Project Finance Financial Models

This model helps in financial appraisal of a solar project investment using cash flows, project IRR, Levered IRR, Unlevered IRR, The model has also other key metrics like liquidity ratios, profitability ratios, performance ratios etc. that help in financial evaluation of the investment.

The financial model has different tabs which contain calculations to compute NPV and IRR of the project. Summary output of the model is shown in first 6 rows of the Assumptions tab. The assumption tab has various inputs related to the project/ The assumptions have been categorised into different categories. The categories include Revenue Assumptions like tariff, duration, merchant tariff; macros like interest rate, inflation, tax rate etc.; Generation Assumptions like Gross Energy Yield, panel degradation, losses etc, operational expenses like fixed overhead, administrative & legal expenses etc.; and funding assumptions like ratio of equity funding, debt funding etc. All the assumptions are in yellow cells. The tabs for Income Statement, Balance Sheet and Cash Flow Statement tabs are for year wise projected financial statements for the life of the project. Schedules tab calculates various items required for financial statements like year wise capex, depreciation, operational expenses, generation of electricity , forecast revenue etc. Investor Returns and Investment Analysis tabs show the cash flows, IRR, NPV and year wise projected financial ratios of the project. This tab also contains different charts and graphs. Graphs and charts tab visualize important financial and operational KPIs and Market Prices Forecast tab shows forecast price of electricity from different sources.