Economic Analysis

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bukhary
Economic Analysis

Hi,
I am running an economic analysis for commercial photovoltaics. My payback period is NaN meaning payback period is longer than the analysis period. but net present value is positive. These are conflicting results. Am I making a mistake. Please let me know.
Thanks

Paul Gilman

Hello,

When you evaluate the results of SAM's financial models, you should consider all of the metrics, and the data in the cash flow. It is possible that a project's payback period is longer than its lifetime and still has a net present value and reasonable levelized cost of energy.

For a good discussion of financial metrics, please see Short (1995), available from the Financial Model Documentation page:

https://sam.nrel.gov/financial

It is up to you to interpret SAM's results and decide what they say about your project.

Best regards,
Paul.

bukhary

Thank you :)

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