Financing and Incentives

3 posts / 0 new
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bukhary
Economic Analysis

Hi,
I am running an economic analysis for commercial photovoltaics. My payback period is NaN meaning payback period is longer than the analysis period. but net present value is positive. These are conflicting results. Am I making a mistake. Please let me know.
Thanks

2 posts / 0 new
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mcs41
Why is the All-equity option more expensive than debt options?

Hello,
I am having some trouble with explaining why the All-equity solar arrays would have a higher levelized cost of energy than projects with debt. Those are the results that I have found and I have read the same conclusion in some of NREL's published work that uses SAM (See reference below). It seems like the All-equity costs would be cheaper than the debt options.

3 posts / 0 new
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Godwin Ndisengei
Residential Solar Lease

Just installed SAM to hopefully support my financial modeling for a zero-down solar portfolio - tax equity finance with partnership flip... Can SAM model this, can someone kindly assist with most efficient way to go about this in SAM.

Some key details...

4 posts / 0 new
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kilimar
Financial for Investment of Principle

Is there a way to include the lost of interest from the principle investment had the monies not going into a PV system?

For example: You have $100K in investment(s) that is currently generating 5%. You take that $100K to buy the system, now that 5% income is "lost".

Basically some way to include the above scenario into the Financial Parameters.

2 posts / 0 new
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TymB
Negative NPV in PPA

Hi,

I'm new to SAM and third party Power Purchase Agreements for Solar PV.

Is there anything else than the first year PPA price which would change the NPV of a project to be negative? Currently my NPV is -$145,000 with $0.125/kWh. If I bring the 1st year PPA price to $0.06/kWh NPV is $32,311.

I'm also confused why there is no simple payback.

Please Help

Thanks!

7 posts / 0 new
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mcs41
Sale Leaseback interest rates

Hello,
I have noticed that the Sale Leaseback financial model does not include the option of applying interest rates. Is there some way of including debt into the equation? If not why is it set up like this?
Thank you for your time,
Mahayla

3 posts / 0 new
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oavaldezi
oavaldezi's picture
"Federal" income tax schedule not working in Excel

Renewable energy projects in El Salvador are tax-exempt for their first 10 years. I've entered a schedule for the Federal income tax rate, with 0's as the first ten values in the schedule, and 30 for the later 10 years.

When I run the simulation, I get $0.00 tax liability for the first ten years, and 30% for the later 10 years, as expected. But when I export the cash flow to Excel (with equations), I get $0.00 tax liability for all 20 years!

2 posts / 0 new
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pherende
Schedule versus value mode?

This is a pretty basic question, but I'm trying to figure out the difference between value and schedule modes? Specifically when looking at the annual electricity bill escalation rate the program says to use a real ratein value mode and a nominal rate in schedule mode. Thanks.

3 posts / 0 new
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Paul Gilman
Electricity Rates - Monthly Accounting of Excess Generation

I have just updated to the new version of SAM and the Monthly Accounting of Excess Generation seems to have new options than before (can't remember what they were), but when I toggle between

Option 1 - Cumulative hourly excess credited to current month bill in $ at sell rates ($0/kWh), and

Option 2 - All generation sold at sell rates and all load purchased at buy rates

The results change significantly - from an attractive return and 7yr payback to a negative return and NA payback.

1 post / 0 new
Paul Gilman
Correct Financial Model for Rental Property

I would like to model a small system 4-6kW where the owner installs the system on a rental property she owns. She does not benefit from or pay the utility bill; her tenant does. Would this be a commercial model? I anticipate she will be eligible for SRECs and a rebate as well as the federal ITC and accelerated depreciation as the system owner. Thanks in advance for your assistance.

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