Utility and commercial PPA projects are assumed to sell electricity through a power purchase agreement at a fixed price with optional annual escalation and time-of-delivery (TOD) factors. For these projects, SAM calculates:

  • Levelized cost of energy
  • PPA price (electricity sales price)
  • Internal rate of return
  • Net present value
  • Debt fraction or debt service coverage ratio

SAM can either calculate the internal rate of return based on a power price you specify, or calculate the power price based on the rate of return you specify.

Spreadsheets

We have prepared these spreadsheets as tools to help you understand how SAM's financial models for PPA projects work.

  • LCOE for PPA Single Owner, Partnership Flip, Sale Leaseback models (Excel 35 KB)
  • PPA Single Owner cash flow model (Excel 259 KB)
  • Cash flow models for PPA Single Owner, Partnership Flip, and Sale Leaseback models (Excel 1.0 MB)