Financial Modelling and Risk Underwriting

  • Preparation and review of detailed project financial models
  • Financial models Illustrate projects’ unleveraged and leveraged IRRs, expected production revenues, expenses, and taxes, and factor sensitivity analyses highlighting factors which could negatively impact an investment’s financial performance.

  • Pricing and valuation support
  • Emel Solar helps its partners assess project pricing terms based on projected project performance, inherent market and project specific risks, and comparable transaction metrics.

  • Risk assessment return matrix
  • Representative Project Unleveraged and Leveraged IRR Variability Analysis

Unleveraged IRR - Pre Tax

PV Yield
Total Project Cost Per Wp
$1.65 $1.60 $1.55 $1.50 $1.45
1,369 KWH/KWp 10.3% 10.8% 11.3% 11.8% 12.4%
1,394 KWH/KWp 10.6% 11.1% 11.6% 12.1% 12.7%
1,419 KWH/KWp 10.9% 11.4% 11.9% 12.5% 13.0%
1,444 KWH/KWp 11.2% 11.7% 12.2% 12.8% 13.3%
1,469 KWH/KWp 11.5% 12.0% 12.5% 13.1% 13.7%

Leveraged Project IRR – After Tax

PV Yield
Total Project Cost Per Wp
$1.65 $1.60 $1.55 $1.50 $1.45
1,369 KWH/KWp 16.1% 17.4% 18.8% 20.3% 21.8%
1,394 KWH/KWp 17.0% 18.3% 19.7% 21.2% 22.8%
1,419 KWH/KWp 17.8% 19.1% 20.5% 22.1% 23.7%
1,444 KWH/KWp 18.6% 20.0% 21.4% 23.0% 24.6%
1,469 KWH/KWp 19.4% 20.8% 22.3% 23.9% 25.6%

Installation Costs

Project Costs $ per Wp Total Cost % of Total Cost
Panels 0.55 52,800,000 35.5%
Racking 0.120 11,520,000 7.8%
Inverters 0.080 7,680,000 5.2%
Engineering Permits and Fencing 0.010 960,000 0.6%
BOS 0.060 5,760,000 3.9%
Shipping 0.010 960,000 0.6%
AC/DC Labour 0.250 24,000,000 16.2%
Total EPC Costs 1.080 103,680,000 69.8%
EPC Margin 0.070 6,720,000 4.5%
Development Fees 0.250 24,000,000 16.2%
Acquisition Advisor Fee 0.020 1,920,000 1.3%
Construction Loan (interest and loan costs) 0.060 5,760,000 3.9%
Interconnection Costs 0.016 1,536,000 1.0%
Project Cost Contingency 0.030 2,880,000 1.9%
Project Management and G&A 0.010 960,000 0.6%
Closing Costs and Legal Fees 0.002 144,000 0.1%
Miscellaneous Contingeny 0.010 960,000 0.6%
Total Investor Project Costs 1.548M $148,560,000 100.0%