Internal Rate of Return

When you run SAM using one of the utility financing options, you can either provide a power price (PPA price) as an input so that SAM calculates the internal rate of return (IRR), or provide the IRR as an input so that SAM calculates the PPA price.

To do so, create a new file or case, and choose the technology for your project. Then choose either Utility Independent Power Producer (IPP), or click Advanced Utility Options to choose one of those options. For example, here's what you would choose for a PV system with the Utility IPP financing option:



After SAM creates the case, click Financing in the navigation menu to display the Financing page. You may need to scroll down to see the Solution Mode inputs. If you have a target IRR in mind, choose "Specify IRR Target" and then enter a value for Minimum Required IRR in the Specify IRR Target box. If you have a power price in mind and would like SAM to calculate the IRR, choose "Specify PPA Price" and enter a value in the Specify PPA Price box.

For example, here's what the Financing page would look like when you have an IRR in mind and want SAM to calculate the PPA price: