FINANCIAL MODEL

The financial model of a photovoltaic project

A photovoltaic project financial model projects the economic life of the asset over its whole operating period: generation, revenue, costs, debt, taxes and valuation. Wattvalio builds it for you — consistent, auditable and recomputed in real time.

The five layers of the model

1. Assumptions

P50/P90 yield and degradation, price (feed-in, PPA, market), staged CAPEX, OPEX, inflation, taxes, discount rate.

2. Income statement

Revenue − OPEX = EBITDA, then depreciation, interest and taxes down to net income.

3. Cash flow

From operating cash to debt service, down to the cash distributable to the shareholder.

4. Debt & financing

Drawdown, amortisation (annuity or sculpted), interest, DSCR, LLCR and covenants.

5. Valuation

Project NPV, NAV by sum-of-the-parts, rate by risk profile, valuation bridge.

From project to portfolio

A photovoltaic asset is held by a project company (SPV), often owned by a holding. The financial model must then consolidate: dividend up-streaming, shareholder loans, corporate debt and share sell-downs. To estimate returns quickly, use the solar ROI calculator; for the software itself, see the solar business plan software.

FAQ

What does a photovoltaic project financial model contain?

Three consistent statements — income statement, cash flow statement and financing/debt plan — driven by assumptions (P50/P90 yield, price, CAPEX, OPEX, taxes) and leading to the metrics (IRR, NPV, DSCR, LCOE) and the valuation.

How do you size the debt in the model?

Debt is sized on the project's ability to repay it: you target a DSCR (often 1.15 to 1.30×) by amortising the debt as a constant annuity or as a sculpted profile that follows the cash flows. Wattvalio computes these profiles and ratios automatically.

Can you consolidate several photovoltaic projects?

Yes. The model rolls up to the holding level: SPV dividends, shareholder loans, corporate debt, intra-group eliminations and share sell-downs — for an auditable consolidated NAV.

Your model, ready for due diligence

Isolated versions, audit trail, figures justifiable line by line.

Request access