Financial Analysis

The economic efficiency calculation in PV*SOL® is based on the net present value method.

For the capital value of the total investment $KW_{\text{Gesamtinvestition}}$ is as follows:

$$ KW_\text{Gesamtinvestition} = \sum BW_\text{dynamisch} - i + f $$

  • $\sum BW_{dynamisch}$: Total present value over $T$ years
  • $i$: Investments
  • $f$: Funding

Positive capital values mean investments that can be assessed positively from an economic point of view. The payback period is the period that the plant must run in order to generate a net present value of the total investment of zero. Amortization periods greater than 30 years are not issued by PV*SOL®.

The present value $BW_\text{dynamisch}$ of a price dynamic payment sequence $Z$ over $T$ years (lifetime) is valid according to VDI 6025:

$$ BW_\text{dynamisch} = Z_\text{dynamisch} \cdot b(T,q,r)$$


$$ b(T,q,r) = \left\{ \begin{aligned} \frac {1-(r/q)^T}{q-r} \quad\text{für }r\neq q \newline {} \newline \frac {T}{q} \quad\text{für }r= q\end{aligned} \right. $$

  • $b$ - Present value factor
  • $q$ - Capital return factor
  • $r$ - Price change factor

and the price dynamic payment sequence $Z_{t} = Z \cdot r^{t-1}$ as a sequence of payment sequence $Z \cdot r, Z \cdot r^{2}, \dots$ periodically increasing by the price change factor $r$ beginning with the first payment.

If the price change factor $r = 1$ the price dynamic payment sequence can be converted into a constant payment sequence $Z_\text{konstant}$.It is:

$$ BW_\text{konstant} = \frac{Z_\text{konstant}}{a(q,T)} $$ $$ a(q,T) = \frac{1}{ b(T,q,r = 1)} $$

  • $a(q,T)$ - Annuity factor

For the electricity production costs $k$ applies:

$$ k = Z / E $$

  • $E$ - Quantity of energy and electricity generated during the period under review

See also