Solar (PV) Project Finance Model with Tariff Optimiser (Excel XLSB)

BENEFITS OF THIS EXCEL DOCUMENT

1. Delivers a comprehensive, investor-ready template for project finance practitioners, requiring minimal editing for immediate use.
2. Features a detailed dashboard with key metrics, including Levelized Cost of Energy (LCOE), Net Present Value (NPV), Internal Rate of Return (IRR), project and equity payback periods, and other essential financial indicators.
3. Uses an advanced Newton-Raphson solver to determine the optimal tariff--more stable and reliable than GRG Nonlinear or Goal Seek. Alternatively, users can input a user-defined tariff.

SOLAR ENERGY EXCEL DESCRIPTION

This product (Solar [PV] Project Finance Model with Tariff Optimiser) is an Excel template (XLSB), which you can download immediately upon purchase.

As global demand for clean energy grows, utility-scale solar projects play a vital role in meeting national decarbonisation goals. Unlike rooftop systems, solar farms feed electricity directly into the grid—supporting supply security, grid stability, and long-term climate targets. With increased investment, technological advancements, and supportive regulatory frameworks, the importance of sound, transparent financial planning is more critical than ever. This Solar PV Financial Model was purpose-built to meet that need.

The model delivers a comprehensive 25-year forecast, covering energy production, revenues, operating costs, reserves, and financing structures. It uses site-specific irradiation data and probability-weighted generation scenarios (P50, P75, P90, and P99) to estimate output, applying seasonal degradation, curtailment, and losses to determine net deliverable energy. The result: reliable, bankable insights for developers, lenders, investors, and sponsors.

Built in Excel using FAST principles, the model is modular and audit-friendly. It covers the full project lifecycle—from feasibility to financial close—and includes key financial and operational modules:

• Production: Annual output, losses, degradation, and generation profile
• Revenue : Fixed or escalating tariffs, including a built-in Newton-Raphson solver to match target IRRs
• Opex: Inflation-adjusted operating cost modelling
• VAT: Input/output VAT with construction phase refunds
• Tax & Depreciation : Capital allowances, fixed asset register, and finance cost capitalisation
• Working Capital: Payables, receivables, and impacts on cash flow
• Financing: Sculpted debt, shareholder loans, DSCR covenants, and circularity resolution
• Valuation: Project and equity IRRs, NPV, and dividend payback
• Outputs: Clear dashboard with KPIs for investment committees

A robust VBA-based tariff solver based on the Newton-Raphson method ensures convergence between tariff, IRR, and construction-period financing costs.

The Newton-Raphson method is an iterative numerical technique that uses a function's derivative to successively approximate the root, refining estimates until the difference between iterations falls within an acceptable tolerance. The model is suited for solar IPPs, PPPs, and infrastructure tenders.

Transparent, technical, and investor-ready—this tool supports informed decisions and optimised returns across the project lifecycle.

Disclaimer:

This financial model is the intellectual property of Project Finance Lab and is provided as a licensed professional template for practical application in project finance transactions. Users who purchase this model acquire a licence to use it in commercial settings. Reproduction, resale, or redistribution without prior written consent from Project Finance Lab is strictly prohibited. While every effort has been made to ensure the model is professionally structured and functionally robust, no warranties are provided regarding its accuracy, completeness, or suitability for any specific transaction, purpose, or jurisdiction. Users are solely responsible for conducting appropriate due diligence, applying relevant inputs and assumptions, and seeking qualified professional advice when deploying the model in real-world scenarios. This template offers a comprehensive foundation but requires user customization to reflect project-specific characteristics, regulatory requirements, and commercial terms. Project Finance Lab accepts no liability for any losses, damages, or adverse outcomes resulting from the use, modification, or application of this model. Use of this model constitutes acceptance of these terms and an acknowledgment that professional judgment and expertise are essential to successful project finance modeling.

Fair Use Expectations & Support Policy

This model is intended for use by individuals with a working understanding of Excel, VBA, and project finance concepts. While we welcome all users, we respectfully ask that the following be observed to maintain the integrity of the platform and a constructive environment for all:
• Please ensure you have reviewed the full product description and disclaimers before purchase. Expectations regarding included features, support levels, and model capabilities should be based solely on what is clearly stated.
• This model is a professional-grade tool – not a beginner course, tutoring service, or out-of-the-box automated platform. It requires interpretation, adaptation, and input by the user.

Source: Best Practices in Solar Energy, Integrated Financial Model Excel: Solar (PV) Project Finance Model with Tariff Optimiser Excel (XLSB) Spreadsheet, Project Finance Lab