Sales tax for IPH Tower Molten Salt, no Financial model

Hi

I am modeling a solar thermal molten salt system (IPH Tower Molten Salt, no Financial) to provide high-temperature heat (around 1000 degrees C) for a chemical reaction. Do I have to keep the sales tax at 5% for this analysis?- this solar thermal system is part of an integrated facility (solar thermal + chemical reaction system), so I am not selling power but providing heat to another unit in my integrated facility (assuming the 5% sales tax value is what the producer has to pay for selling power produced from their system).

II question- The final cost results from the SAM model mention the total installed cost as $2 billion, but the sales tax cost is $65 million: 5% (sales tax rate) of $2 billion is $100 million- any possible reason for this discrepancy?

III one- my system models a 1000 MWt solar thermal system. Could you guide me on what warning(s) I should mention when I publish my results?- warning(s) specific to the fact that the IPH Tower Molten Salt system in SAM is not modeled realistically and is still under development (compared to other well-established PV models in SAM) based on our discussion in one of the round tables.

Thanks!

Hello,

In SAM, the sales tax is a value-added tax. It is a percentage of the direct costs specified on the Installation Costs page that is included in the project's total installed cost.

The sales tax is the product of total direct cost, sales tax basis, and sales tax rate:



I think the main limitation of the IPH Tower Molten Salt model is that it models the thermal load as a heat sink with a fixed thermal power rating and does not provide a mechanism for modeling a variable thermal load.

Best regards,
Paul.
 

Sounds great. Thank you, Paul.