Model solar equity returns with debt and incentives. See IRR, NPV, payback, and cash-on-cash fast. Build confident proposals and justify budgets with clear numbers.
| Scenario | Project Cost | Debt % | kWh/yr | Rate | ITC % | Typical Outcome |
|---|---|---|---|---|---|---|
| Base case | $250,000 | 60% | 320,000 | $0.18 | 30% | Balanced IRR with moderate payback |
| Higher power value | $250,000 | 60% | 320,000 | $0.24 | 30% | Higher cash flow and improved IRR |
| All-equity funding | $250,000 | 0% | 320,000 | $0.18 | 30% | Smoother cash flow, lower leverage effect |
Solar upgrades on construction sites are often funded with a mix of debt and equity. This calculator converts site energy value, operating costs, financing, and incentives into equity-focused metrics. You see how each assumption shapes after‑tax cash flow, allowing faster screening of bids, subcontractor proposals, and owner‑developer packages.
Year‑1 production and the avoided electricity rate set the revenue baseline. Escalation reflects expected tariff growth, while degradation reduces output over time. Operations and maintenance is modeled separately with its own escalation, helping you test preventative maintenance plans, inverter replacements, and monitoring contracts without hiding costs inside a single “savings” figure.
Debt increases early equity returns when revenue is strong, but it also raises downside risk. The model uses level annual payments and separates interest from principal so taxes are applied correctly to operating income. Adjusting debt percentage, interest rate, and term shows how leverage changes payback timing, cash‑on‑cash performance, and the ability to service debt during low‑production years.
The calculator estimates taxable income as revenue minus O&M, interest, and depreciation. Depreciation follows a 5‑year MACRS‑style schedule with a basis reduction tied to the incentive credit. You can apply the credit in Year 0 or Year 1 to match your accounting approach. This structure supports realistic comparisons between EPC options and ownership models.
IRR summarizes equity performance, while NPV discounts cash flows to today using your hurdle rate. Simple payback indicates when cumulative cash flow crosses zero. Equity multiple highlights total value returned per dollar invested. Use the yearly schedule to explain results in proposals, verify sensitivities, and document assumptions for stakeholder review.
It is the return to the equity portion of the project after debt service and estimated taxes. The calculator reports IRR, NPV, payback, cash‑on‑cash, and equity multiple using the cash flows generated from your inputs.
IRR requires at least one negative and one positive cash flow. If your schedule never turns positive, or incentives make every year positive, the equation may not have a valid solution. Review cash flows and adjust assumptions.
Depreciation uses a 5‑year MACRS‑style percentage schedule and applies it to a depreciable basis. The basis is reduced by 50% of the incentive credit value to approximate common tax treatment.
NPV measures value in today’s dollars using your discount rate. IRR is the discount rate that makes NPV equal zero. NPV is better for comparing projects with different sizes; IRR is easier to communicate.
Not explicitly. You can approximate them by lowering year‑1 production, increasing degradation, or raising O&M. For complex operational profiles, export the CSV and add scenario-specific adjustments to the yearly schedule.
Residual value represents end‑of‑term equipment value or a buyout price. If the proceeds are taxable in your structure, check the taxable option so the calculator reduces the residual by the tax rate.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.