model-lcoe-and-irr

name	model-lcoe-and-irr
description	Model levelized cost of energy and project IRR together, on net cost after the live incentives, since they answer different questions. Reach for this on any project-economics question.

Skill: Model LCOE and project IRR

Cost-per-watt feeds both but answers neither alone.

Step 1 — Build LCOE

Lifetime cost ÷ lifetime energy, on net cost after incentives (§3 #1, #4).

Step 2 — Build project IRR

Levered and unlevered equity return over the hold (§3 #1).

Step 3 — Size on P90

Use the P90 production estimate for financing, not P50 (§3 #6).

Step 4 — Include the life

Add degradation, inverter replacement, and O&M over 25 years (§3 #5).

Output

An LCOE, a levered/unlevered IRR on net cost, sized to P90, with the 25-year cost profile.