Solar panels producing yellow hydrogen, showcasing renewable energy's financial model.

Financial Model, Hydrogen, Renewable Energy, Solar

Budgeting, Cash Flow Analysis, Cash Flow Projections, Consolidation, Discount Rate, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Statements, Forecast, Income Statement, Investor Cash Flows, IRR (Internal Rate of Return), NPV (Net Present Value), Profitability Analysis, Sensitivity Analysis, Startup Financial Models, Uses and Sources of Funds

Among the hydrogen colors, yellow and green hydrogen are considered less environmentally damaging as they are produced with no harmful greenhouse gas emissions. Through water electrolysis, green or yellow hydrogen’s source of electricity is solar energy.

The Yellow Hydrogen from Solar Energy Financial template aims to develop a detailed financial feasibility analysis for a Hydrogen Plant with an adjacent Solar Park from which the required electricity for the production of Hydrogen via hydrolysis can be obtained. The Excel spreadsheet templates include detailed financial forecasts over the project’s lifetime (up to 40 years) based on bottom-up assumptions from the hydrogen plant’s daily design capacity, which will drive the electricity consumption and show the result of the Solar Plant’s size.

Key assumptions include the project operations timeline for the solar farm and yellow hydrogen production plant, the duration of power purchase agreements, electricity sales, uses and sources of funds, and debt financing. These assumptions are then translated into a financial plan that allows the business owner and management to see how the business should perform financially over the following years.

The yellow hydrogen financial plan template also comes with a number of carefully prepared charts and tables to help you understand the feasibility of yellow hydrogen from the solar energy project. Calculations of the relevant financial ratios and metrics (such as IRR, Payback Period, NPV, Levelized Cost of Hydrogen), as well as a debt schedule, are also included.

Why choose this Yellow Hydrogen Financial Model Template?

The main reasons why choose the template are the following ones:

Financial Feasibility Metrics per Plant– The model calculates the financial feasibility metrics (such as IRR, Payback Period, NPV) for the combined operations (Solar + Hydrogen) and each plant individually
Levelized Costs of Electricity and Hydrogen: This calculator calculates the levelized cost of Hydrogen for the Hydrogen Plant and the levelized cost of Electricity for the Solar Park.
Advanced Tax Models: Both the Hydrogen Plant and the Solar Park can benefit from Tax advantages. The model includes an advanced tax model to consider the effect of various possible tax incentives for such plants.
Detailed Financial Plans with full transparency on all calculations. The spreadsheet is designed in a logical manner, outlining the calculations of revenues and costs, which adds to the transparency and understanding of the model.
Units and Labels The Installed capacity for electricity production can be changed between MW and kW, currency can be inputted and changed, and the label Yellow Hydrogen can be changed to Green Hydrogen. There are many other settings that can be easily adjusted within the model.

Yellow Hydrogen Financial Model Template Structure

This financial model is structured with simple instructions and formulas that are easy to follow. This allows users to run simulations by varying the input assumptions.

Enumerated below are the components of this financial model template:

Terms contain the cell color codes and the terms and abbreviations used.

Executive Summary and Detailed Summary include charts and graphs to understand better the financial reports and business plan of your Yellow Hydrogen Plant and Solar Farm and to answer significant questions such as:

Is Yellow Hydrogen profitable?
How much does it cost to produce yellow hydrogen from solar energy?
What should the yellow hydrogen selling price be?
What is the breakdown of the revenue of the solar farm and yellow hydrogen production plant?
Are solar farms profitable?
Which generates a higher profit margin – the yellow hydrogen plant or the solar farm?

These spreadsheets include a 10-year summary of the following:

Projected Yellow Hydrogen Production from Solar Energy Financial Statements overview – Income Statement, Balance Sheet, and Cash Flows Statement.
Levered and Unlevered Free Cash Flows calculating key financial feasibility metrics such as the Internal Rate of Return (IRR), Payback Period, Net Present Value (NPV)
Profitability Ratios and Capital Employed
Uses & Sources of Funds and Debt Financing
Lifetime Profit Distribution and Cash Flows
Investor Summary
Levelized Cost of Electricity (Solar Farm) and Levelized Cost of Hydrogen (Yellow Hydrogen Production Plant)
Revenue Breakdown of Yellow Hydrogen Plant and Solar Farm
Solar Farm and Yellow Hydrogen Plant Capacity Summary

Assumptions that are necessary and applicable in producing yellow hydrogen from solar energy are presented in this worksheet. Users may test and modify various scenarios easily by updating the marked assumptions in blue or light blue.

General Settings
- Currency
- Project Details – Name, Location
- Project Timeline – Yellow Hydrogen Production from Solar Energy Operation Years and Plant Lifetime
- Net Working Capital
- Inflation and Price Escalation
- General Tax Assumptions
Solar Farm Assumptions
- Solar Farm Panel Installed Capacity
- Specific Solar Yield
- Annual Solar Energy Produced
- Photovoltaic (PV) Module Area
- Solar Farm Panels Area
- Electricity Production
- Electricity Sales Allocation
- Electricity Sales Price Assumptions
- Duration of Purchase Power Agreements
- Solar Farm Renewable Energy Certificate
- Advanced Tax Assumptions
- Capital Expenditures, CAPEX Schedule, and Maintenance per year
- Employee Positions and Expenses
- Operating Expenses
Yellow Hydrogen Plant Assumptions
- Electricity Sources and Consumption
- Duration of Purchase Power Agreements
- Yellow Hydrogen Plant Operating Capacity
- Yellow Hydrogen Price and Other Income Assumptions
- Advanced Tax Assumptions
- Capital Expenditures, CAPEX Schedule, and Maintenance per year
- Direct Costs
- Employee Positions and Expenses
- Operating Expenses
Uses and Sourced of Funds
- Debt Financing – Loan Terms, Interest Rate, and Repayment Schedule
- Cash Reserve and Net Working Capital
Debt Financing Schedule
- Repayment Schedule – Calculated or Manual
- Interest – Cash or Accrued
Investors
- Equity Ownership and Investment Percentages
- Development (Phase 1) and Buy & Hold (Phase 2)
Dividend Payout Assumptions

Solar Farm and Hydrogen Plant worksheets contain comprehensive calculations of the 40-year operational, financial forecast planning, and feasibility of the Yellow Hydrogen Production from the Solar Energy business.

Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
Financial Ratios and Yellow Hydrogen Plant Economic Analysis
Unlevered and Levered Free Cash Flows Statement, Funding Required, and Financial Metrics
Solar Farm’s Electricity Production Allocation and Sales
Yellow Hydrogen Plant Electricity input and Hydrogen production sales
Costs to produce Electricity and Yellow Hydrogen
Fixed Assets Schedule – Initial CAPEX, Spending allocation, Maintenance, and Depreciation
Debt Schedule
Simple and Advanced Tax Model Summary
Levelized Costs of Electricity and Hydrogen

Advanced Tax Models worksheets present detailed calculations of the Solar Farm’s and Yellow Hydrogen Plant’s state and federal income taxes, considering the different tax rates and tax credits.

The Consolidated worksheet contains a comprehensive and consolidated summary of the 40-year forecast for the Solar Farm and Yellow Hydrogen Plant.

Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
Financial Ratios
Unlevered and Levered Free Cash Flow Forecast
Financial Metrics, and
Divided Policy Schedule

Investors’ Cash Flow is prepared to show the calculations of the Equity Multiple and Investors’ IRR, which helps determine if their funding and equity stake percentages during the Buy & Hold and Development Phases would result in profit on their end.

Sensitivity Analysis determines how variables such as prices, expenses, and inflation affect the IRR of a chosen parameter. Users may select Unlevered or Leveled IRRs of the Solar Farm, Yellow Hydrogen Plant, Consolidated, and Investors.

Start producing your own Yellow Hydrogen from Solar Energy now!

The Yellow Hydrogen from Solar Energy Financial Model template comes pre-filled with a 40-year forecast. It contains valuable tools that allow users to analyze the financial plan for starting a yellow hydrogen business in detail by testing various scenarios and assessing how they affect the project’s viability.

Developing financial projections can clarify the possible profit margins, the funding required, and the expected returns. This solid and financial model template can be the missing piece to bringing yellow hydrogen production to financial success.

The current model version 4.1, is available in two Excel versions and a PDF Demo Preview: