Lesson 1Tax assumptions: corporate tax, VAT treatment, withholding, tax holiday and loss carryforward rulesDis section set tax assumptions fi corporate income tax, VAT, withholding taxes, tax holidays, an loss carryforwards, showin how dem affect project cash flows, equity returns, an lender covenant calculations.
Corporate income tax base an ratesVAT on capex an operatin costsWithholdin tax on interest an dividendsTax holidays an incentive regimesLoss carryforward an minimum tax rulesLesson 2Debt financing assumptions: tenor, interest rate indexing, margin, grace period, amortization profileDis section set debt assumptions, includin tenor, interest rate base, margins, fees, grace periods, an amortization profile, an shows how dese choices affect DSCR, LLCR, an equity returns in di model.
Debt sizin approach an leverage limitsInterest rate base, margins, an feesGrace periods an sculpted amortizationCash sweep an prepayment mechanicsRefinancin an repricin scenariosLesson 3Construction schedule and milestones: mobilization, EPC durations, commissioningDis section define di construction schedule, from notice fi proceed to mechanical completion an commercial operation, an shows how fi model milestones, S-curves, an time-phased capex an interest durin construction.
Key EPC milestones an definitionsTime-phased capex an S-curve profilesLinkin schedule to IDC calculationsMilestone payments an retentionCOD tests an delay scenariosLesson 4Inflation, discount rate selection (WACC), and real vs nominal modelling conventionsDis section explain how fi model inflation, select nominal or real discount rates, an apply WACC consistently, so valuation, tariffs, an debt metrics remain coherent across di project finance model timeline.
Buildin inflation index curvesReal vs nominal cash flow conventionsDerivin pre-tax an post-tax WACCCountry risk an risk-free rate inputsInflation pass-through in tariffsLesson 5Defining plant technical assumptions: nameplate, losses, degradation, and availabilityDis section define key technical parameters fi a 50 MW solar PV plant, includin DC an AC nameplate capacity, system losses, degradation, an availability, ensurin realistic energy yield an performance projections.
DC an AC nameplate sizin choicesSystem loss categories an benchmarksModule an inverter degradation curvesScheduled an forced outage assumptionsNet capacity an net output definitionLesson 6Equity structure and timing: sponsor equity, bridge loans, reserves and DSRA sizingDis section define equity structure an timin, includin sponsor equity, bridge financin, reserve accounts, an DSRA sizin, an explains how equity injections interact wid debt drawdowns an distributions.
Sponsor equity commitments an tranchesEquity bridge loans an repaymentFundin waterfall an drawdown timinDSRA sizin methods an fundinMaintenance an other reserve accountsLesson 7Capital expenditure breakdown: PV modules, inverters, mounting, civil, grid connection, contingenciesDis section break down EPC an owner’s capital costs into detailed categories, includin modules, inverters, mountin, civil works, grid connection, soft costs, an contingencies, an explains how fi structure dem in di model.
PV modules an inverter cost assumptionsMountin structures an tracker costsCivil works an balance a plant itemsGrid connection an substation costsDevelopment fees an owner’s costsContingency an price escalation setupLesson 8Operating cost assumptions: fixed O&M, variable O&M, insurance, land lease, and escalationDis section set operatin cost assumptions, includin fixed an variable O&M, insurance, land lease, an other recurrin costs, an explains how fi model indexation, step changes, an performance-linked fees.
Fixed O&M scope an cost driversVariable O&M an performance feesInsurance coverage an premium settinLand lease an right-a-way costsIndexation formulas an step changesLesson 9Project life, asset depreciation methods, residual value assumptionsDis section define project life, depreciation methods, an residual value, explainin how technical life, PPA term, an accountin rules interact an how dem influence taxes, valuation, an refinancin options.
Technical life vs PPA an debt tenorTax an accountin depreciation methodsComponent replacement an major overhaulsResidual value an terminal cash flowsImpact on tax shield an valuationLesson 10Capacity factor calculation: axis tilt, tracking, and irradiance inputsDis section shows how fi calculate capacity factor usin irradiance data, tilt an azimuth, trackin configuration, an system losses, an how fi translate hourly or monthly profiles into annual net generation.
Solar resource data sources an qualityFixed tilt an azimuth optimizationSingle-axis an dual-axis trackin gainsLosses from shadin, soilin, an clippinConvertin irradiance to net generation
