Sale Leaseback

what variables would be used to optimize lease payments in a sale leaseback model?

Dear ksachdev,

That would depend on your analysis. For example, do you want to minimize lease payments (developer/lessee perspective) or maximize them (tax investor/lessor perspective)?

Can you provide a little more detail about your analysis?

Best regards,
Paul.

It would be to minimize lease payments for concentrated solar power. I'm using the Parabolic Trough (Physical Model) for the modeling.

Thanks Paul.

You could run a parametric analysis on any of the inputs on the Financing page to see what impact they have on the lease payments. I would guess that the PPA price or IRR target (depending on the solution mode you choose), and developer operating margin, escalation rate, and lease payment reserve parameters would be good starting points.

If you have not worked with the parametric analysis option, you might find this explanation to be helpful (it's also available in SAM's help system):

Parametric Analysis

Best regards,
Paul.