In January, the Solar Endowment began creating a web-based Solar Project Financial Simulator for tax-exempt entities to model and compare financial performance of solar photovoltaic (PV) investments. Using institution-specific values, users can view simulations for four different PV investment types including direct purchase, power purchase agreement, operating lease, and debt financing. Each of the four investment options will be accompanied by an introductory page outlining the financial structure, key terms, and links to external resources for additional assistance. Simulation results will be represented in tables and graphs outlining key financial values and timelines including return on investment, internal rate of return, net present value, cash flow nature, and levelized cost of energy where applicable.
The goal of the Solar Project Financial Simulator is to facilitate greater understanding of the financial structuring, transaction costs, and return profile of PV investments for tax-exempt entities. Developing the capacity of university and foundation leaders to analyze, compare, and define investment strategies that meet their needs will help advance PV investments on and off campus. The MREA has selected Sustainable Capital Advisors to develop the financial tool and Future Web Studio to develop the web-based platform with anticipated completion Spring 2017.
View the project RFP here.