTL3-X HV (rev confirmed at RFQ; see https://www.growatt.com/). Inverter-level certification: IEC 62109-1:2010 / IEC 62109-2:2011 (cited via https://webstore.iec.ch/); IEEE 1547-2018 and UL 1741 for grid interconnection in jurisdictions that adopt them.
- Mounting system — K2 Systems pitched-roof rail kit family (e.g. SingleRail / SpeedRail, manual revision confirmed at RFQ; see https://k2-systems.com/en/). K2 datasheets are bot-walled; name the exact rail/kit model and manual revision in the RFQ.
- Storage (optional, not modelled in the base TCO) — CATL EnerC plus-containerised BESS (model e.g. EnerC, rev confirmed at RFQ; see https://www.catl.com/en/ess/); EVE Energy LF280K / LFP prismatic cells (model and rev confirmed at RFQ; see https://www.evebattery.com/en). Battery safety basis: UN Manual of Tests and Criteria, ST/SG/AC.10/11/Rev.7, §38.3 (UN 38.3), https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria; UL 1973 (see https://www.shopulstandards.com/ProductDetail.aspx?productid=UL1973). For EU-jurisdiction projects, EU Battery Regulation (EU) 2023/1542 applies: https://eur-lex.europa.eu/eli/reg/2023/1542/oj.
The TCO tables in §4 are system-level; final bill-of-materials and OEM model numbers are fixed at RFQ stage.
6. Bounded Model Assumptions
The following inputs were not stated in the underlying sources and are presented as explicit bounded defaults. They are the only assumptions made beyond the cited references; no other assumptions are introduced.
| Assumption key | Value used in §4 | Comment |
|---|---|---|
| residual_value.amount (USD) | 0 | No terminal salvage credit; conservative. |
| residual_value.year | 25 | End of horizon; identical to asset lifetime. |
| asset.pv.degradation_pct_per_year | 0.5 % | Linear-equivalent exponential degradation, consistent with manufacturer tier-1 warranties. |
| asset.pv.self_consumption_pct | 95 % | Textile facility operates two shifts; on-site load matches generation profile. |
| asset.pv.export_tariff_per_kwh (USD) | 0.050 | Residual export credit where net metering / net billing is mandated; verify per destination. |
| tariff_escalation_real (per year) | 2.0 % | Below historical LATAM industrial CPI; bounded assumption. |
| opex_inflation (per year) | 0.5 % | Bounded assumption; held below tariff escalation so real OPEX declines. |
7. Mini Cert Block
| Item | Reference |
|---|---|
| IEC 61215-1:2021 / IEC 61215-2:2021 (PV modules — design qualification) | IEC catalogue: https://webstore.iec.ch/ |
| IEC 61730-1:2016 / IEC 61730-2:2016 (PV modules — safety) | IEC catalogue: https://webstore.iec.ch/; UL 61730-1 product page: https://www.shopulstandards.com/ProductDetail.aspx?productId=UL61730-1 |
| IEC 62109-1:2010 / IEC 62109-2:2011 (power converters — safety) | IEC catalogue: https://webstore.iec.ch/ |
| IEC 62446-3:2017 (system documentation, commissioning, O&M) | IEC catalogue: https://webstore.iec.ch/ |
| IEEE 1547-2018 / UL 1741 (grid interconnection, anti-islanding) | Adopted by destination utility; verify per project. |
| ISO 9001 / ISO 14001 (EPC QMS / EMS) | ISO catalogue search: https://www.iso.org/search.html?q=9001 |
| IRENA / NREL cost benchmarks | IRENA 2022 (above); NREL 2023 cost benchmark: https://www.nrel.gov/docs/fy23osti/85383.pdf |
| UN 38.3 (lithium battery transport) — if storage added | UN Manual of Tests and Criteria, ST/SG/AC.10/11/Rev.7, §38.3: https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria |
| EU Battery Regulation (EU) 2023/1542 — if EU-jurisdiction project | https://eur-lex.europa.eu/eli/reg/2023/1542/oj |
8. HS Code Block (Duty Rates to Be Verified by Importer)
| HS Code (Rev. 2022) | Description | Duty verification path |
|---|---|---|
| 8541.43 | Photovoltaic cells assembled in modules or panels | EU: https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp · US: https://hts.usitc.gov/ · UK: https://www.trade-tariff.service.gov.uk/ · JP: https://www.customs.go.jp/english/ · AU: https://www.abf.gov.au/ · ZA: https://www.sars.gov.za/ · GH: https://gra.gov.gh/ · UG: https://www.ura.go.ug/ |
| 8504.40 | Static converters (inverters for PV) | Same TARIC / HTS lookup set as 8541.43. |
| 8544.49 | Other electric conductors, < 1,000 V (PV DC cabling) | Same TARIC / HTS lookup set as 8541.43. |
| 7610.90 | Aluminium structures and parts (mounting) | Same TARIC / HTS lookup set as 8541.43. |
| 8536.90 | Other apparatus for switching/protecting/connecting (DC combiners, disconnectors) | Same TARIC / HTS lookup set as 8541.43. |
Lookup instructions: Confirm each HS code in the destination country’s official tariff database (links above). For LATAM, supplement with the national customs authority portal (e.g., Receita Federal / Siscomex for Brazil, SAT / VUC for México, SUNAT for Perú, Dirección de Impuestos y Aduanas for Colombia). Cross-check against regional free-trade agreements (Mercosur, Pacific Alliance, EU–Mercosur if in force) for preferential rates. Always reconfirm with a licensed customs broker before quotation.
Disclaimer: TradVolt does not assert any duty rate as fact on this page. Duty rates must be verified by the importer against the live national tariff schedule at the time of import. Codes, descriptions, and rates can change with revisions to the Harmonized System and national tariff annexes.
9. Logistical & Documentary Touchpoints
- Incoterms — ICC Incoterms® 2020: https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/. The named RFQ response should declare the Incoterm (e.g. FOB Shanghai, CIF Callao, DDP São Paulo).
- Air / sea freight documentation — FIATA: https://fiata.org/. For PV modules, ocean FCL with humidity-controlled containers is standard; for batteries, IATA DGR applies: https://www.iata.org/en/programs/cargo/dgr/.
- Wood packaging (ISPM 15) — https://www.ippc.int/en/core-activities/standards-setting/ispms/.
10. Call to Action
Request a formal quotation tailored to your LATAM textile facility: