TCO Analysis

What it does

A total-cost-of-ownership model that combines facility CAPEX and OPEX, rebates, financing, utility rates and a solar array. It reports combined ROI, payback, 10-year NPV and a DuPont ROE breakdown, and models solar production as capacity × 8,760 h × a 20% capacity factor.

When to use it

Use it to compare crop or facility configurations on lifecycle cost, including LED fixture and driver replacements and a solar offset.

How it calculates

• Revenue = canopy area × yield per sq ft × crop cycles × price. OPEX = the line items plus the annualized lighting lifecycle cost (replacements + relamp labor − salvage)
• Combined ROI = net profit after financing ÷ total system cost. Payback = total system cost ÷ net profit after financing
• 10-year NPV discounts each year's revenue − OPEX + solar savings − finance payments, with inflation and 0.5%/yr solar degradation
• DuPont ROE = profit margin × asset turnover × financial leverage, assuming a 0.6 debt-to-equity ratio

What you enter

Facility Type, Facility Size and Canopy Area(sq ft)

Utility Rate ($/kWh) and Current Electric Bill ($/year)

Crop Price (¢/lb) and Yield (lbs/sq ft/cycle)

Solar System Capacity (kW), System Cost ($/kW) and Greenhouse Shading Factor

Annual operating expense line items($)

Capital expenditure line items($)

Lighting lifecycle: fixture count, operating hours, fixture and driver life, replacement costs and salvage

Solar incentives: Federal ITC (%) and State Rebate ($/kW)

Financing: cash, loan or lease

Scenarios: crop, $/lb, yield, photoperiod and tiers

What you get

Combined ROI(%)

Energy Savings($)

Payback Period(years)

Carbon Reduction

10-Year NPV($)

Energy Offset(%)

Annual Net Profit($)

DuPont analysis: profit margin, asset turnover, leverage, ROE and ROA

Related calculators

• Carbon Credits Estimator
• Demand Response Optimization
• Electrical Estimator
• Energy Cost