Solar Farm Business Financial Projection 3 Statement Model (Excel XLSX)

VIDEO DEMO

BENEFITS OF DOCUMENT

1. Preparation of a 5 year 3 statement (Income Statement, Balance Sheet, Cash Flow Statement) Financial Projection Model for a new or existing business developing and operating solar farms and generating revenue through electricity generation.

DESCRIPTION

This product (Solar Farm Business Financial Projection 3 Statement Model) is an Excel template (XLSX) with a supplemental Excel document, which you can download immediately upon purchase.

A Solar Farm Business Financial Projection 3 Statement Model is crucial for renewable energy enterprises. It forecasts income, expenses, and cash flows, enabling strategic planning, project financing, and resource allocation. It supports decision-making related to equipment investment, energy pricing, and government incentives. Accurate projections empower solar farm businesses to adapt to market dynamics, secure funding, and ensure project profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with sustainable energy objectives. This model is indispensable for both established solar farms and startups, ensuring their financial viability, competitiveness, and ability to contribute to the clean energy transition.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of an 8-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing business developing and operating up to 5 solar farms at different stages of development or operation and generating revenue through the sale of electricity.

The model calculates revenue for each of the modelled solar farms based on the capacity in MW/h, yield per month and the application of degradation factors and performance ratios. The model includes different development expenses, capitalizable costs, operating expenses and decommission costs applicable at the different lifecycle stage for each solar farm. It also includes the ability to model staff costs, other expenses, taxes, dividends, borrowings and changes in equity.

The model follows good practice financial modelling principles and includes instructions, line-item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the forecasted cash flows.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across up to 8 years and summarised on an annual basis.
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
List of key ratios including average revenue growth, average profit margins, average return on assets and equity and Average Debt to Equity ratio.
Bar charts summarising income statement and Balance Sheet projections
Revenue and direct expenses by solar farm in table and bar-chart format
•  Discounted cash flow valuation using the forecasted cash flow outputs.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include input validations and conditional formatting to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and month;
•  Naming for solar farms, development expenses, capitalizable costs, operating expenses, staff costs, other expenses and borrowings;
•  Sales tax applicability for revenue, expense and fixed asset items.

Actuals Inputs:
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);

Projection Inputs:
•  Solar farm revenue including capacity in MW/h, performance ratio, yields by month, degradation factors by year, tariff rates and credit terms offered;
•  Development and operating expenses across the lifecycle of each solar farm;
•  Capitalisable costs including addition amounts and useful life;
•  Other costs inputs including staff costs and other expenses;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount or percentage of retained earnings and frequency;
•  Borrowings including addition amounts and interest rate;
•  Share Capital additions;
•  Discount rate inputs (for valuation calculation).

MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard' and ‘o_DCF'.

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows good practice financial modelling guidelines and includes instructions, line-item explanations, checks and input validations;
•  The model contains a flexible timeline that allows for a mix of Actual and Forecast period across an 8-year period. This allows projections to be easily rolled forward;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  The model allows the user to model 5 solar farm each with their own unique lifecycle, revenues and direct expenses;
•  The model is not password protected;
•  The model is reviewed using specialised model audit software to help ensure formula consistency and reduce risk of errors;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Solar Farms – 5 farms;
Development expenses – 5 categories;
Capitalizable costs – 3 categories;
Operating expenses – 5 categories;
Staff costs – 5 categories;
Other expenses – 15 categories;
Borrowings – 5 facilities
•  Apart from projecting solar farm revenues and expenses the model includes the possibility to model depreciation of capitalizable costs, receivables, borrowings, dividends and corporate tax;
•  Business Name, currency, starting projection period and volume units are fully customisable;
•  Revenue, cost and fixed asset descriptions are fully customisable;
•  The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
•  The model includes instructions, line-item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.

Source: Best Practices in Integrated Financial Model, Energy Industry, Renewable Energy, Solar Energy Excel: Solar Farm Business Financial Projection 3 Statement Model Excel (XLSX) Spreadsheet, Projectify