The brief: build an investor-grade three-statement model and DCF valuation for a 510 MW operational solar IPP portfolio contracted under 25-year PPAs — to the standard a renewable-energy fund or an infrastructure lender would actually underwrite.
What we delivered: a nine-sheet, fully linked model (FY22A–FY31E) — a generation-and-revenue build (PLF, module degradation, blended tariff), a project-finance debt schedule with DSCR, a full three-statement model, an explicit CAPM WACC build, and a 25-year DCF. The balance sheet reconciles to zero in every year, with zero formula errors across 1,400+ cells.
The build: 510 MW at ~22.9% PLF on a blended PPA tariff of ₹3.15/kWh, ₹1,940 Cr capex funded 74.5% debt, ~87% EBITDA margin. WACC 9.36% — cost of equity 14.23% (6.85% risk-free + 0.85 beta × 7.5% ERP + 1.0% size premium) and after-tax cost of debt 6.73%. Enterprise Value ₹2,510 Cr; Equity Value ₹1,409 Cr; implied ₹29/share. Unlevered Project IRR 10.5% and levered Equity IRR 14.7% — both computed off capital actually deployed over the 25-year asset life. Minimum DSCR 1.31x.
Why it matters: a renewable IPP lives or dies on three things — the tariff-versus-PLF revenue build, the debt sculpting and DSCR a lender will accept, and a WACC that genuinely reflects contracted cash flows. This model exposes all three transparently, so a lender can stress the DSCR and an equity investor can test the IRR against their own hurdle rate.
Note: illustrative company; historical actuals are calibrated approximations that tie through the statements.
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Solar IPP Financial Model & DCF Valuation: A 510 MW Renewable Portfolio