Solar Energy Financial Model

The Solar Energy Financial Model Excel template forecasts the expected financials for a Solar Park project and calculates the relevant project metrics to determine its financial feasibility. Pro and Premium model versions also include the developers point of view and sensitivity analysis. The solar PV model calculates the main relevant financial ratios as required by investors and banks to understand the solar energy project and offers a flexible tool to run scenarios by varying the input assumption.

Solar Energy Financial Model
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The Solar Energy Financial Model template projects the financials for a new Solar Park project and calculates profits and returns. The Excel spreadsheet model comes in three versions and is designed to obtain a better understanding of the financial feasibility of your next Photovoltaic (PV) park project. The solar PV model calculates the main relevant financial ratios as required by investors and banks to understand the solar energy project and offers a flexible tool to run scenarios by varying the input assumption. The solar project finance model includes a Three Statement Model with Income Statement, Balance Sheet and Cash Flow statement forecast up to 30 years.

A walkthrough of the model is provided in the following video:

The financial model template includes:

  • Executive Summary section with charts, summarized key financials and the main assumptions of the solar park
  • Key assumptions to enter include:
    • Installed capacities such as kiloWatt or Mega Watt
    • Annual solar yield
    • Yearly yield degression factor
    • Lifespan years of the project
    • Phasing plan to simulate a phased construction plan
    • Revenue models
      • Model 1: Sale of Energy via Power Purchase Agreement (PPA)
      • Model 2: Sale of Energy at Market Price + Eventual Premium through the sale of Certificate
    • Pricing assumptions for each revenue model, starting price as well as forecasted annual price increases/decreases
    • Duration years of PPA / Certificated
    • CAPEX Assumptions
    • Subsidy Assumptions
    • Operations and Maintenance Cost assumptions (either to be entered as fixed amounts or as % of revenues, cost per kWh) by Phase
    • Debt assumptions such as loan amounts, interest rates, and debt repayment
    • Weighted Average Cost of Capital (WACC) or Discount Rate
  • Detailed yearly calculation for volumes, prices, etc.
  • Financial tables with projected Financial Statements (Income Statement, Balance Sheet and Cash Flow Statement) for a period of 30 years forward
  • Debt schedule which models two layers of financial debt (junior and senior debt) for drawdowns, repayments and interest
  • Fixed asset depreciation schedule
  • Tables with forecasted yearly financial ratios such as of relevance to banks and investors: Debt/EBITDA, LTV, Debt Service Coverage Ratio (DSCR), Interest Coverage Ratios, etc.
  • Calculation of Unlevered and Levered Free Cash Flows
  • Calculation of Project Metrics of relevance to Project Finance and Financial Feasibility analysis such as total profits, investment multiples, IRRs for Unlevered and Levered Returns
  • Calculation of the Net Present Value (NPV)
  • Project Payback period
  • Calculation of required equity funding amount
  • Uses and Sources of Fund table

The Pro and Premium Versions also include:

  • Return calculation from the developer point of view (profit and IRR)
  • Holding Period and Exit Valuation assumptions
  • Return calculation for future Buyer at developer exit
  • Investor table to simulate up to 5 different investors joining at the developer level and contributing various portions of equity funding and receiving different equity stakes in the project
  • Sensitivity Tables to analyze the impact of important key assumptions on the IRR
  • Pricing analysis and their impact on IRRs

The Premium Version also includes:

  • An additional worksheet which prepares data tables and charts to be included in a PowerPoint Presentation (via copy/paste)
  • PowerPoint Presentation template which provides the suggested slides how best to explain the project to banks and/or investors from a project finance perspective.

 

The Excel model comes in printer-friendly layout including charts and graphs. Also, there is an instructions sheet included as well as a worksheet to explain common terms and abbreviations.

 

The model – current version is 5.1 – is available in three versions,

  • PDF Demo Versions (not editable)
  • Basic Excel Model, fully editable
  • Pro Excel Model (includes Developer View and Sensitivity Tables), fully editable
  • Premium Excel Model (includes tables and graphs for PowerPoint presentation, PowerPoint presentation template), fully editable

 

Filetypes:

  • PDF Adobe Acrobat Reader
  • .xlsx (Microsoft Excel)

 

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Reviews

  • Avatar Missing ITC

    You can not have a complete Solar Model in 2019 without including ITC and state incentives. Also I prefer to have all inputs on an Inputs tab and not search for them all

    1 of 2 people found this review helpful.

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    • The model has been updated and now also includes a more sophisticated tax model to include the effects of tax incentives and other subsidies to address this comment.

      1 of 2 people found this review helpful.

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    • eFinancial Models

      Thank you greatly for your feedback! As for why we didn't include the ITC and State incentives, it's because this template is not only for the USA. Plus, this is only a template which you can easily customize according to your specifications.

      1 of 2 people found this review helpful.

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  • Avatar Solar Energy Financial Model

    Can this model be use for an off-grid solar project?

    1 of 2 people found this review helpful.

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  • Avatar Great Support

    I had some initial difficulties with the solar model but thanks to some very prompt and helpful email support I got passed the initial issues. Thanks!

    1 of 2 people found this review helpful.

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  • Avatar Question about the type

    Great Model .. is this model about : 1- photovoltaic method or 2-
    concentrated solar power method ?

    1 of 2 people found this review helpful.

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    • eFinancial Models

      Hi there, the solar energy financial model is about the photovoltaic method using solar modules to generate electricity. Normally these are installed on a field or on a rooftop of a building and the energy is fed into the energy grid.

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      • Is it possible to make a model for the mother method ? i.e. : concentrated solar power method ?

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