Debt Fraction

The debt fraction is the percentage of the project total installed cost cost that is financed through a loan. The value is reported as a result only for projects with Utility and IPP or Commercial - Third-Party Ownership financing as defined in the Technology and Market window.

For these types of projects, depending on the financial optimization option on the Financing page, the debt fraction is either a user-defined input on the Financing page, or a value that Solar Advisor calculates. When the Automatically minimize LCOE with respect to Debt Fraction option is checked, Solar Advisor finds the debt fraction that results in the lowest levelized cost of energy.

Solar Advisor uses the debt fraction to calculate the principal and interest payments shown in the project cash flow, and used in the iterative search algorithm described in 1st Year PPA Price.