Energy Storage Financial Analysis
energy storage valuation
Fractal builds proprietary financial models to assess the lifetime value of your energy storage project. Our models take into account the specific technology and design parameters of your project. Fractal goes beyond manufacturer’s datasheets and marketing collateral. Instead, Fractal applies real world parameters drawing from primary research of behavior and maintenance cycles from years of hands-on energy storage operation.
Note: Fractal does not use inaccurate software or third-party models. Fractal has in-house, high resolution financial modeling tools built based upon years of industry and technology experience.
Fractal implements cutting edge, flexible, high resolution financial modeling tools to screen the cost-effectiveness of energy storage for our clients. Fractal takes the following into account and creates a 20-year financial forecast:
|ITC / Incentives|
|Discount / Hurdle Rate|
|Wholesale Market Prices|
|Round-trip Efficiency Losses|
|Ancillary Services Pricing|
preliminary financial analysis of use cases
Fractal’s evaluation process begins with a preliminary financial analysis of all energy storage Use Cases. If the preliminary analysis shows that a Use Case is near financial viability (B/C near 1), then a detailed financial analysis is performed. Each promising Use Case is systematically analyzed as a potential Business Model using every combination of potential battery sub-chemistry and finance option.
detailed financial analysis of Business Models
Both the preliminary and detailed financial analysis follow the same steps, but they are based on different cost and revenue parameters. Detailed financial analysis studies apply project-specific costs and revenue. The output of the financial analysis includes:
|Total Installed Capital Costs||First Year Financials|
|Internal Rate of Return||Payback Period|
|Net Present Value (NPV)||B/C|
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