Issues encountered with NPV for 0 debt for Comercial PV Design

Good day,

I have been using the SAM tool to perform design and financial analysis for the 320W x 80 panels, 2 x inverters with 100% debt financing and then I get a positive NPV. However since for this project the company will be financing the capital on its own without a long. When I set the debt% to 0 in financial parameters page for the same design I get a negative NPV. 

Attached are the two files. I don't understand why I get negative NPV for 0% debt is this correct as I would expect it to be similar to 100% debt financing case. Please advise, thanks again for the support!  

Hi Darren,

For the Commercial financial model, SAM assumes that debt interest payments are tax deductible, so the project with debt has a higher annual tax savings than the project with no debt. You can see that on the Cash Flow tab: The "interest payment" line item under State Income Tax and Federal Income Tax, and then the tax savings for each.

If you are running SAM on a Windows computer, you can use "Send to Excel with Equations" to copy the inputs from SAM to an Excel workbook with formulas that replicate SAM's financial calculations, which can be useful for understanding how the model works.

The attached file contains two cases, one for each of the files you sent to make it easier to compare them. You can use the Inputs Browser (File, Inputs Browser) to display a list of input variables in the two cases to see how they differ.

Best regards,
Paul.

Hey Paul,

Thanks for the response but there seems to be an issue with attachment you sent as when I try to click and open it I get the following error message. Please assist with resolving.

Hi Darren,

The image of the error message did not upload correctly. Could you either attach the image file to a reply or write out the text of the error message?

Best regards,
Paul.