Pre-Evaluation of Projects There is a potential commercial rooftop solar PV project which needs to have a financial analysis done as part of a pre-feasibility study conducted.

Pre-Evaluation of Projects

There is a potential commercial rooftop solar PV project which needs to have a financial analysis done as part of a pre-feasibility study conducted.

i) The designed capacity is estimated to be 600 kWp, with annual PV production of 735,840 kWh (or Capacity Factor of 14%).

ii) Degradation rate of the solar PV production assumed to be 0.5% per annum

iii) An EPC has provided a prelim turnkey quotation at USD 0.65/Watt peak.

iv) O&M assumed by default to be 1% of Capex per annum, with 1% annual inflation v) Equipment(including inverter) replacement can be assumed to be $0.10 per Watt peak

v) The prospect’s current electricity tariff is about USD 0.07/kWh.

vii) Any suitable USD to IDR exchange rate can be assumed

The prospect is interested in an offer of a PPA contract and the sales team requests both a 20 and 25 year option for contract duration. Given that the benchmark IRR for most investors is 12%;

a) Based on the sales team suggestion of going with a 20% discount off tariff(D.O.T) for 20 years and 25% discount off tariff for 25 years, determine if the project is financially feasible for

i) Genes as the developer without any external project investors

ii) Project Investors if they were to come in with 100% of the CapEx needed, while GENES will earn

as a % of the Net Project Cashflow

If the above suggestion by the sales team is deemed to be financially unfeasible,

b) Suggest to the sales team what will be the suitable discount off tariff(D.O.T) that can be offered to the clients for both 20 and 25 years contract duration, if

i) Genes as the developer without any external project investors

ii) Project Investors if they were to come in with 100% of the CapEx needed, while GENES will

earn as a % of the Net Project Cashflow

c) After prospect has agreed to the offered discount off tariff based on 1st round of discussions,

how would you further verify the feasibility of the project?

Order a Unique Copy of this Paper

Essay Creek is an academic writing service provided to you by, a London-based company.

  • Experience
    Helping students successfully for 11 years.
  • Confidentiality & Security
    Be sure your information will be kept confidential due to our secure service.
  • Quality & Reliability
    8.5 out of 10 average quality score according to our customers' feedback. 97.45% of orders delivered on time.
  • Versatility
    478 active writers in 68 disciplines.
  • 100% money back guarantee
    You can always request a refund if you are not satisfied with the result.

Read more about us

Our team of writers is comprised of people with necessary academic writing skills and experience in various fields of study.

  • Skilled writers only
    We carefully choose writers to employ, paying attention to their skills and abilities.
  • Competence
    Your order will be assigned to a competent writer who specializes in your field of study.
  • In-depth knowledge
    Our writers know both peculiarities of academic writing and paper formatting rules.
  • Motivation
    We keep updated on results our writers show, motivating them to constantly improve their performance.

Read more about our writers

  • Testimonials
    Our clients' testimonials prove we're doing everything right.

Check for yourself

  • Sample essays
    The best way to understand how well our writers do their work is to view sample essays written by them.

View samples

  • Our Free Essay Tools
    Even more opportunities to improve your academic papers.


Bibliography Generator
Words to Pages Converter
Words to Minutes Converter
College GPA Calculator
Thesis statement generator