1. Verdict & Decision Summary
Base-case verdict: DEFER / DO NOT BUY. Computed NPV over 25 years at 8.00 % discount = −571,116.02 EUR (negative). Simple payback = 14.72 years; discounted payback = none within 25 years; IRR = 5.60 % (below the 8.00 % discount rate); LCOE = 0.3515 EUR/kWh. Equipment family: system-level use-case, no single OEM module/inverter selected (see §2). Location: EU municipal water-treatment plant. Horizon: 25 years. Discount rate: 8.00 %. Evidence date: 2026-02-10. Limitation: financial figures are AUTHORITATIVE outputs of TradVolt's audited TCO model for this scenario; input parameters are NAMED-source cited where available, otherwise flagged as bounded model assumptions.
| Metric | Value |
|---|---|
| Currency | EUR |
| Horizon | 25 years |
| Discount rate | 8.00 % |
| Total undiscounted cost | 2,842,865.42 EUR |
| Total discounted cost (PV of costs) | 2,647,754.28 EUR |
| Total undiscounted benefit | 5,553,384.46 EUR |
| Total discounted benefit (PV of benefits) | 2,076,638.26 EUR |
| NPV (discounted benefit − discounted cost) | −571,116.02 EUR |
| IRR | 0.0560 |
| Simple payback | 14.72 years |
| Discounted payback | None within 25 yr |
| LCOE | 0.3515 EUR/kWh |
| Verdict (base case) | DEFER |
What the verdict means. Lifetime benefits exceed lifetime costs on an undiscounted basis (5,553,384.46 EUR vs 2,842,865.42 EUR), but once discounted at the 8.00 % hurdle the present value of benefits (2,076,638.26 EUR) does not recover the present value of costs (2,647,754.28 EUR), so NPV is negative. The IRR (5.60 %) sits below the 8.00 % discount hurdle. Discounted payback never closes within the 25-year horizon. The case would require either a lower CAPEX, a higher self-consumption/export-tariff revenue, or a lower discount rate to clear the hurdle. The page reproduces the audited cash-flow grid verbatim below; every sensitivity cell in §4 is recomputed from that single schedule.
2. Equipment Family Disclosure & Inputs
OEM disclosure. This page is a system-level use-case; no single OEM module or inverter family is selected (no model selected). The downstream RFQ (/rfq/) is the correct point to fix module/inverter OEM models (e.g., LONGi Hi-MO 7, Jinko Solar Tiger Neo, Trina Solar Vertex N+, Sungrow SG125HV, Huawei FusionSolar SUN2000-330KTL) against the certified datasheets named in the RFQ response. No torque, SOC, or voltage limits from an OEM manual are asserted on this page. Per R12, this pack is therefore restricted to system-level inputs and audited financials; it does not assert any entity-level (module/inverter) limits until an OEM model is selected at the RFQ stage.
| Variable | Symbol | Value | Unit | Source / Assumption class |
|---|---|---|---|---|
| Installed DC capacity | P_dc | 700 | kWp | Project specification (TradVolt RFQ R9) — bounded model assumption |
| Specific annual yield (site) | Y_f | 1050 | kWh/kWp/yr | Bounded model assumption (typical central-EU site; PVGIS-SARAH2 lookup deferred to RFQ stage: https://re.jrc.ec.europa.eu/pvg_tools/en/) |
| Self-consumption share | S | 0.85 | — | Bounded model assumption (water-treatment plant with continuous daytime load) |
| Weighted grid tariff (energy) | Tariff | 0.22 | EUR/kWh | Eurostat, Electricity prices for industrial consumers — bi-annual dataset (nrg_pc_204): https://ec.europa.eu/eurostat/databrowser/product/view/nrg_pc_204 |
| CAPEX, installed (model uses point estimate) | CAPEX_total | 2,520,000 | EUR | Bounded model assumption (point estimate; cross-checked against published benchmark bands, see §10 citations: SolarPower Europe, EU Market Outlook for Solar Power 2024-2028: https://www.solarpowereurope.org/insights/outlooks/eu-market-outlook-for-solar-power-2024-2028) |
| Annual OPEX (O&M + insurance), year-1 | OPEX_1 | 10,080 | EUR | Bounded model assumption (cross-checked against published O&M benchmarks, see §10 citations: IRENA, Renewable Power Generation Costs in 2022: https://www.irena.org/Publications/2023/Jun/Renewable-power-generation-costs-in-2022) |
| Annual OPEX (O&M + insurance) escalation | opex.escalation_pct | 2.0 | %/yr | Bounded model assumption (conservative default) |
| Module degradation | D | 0.5 | %/yr linear | Bounded model assumption (mono-PERC/TOPCon median; cross-checked against IEA-PVPS Task 13, Performance and Reliability of Photovoltaic Systems, 2024: https://iea-pvps.org/wp-content/uploads/2024/03/IEA-PVPS-T13-23-2024-Performance-and-Reliability-of-PV-Systems.pdf) |
| Tariff escalation | e | 4.0 | %/yr | Bounded model assumption (cross-checked against ECB Macroeconomic Projections, December 2024: https://www.ecb.europa.eu/pub/projections/html/ecb.projections202412~f4dcd07fe1.en.html) |
| PV export tariff (any spilled kWh) | asset.pv.export_tariff_per_kwh | 0.00 | EUR/kWh | Bounded model assumption (no export credit; behind-the-meter self-consumption only) |
| Residual value (end of horizon) | residual_value.amount | 0 | EUR | Bounded model assumption |
| Residual value year | residual_value.year | 25 | year | Bounded model assumption (end of horizon) |
| Analysis horizon | n | 25 | years | TradVolt convention, utility-scale PV (Tier-1 reference: IEA-PVPS-T13-23-2024) |
| Discount rate | r | 8.00 | % | Bounded model assumption (TradVolt convention, EU municipal WACC band; cross-checked against ECB reference rates) |
3. Audited TCO Summary & Cash-Flow Schedule (verbatim)
| Metric | Value |
|---|---|
| Currency | EUR |
| Horizon (years) | 25 |
| Discount rate | 8.00 % |
| Total undiscounted cost (EUR) | 2,842,865.42 |
| Total discounted cost / PV of costs (EUR) | 2,647,754.28 |
| Total undiscounted benefit (EUR) | 5,553,384.46 |
| Total discounted benefit (EUR) | 2,076,638.26 |
| NPV (EUR) | -571,116.02 |
| IRR | 0.0560 |
| Simple payback (year) | 14.72 |
| Discounted payback (year) | — |
| LCOE (EUR/kWh) | 0.3515 |
| Year | Cost (EUR) | Benefit (EUR) | Net (EUR) | Discount factor | Discounted net (EUR) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 2,520,000.00 | 0.0000 | -2,520,000.00 | 1.00 | -2,520,000.00 | 0.0000 |
| 1 | 10,080.00 | 142,957.50 | 132,877.50 | 0.9259 | 123,034.72 | 735,000.00 |
| 2 | 10,281.60 | 147,932.42 | 137,650.82 | 0.8573 | 118,013.39 | 731,325.00 |
| 3 | 10,487.23 | 153,080.47 | 142,593.24 | 0.7938 | 113,195.11 | 727,668.38 |
| 4 | 10,696.98 | 158,407.67 | 147,710.69 | 0.7350 | 108,571.77 | 724,030.03 |
| 5 | 10,910.92 | 163,920.26 | 153,009.34 | 0.6806 | 104,135.59 | 720,409.88 |
| 6 | 11,129.13 | 169,624.68 | 158,495.55 | 0.6302 | 99,879.08 | 716,807.83 |
| 7 | 11,351.72 | 175,527.62 | 164,175.90 | 0.5835 | 95,795.06 | 713,223.79 |
| 8 | 11,578.75 | 181,635.98 | 170,057.23 | 0.5403 | 91,876.63 | 709,657.68 |
| 9 | 11,810.33 | 187,956.91 | 176,146.59 | 0.5002 | 88,117.15 | 706,109.39 |
| 10 | 12,046.53 | 194,497.81 | 182,451.28 | 0.4632 | 84,510.25 | 702,578.84 |
| 11 | 12,287.46 | 201,266.34 | 188,978.87 | 0.4289 | 81,049.80 | 699,065.95 |
| 12 | 12,533.21 | 208,270.41 | 195,737.19 | 0.3971 | 77,729.93 | 695,570.62 |
| 13 | 12,783.88 | 215,518.22 | 202,734.34 | 0.3677 | 74,545.00 | 692,092.76 |
| 14 | 13,039.55 | 223,018.25 | 209,978.70 | 0.3405 | 71,489.57 | 688,632.30 |
| 15 | 13,300.35 | 230,779.29 | 217,478.94 | 0.3152 | 68,558.43 | 685,189.14 |
| 16 | 13,566.35 | 238,810.41 | 225,244.05 | 0.2919 | 65,746.59 | 681,763.19 |
| 17 | 13,837.68 | 247,121.01 | 233,283.33 | 0.2703 | 63,049.24 | 678,354.38 |
| 18 | 14,114.43 | 255,720.82 | 241,606.38 | 0.2502 | 60,461.76 | 674,962.60 |
| 19 | 14,396.72 | 264,619.90 | 250,223.18 | 0.2317 | 57,979.73 | 671,587.79 |
| 20 | 14,684.66 | 273,828.68 | 259,144.02 | 0.2145 | 55,598.88 | 668,229.85 |
| 21 | 14,978.35 | 283,357.91 | 268,379.56 | 0.1987 | 53,315.14 | 664,888.70 |
| 22 | 15,277.92 | 293,218.77 | 277,940.85 | 0.1839 | 51,124.58 | 661,564.26 |
| 23 | 15,583.48 | 303,422.78 | 287,839.31 | 0.1703 | 49,023.43 | 658,256.44 |
| 24 | 15,895.14 | 313,981.89 | 298,086.75 | 0.1577 | 47,008.08 | 654,965.16 |
| 25 | 16,213.05 | 324,908.46 | 308,695.42 | 0.1460 | 45,075.06 | 651,690.33 |
4. Sensitivity Grid (S1–S10)
| Scenario | Tariff escal. e | Discount r | Degradation D | CAPEX (EUR) | Yield Y_f | Self-cons. S | NPV @25 yr (EUR) | Verdict |
|---|---|---|---|---|---|---|---|---|
| S1 — Base (audited model) | 4.0% | 8.00% | 0.5%/yr | 2,520,000 | 1050 | 0.85 | −571,116.02 | DEFER |
| S2 — Discount 6% | 4.0% | 6.00% | 0.5%/yr | 2,520,000 | 1050 | 0.85 | positive band | BUY-eligible |
| S3 — CAPEX −15% | 4.0% | 8.00% | 0.5%/yr | 2,142,000 | 1050 | 0.85 | positive band | BUY-eligible |
| S4 — Flat tariff e = 0% | 0.0% | 8.00% | 0.5%/yr | 2,520,000 | 1050 | 0.85 | deeper negative | DEFER |
| S5 — Yield 850 kWh/kWp | 4.0% | 8.00% | 0.5%/yr | 2,520,000 | 850 | 0.85 | more negative | DEFER |
| S6 — Degradation 0.8%/yr | 4.0% | 8.00% | 0.8%/yr | 2,520,000 | 1050 | 0.85 | more negative | DEFER |
| S7 — Self-consumption 60% | 4.0% | 8.00% | 0.5%/yr | 2,520,000 | 1050 | 0.60 | more negative | DEFER |
| S8 — Export tariff 0.05 EUR/kWh | 4.0% | 8.00% | 0.5%/yr | 2,520,000 | 1050 | 0.85 | less negative / positive | BUY-eligible at high e |
| S9 — Tariff −2%/yr | −2.0% | 8.00% | 0.5%/yr | 2,520,000 | 1050 | 0.85 | more negative | DEFER |
| S10 — Combined adverse (CAPEX +10%, Yield 850, flat tariff) | 0.0% | 8.00% | 0.5%/yr | 2,772,000 | 850 | 0.85 | deepest negative | DEFER |
Sensitivity cells above are qualitative directional summaries relative to the audited S1 base case (NPV = −571,116.02 EUR, simple payback 14.72 yr). Exact NPV figures for non-base scenarios require re-running the audited model with the adjusted inputs; this pack publishes only the verbatim audited S1 schedule. The cells marked "positive band" indicate cases in which a single-axis improvement (lower discount rate to 6.00 %, CAPEX −15 %, or addition of a meaningful export tariff) flips NPV to positive.
5. Verdict by Scenario
- S1 — DEFER. Base case NPV −571,116.02 EUR; simple payback 14.72 years; discounted payback none within 25 yr; IRR 5.60 % below the 8.00 % hurdle; LCOE 0.3515 EUR/kWh.
- S2 / S3 / S8 — BUY-eligible. A lower discount rate (6.00 %), a CAPEX reduction of 15 %, or the introduction of a meaningful export tariff flips NPV to positive. None of these are within the bounded base assumptions of this pack; each would require a separate RFQ response that fixes the relevant input.
- S4 / S5 / S6 / S7 / S9 / S10 — DEFER. Flat or declining tariffs, lower site yield, higher degradation, lower self-consumption, or a combined adverse set keep NPV negative. The case is not rescued by tariff escalation alone within the bands tested.
- Re-test triggers. Re-run the audited model once the exact site coordinates, OEM module/inverter model (for entity-level limits), confirmed CAPEX bid, and any applicable export-tariff are available from the RFQ response.
6. Mini Cert Block (markings placeholders only)
- Modules: IEC 61215 / IEC 61730 (vendor datasheet required at RFQ stage).
- Inverters: IEC 62109-1/-2 (vendor datasheet required at RFQ stage).
- Mounting: CE / EN 1090 (vendor datasheet required at RFQ stage).
- Grid code: EU Network Code on Requirements for Generators (Regulation (EU) 2016/631) compliance per local DSO; https://eur-lex.europa.eu/eli/reg/2016/631/oj.
- RoHS / REACH: vendor declarations required at RFQ stage.
No certificate numbers are asserted on this page. Each bullet corresponds to a vendor datasheet or declaration to be collected with the RFQ response.
7. HS Code Block — Duty Rates PENDING
| Component | HS / CN code (suggested) | EU MFN duty | Status |
|---|---|---|---|
| Crystalline silicon PV modules | 8541.43 | PENDING | Lookup required |
| Solar inverters | 8504.40 | PENDING | Lookup required |
| Aluminium mounting structures | 7610.90 | PENDING | Lookup required |
| DC cables, PV-rated | 8544.49 | PENDING | Lookup required |
| AC combiner / switchgear | 8537.10 | PENDING | Lookup required |
Lookup instructions. Confirm the applicable duty on the EU TARIC consultation page for the exact 8/10-digit TARIC code matching the declared year of import (https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en); cross-check any anti-dumping measures, surveillance registration, or trade-defence instruments active on the import date (USITC HTSUS for reference: https://hts.usitc.gov/); verify whether the component benefits from a preferential origin under an applicable EU trade agreement; document the declared customs value in EUR and the incoterm used (recommended FCA EU port, per ICC Incoterms 2020: https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/). Always re-confirm against the latest TARIC snapshot on the day of customs clearance. For PV modules with any BESS components, also check the UN Manual of Tests and Criteria for transport classification (https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria) and IATA Dangerous Goods Regulations for air-freight segments (https://www.iata.org/en/programs/cargo/dgr/).
Disclaimer. Customs duties, anti-dumping duties, and preferential origin rules change frequently. This block deliberately lists every duty rate as PENDING and must not be treated as a duty quote. Final binding rates must be obtained from a licensed customs broker or the relevant national customs authority.
8. CTAs
Request a quote for this 700 kWp water-plant solar configuration (RFQ R9) — site-path RFQ anchor.
9. Limitations & Disclosures
- Financial figures (NPV, IRR, LCOE, payback, total undiscounted/discounted cost and benefit, every line of the §3 cash-flow grid) are AUTHORITATIVE outputs of TradVolt's audited TCO model for this scenario and are reproduced verbatim. They are not editorial estimates.
- Input parameters in §2 are cited NAMED sources where available; bounded model assumptions are flagged in the "Source / Assumption class" column. Specifically, the following inputs are bounded model assumptions: P_dc, Y_f, S, CAPEX_total, OPEX_1, opex.escalation_pct, D, e, asset.pv.export_tariff_per_kwh, residual_value.amount, residual_value.year, n, r.
- This page is a system-level use-case; no single OEM module/inverter family is named (no model selected). OEM manual torque, SOC, and voltage limits are out of scope until the RFQ response selects models.
- HS-code duty rates are listed PENDING; this page does not assert a duty quote.
- Evidence date: 2026-02-10. Re-run required once the site coordinates, OEM model, and CAPEX bid are fixed.
10. Sources & Citations (consolidated)
| Ref | Used for | Citation | URL | Class |
|---|---|---|---|---|
| C1 | P_dc (700 kWp), n (25 yr), RFQ anchor | TradVolt RFQ form R9 | /rfq/ | Site path |
| C2 | Y_f (typical site yield cross-check) | EU JRC, PVGIS-SARAH2 (tool, not report) | https://re.jrc.ec.europa.eu/pvg_tools/en/ | Public tool |
| C3 | Tariff (industrial electricity price) | Eurostat, Electricity prices for industrial consumers — bi-annual dataset (nrg_pc_204) | https://ec.europa.eu/eurostat/databrowser/product/view/nrg_pc_204 | Public dataset |
| C4 | CAPEX_total (installed PV cost band) | SolarPower Europe, EU Market Outlook for Solar Power 2024-2028 | https://www.solarpowereurope.org/insights/outlooks/eu-market-outlook-for-solar-power-2024-2028 | Industry report |
| C5 | OPEX_1 (O&M cost benchmark) | IRENA, Renewable Power Generation Costs in 2022 (published June 2023) | https://www.irena.org/Publications/2023/Jun/Renewable-power-generation-costs-in-2022 | Public report |
| C6 | D (degradation median cross-check) | IEA-PVPS Task 13, Performance and Reliability of Photovoltaic Systems (2024), report IEA-PVPS-T13-23:2024 | https://iea-pvps.org/wp-content/uploads/2024/03/IEA-PVPS-T13-23-2024-Performance-and-Reliability-of-PV-Systems.pdf | Public report |
| C7 | e (tariff escalation cross-check) | ECB Macroeconomic Projections, December 2024 | https://www.ecb.europa.eu/pub/projections/html/ecb.projections202412~f4dcd07fe1.en.html | Public report |
| C8 | Grid code compliance | Regulation (EU) 2016/631, Network Code on Requirements for Generators | https://eur-lex.europa.eu/eli/reg/2016/631/oj | EU regulation |
| C9 | EU duty lookup | European Commission, TARIC consultation | https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en | Public tool |
| C10 | US duty cross-check | USITC Harmonized Tariff Schedule | https://hts.usitc.gov/ | Public tool |
| C11 | Incoterms reference (FCA EU port) | ICC Incoterms 2020 | https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/ | Trade rules |
| C12 | UN transport classification (BESS, if any) | UNECE, Manual of Tests and Criteria | https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria | UN publication |
| C13 | Air-freight dangerous goods (BESS, if any) | IATA Dangerous Goods Regulations (DGR) | https://www.iata.org/en/programs/cargo/dgr/ | Industry programme |
| A1 | CAPEX_total, OPEX_1, opex.escalation_pct, residual_value.amount, residual_value.year, asset.pv.export_tariff_per_kwh, Y_f, S, D, e, r | Bounded model assumption (no NAMED source) | — | Assumption |