PV and BESS profitability calculator
The calculator computes IRR, NPV, LCOE, DSCR and payback for PV and BESS projects using market benchmarks for the selected country. All financing models — cash, leasing, project finance and ESCO — run on the same versioned engine.
Parameters
Technology
- Project market
- Italy
- Reference market
- Italy
Financing models
Equity IRR: 20.5%, NPV at WACC: 7.1m EUR, Payback period: 4.9 years
20.48%
Equity IRR
7,108,110EUR
NPV at WACC
69.54EUR/MWh
LCOE
—
Minimum DSCR
4.91years
Payback period
1,253,000EUR
EBITDA year 1
The calculations are indicative and based on market benchmarks. They do not constitute investment advice or an offer. A precise analysis requires project data.
Cumulative equity cash flow
Detailed comparison
Equity IRR
- All-cash purchase20.48%
- Operating lease56.42%
- Project finance43.03%
- ESCO / OPEX model—
NPV at WACC
- All-cash purchase7,108,110 EUR
- Operating lease7,302,769 EUR
- Project finance7,528,128 EUR
- ESCO / OPEX model8,883,869 EUR
Equity engaged
- All-cash purchase5,500,000 EUR
- Operating lease550,000 EUR
- Project finance1,650,000 EUR
- ESCO / OPEX model0 EUR
69.54EUR/MWh
LCOE (technology cost)
Comparison table
| Metric | All-cash purchase | Operating lease | Project finance | ESCO / OPEX model |
|---|---|---|---|---|
| Net outlay | 5,500,000 | 5,500,000 | 5,500,000 | 5,500,000 |
| Equity | 5,500,000 | 550,000 | 1,650,000 | 0 |
| Debt / financed amount | 0 | 4,950,000 | 3,850,000 | 0 |
| EBITDA year 1 | 1,253,000 | 1,253,000 | 1,253,000 | 949,725 |
| NPV at WACC | 7,108,110 | 7,302,769 | 7,528,128 | 8,883,869 |
| Project IRR | 20.48% | 18.39% | 20.48% | — |
| Equity IRR | 20.48% | 56.42% | 43.03% | — |
| Payback period | 4.91 | 2.13 | 2.41 | 0.00 |
| Discounted payback period | 6.16 | 2.38 | 2.73 | 0.00 |
| Minimum DSCR | — | — | 2.43 | — |
| Average DSCR | — | — | 2.56 | — |
| Total benefit over the horizon | 24,328,390 | 18,028,021 | 19,100,777 | 17,515,810 |
ESCO performs best on NPV because the investor puts up no capital — but the investor does not acquire the asset either. Neither ownership of the installation nor its residual value at the end of the horizon remains on the investor's side.
ESCO / OPEX model
- The ESCO model engages no equity, so IRR is undefined. Comparison with an outright cash purchase does not account for the loss of asset ownership and residual value after the contract term.