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Useful Models to Understand Energy Savings and Investment Outcomes

December 24, 2020 • Manjari

Renewable Energy Investment Portfolio as a New Investment Strategy

In the current investment world, investors have access to a multitude of tricks and tools to choose their investment options from, based on their risk appetite and core values. Investors are becoming increasingly reliant on data-driven strategies to minimize potential financial risks due to market volatility. We have seen why solar investing is becoming one of the popular recovery strategies during the ongoing pandemic economy, owing to its social inclination, return potential and stability from an investment perspective.

As aggregators of solar projects, we aim to equip Energy Customers and Investors with tools to gauge the financial benefits of solar investing in the developing world.

For Energy Customers:

Energy Customers are businesses/ commercial establishments that are looking to make an environmentally positive shift (reduced carbon footprint) towards solar energy and for the electricity bill saving potential to be realized. We sign Power Purchase Agreements (PPA) with our Energy Customers to install solar plants (rooftop/open access) for power generation over a period of 7-20 years. Depending on the PPA option, Energy Customers can expect to save a minimum of 15% on their current electricity bills. To get started, Energy Customers can use the below calculator to calculate an approximate solar savings if they choose to partner with us.

You can use our Solar Energy Savings Calculator to calculate the savings to be made on your electricity bill by commissioning a solar plant. The calculator will illustrate the estimated annual savings as well as total savings during a Power Purchase Agreement (PPA) term, based on your location, potential solar system size, units generated, your current power tariff and potential solar tariff proposed by us.

For Investors:

Investors who are looking to diversify their portfolio through solar investing can do so by investing in projects with generation capacity of 100 kW to 10 MW with us. Our investments options are open for both individuals and institutional investors. Investors can use the following tools to calculate return potential and future value of their investment.

With this calculator you can calculate the projected IRR for investing in solar projects with us. Investors can compare the IRR values for various investments terms such as 7, 10, 15 & 20 years. The model allows you to calculate IRR based on equity/debt investments.

Investors can claim depreciation benefits when being the sole investor of a project. You can use this calculator to determine the depreciation benefits – both by straight line and accelerated depreciation methods. Straight line depreciation is assuming equal depreciation value for each year. Accelerated depreciation is the percentage reduction in each year’s plant value.

Other tools that can be of interest to Investors looking to participate through debt investments include:

As an Investor, you can calculate the monthly repayments for the debt investments you have made based on either equal repayment or reducing interest methods.

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