Now, some key economic figures for your project are shown below, while the main calculation results are displayed on in the right green box. In order to adjust the calculations to your individual case you need to answer some further key questions by adjusting the sliders below each chart. Your adjustments will directly influence the PV electricity cost of the PV system which is compared with your reference price for diesel generation costs which resulting from information in step 1 (see in the green box on the right).
₦/kWh
The Levelized Cost of Electricity (LCOE) is an economic assessment of the average total cost to build and operate a power-generating asset over its lifetime divided by the total energy output of the asset over that lifetime.
The Payback Period (Years) is the length of time required for an investment to recover its initial outlay in terms of profits or savings.
The calculation of the internal rate of return (IRR) considering the cash flows net of financing gives us the equity IRR.
Project IRR (%) is calculated without considering the financing structure (debt equity ratio) of a project. If the project is fully funded by equity, the project IRR and equity IRR will be the same.
Net-Present Value (₦) is the difference between the present value of cash inflows and the present value of cash outflows. Present value (PV) is the current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
If you have received an quote from a PV installer simply divide your total cost by the system size in kWp. Please make sure to include or exclude sales tax as a private individual or a company.
The solar irradiation is automatically drawn from our database based on your address input in step 1. If you wish to adjust this input based on real measurement data for your location, you can do so here.
20 years are a commonly used for the system, and costs for replacing components with a shorter lifetime (inverters, batteries) are already considered in the calculations. Quality modules come with warranties above 20 years and will most likely operate up to 30 years under good maintenance conditions.
The performance ratio is a technical figure mainly depending on the roof orientation, inclination and type of solar modules. This value has been calculated based on your inputs in step 1 and using standard components. If you wish to adjust this value by simulating other components, you may do so here.
Typical debt gearings (loans) for commercial PV investments are between 70-80% of the total cost depending on the overall solvency - credit rating - of the individual or company obtaining the loan.
Individual interest rates for commercial loans apply if the system is based on self-consumption or on a supply contract without a feed-in tariff as fall back option.
You got comments about the tool? Please contat us! cg@eclareon.com