Solar (PV) Power Plant - Project Finance Model (Excel XLSX)

Solar Power Project Financial Model – New Version Update:
The Solar Project Finance Model now includes a Tax Benefit Section (Investment Tax Credit or Cash Payment) in case the Project is eligible to take advantage of Federal Incentives.

Renewable energy is a key a part in addressing the climate crisis while also generating enough electricity to meeting increasing demand.

A photovoltaic power station, also known as a solar park, solar farm, or solar power plant, is a large-scale grid-connected photovoltaic power system (PV system) designed for the supply of merchant power. They are differentiated from most building-mounted and other decentralized solar power because they supply power at the utility level, rather than to a local user or users.

Solar power generation projects are seeing increased investments as states provide incentives for regional and local power generation capacity. A well-chosen financial model for Solar Power Plant project lays the foundation for the success of the energy project, guaranteeing adequate funding on favorable terms.

This Solar Project Financial Model provides forecast and profitability analysis of a development and operating scenario for a Solar (PV) Power Plant.

The main purpose of the Solar PV financial model is to enable users to get a solid understanding of the financial feasibility of a Solar Power Plant project and to evaluate the return to investors.

The Solar Project financial model includes all necessary data to calculate development and construction costs, energy production, revenue and operating expenses, financing through Debt & Equity, and project return metrics (IRR, NPV, MOIC, Payback, etc.)

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

•  Setup Assumptions
This section is used to input all the assumptions for the project.
It includes assumptions for Project Timing, Energy Production, Pricing, Capital Expenditures, Operating Expenses, Financing & Capital Structure (Debt & Equity)

•  Development & Construction Budget
Detailed assumptions for the development & construction phase, broken down per cost categories/subcategories

•  Monthly Operating Model
Calculation of project operating cash flows over monthly periods from construction to operating phase (EBITDA). It allows user to control the timing and how the cash flows over that time.

•  Annual Operating Model, Project Returns & Performance Dashboard
Presentation of Project results in Annual Periods. Sections include:
Annual Development & Construction Cash Flow
Annual Operating Model
Pre-Tax and After-Tax Cash Flow to Equity
Project Return Metrics (IRR, Cash-on-Cash, Payback, NPV)
Levelized Cost of Energy
Debt, Reserve Accounts, Capital Expenditures & Depreciation Schedules
Business Performance Dashboard

•  Investor Returns (Waterfall)
A standard 4-tier IRR hurdle waterfall model to distribute proceeds between investors.

•  Project Executive Summary
Professional Executive Summary (can be used for investment decisions) containing all of the high-level relevant information for review and is designed to be easy to read, print, and save to pdf. It includes Solar Project Financial Model General Info, Timing, Sources and Uses of Cash, Production and Purchase Power Agreement info, Financing, Project and Investor return metrics.

Instructions on the use of the template are included in the Power Plant Financial Model Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.

No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!

If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.

If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.