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.