View User Manual

  1. Home
  2. Docs
  3. View User Manual
  4. BASIS OF DESIGN > COST & FINANCE
  5. PROJECT FINANCIAL MODEL

PROJECT FINANCIAL MODEL

The HST application is capable of exporting a spreadsheet of financial cash flows for the full lifespan of the project. The following parameters are calculated for each year within the financial model:

 

Financial Parameter Calculation
 Revenue  Energy Production x Energy Tariff Rate (including PPA, Escalation, TOD and PBI)
 Total Operating Expenses  O&M Expense + Insurance + Annual Lease (if Leased Land) or Property Tax (if Purchased Land)
 Project EBITDA  Revenue + Total Operating Expenses
 Federal Taxable Income  Project EBITDA + Federal Depreciation Expense + Loan Interest Expense
 State Taxable Income  Project EBITDA + State Depreciation Expense + Loan Interest Expense
 EBITDA After Loan Interest Expense  Project EBITDA + Loan Interest Expense
 Equity Investment  Total Construction Cost x Loan Fraction Percentage
 Pre-Tax Cash Flow to Equity  Project EBITDA + Loan Interest Expense + Repayment of Loan Principle + Federal Investment Tax Credit + State Investment Tax Credit
 After-Tax Cash Flow to Equity  Pre-Tax Cash-Flow to Equity + Federal Taxes Paid + State Taxes Paid
 Pre-Tax IRR  See IRR Equation on Project Financial Equations page. Pre-Tax Cash Flows are used.
 After-Tax IRR  See IRR Equation on Project Financial Equations page. After-Tax Cash Flows are used.
 After-Tax NPV  See NPV Equation on Project Financial Equations page.
 Real LCOE  See LCOE Equation on Project Financial Equations page. Real Discount Rate used.
 Nominal LCOE  See LCOE Equation on Project Financial Equations page. Nominal Discount Rate used.
Was this article helpful to you? Yes No

How can we help?