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Error in modeling a photovoltaic plant with stand-alone batteries

  • Radhamés
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12 Jun 2024 20:21 #13250 by Radhamés
Good evening,I am new to SAM and trying to model a hybrid photovoltaic plant with stand-alone batteries to determine when to charge and when to sell energy in the market. Based on forum recommendations, I chose the PPA model, set a price of 1, and entered the prices in TOD. However, I encounter the following error:"IRR at end of analysis period is not a number (NaN). This can indicate that revenues are too low to cover costs, or that they are excessively high compared to costs. IRR in target year is not a number (NaN). This can indicate that revenues are too low to cover costs, or that they are excessively high compared to costs. NPV is $-9.84392e 06. A negative NPV indicates project costs are higher than revenues."I understand this means the plant is not profitable, but I'm unsure which values to adjust to obtain a result. Could you please advise if my approach is correct or suggest any adjustments?. I have attached the project file for your reference.
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  • Paul Gilman
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13 Jun 2024 17:31 #13259 by Paul Gilman
Hi Radhamés,

You can use the "Project After-tax Cash Flow" graph on the Summary tab of the Results page to see why the NPV is negative:

 

In this case, the only year with positive cash flow is Year 1, so the project does not earn enough after-tax revenue to cover the Year 0 cost.

The Help topic for Net Present Value discusses some ways to improve the project economics when the NPV is negative: samrepo.nrelcloud.org/help/mtf_npv.html (or press F1 in SAM to open Help there).

Best regards,
Paul.




 

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