Finance

When studying the economic viability of a project, it is important that you define the financial parameters well. With them you can show your client different scenarios to convey greater confidence and be able to better explain the profitability of the investment. 🚀

Inflation

It is the generalised increase in the prices of goods and services. In the simulations, this parameter affects both energy price developments and operation and maintenance costs.

Energy price increase over inflation

Allows you to consider an increase or decrease in the price of energy that is decoupled from inflation or general price increases. In the simulations, this parameter is added to inflation to calculate the evolution of energy prices. For example:

• If you specify 0 %, the energy price will increase equal to inflation.

• If you specify 1.5 % and an inflation of 2 %, the energy price will increase by 3.5 % annually.

Discount rate

Allows you to carry forward future savings to today. Although its formal definition is complex, it is actually a fairly intuitive concept: €10,000 of profit in 10 years is worth less than €10,000 of profit today.

With the annual discount rate your client can compare the project investment with other investments using the Net Present Value (NPV).

Delay before applying excess savings

It allows you to configure the moment when savings from excess begin to be considered after the commissioning of the installation. During this period, excess savings will be be zero.