Revenue Section

  • inreco
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17 Jan 2026 15:10 #14455 by inreco
Revenue Section was created by inreco
I don't understand why, when changing items in "Solution Mode" and "Time Of Delivery" but returning them back to their original state, the "Simulation" still returns negative NPV and IRR values.  The original settings were - "Specify PPA", "TOD Factors by Schedule", "Uniform Dispatch" and all green boxes with "1" in them for both Weekday and Weekend.
I'm assuming that this page instructs SAM when the solar farm would be selling electricity to whoever and at what PPA price.
My farm design will be selling power 24/7 due to the BESS that I added. I can't figure out how to tell SAM that??

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  • Paul Gilman
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20 Jan 2026 10:22 #14460 by Paul Gilman
Replied by Paul Gilman on topic Revenue Section
Hello,

In Specify IRR mode, you specify the IRR target and IRR target year, and SAM attempts to calculate a PPA price that will meet the target in that year. For example, if you specify a target IRR of 11% in Year 20, then on the Results page, the PPA price is the value calculated by SAM, and is the PPA price that would be required to achieve an IRR of 11%.

In Specify PPA price mode, you specify the PPA price, and SAM calculates the resulting IRR. For example, if you specify a PPA price of $0.04/kWh, then on the results page, the IRR is the rate of return you would get for a PPA price of 4 cents/kWh.

If you want to get the same result when you switch between modes, you should set the PPA price input on the Revuenue page to the value that SAM calculates in Specify IRR mode. For example, if SAM calculates a PPA price of 4.53 cents/kWh to achieve an IRR of 11% in Year 20 with a positive NPV, then if you change the mode to Specify PPA price and set the PPA price to $0.0453/kWh, you should get the same results when you switch between modes.

Best regards,
Paul.
 

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