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Community - Subscriber's upfront payment_Subscriber NPV
- i005034
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06 Oct 2024 20:28 #13501
by i005034
Replied by i005034 on topic Community - Subscriber's upfront payment_Subscriber NPV
Hi, Paul.
My point concerns the subscriber's NPV, not the project owner's NPV. Since the up-front payment benefits the owner, deducting the amount from the initial cost is right. However, this amount is the subscriber's outgoing payment because of the subscriber's subscription cost. The system does not include it in the subscriber's NPV calculation (no inclusion of up-front outgoing payment in period 0 of the subscriber's cash flow). This is what I mean. Thanks.
My point concerns the subscriber's NPV, not the project owner's NPV. Since the up-front payment benefits the owner, deducting the amount from the initial cost is right. However, this amount is the subscriber's outgoing payment because of the subscriber's subscription cost. The system does not include it in the subscriber's NPV calculation (no inclusion of up-front outgoing payment in period 0 of the subscriber's cash flow). This is what I mean. Thanks.
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- pgilman
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07 Oct 2024 11:29 #13502
by pgilman
Replied by pgilman on topic Community - Subscriber's upfront payment_Subscriber NPV
Thank you for the clarification.
SAM currently calculates the subscriber NPV from the subscriber cost of participation for each subscriber class, which is equal to the owner's revenue from that class. Because up-front payments are not included in revenue as discussed above, it gets omitted from the subscriber cost of participation as well.
Here is a link to the source code for those calculations:
github.com/NREL/ssc/blob/4a30d9a4ba5ff52a3010990d30d95bfd6e3def07/ssc/cmod_communitysolar.cpp#L1820
I have created an issue in the SAM GitHub repository so we can fix this:
github.com/NREL/SAM/issues/1867
Thank you for bringing this to our attention.
Best regards,
Paul.
SAM currently calculates the subscriber NPV from the subscriber cost of participation for each subscriber class, which is equal to the owner's revenue from that class. Because up-front payments are not included in revenue as discussed above, it gets omitted from the subscriber cost of participation as well.
Here is a link to the source code for those calculations:
github.com/NREL/ssc/blob/4a30d9a4ba5ff52a3010990d30d95bfd6e3def07/ssc/cmod_communitysolar.cpp#L1820
I have created an issue in the SAM GitHub repository so we can fix this:
github.com/NREL/SAM/issues/1867
Thank you for bringing this to our attention.
Best regards,
Paul.
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