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
- Project market
- Italy
- Reference market
- Italy
Financing models
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
The calculations are indicative and based on market benchmarks. They do not constitute investment advice or an offer. A precise analysis requires project data.
The calculations are indicative and based on market benchmarks. They do not constitute investment advice or an offer. A precise analysis requires project data.
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
- Operating lease7,302,769
- Project finance7,528,128
- ESCO / OPEX model8,883,869
Equity engaged
- All-cash purchase5,500,000
- Operating lease550,000
- Project finance1,650,000
- ESCO / OPEX model0
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.
- 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.
The calculations are indicative and based on market benchmarks. They do not constitute investment advice or an offer. A precise analysis requires project data.