Third Party Host/Developer

Hello, I want to confirm my understanding and use of the TP host/developer model. I want to use this to compare a PV ownership model from the host perspective to what they would pay for an on-site PPA. To do this, I enter the same parameters in the TPHD model for system design, location, electricity rates, and load. I don't quite get the time of delivery requirements, so I left them as 1's. For the developer economics, I assume some small decrease in install costs and input the financial parameters from their perspective. 

If I do this, is the metric of interest the 'host indifference point'? For example, if the host indifferent point is < what they are currently paying per kWh, is the project advantageous?

Thank you.

Hi Allison,

The host indifference point financial metric is described in Help. Here's a link to the topic in the copy of Help on the web:

samrepo.nrelcloud.org/help/mtf_indifference_point.htm

The indifference point is basically the maximum PPA price the developer could offer that the host would accept.

The time of delivery (TOD) factors for the TPO Host / Developer model are adjustments to the PPA price. If TOD factors do not apply, you should set them all to 1 as you describe.

Best regards,
Paul.