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  5. PROJECT FINANCIAL MODEL

The HST application is capable of exporting a spreadsheet of financial cash flows for the full lifespan of the project. The following parameters are calculated for each year within the financial model:

 

Financial ParameterCalculation
 Revenue Energy Production x Energy Tariff Rate (including PPA, Escalation, TOD and PBI)
 Total Operating Expenses O&M Expense + Insurance + Annual Lease (if Leased Land) or Property Tax (if Purchased Land)
 Project EBITDA Revenue + Total Operating Expenses
 Federal Taxable Income Project EBITDA + Federal Depreciation Expense + Loan Interest Expense
 State Taxable Income Project EBITDA + State Depreciation Expense + Loan Interest Expense
 EBITDA After Loan Interest Expense Project EBITDA + Loan Interest Expense
 Equity Investment Total Construction Cost x Loan Fraction Percentage
 Pre-Tax Cash Flow to Equity Project EBITDA + Loan Interest Expense + Repayment of Loan Principle + Federal Investment Tax Credit + State Investment Tax Credit
 After-Tax Cash Flow to Equity Pre-Tax Cash-Flow to Equity + Federal Taxes Paid + State Taxes Paid
 Pre-Tax IRR See IRR Equation on Project Financial Equations page. Pre-Tax Cash Flows are used.
 After-Tax IRR See IRR Equation on Project Financial Equations page. After-Tax Cash Flows are used.
 After-Tax NPV See NPV Equation on Project Financial Equations page.
 Real LCOE See LCOE Equation on Project Financial Equations page. Real Discount Rate used.
 Nominal LCOE See LCOE Equation on Project Financial Equations page. Nominal Discount Rate used.
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PROJECT FINANCIAL MODEL