🚀 V2.3.0 - New Feature: Loan Financing Integration for Financial Analysis

Date: November, 2024

The product, previously limited to full equity, now supports loan financing, enabling financial analysis for both equity and loan-based scenarios.

New inputs have been introduced to support loan financing for both plant and storage components. 🌱🔋 These inputs are categorized into:

• Plant 🏗️

• Storage (Energy Storage Components ⚡, Balance of System ⚙️)

This structure facilitates detailed financing configurations, making your analyses more precise and tailored! 🎯

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Plant ve Storage Systems Inputs:

A. Financing Method 🏦

a. Full Equity 💼

The project is entirely funded by the owner's capital without any loans. This method avoids interest expenses but requires a higher initial investment.

b. Loan Financing 💳

The project is partially funded through loans, with the remainder covered by equity. This method leverages borrowing to reduce upfront costs but incurs interest expenses over the repayment period.

b.1. Loan-to-CAPEX Ratio (%) 🏗️

The percentage of the total capital expenditure (CAPEX) financed through a loan. This determines how much of the project’s cost is covered by borrowing rather than equity.

b.2. Loan Repayment Period (Year) ⏳

The duration, in years, over which the loan will be repaid. A longer period results in smaller annual payments but higher total interest.

b.3. Annual Interest Expense ($) 💰

The yearly cost of interest paid on the borrowed loan amount. This value does not include the principal repayment but represents the additional interest accrued for each year of the loan repayment period.

Input Breakdown:

When a loan is to be repaid over multiple years, the user will input the interest expense for each year separately under specific fields:

• Post Operation Year 1: Enter the interest expense for the first repayment year.

• Post Operation Year 2: Enter the interest expense for the second repayment year.

Example 🌟:

• Loan Amount: $400 (e.g., CAPEX $1,000 and, Loan to CAPEX Ratio : 40% )

• Loan Repayment Period: 2 years

• Interest Expenses:

  • Post Operation Year 1: $30

  • Post Operation Year 2: $50

This detailed breakdown ensures precise financial analysis and accommodates varying interest costs over the repayment period.

Under Plants Page 🌞🌬️

Financial Method- Loan Financing at Plant Page

Under Storage Systems Page 🔋

Financial Method- Loan Financing at Storage System Page

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New Outputs at Result Page:

• Interest Expense (PnL Table) 📑 Represents the cost of borrowing recorded as an expense in the Profit and Loss (PnL) statement. It reduces the net income of the project.

PnL Table at Finance tab

• Principal Payment (Cash Flow Table) 💵 The portion of the loan repayment that reduces the loan balance. Unlike interest, it does not affect profitability but impacts cash flow.

• Total Loan Payment (Cash Flow Table) 📋 The total payment made towards the loan, including both the principal and the interest.

Cash Flow Table at Finance tab

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