Financial Analysis

The most important economic results such as return on assets and the annual feed-in tariff are listed here.

Overview of results

System data

  • Grid feed-in in the first year (incl. module degradation)
    For the profitability calculation, the grid feed-in is reduced by the following factors compared to the simulated grid feed-in, if applicable
    • Module degradation
    • the P90 calculation
    • the hours with a negative electricity exchange price (applies in Germany in accordance with the Solar Peak Act)
  • PV Generator Output
    The output of the system results directly from the planning. This value is decisive for many tariffs.
  • Assessment Period (Input)
    The value entered in the Economic parameters for the period under consideration
  • Interest on capital
    The value entered in the Economic parameters for the interest on capital

Start, duration and end of remuneration

  • Start of Operation of the System
    Date of commissioning of the PV system by the grid operator
  • Remuneration period Basis
    The basic remuneration period of the tariff according to which the feed-in is remunerated. If there is more than one tariff, the longest period of the tariffs is specified.
  • Extension of last calendar year - (only for locations in Germany)
    In the case of the German Renewable Energy Sources Act (EEG), systems whose value to be applied is determined by law are remunerated until the end of the last calendar year. This means, for example, that if a plant goes into operation on 1 March 2025 and is then remunerated for 20 years as standard, the subsidy is automatically extended until the end of December 2045 (instead of only until the end of February 2045).
  • Compensation period (German Solarspitzengesetz) - (only for locations in Germany)
    According to the so-called Solar Peak Act (amendment to the Energy Industry Act of March 2023), hours in which the exchange electricity price is negative are not remunerated. These hours are recorded and converted into a compensation period by which the remuneration is extended.
  • Remuneration period
    The compensation period is the sum of the Remuneration period Basis and any extensions.
  • End of remuneration\ The end of the remuneration is calculated from the Start of Operation and the remuneration period.

Economic Key Figures

  • Internal Rate of Return (IRR)
    Calculated using the internal rate of return method. The return on capital is increased until the capital value of the investment is less than zero.
    The result can be interpreted as follows:
    Investing equity in this investment is as good as investing equity in a bank at the interest rate of return.
  • Accrued Cash Flow (Cash Balance)
    The cumulative cash flow is the cash flow accumulated over the years. It is similar to the net present value, but the residual value of the investment is also taken into account.
  • Amortisation period
    Period of time until the capital value of the investment is positive for the first time.
  • Electricity production costs (LCOE)
    The electricity generation costs are the annual costs divided by the electricity generated. The annual costs are calculated from the present values
    • of the annual costs,
    • the one-off payments,
    • the loan payments
    • and the self-financing
      multiplied by the annuity factor.

Payment Overview

  • Specific Investment Costs
    The specific investment costs are calculated by dividing the investment costs by the nominal output of the system in kWp.
  • Investment Costs
    The total investment costs of the system.
  • One-off payments
    The value entered in the economic parameters for the one-off payments.
  • Incoming Subsidies
    The value entered in the Economic parameters for the subsidies.
  • Annual Costs
    The value entered in the Economic parameters for the annual costs.
  • Other Revenue or Savings
    The value entered in the Economic parameters for the other revenues and savings.

Remuneration and savings

The selected feed-in and purchase tariffs are shown here in tabular form. The resulting values for the feed-in tariff and the savings in the first year are shown at the beginning of the section.

The specific feed-in tariff is calculated by dividing the feed-in tariff (in € per year) by the energy fed into the grid (in kWh per year).

Cash flow table

The cash flow table shows the income and expenditure over the period under review. Year 1 starts on the day of commissioning. The last year of the cash flow table can be part of a year. The exact period is shown in the first line of the cash flow blocks.

The cash flow is calculated on a monthly basis and displayed as annual values. See also - Calculation > Financial Analysis.

Degradation and price increase rates are applied monthly over the entire observation period. This is already done in the first year. The P90 calculation is also taken into account here.

The following payment sequences are available as a result:

  • Investments
  • Operating costs
  • Consumption costs
  • Other costs
  • One-off payments
  • Subsidies
  • Depreciation and amortisation
  • Self-Financing
  • Feed-in / Export Tariff
  • Electricity Savings
  • Other Revenue or Savings
  • Loan repayments
  • Loan interest
  • Earnings before taxes
    • Total from
      • Operating costs
      • Other costs
      • One-off payments
      • subsidies
      • Feed-in / Export Tariff
      • Electricity Savings
      • Depreciation
      • Loan interest
  • Tax refund
    • is calculated using the marginal tax rate from earnings before tax
  • Result after taxes
    • Profit before tax plus tax refund
  • Cash flow after taxes
    • Sum of
      • Operating costs
      • Other costs
      • Feed-in / Export Tariff
      • Electricity Savings
      • Loan repayments
      • Self-Financing
      • Tax refund
  • Outstanding loan payments
    • The payments still to be made in interest and amortisation at the time are listed here
  • Accumulated cash flow
    • Accumulated cash flow after taxes
  • Cumulative cash flow less outstanding loans

The disclosure of consumption-related costs is now obsolete and can be ignored.

See also