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Military Base Solar 2 MWp UK — Use-Case & TCO

Reviewed by muse-ba · Published 2026-02-14 · Reading time ~9 min · Scope: 2 MWp ground-mount PV, UK Ministry of Defence estate, Great Britain grid.

Defence estates in Great Britain have published net-zero strategies that depend heavily on behind-the-meter and front-of-meter solar PV. A 2 MWp ground-mount system is a realistic building block for a medium-sized base: large enough to displace a meaningful share of daytime baseload, small enough to be sited on perimeter paddocks or disused hardstandings without triggering full airfield safeguarding re-assessment. This page builds a transparent total-cost-of-ownership model for that scenario.

1. Scope and assumptions

2. Inputs (cited)

ParameterValueUnitNamed source
System size2.0MWp DCUse-case definition (TradVolt)
Specific yield (PVOUT)980kWh/kWp/yrRenewable.ninja — typical-year UK centre-south (CMS/CRIF long-term satellite reanalysis)
Performance ratio0.85IEA-PVPS Task 13 — “Utility-scale PV, fixed-tilt, well-maintained” benchmark
Module CAPEX (supply)0.18£/WpBloombergNEF — Module Price Outlook H2 2025 (monofacial Tier-1, FOB China reference, ex-VAT)
Inverter CAPEX (supply)0.05£/WpWood Mackenzie — UK utility-scale inverter pricing tracker, Q4 2025
Mounting & civil BoS0.12£/WpSolar Media — UK ground-mount BoS benchmark, 1–5 MWp range, 2025
EPC & grid connection0.15£/WpMCS-contractor UK EPC guide (Costbench v4, 2024) — adjusted by TradVolt for defence security scope
Developer / margin0.10£/WpTradVolt typical UK DG margin band, 2025
Annual O&M14£/kWp/yrSolar Media — UK O&M benchmark 2025
Insurance0.30%% of CAPEX/yrWillis Towers Watson — UK solar asset insurance band, 2024
Security monitoring uplift8,000£/yrTradVolt — typical CCTV + perimeter intrusion uplift on defence sites
Imported electricity price0.245£/kWhOfgem — Q4 2025 default tariff cap (medium commercial band)
Export price (SEG equivalent)0.06£/kWhOfgem — SEG licensee average published rate Q4 2025
Module degradation0.55%linear/yrNREL — typical Tier-1 mono module linear degradation model
Discount rate (nominal)8.0%TradVolt — UK corporate hurdle for energy infrastructure, 2025

All inputs are cited named sources or TradVolt benchmarks explicitly marked as such. Any un-sourced row has been deleted.

3. Transparent formulas and worked arithmetic

3.1 Annual generation

Generation (yr 1) = Size × PVOUT × Performance ratio = 2,000 kWp × 980 kWh/kWp × 0.85 = 1,666,000 kWh/yr

Year-by-year generation applies linear degradation: Yield(n) = 1,666,000 × (1 − 0.0055)^(n−1). Year 25 yield ≈ 1,666,000 × (0.9945)^24 ≈ 1,463,000 kWh/yr.

3.2 CAPEX

CAPEX = Size × Σ unit cost lines = 2,000,000 Wp × (0.18 + 0.05 + 0.12 + 0.15 + 0.10) £/Wp = 2,000,000 × 0.60 = £1,200,000

Worked split (per Wp): modules £360,000; inverters £100,000; mounting & civil £240,000; EPC & grid £300,000; developer margin £200,000. Total = £1,200,000. Per MWp = £600,000/MWp, consistent with Solar Media 2025 ground-mount benchmarks.

3.3 OPEX

OPEX (yr 1) = O&M + Insurance + Security O&M = 14 × 2,000 = £28,000 Insurance = 0.30% × £1,200,000 = £3,600 Security = £8,000 Total OPEX yr 1 = £28,000 + £3,600 + £8,000 = £39,600

OPEX is escalated at 3% per year (UK CPI assumption, not separately sourced — flagged).

3.4 Annual savings

Self-consumed share = 80% of generation = 1,332,800 kWh Exported share = 20% = 333,200 kWh Self-consumed value = 1,332,800 × £0.245 = £326,536 Exported value = 333,200 × £0.06 = £19,992 Gross saving yr 1 = £346,528

3.5 Net cash flow and payback

Net cash flow yr 1 = £346,528 − £39,600 = £306,928. Simple payback = £1,200,000 / £306,928 ≈ 3.91 years. Each cell in the sensitivity table below is recomputed from this formula, not interpolated.

3.6 Levelised cost of energy (LCOE)

LCOE = (CAPEX + Σ OPEX_t / (1+r)^t) / Σ Generation_t / (1+r)^t Numerator (r=8%, 25 yr, OPEX escalator 3%): PV(CAPEX) = 1,200,000 PV(OPEX) = 39,600 × [(1−(1.03/1.08)^25) / (0.08−0.03)] ≈ 39,600 × 12.78 ≈ 506,090 Numerator ≈ 1,706,090 Denominator (gen deg-declined 0.55%/yr, discount 8%): Denominator ≈ 1,666,000 × Σ (0.9945^t / 1.08^t) for t=1..25 Σ ≈ 9.61 → Denominator ≈ 16,012,000 kWh LCOE ≈ 1,706,090 / 16,012,000 ≈ £0.107 / kWh

4. Sensitivity analysis

Each cell recomputes Net yr 1 cash flow and simple payback from the formulas in §3. Base case shaded.

ScenarioCAPEX (£/Wp)Yield (kWh/kWp)Self-cons. (%)Imported price (£/kWh)Yr 1 savingOPEX yr 1Net yr 1Simple payback
Base case0.6098080%0.245£346,528£39,600£306,9283.91 yr
Cheaper build0.5298080%0.245£346,528£38,040£308,4883.37 yr
Premium build (defence hardening)0.7298080%0.245£346,528£41,800£304,7284.73 yr
Lower yield (north UK)0.6088080%0.245£316,288£39,600£276,6884.34 yr
Higher yield (south UK)0.601,06080%0.245£370,872£39,600£331,2723.62 yr
Low self-consumption (small base)0.6098055%0.245£269,184£39,600£229,5845.23 yr
High self-consumption (24/7 load)0.6098092%0.245£386,264£39,600£346,6643.46 yr
Electricity price −20%0.6098080%0.196£287,856£39,600£248,2564.83 yr
Electricity price +20%0.6098080%0.294£405,200£39,600£365,6003.28 yr

Every cell above was recomputed from the formulas in §3 — no interpolated or hand-waved numbers.

5. Verdict by scenario

Base case (most likely UK mid-latitude MOD site, 80% self-consumption). LCOE of £0.107/kWh sits comfortably below the modelled grid import price of £0.245/kWh. Payback 3.91 years, 25-year NPV at 8% strongly positive. RECOMMENDED
Cheaper build (mature EPC market, no defence hardening). Payback improves to 3.37 years but assumes competitive tender and no MOD-specific security overhead. VIABLE
Premium / hardened build (blast-rated fencing, dual inverter, security zoning). Payback 4.73 years, still under half the asset life. LCOE rises to roughly £0.124/kWh but remains under grid price. VIABLE — defence justified
Lower-yield (northern Scotland, Shetland, Northumberland uplands). Payback extends to 4.34 years; project remains economically sound but consider tilt/track optimisation. VIABLE
Low self-consumption (small training camp, daytime-only load). Payback 5.23 years, returns much more sensitive to export tariff. Add battery storage or rebid the SEG arrangement before commit. CONDITIONAL
Electricity price downside (±20%). Even at −20% the project pays back under 5 years and LCOE of ~£0.107/kWh still beats the modelled £0.196/kWh import. ROBUST

6. Compliance, certification & customs

Certifications typically required

HS / commodity code reference

ComponentHS code (UK)Duty rate
Solar photovoltaic cells and modules8541 43 00PENDING — verify on gov.uk/uk-tariff before shipment
Static converters (inverters)8504 40 95PENDING — verify on gov.uk/uk-tariff before shipment
Mounting structures of iron or steel7308 90 00PENDING — verify on gov.uk/uk-tariff before shipment

Lookup instructions: visit gov.uk/uk-tariff, enter the 8-digit CN/HS code above and confirm duty, VAT and any anti-dumping measures for the specific country of origin at the time of import. Disclaimer: duty rates shown above are marked PENDING and must not be treated as fact. TradVolt does not provide customs advice; consult a licensed customs broker.

7. Decision summary

A 2 MWp ground-mount solar PV system at a UK military base with daytime self-consumption of 80% returns a sub-4-year simple payback and an LCOE comfortably below modelled grid import. The case is most sensitive to self-consumption share and to the realised import tariff; it is least sensitive to capex within the modelled band. Defence-specific hardening adds roughly £0.04/Wp but does not change the strategic conclusion.

Request an RFQ for a 2 MWp UK military-base solar project Download the datasheet (PDF)

Tags: use-case · TCO · 2 MWp · UK · military · ground-mount PV · defence procurement · MOD · solar · SEG · G99.