Lesson 1Tax assumptions: corporate tax, VAT treatment, withholding, tax holiday and loss carryforward rulesThis part sets tax guesses for company income tax, VAT, withholding taxes, tax breaks, and loss carryforwards, showing how they affect project cash flows, equity returns, and lender agreement calculations.
Corporate income tax base and ratesVAT on capex and operating costsWithholding tax on interest and dividendsTax holidays and incentive regimesLoss carryforward and minimum tax rulesLesson 2Debt financing assumptions: tenor, interest rate indexing, margin, grace period, amortization profileThis part sets debt guesses, including length, interest rate base, margins, fees, grace times, and repayment shape, and shows how these choices affect DSCR, LLCR, and equity returns in the model.
Debt sizing approach and leverage limitsInterest rate base, margins, and feesGrace periods and sculpted amortizationCash sweep and prepayment mechanicsRefinancing and repricing scenariosLesson 3Construction schedule and milestones: mobilization, EPC durations, commissioningThis part defines the building schedule, from start notice to mechanical finish and commercial start, and shows how to model milestones, S-curves, and time-based capex and interest during building.
Key EPC milestones and definitionsTime-phased capex and S-curve profilesLinking schedule to IDC calculationsMilestone payments and retentionCOD tests and delay scenariosLesson 4Inflation, discount rate selection (WACC), and real vs nominal modelling conventionsThis part explains how to model inflation, pick nominal or real discount rates, and apply WACC steadily, so valuation, tariffs, and debt measures stay coherent across the project finance model timeline.
Building inflation index curvesReal vs nominal cash flow conventionsDeriving pre-tax and post-tax WACCCountry risk and risk-free rate inputsInflation pass-through in tariffsLesson 5Defining plant technical assumptions: nameplate, losses, degradation, and availabilityThis part defines key technical details for a 50 MW solar PV plant, including DC and AC nameplate capacity, system losses, degradation, and availability, ensuring real energy yield and performance projections.
DC and AC nameplate sizing choicesSystem loss categories and benchmarksModule and inverter degradation curvesScheduled and forced outage assumptionsNet capacity and net output definitionLesson 6Equity structure and timing: sponsor equity, bridge loans, reserves and DSRA sizingThis part defines equity setup and timing, including sponsor equity, bridge funding, reserve accounts, and DSRA sizing, and explains how equity inputs work with debt draws and payouts.
Sponsor equity commitments and tranchesEquity bridge loans and repaymentFunding waterfall and drawdown timingDSRA sizing methods and fundingMaintenance and other reserve accountsLesson 7Capital expenditure breakdown: PV modules, inverters, mounting, civil, grid connection, contingenciesThis part breaks down EPC and owner’s capital costs into detailed groups, including modules, inverters, mounting, civil works, grid connection, soft costs, and contingencies, and explains how to set them up in the model.
PV modules and inverter cost assumptionsMounting structures and tracker costsCivil works and balance of plant itemsGrid connection and substation costsDevelopment fees and owner’s costsContingency and price escalation setupLesson 8Operating cost assumptions: fixed O&M, variable O&M, insurance, land lease, and escalationThis part sets operating cost guesses, including fixed and variable O&M, insurance, land lease, and other regular costs, and explains how to model indexation, step changes, and performance-linked fees.
Fixed O&M scope and cost driversVariable O&M and performance feesInsurance coverage and premium settingLand lease and right-of-way costsIndexation formulas and step changesLesson 9Project life, asset depreciation methods, residual value assumptionsThis part defines project life, depreciation methods, and residual value, explaining how technical life, PPA term, and accounting rules work together and how they affect taxes, valuation, and refinancing options.
Technical life vs PPA and debt tenorTax and accounting depreciation methodsComponent replacement and major overhaulsResidual value and terminal cash flowsImpact on tax shield and valuationLesson 10Capacity factor calculation: axis tilt, tracking, and irradiance inputsThis part shows how to calculate capacity factor using light data, tilt and direction, tracking setup, and system losses, and how to turn hourly or monthly profiles into annual net generation.
Solar resource data sources and qualityFixed tilt and azimuth optimizationSingle-axis and dual-axis tracking gainsLosses from shading, soiling, and clippingConverting irradiance to net generation
