FIGURES · MODELLING BENCHMARKS
Solar project finance benchmarks
Indicative ranges · 2026 · for a first order of magnitude
Read this before the figures. The ranges below are modelling benchmarks — useful to flag an outlandish assumption in a business plan — and not guaranteed market values. They vary widely by site, country, size, year and contract. Always calibrate your model to your real data and the tax schedule in force.
To frame a solar project quickly before building the full model, it helps to have a few orders of magnitude in mind. Here are the benchmarks modellers use to sanity-check a photovoltaic business plan, block by block.
1. Generation
| Benchmark | Indicative range | Comment |
|---|---|---|
| Energy yield (ground-mounted PV, mainland France) | 1,100–1,500 MWh/MWc/yr | North ~1,100, South ~1,500; trackers +10–20 % |
| Performance Ratio (PR) | 80–85 % | cabling, inverter, temperature and soiling losses |
| Module degradation | 0.4–0.7 %/yr | applied over the whole life |
| P90 vs P50 gap | P90 ≈ 8–12 % below P50 | basis for debt sizing |
| Modelled asset life | 30–40 years | contracted phase then merchant period |
2. Costs: CAPEX and OPEX
| Item | Indicative range | Comment |
|---|---|---|
| CAPEX — ground-mounted (large scale) | 600–800 €/kWc | excl. land; grid connection is the most variable item |
| CAPEX — rooftop / carport | 800–1,200 €/kWc | costlier structure and installation |
| CAPEX — agrivoltaics / special structures | 900–1,400 €/kWc | tall structures, dual use |
| Total OPEX (O&M, insurance, land, admin) | 12–18 €/kWc/yr | inflated ~2 %/yr |
| Inverter replacement | periodic provision | ~every 10–15 years, on top of running OPEX |
3. Revenue & tariffs
This is the most variable block: tariffs depend on the tender vintage, the country and market scenarios. Treat these as orders of magnitude, to be calibrated to your contracts.
| Revenue source | Indicative range | Comment |
|---|---|---|
| Feed-in premium reference tariff (French CRE) | ~60–110 €/MWh | by tender vintage and segment |
| Corporate PPA | ~50–90 €/MWh | fixed or indexed, long tenor |
| Captured merchant price (long-term average) | ~50–90 €/MWh | highly dependent on market scenarios |
| Guarantees of origin (GOs) | small additional revenue | sold separately from the energy |
4. Financing & debt
| Benchmark | Indicative range | Comment |
|---|---|---|
| Gearing (debt / CAPEX) | 70–85 % | often 75–80 % on a contracted ground-mounted PV |
| Senior debt tenor | 15–20 years | generally ≤ contract term |
| Target DSCR — secured contract (feed-in / PPA) | 1.10–1.20× | highly visible revenue |
| Target DSCR — merchant exposure | 1.30–1.45× | more headroom required by lenders |
| DSRA (debt service reserve account) | ~6 months of service | required safety buffer |
5. Returns
| Metric | Indicative range | Comment |
|---|---|---|
| Project IRR (unlevered, secured) | 5–8 % | intrinsic return of the asset |
| Equity IRR | often double digits | lifted by debt leverage |
| LCOE (ground-mounted PV, indicative) | ~40–70 €/MWh | discounted average cost, excl. taxes |
| Simple equity payback | ~8–15 years | indicative, undiscounted |
| NPV discount rate | 5–9 % | by risk and cost of capital |
6. Taxation (France)
These depend on the schedule in force, revised each year — to be checked at modelling time.
| Tax | Benchmark | Comment |
|---|---|---|
| Corporate income tax (standard rate) | 25 % | on taxable profit, after loss carry-forward |
| IFER (flat network-business tax) | flat amount per MW | revalued each year; check the schedule — do not omit it |
| CVAE | being phased out | local tax on value added |
| C3S | on turnover | above a threshold |
| Depreciation | straight-line / declining | by CAPEX item |
How to use these benchmarks
The point is not to force a model onto these values, but to spot what falls too far outside them: a 400 €/kWc CAPEX, a 1.02× DSCR or a 25 % equity IRR should trigger a check. For a first estimate, use our solar ROI calculator ; for a bankable, consolidated business plan, see the solar business plan software. Definitions of all these terms are in the renewable finance glossary.
Frequently asked questions
What CAPEX per kWc should you assume for a solar plant?
As an indication, a large ground-mounted plant is often around 600 to 800 €/kWc, a rooftop or carport installation rather 800 to 1,200 €/kWc, and agrivoltaics above that. These are orders of magnitude: grid connection, project size and the site drive the figure significantly.
What DSCR does a bank require for a solar project?
For a project backed by a secured contract (feed-in premium or PPA), the target is often between 1.10× and 1.20×. For a market-exposed (merchant) share, lenders ask for more headroom, often 1.30× to 1.45×.
What IRR should you expect from a photovoltaic project?
The project IRR (before financing) of a secured ground-mounted PV plant is often in the 5 to 8 % range, while the equity IRR, lifted by debt leverage, frequently reaches double digits. The right benchmark remains the investor's cost of capital.
Are these figures guaranteed market values?
No: they are modelling benchmarks meant to flag an outlandish assumption in a business plan. They vary widely by site, country, size, year and contract, and must always be calibrated to your real data and the tax schedule in force.
PUT IT INTO PRACTICE
Build this business plan in Wattvalio.
P50/P90 generation, offtake contracts (feed-in, PPA, merchant), debt, taxes, NAV valuation — from a single asset to the consolidated portfolio, with bankable figures.
Or estimate returns with the free calculator →Read also: IRR, NPV, DSCR, LCOE · Renewable finance glossary · Solar business plan · ROI calculator