Class_model_exercise
xlsx
School
Northeastern University *
*We aren’t endorsed by this school
Course
5700
Subject
Industrial Engineering
Date
Apr 3, 2024
Type
xlsx
Pages
11
Uploaded by UltraIbisPerson1041
Sample Solar Model
Pro-forma
Technical assumptions
Cost assumptions
Size
kW
5,000 Cost
$/Watt
Production
kWh/kWp
1,450 Cost
$
Degradation
% p.a.
0.50%
O&M
$/kW-year
G&A
$/kW-year
Revenue assumptions
Lease cost
$/year
Inflation
%-year
Energy Revenue
$/MWh
140.00
Incentive Value
$/MWh
0
Tax assumptions
REC Revenue
$/MWh
0
ITC
% of cost
ITC eligibility
% of cost
Total Revenue
$/MWh
140.00
`
Federal tax rate
Cash flows
Year
0
1
2
3
4
Inflation factor
100%
102%
104%
106%
Production
Size
kW
5000
5000
5000
5000
Degradation
100%
100%
99%
99%
Production
MWh
7,250.00
7,213.75
7,177.68
7,141.79
Cash flows
SRECs
$/MWh
- - - - ZREC Revenue
- - - - LT RECs
$/MWh
- - - - LT REC revenues
- - - - Levelized rate
$/MWh
140.00
140 143 146 149 Wholesale sales
1,015,000 1,030,124 1,045,472 1,061,050 Total revenues
1,015,000 1,030,124 1,045,472 1,061,050 Costs
(75,000) (76,500) (78,030) (79,591)
Lease
(50,000) (51,000) (52,020) (53,060)
EBITDA
11,395,709 890,000 902,624 915,422 928,399 Depreciation
(1,530,000) (2,448,000) (1,468,800) (881,280)
PBT
(640,000) (1,545,377) (553,378) 47,119 Tax (paid)/benefit
35.0%
224,000 540,882 193,682 (16,492)
Tax-adjusted cash flow
1,114,000 1,443,505 1,109,105 911,907
Returns
Investment
(9,000,000)
Investment tax credit
2,700,000 Tax-adjusted cash flow
1,114,000 1,443,505 1,109,105 911,907 Net tax-adjusted cash flow
(9,000,000) 3,814,000 1,443,505 1,109,105 911,907 Payback
1 1 1 1 IRR
12.3%
Payback (yrs)
7.00
Depreciation
Basis
BB
7,650,000 6,120,000 3,672,000 2,203,200 Depreciation
(1,530,000) (2,448,000) (1,468,800) (881,280)
EB
7,650,000 6,120,000 3,672,000 2,203,200 1,321,920 Schedule
5 year MACRS
20%
32%
19.20%
11.52%
Annual amount
1,530,000
2,448,000
1,468,800
881,280
Levered Returns Analysis
EBITDA
890,000 DEP. EXP.
(1,530,000)
Interest Exp.
PBT
Taxes (BENEFIT/ Paid)
35%
ITC
Principal Pay Back
Tax Adj. Levered Cash Flow
(3,600,000)
Levered IRR
DSCR
Loan/Value
60%
Rate
6%
Term - Yrs
20
Loan Amount
(5,400,000)
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Returns
1.80
IRR
12.3%
9,000,000
10
Payback (yrs)
7.00
5
50,000
2.00%
30.0%
100.0%
35.0%
5
6
7
8
9
10
11
12
108%
110%
113%
115%
117%
120%
122%
124%
5000
5000
5000
5000
5000
5000
5000
5000
98%
98%
97%
97%
96%
96%
95%
95%
7,106.08
7,070.55
7,035.20
7,000.02
6,965.02
6,930.20
6,895.55
6,861.07
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 152 155 158 161 164 167 171 174 1,076,860 1,092,905 1,109,189 1,125,716 1,142,489 1,159,512 1,176,789 1,194,323 1,076,860 1,092,905 1,109,189 1,125,716 1,142,489 1,159,512 1,176,789 1,194,323 (81,182) (82,806) (84,462) (86,151) (87,874) (89,632) (91,425) (93,253)
(54,122) (55,204) (56,308) (57,434) (58,583) (59,755) (60,950) (62,169)
941,556 954,895 968,419 982,130 996,032 1,010,126 1,024,415 1,038,901 (881,280) (440,640) - - - - - - 60,276 514,255 968,419 982,130 996,032 1,010,126 1,024,415 1,038,901 (21,096) (179,989) (338,947) (343,746) (348,611) (353,544) (358,545) (363,615)
920,459 774,906 629,472 638,385 647,421 656,582 665,869 675,286
920,459 774,906 629,472 638,385 647,421 656,582 665,869 675,286 920,459 774,906 629,472 638,385 647,421 656,582 665,869 675,286 1 1 - - - - - - 1,321,920 440,640 - - - - - - (881,280) (440,640) - - - - - - 440,640 - - - - - - - 11.52%
5.76%
881,280
440,640
13
14
15
16
17
18
19
20
127%
129%
132%
135%
137%
140%
143%
146%
5000
5000
5000
5000
5000
5000
5000
5000
94%
94%
93%
93%
92%
92%
91%
91%
6,826.77
6,792.63
6,758.67
6,724.88
6,691.25
6,657.79
6,624.51
6,591.38
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 178 181 185 188 192 196 200 204 1,212,118 1,230,179 1,248,509 1,267,111 1,285,991 1,305,153 1,324,600 1,344,336 1,212,118 1,230,179 1,248,509 1,267,111 1,285,991 1,305,153 1,324,600 1,344,336 (95,118) (97,020) (98,961) (100,940) (102,959) (105,018) (107,118) (109,261)
(63,412) (64,680) (65,974) (67,293) (68,639) (70,012) (71,412) (72,841)
1,053,588 1,068,478 1,083,574 1,098,878 1,114,393 1,130,123 1,146,069 1,162,235 - - - - - - - - 1,053,588 1,068,478 1,083,574 1,098,878 1,114,393 1,130,123 1,146,069 1,162,235 (368,756) (373,967) (379,251) (384,607) (390,038) (395,543) (401,124) (406,782)
684,832 694,511 704,323 714,271 724,356 734,580 744,945 755,453
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684,832 694,511 704,323 714,271 724,356 734,580 744,945 755,453 684,832 694,511 704,323 714,271 724,356 734,580 744,945 755,453 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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23
24
25
26
27
28
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