Is it possible to get IRR from SAM reports

  • rafid
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03 Nov 2019 03:59 #7766 by rafid
Hi there,
I was looking to calculate the IRR of a PV project in SAM but could not find the option anywhere. Is it possible to calculate the IRR in SAM? If not, then how can it be done manually.
It would be helpful if anyone can help me find/ calculate it. Thanks.

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  • pgilman
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06 Nov 2019 16:28 - 20 Nov 2019 17:03 #7774 by pgilman
Replied by pgilman on topic Is it possible to get IRR from SAM reports
Dear Adnan,

SAM's PPA financial models can calculate an IRR for a project based on a PPA price that you specify along with other financial parameters. The models can also calculate a PPA price when you provide an IRR as input.

The Residential and Commercial financial models do not calculate an IRR, but you could determine the IRR using a parametric analysis on the real discount rate to determine the discount rate that results in a net present value of zero. Here's how:
  1. Create or open a project using either the Residential or Commercial financial model.
  2. Click Parametrics under the Simulate button (at the bottom left of the SAM window).
  3. Click Quick setup at the top of the Parametrics page.
  4. Click Add, type "discount" in the Search box to find the real discount rate variable, check the box in the list, and click OK. You should see the real discount rate in the list of variables in the Parametric Quick Setup window.
  5. Click Edit, set Start Value = 5, End Value = 90, Increment = 1, and click OK to return to the Parametric Quick Setup window. You should see a list of values for the discount rate.
  6. Click OK to return to the Parametrics page.
  7. Click Outputs at the top of the page, check the Net Present Value variable (under Cash Flow, you can type "net" to filter the list), and click OK.
  8. Click Run simulations.
SAM will generate a table of NPV vs Discount Rate. The point where the NPV changes from negative to positive is the IRR. Depending on your financial assumptions, the NPV may be positive or negative over the full range of discount rates, in which case it is not possible to determine the IRR.

For a short video on parametric simulations see:
sam.nrel.gov/forum/forum-general/2764-parametric-and-statistical-analysis.html

Best regards,
Paul.
Last edit: 20 Nov 2019 17:03 by pgilman.

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  • rafid
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06 Nov 2019 16:35 #7775 by rafid
Replied by rafid on topic Is it possible to get IRR from SAM reports
Wow. That was very detailed and helpful. Exactly what I was looking for. Thanks a bunch! 

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  • Scambling
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20 Nov 2019 04:45 #7801 by Scambling
Replied by Scambling on topic Is it possible to get IRR from SAM reports
That was a nice explanation.

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