After Tax Net Equity Cash and Cost Flows

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ICON_Under-Construction

This topic describes SAM 3.0 and has not been revised for SAM 2009 Beta.

You may find useful information, especially if you are new to SAM, but some of the information may be inconsistent with the new version.

Cashflow-AfterTaxNetEquityCashflow

All capital costs are accounted for in year zero of the cash flow. The total capital cost is equal to the equity portion of the total capital investment and shown in the Equity Funds row of the spreadsheet.  For cash projects, Equity Funds is equal to Total Installed Costs on the Costs page. For projects financed by a loan or mortgage, Equity Funds is Total Installed Costs on the Costs page minus Debt Funds. Debt Funds is Loan (Debt) Percent from the Financials page multiplied by the total installed costs.

Year one is the first year of operation. For residential and commercial systems, the cash flow for year one and subsequent years is given by:

After Tax Net Equity Cash Flow =
    After Tax Net Equity Cost Flow +

Residential

Offset Payments

Commercial

Offset Payments - Offset Payments x Effective Tax Rate

Utility

Operating Income

The effective tax rate is a single number that includes both the federal income tax rate and state income tax rate. Solar Advisor uses the effective tax rate for several calculations requiring a total income tax value.

The effective tax rate calculation is:

EQ_F-EffectiveTaxRate

The federal and state tax rates are input variables on the Financing page.

The cost flow for all project types in year one and subsequent years is:

After Tax Net Equity Cost Flow =
State Tax Savings (Liability) + Federal Tax Savings (Liability) + PBI Incentives - Total Operating Expenses - Total Debt Payment

Note. Utility projects do not show the cost flow row in the spreadsheet.