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Electric Vehicle Infrastructure Financial Analysis Scenario Tool
(EVI-FAST): Spreadsheet Tool User’s Manual
M. Penev, E. Wood, B. Borlaug
National Renewable Energy Laboratory
J. Zuboy
Independent Consultant
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Acknowledgments
This work is funded by the U.S. Department of Energy (DOE) Hydrogen and Fuel Cell
Technologies Office in the Office of Energy Efficiency and Renewable Energy. The EVI-FAST
model has been adapted from NREL’s H2FAST model to allow users to perform financial
analysis of electric vehicle infrastructure. The authors would like to acknowledge the feedback
and guidance received from members of the H2USA Investment and Finance working group,
including Fred Joseck (DOE), Bill MacLeod (Hyundai Motor Group), and Mike Curry (Curry
Co.). The development of this financial model has also benefited from more general input and
review comments on predecessor analysis frameworks as well as the H2FAST tool, provided by
Sanjeeva Senanayake (Welford Energy), Michael Levy (Aaqius), Tyson Eckerle (GoBiz,
California Governor’s Office), Remy Garderet (Energy Independence Now), and Ricardo Bracho
(National Renewable Energy Laboratory).
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List of Acronyms
DSCR debt service coverage ratio
EBITD earnings before interest, taxes, and depreciation
EV battery-electric vehicle
EVI-FAST EV Infrastructure Financial Analysis Scenario Tool
IRR internal rate of return
IRS Internal Revenue Service
ITC investment tax credit
kWh kilowatt hours
kW kilowatt
LCFS low-carbon fuel standard
MACRS Modified Accelerated Cost Recovery System
NPV net present value
NREL National Renewable Energy Laboratory
PP&E plant, property, and equipment
PTC production tax credit
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Table of Contents
1 Introduction ........................................................................................................................................... 1
2 Getting Started ...................................................................................................................................... 2
2.1 Inputs ............................................................................................................................................. 4
2.2 Results ........................................................................................................................................... 5
3 Advanced Functions .......................................................................................................................... 11
3.1 Overrides ..................................................................................................................................... 11
3.2 Risk Analysis............................................................................................................................... 12
3.3 Built-in Excel Analytic Tools...................................................................................................... 15
4 Technical Support .............................................................................................................................. 15
References ................................................................................................................................................. 16
Appendix A: Model Inputs and Default Values ...................................................................................... 17
Appendix B: Model Outputs ..................................................................................................................... 22
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1 Introduction
The Electric Vehicle Infrastructure Financial Analysis Scenario Tool (EVI-FAST) provides a
quick and convenient in-depth financial analysis for electric vehicle charging infrastructure. It is
meant to facilitate investments in charging infrastructure and improve policy-design decisions to
support deployment. Intended users include policy and government decision makers,
infrastructure operators, equity investors, strategic investors, and lenders.
This manual describes how to use the spreadsheet version of EVI-FAST, which was developed
by the National Renewable Energy Laboratory (NREL). The model conforms to Generally
Accepted Accounting Principles (GAAP) and is compatible with analysis for International
Financial Reporting Standards (IFRS) (FASAB 2014, Investopedia 2014).
As this manual illustrates, the EVI-FAST spreadsheet offers basic and advanced user interface
modes for parallel modelling of multiple charging scenarios. It provides users with detailed
annual finance projections in the form of income statements, cash flow statements, and balance
sheets; graphical presentation of financial performance parameters for numerous common
metrics; life-cycle cost breakdown for each analysis scenario; and common ratio analysis results
such as debt/equity position, return on equity, and debt service coverage ratio. It also enables risk
analysis based on user-defined distributions of input values.
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2 Getting Started
After the EVI-FAST Excel file is downloaded to a computer (free of charge), users must enable
macros when the file is opened. To revert to the default settings and values, the model can
simply be downloaded again. This tool is designed for use with Microsoft Excel 2010 and newer
Excel versions on a PC platform; full functionality is not guaranteed with the use of older Excel
versions or an Apple computer.
The spreadsheet opens on the Interface worksheet (Figure 1). This is the primary worksheet for
inputting values and viewing results. Three other worksheets are accessible by clicking the tabs
at the bottom of the screen. The Description worksheet provides basic information about the tool.
The Report Tables worksheet shows detailed technical and financial outputs in tabular form. The
Overrides worksheet enables customized inputs for various parameters.
Active cells in each worksheet are color coded: yellow for user inputs, blue for calculated values,
and green for key results. Although equations in the blue cells can be modified, only expert users
should attempt this, because it can cause the model to malfunction or produce inaccurate results.
The green cells should never be modified.
For many of the cells, descriptive information pops up when the cell is clicked. In addition, some
blocks of inputs are collapsible and can be expanded by clicking the triangle next to the section
heading.
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Figure 1. Interface worksheet layout, basic mode. Layout is denoted by A: inputs pane for individual
installation currently analyzed by financial model. B: inputs pane for items differentiated by selecting
“●Multiple Scenarios” line items in the A pane. Users can select scenario being analyzed by clicking the
left and right arrows at the top of this pane, which highlights the currently selected scenario with yellow.
C: key results from individual scenarios selected in section B. Note that user has to cycle through the
scenarios for the values to be updated in this section (by clicking arrows on top of section B). D: key
results of the currently selected scenario. E: Graphical display of key results. Note: top graphic can be
changed by selecting drop-down menu items on the bottom of pane D.
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2.1 Inputs
Users input information within the Interface worksheet. Clicking the “Basic” or “Advanced”
button above the Installation(s) Information table selects the interface type. Basic is the default
and enables a relatively small number of input fields. In this mode, the default values can simply
be accepted, or new values can be entered into the yellow cells.
The advanced mode enables additional input fields, and it gives the option of analyzing up to 300
side by side installation analysis by clicking the circles to the right of each field to turn them
green. For analyzing only one installation, the default values can simply be accepted, or new
values can be entered into the yellow cells for all sections under the Installation(s) Information
table. Clicking the down-arrows expand each input section (Figure 2). Default labels, units, and
values are provided for some fields, but these can be overwritten, and/or customized entries can
be created using the numerous fields available for that purpose. For example, in Figure 2, the
default feedstock type (grid electricity) is specified in terms of kilowatt hours of grid electricity
per kilowatt hour of electricity sold to an EV. In this scenario, more than 1 kWh of grid
electricity is specified by default to account for efficiency losses and charger auxiliary power
consumption. Additional feedstocks can be specified on per-unit of energy of charging. This is
allowed by user discretion (e.g. to break out transmission and distribution charges, or other
variable operating expenses). In any case, it is important that the default numbers are replaced
with installation-specific values. The default values are meant to approximate a typical charger,
but they do not represent actual or predicted values that would be applicable to a broader set of
charging stations or locations.
Figure 2. Example expanded and unexpanded sections under the Installation(s) Information table
For analyzing multiple installations, one or more circles (under the heading “Multiple
scenarios?”) can be clicked next to an input value that will be different for different installations.
This turns the cell to the left of the circle blue, making it a calculation cell that should not be
modified directly—its value can be changed via the Multi-Scenario Inputs table, which appears
immediately to the right of the Installation(s) Information table when the circle is clicked. In the
Multi-Scenario Inputs table, the number of scenarios to model can be set (from 1 to 300), and
then inputs can be entered for all relevant fields. In the example shown in Figure 3, clicking the
circles next to the “Capacity (kWh/hour)”, “Charging equipment”, “Installation cost” and “Total
annual maintenance” input fields has brought up the Multi-Scenario Inputs table, where the user
has selected scenarios to model, named two corresponding charger types, and entered
corresponding values for each scenario. The scenario values for the selected scenario
(highlighted in yellow) appear in the corresponding fields in “Installation(s) Information” table
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on the left. Values in any input field in the Installation(s) Information table for which the circle is
not clicked are applied to all installations defined in the Multi-Scenario Inputs table.
Note that EVI-FAST is not a cost estimation model. The tool is intended to be flexible so that
users can input charging infrastructure cost assumptions for a wide variety of systems. Guidance
for installation costs should be obtained by vendor quotes or literature review to suit the analysts’
needs. The populated chargers are supplied as hypothetical inputs and should only be used as an
example of how to use the model.
Figure 3. Example of the linkage of values between the Installation(s) Information table (top) and
Multi-Scenario Inputs table (bottom)
Appendix A has descriptions of all input values. Furthermore, each row heading has pop-up
information when selected, with description of the input parameter.
2.2 Results
Results can be viewed for each installation by clicking the blue arrows at the top of the Multi-
Scenario Inputs table. The selected installation is highlighted in yellow; for example, in Figure 3
above, the “Hypothetical level 3 DC fast charger” installation is selected. For the installation
selected, results are presented in five areas in the Interface worksheet. The Overall Financial
Performance Metrics table at the top shows values for leveraged, after-tax, nominal IRR (internal
rate of return); profitability index; investor payback period; first year of positive EBITD
(earnings before interest, taxes, and depreciation); after-tax, nominal NPV (net present value) at
the selected discount rate; and estimated break-even leveraged price (Figure 5). Clicking on each
metric title shows a definition of the metric (Appendix B has descriptions of all outputs).
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Figure 4. Interface worksheet, Overall Financial Performance Metrics table
The IRR is the discount rate at which a project’s NPV is equal to zero. The IRR calculations can
exhibit complex behavior (Miller 2008). In simple cases where investor cash flow is negative in
the first year and positive in each subsequent year, the IRR can have only one value. However, if
investor cash flow switches between positive and negative more than once during the project
period, multiple solutions for the IRR will exist. EVI-FAST uses Excel’s native IRR calculation.
In cases with multiple IRR solutions, it typically displays the smallest positive solution. In
contrast, the Profitability index—the present value of future equity investor cash flows divided
by the initial equity investment—is a robust financial performance metric that always returns a
single, valid result.
NPV and break-even price are linked to the value entered for “Leveraged after-tax nominal
discount rate” in the Financing Information table (using the advanced interface). The NPV is
calculated using that discount rate. The break-even price is the price at which an installation
would need to sell a commodity to receive an IRR equal to the discount rate specified. If the
actual price (e.g., “Price of EV charging at project onset ($/kWh)” (row 80), in the Sales
Specification table) is set exactly equal to the break-even price (row 11), the IRR received will
equal the discount rate entered, and the NPV will be zero (Figure 6). The values can be matched
exactly using an Excel calculation: typing an equal sign in the cell next to “Price of EV charging
at project onset ($/kWh)”, selecting the cell next to “Estimated break-even leveraged price
($/kWh),” and then pressing “Enter” on the keyboard.
Figure 5. Model can be set to solve for price of first year charging cost ($/kWh) by setting cell D80 = D11.
This makes the model compute a price of charging which yields an NPV of $0 at the specified leveraged
Overall Financial Performance Metrics Most likely value
Leveraged, after-tax, nominal IRR
Profitability index
Investor payback period
First year of positive EBITD
After-tax, nominal NPV @ 8% discount
Estimated break-even leveraged price (2020$/kWh)
in 2016$:
Chart Selector & Description
$0.27
8.00%
1.65
9 years
analysis year 4
$0
$0.29
Investor cash flow + previous year investor cash flow.
Toggle chart labelsToggle chart labels
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discount rate. Alternatively, the model can be given a price of charging and will compute the
corresponding IRR and NPV for the specified discount rate.
When multiple installations are analyzed, the basic financial results for all scenarios will be
displayed in the Overall Financial Performance Metrics Scenario History table. In the example
shown in Figure 7, the results for two installations are shown, and the results for the
“Hypothetical level 3 DC fast charger” installation are highlighted. After any values are changed
in the model, each station must be highlighted using the blue arrows in the Multi-Scenario Inputs
table to “refresh” the results in the Overall Financial Performance Metrics Scenario History table
so they reflect the changes.
Figure 6. Overall Financial Performance Metrics Scenario History table (top), with results for the
“Hypothetical level 3 DC fast charger” installation highlighted via the Multi-Scenario Inputs table (bottom)
Various results also can be displayed within the Interface worksheet’s chart field. Selecting a
chart from the drop-down menu under Chart Selector & Description displays the selected chart
(Figure 8). The text field below the menu describes the active chart. Clicking the blue up and
down arrows to the right of the text field scrolls through the various charts. The “Toggle chart
labels” button turns the chart labels on and off.
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Figure 7. Interface worksheet, Chart Selector & Description, showing chart options
Below the rotating chart area is another chart with bars and values representing levelized (dollars
per kWh sold) cash inflows and outflows for the selected installation (Figure 9). Below that chart
is the final results output within the Interface worksheet, the cost of goods sold chart. The
example in Figure 10 highlights the effects of accelerated capital depreciation (5-year MACRS)
on equipment costs. It also shows costs dipping below the charging price after year 5 of the
project.
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Figure 8. Interface worksheet, levelized value breakdown results
Figure 9. Interface worksheet, cost of goods sold results
Tabular results for each year of the project’s life are available within the Report Tables
worksheet (Figure 11). These results include annual projections for the income statement, cash
flow statement, balance sheets, key prices and parameters, and financial ratios.
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Figure 10. Report Tables worksheet showing tabular results
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3 Advanced Functions
Several advanced functions within EVI-FAST enable further customization of the analysis:
overrides, risk analysis, and built-in Excel analytic tools. These are described below.
3.1 Overrides
The Overrides worksheet is used to create customized inputs. Various EVI-FAST inputs have a
single value applied to each year in the project period. For example, under Sales Specification, a
“Long-term nominal utilization (%)” of 25% would apply 25% utilization to every year after
demand has ramped up fully. Other inputs couple an initial value with an escalation rate to
produce a set of values over time. For example, under Feedstock Cost, a “Cost of grid electricity
($/kWh)”of $0.10 and an “Escalation rate of cost (% annually)” of 1.90% would yield a grid
energy cost of $0.1000/kWh in the first year, $0.1019/kWh ($0.1000/kWh × 101.9%) in the
second year, and so forth.
A time series of inputs can be customized by entering values in the corresponding rows within
the Overrides worksheet. Figure 12 shows a customized series of utilization inputs for 10 years
of a project’s life. For overridden items, cells for all years of the analysis period (highlighted in
yellow) must be populated with values, and populating cells beyond the highlighted years
enables analysis of sensitivities to project length, installation time, or year of commissioning.
Here the values entered within the Overrides worksheet replace the values for demand ramp-up
and long-term utilization in the Interface worksheet, which are now grayed out, as shown in
Figure 12. Deleting all values from the Overrides worksheet removes the override and returns the
model to using the inputs from the Interface worksheet. Any monetary values input in the
Overrides worksheet should be entered in nominal dollars. For example, the U.S. Energy
Information Administration’s Annual Energy Outlook might be used to develop custom values
for electricity price in nominal dollars.
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Figure 11. Using Overrides worksheet to input custom utilization values
3.2 Risk Analysis
Risk analysis accounts for the effects of uncertain input parameters on the financial performance
of modeled installations. This capability is accessed by activating the advanced user interface
and then clicking the “On/Off” button in the “Risk analysis field.”
1
Clicking this button reveals
three fields for most input parameters: a most likely value, a “% less” value, and a “% more”
value (Figure 13). The % less and more values are calculated with respect to the most likely
1
Note that overriding values, as described in Section 3.1, will disable risk analysis for the overridden items.
Description:
Overridden?
Calendar year 2000 2001
2002
2003 2004 2005 2006 2007 2008 2009
No LCFS incentive ($/kg)
No RIN incentive ($/kg)
No Incidental revenue ($/year)
No Road tax ($/kg)
Feedstock Cost
No Cost of delivered GH2 ($/kg)
No Cost of electricity ($/kWh)
No Cost of feedstock 3 ($/units of feedstock 3)
No Cost of feedstock 4 ($/units of feedstock 4)
No Cost of feedstock 5 ($/units of feedstock 5)
No Cost of feedstock 6 ($/units of feedstock 6)
No Cost of feedstock 7 ($/units of feedstock 7)
No Cost of feedstock 8 ($/units of feedstock 8)
No Cost of feedstock 9 ($/units of feedstock 9)
Products value
No Price of hydrogen ($/kg)
No Value of coproduct 1 ($/units of coproduct 1)
No Value of coproduct 2 ($/units of coproduct 2)
No Value of coproduct 3 ($/units of coproduct 3)
No Value of coproduct 4 ($/units of coproduct 4)
No Value of coproduct 5 ($/units of coproduct 5)
No Value of coproduct 6 ($/units of coproduct 6)
1 2 3 4
5 6 7 8 9 10
Overriding Utilization 60% 65% 70% 75% 80% 80% 80% 80% 80% 80%
No Annual operating incentives (grant or PTC)
No Planned & unplanned maintenance ($/year)
Sales Specification
Price of hydrogen at project onset ($/kg)
Price escalation rate (% annually)
Project initiation (year of financing)
Project operational life (years)
Installation time (months)
Demand ramp-up (years)
Long-term nominal utilization (%)
1.90%
$13.24
80%
5.0
18
20
2020
Overrides worksheet
Interface worksheet
Demand ramp-up and
utilization fields grayed out
Custom values entered for
utilization
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value; for example, if the most likely value is $100,000, then entering -20% in the % less field
assigns a value of $80,000 to that field. These three values define a triangular distribution used
for Monte Carlo analysis. As the default setting, all three values are the same for each parameter,
and the uncertainty values are grayed out. When an uncertainty value is changed, it turns black
and becomes active for subsequent analyses. The % less value must be less than or equal to zero,
and the % more value must be greater than or equal to zero. Once the uncertainty distributions
are defined for one or more input parameters, clicking the “Evaluate uncertainty (1,000 runs)”
button in the “Risk analysis” field initiates the analysis. EVI-FAST takes 1,000 random samples
from each of the defined input distributions to calculate probability distributions for input
parameters and financial results. The analysis usually takes a few minutes to run. The elapsed
time and percentage of the analysis complete are displayed at the bottom left of the screen.
Figure 12. EVI-FAST risk analysis functions
Once the analysis is 100% complete, the updated results are shown in the Overall Financial
Performance Metrics table, which provides most likely, 5
th
percentile, and 95
th
percentile values
for each metric. The probability distributions for each of these metrics can be plotted by clicking
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the adjacent circle under the heading “Plot.” The resulting risk analysis chart appears below the
cost of goods sold chart. In a similar fashion, the probability distributions for the relevant input
parameters can be plotted. As the risk analysis is being used, a message on the risk analysis chart
might appear stating, “Inputs have changed. Rerun model before examining statistical results.”
This message appears when the risk analysis function is first activated and when input values are
changed. If this message is present, the risk analysis must be run again—by clicking the
“Evaluate uncertainty (1,000 runs)” button—to produce valid results.
Additional analyses can be viewed for three of the financial performance metrics: profitability
index, after-tax nominal NPV, and estimated break-even leveraged price. Clicking the plot circle
adjacent to one of these metrics and then scrolling down below the financial performance and
risk analysis charts reveals tornado and waterfall charts. The tornado chart plots the sensitivity of
the selected metric to the user-defined variations in input parameters; if more than 10 input
distributions are defined, the tornado chart plots the 10 that have the most impact on the metric.
Figure 14 is an example tornado chart, showing the sensitivity of first year charging price. The
most influential parameter is listed on top, for example, utilization of 30% yields $0.26/kWh
price, 25% (baseline) yields $0.29/kWh and $20% utilization yields $0.34/kWh. The sensitivity
to the other parameters can be read in a similar manner.
Figure 13. Tornado chart showing sensitivity of first year price to ten specified uncertainty parameters.
0.26
0.29
0.34
0.27
0.31
0.28 0.31
0.28 0.30
0.29 0.30
0.29 0.30
0.29 0.30
0.29 0.30
0.29 0.30
0.29 0.30
Long-term nominal utilization (%)
(0.30, 0.25, 0.20)
Cost of grid electricity ($/kWh)
(0.08, 0.10, 0.12)
Demand charges ($/year)
( 4,800, 6,000, 7,200)
Charging equipment
( 30,400, 38,000, 45,600)
Installation cost
( 16,000, 20,000, 24,000)
Leveraged after-tax nominal discount
rate…
Rent of parking space ($/year)
( 1,200, 1,500, 1,800)
Escalation rate of cost (% annually)
(0.02, 0.02, 0.02)
Debt interest rate (compounded
monthly)…
Debt/equity financing
(1.80, 1.50, 1.20)
Tornado chart:
Estimated break-even leveraged price
($/kWh)
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3.3 Built-in Excel Analytic Tools
Excel’s built-in analytic tools, including Goal Seek and Solver, can be used to solve for
conditional inputs. For example, a user can specify a desired price of charging into Goal Seek,
and use a capital incentive as a solver input to achieve this price. The model will use the built-in
Excel function to vary the capital incentive until the desired first year price is achieved.
Similarly, the built-in function of “Solver” can be used to allow users to solve for more complex
analysis scenarios.
4 Technical Support
If you have questions or comments about the spreadsheet version of EVI-FAST, please contact:
Michael Penev
Phone: 303-275-3880
Email: [email protected]
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References
EIA (U.S. Energy Information Administration). 2017. “Annual Energy Outlook 2017.” Accessed
July 3, 2017: http://www.eia.gov/forecasts/aeo/.
FASAB (Federal Accounting Standards Advisory Board). 2014. FASAB Handbook of Federal
Accounting Standards and Other Pronouncements, as Amended. Washington, DC: Federal
Accounting Standards Advisory Board.
Investopedia. 2014. “Accounting (Fundamental Analysis) Terms.” Accessed December 2014:
http://www.investopedia.com/categories/accounting.asp.
Investopedia. 2016. “Take or Pay.” Accessed September 2016:
http://www.investopedia.com/terms/t/takeorpay.asp.
Miller, H. 2008. “Engineering Economics - EIT Review: Cash Flow Evaluation.” Golden, CO:
Colorado School of Mines.
http://inside.mines.edu/~knelson/Lecture%20Cash%20Flow%20Evaluation%20New.ppt.
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Appendix A: Model Inputs and Default Values
Installation Information
a
Input
Description
Select interface
Advanced mode allows access to detailed model
assumptions.
Enter number of installations
to model
Input information for up to 300 installations.
Capacity (kWh/h)
This value defines maximum charging capacity. The
unit of kWh/h equates to kW of charging power.
Equipment capital cost
Cost of equipment only (not including engineering
cost, permitting, and installation). Note: model
assumes that salvage value equals
decommissioning costs.
Non-depreciable assets (e.g.,
land)
Cost of assets, such as land, that are not subject to
depreciation.
Installation cost
This cost should include costs associated with
installation, such as engineering, permitting, and lot
and utility upgrades.
End of project sale of non-
depreciable assets
Net recovered value at end of life (salvage value –
demolition expense), in nominal dollars. This should
include non-depreciable fixed assets such as land.
Planned & unplanned
maintenance ($/year)
Levelized annual maintenance expenses for
planned and unplanned equipment servicing and
overhauls. Expenses are assumed to be non-
depreciable.
Maintenance escalation
(% annually)
Each year expenses may escalate due to higher
cost of technician labor or material expenses.
a
These values are entered in the Installation(s) Information and Multi-Scenario Inputs tables.
Co-Product Specifications and Feedstock Use
a
Input
Description
Grid electricity (kWh/kWh)
Yearly average amount of grid energy purchases
per kWh of charging.
User defined feedstock
(units/unit)
Yearly average amount of user-defined feedstock
used per number of retail units sold. This can be
used to model custom variable operating expenses.
User defined co-product
(units/unit)
Yearly average co-product generated per yearly
average product sold. This can be used to model
possible value streams for example grid services
such as possible load shedding.
a
These values are entered in the Co-product Specifications and Feedstock Use tables.
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Incentives Specifications
Input
Description
One time capital incentives
(grant or ITC)
Incentive is provided at the beginning of the project
(accounted on Dec. 31, the year before construction
begins). The credit can be a grant or an investment
tax credit (ITC).
Annual operating incentives
(grant or PTC)
Production-based incentives commence the month
of charging station commissioning. This can be a
grant or a production tax credit (PTC). If PTC,
specify as non-taxable (row 157).
Operating incentives linear
decay (% of initial/year)
Annual operating incentives may be reduced each
year. This input allows this revenue stream to be
ramped down to zero by a fixed annual percentage.
Operating incentives sunset
(years)
Number of years in which operating incentives are
available. This input can simulate early termination
of incentives before an annual ramp-down is
complete.
LCFS incentive ($/kWh)
Incentive issued per retail unit sold. Example: low-
carbon fuel standard (LCFS) credit.
LCFS incentive decay rate
(%/year)
Annual incentive decay rate per year as % of the
initial quantity. Note: escalation can be specified by
entering a negative number.
LCFS incentive sunset
(years)
Number of years in which incentive is available. This
input can simulate early termination of incentive
before an annual ramp-down is complete.
RIN incentive ($/kWh)
Incentive issued per retail unit sold. Example:
Renewable Identification Number (RIN) credit.
RIN incentive decay rate
(%/year)
Annual incentive decay rate per year as % of the
initial quantity. Note: escalation can be specified by
entering a negative number.
RIN incentive sunset (year)
Number of years in which incentives are available.
This input can simulate early termination of
incentives before an annual ramp-down is complete.
Incidental revenue
Miscellaneous revenue enhancements derived from
charging services. Value should be expressed as
(marginal revenue − marginal expenses). This item
could cover items such as enhanced profits from
associated convenience store.
Incidental revenue escalation
rate (%/year)
Rate of annual escalation for incidental revenue.
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Sales Specification
Input
Description
Price of electricity at project
onset ($/kWh)
This is the total cost to the end customer and
includes all transaction costs such as credit card
fees and sales taxes. Specified price is for the
beginning of the project.
Price escalation rate (%
annually)
Rate of annual escalation.
Project initiation (year of
financing)
Year in which the project starts (Jan. 1). Note:
financial reporting occurs Dec. 31, and investments
into the project will be reported as of Dec. 31 of the
prior year.
Project operational life (years)
Operating life of the project. Enter a value between
5 and 60. Note: project operational life plus
installation time must be less than 100 years.
Installation time (months)
Months between investment in a charging station
and its first sale.
Demand ramp-up (years)
Number of years to achieve long-term average
utilization. This value imposes a straight-line ramp-
up in charging station utilization.
Long-term nominal utilization
(%)
Infrastructure utilization relative to theoretical
maximum energy of charging if the unit operates
24/7 at its rated power.
Feedstock Cost and Coproduct Value
a
Input
Description
Cost of grid electricity
($/kWh)
Chargers purchase grid electricity. Price is defined
at the start of the project (not at start of operation).
Note this parameter is for the energy portion of grid
costs and the model takes in demand charges
separately as demand charges are more
appropriately modeled as a fixed cost.
Escalation rate of cost (%
annually)
Rate of annual escalation.
Cost of user defined
feedstock ($/unit)
Blended user-defined feedstock price.
Escalation rate of cost (%
annually)
Rate of annual escalation.
Value of user-defined co-
product ($/unit)
Value of user-defined co-product.
Escalation rate of value (%
annually)
Rate of annual escalation.
a
These values are entered in the Feedstock Cost and Co-Product Value tables.
Take or Pay Contract Specification
Input
Default Value
Description
Price of unsold charging
potential ($/kWh)
Price paid for unused capacity up to supported
level. Price point at the year of start of sales. Note:
price is in nominal dollars.
Price decay (% annually)
Annual decay rate of take-or-pay contract price.
Note: decay is based on first-year total cost.
Contract sunset (years)
Years of consideration for take-or-pay contract.
Utilization supported up to (%
of capacity)
Ceiling of equipment utilization covered under take-
or-pay contract.
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Other Operating Expenses
Input
Description
Credit card fees (% of sales)
This is a flow-through expense for credit card fees.
Sales tax (% of sales)
This is a flow-through expense for sales taxes.
Road tax ($/kWh)
This is a flow-through expense for road taxes.
Road tax escalation rate
(%/year)
Rate of annual escalation.
Staffing labor hours (h/year-
station)
This value allows allocation for any on-site labor
attributed to dispensing. As stations are typically
fully automatic, this value is usually zero.
Labor rate ($/h)
Fully burdened rate of labor. Note that this is for on-
site labor, if any, and should not factor in labor rates
for maintenance.
Labor escalation rate
(% annually)
Rate of annual escalation.
Licensing & permitting
($/year-station)
All licensing and permitting expenses. Do not
include licensing and permitting during station
installation (those are accounted for in the
installation expense).
Licensing & permitting
escalation rate (%/year)
Rate of annual escalation.
Rent of land ($/station-year)
Rent is paid annually for the footprint of any
charging equipment. Rent expenses prior to
operation should be rolled into installation cost.
Rent escalation (% annually)
Rate of annual escalation.
Property insurance
(% of dep capital)
Annual expense as percentage of the depreciated
equipment value. Insurance covering installation
should be rolled into installation costs.
Selling & administrative
expense (% of sales)
Use this value to assign any overhead expenses,
such as administrative and management costs, as a
percentage of the sales revenue stream.
Electric demand & service
charges ($/year)
Fixed operating expense in $/year. Demand
charges should be computed exogenously to this
model and should consider use profile and desired
utility rate structure.
Electric demand & service
escalation (% annually)
Rate of annual escalation.
User-defined charges
Fixed operating expense in $/year.
User-defined charges
escalation (% annually)
Rate of annual escalation.
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Financing Information
Input
Description
Total tax rate
(state, federal, local)
Specify the total tax rate, which may include federal,
state, county, and city taxes.
Capital gains tax
Specify the total tax rate, which may include federal,
state, county, and city taxes.
Is installation cost
depreciable?
Specify whether costs associated with construction
and permitting are depreciable.
Are operating incentives
taxable?
Specify whether operating incentives are treated as
income (taxable) or whether they are tax exempt.
Is capital incentive
depreciable?
Specify whether incentives received for capital are
taxable or tax exempt.
Are tax losses monetized
(tax equity application)
Can tax losses be monetized by offsetting coupled
business tax liabilities?
Allowable tax loss
carry-forward
IRS allows carry-forward of tax losses usually for 7
years. Note: this is not used if tax losses are
monetized (tax equity application).
General inflation rate
This value specifies a general inflation rate and is
used in calculation of levelized costs.
Depreciation method
Specify depreciation method: Modified Accelerated
Cost Recovery System (MACRS) or linear.
Depreciation period
Value should be less than or equal to the project
life. If MACRS is used, it should also be one of the
allowed schedules (use drop down).
Leveraged after-tax nominal
discount rate
Specify a discount rate for reporting of net present
value. Note that this rate should include
consideration of inflation.
Debt/equity financing
This factor guides the initial financing capital
structure (ratio of debt financing to equity financing).
Debt type
Specify the type of debt financing (loan or revolving
debt). In case of revolving debt, a fixed amount of
debt is issued.
If loan, period of loan (years)
Enter repayment period for loan (if loan debt is
used). This value should not exceed the equipment
life.
Debt interest rate
(compounded monthly)
Enter interest rate on debt—used for both loan and
revolving debt calculations.
Cash on hand
(% of monthly expenses)
This is cash retained by the business for purposes
of liquidity and includes operating expenses, taxes,
and interest.
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22
Appendix B: Model Outputs
Global Scenario Outputs
Overall Financial Performance Metrics
Output
Description
Leveraged, after-tax, nominal IRR
Rate of return based on investor cash flow (investments
and withdrawals).
Profitability index
(Present value of future equity investor cash flows)/(initial
equity investment)
Investor payback period
Number of years before cumulative investor cash flow first
becomes greater than zero.
First year of positive EBITD
First year in which earnings before interest, tax, and
depreciation are greater than zero.
After-tax, nominal NPV
Net present value of investor net cash flow (investments
and withdrawals).
Estimated break-even leveraged price
($/kWh)
Price of charging that would yield specified leveraged, after-
tax, nominal IRR.
User-Selectable Graphs
Overall Metrics
Output
Description
Cumulative investor cash flow
Investor cash flow + previous year investor cash flow.
Investor cash flow
Investor withdrawals − investor contributions.
Monetized tax losses
Tax loss credits could be applied when majority equity
holder has tax liabilities in excess of any credits.
Gross margin
(Total revenue − cost of goods sold) / total revenue.
Cost of goods sold ($/year)
Total operating expenses + depreciation + interest − selling
and administrative.
Cost of goods sold ($/kWh)
Cost of goods sold / annual charging electricity sales (kWh).
Average utilization (%)
Infrastructure utilization relative to theoretical maximum
energy of charging if the unit operates 24/7 at its rated
power.
Daily sales (kWh/day)
Total annual energy sales / 365.
Capacity covered by take or pay
contract (kWh/day)
Daily average charging capacity qualifying for any take-or-
pay contract payments.
Charging price ($/kWh)
Price of charging to the end customers ($/kWh).
Value of user-defined coproduct ($/unit)
Price of user-defined coproduct to the end customers
($/unit).
Cost of grid electricity ($/kWh)
Amount paid for energy from the grid ($/kWh). Note,
demand charges are accounted for separately.
Cost of user-defined feedstock ($/unit)
Amount paid for supply of user-defined feedstock to
installation ($/unit).
Income Statement Values
Output
Description
Charging sales ($/year)
Annual revenue derived from sales of charging electricity.
Does not include revenue from incentives.
User-defined co-product sales ($/year)
Annual revenue from user-defined co-product.
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LCFS ($/year)
Annual revenue from LCFS.
RIN ($/year)
Annual revenue from RIN.
Take or pay revenue ($/year)
Revenue from take or pay contract
Annual operating incentives (grant or
PTC) ($/year)
Annual revenue derived from production incentives
(nominal $).
Incidental revenue ($/year)
Other business revenue enhancements from presence of
charging infrastructure. This value should be expressed as
(marginal revenue − marginal expenses).
Credit card fees ($/year)
Reduction in total revenue based on credit card fees
(flow-through expense).
Sales tax ($/year)
Reduction in total revenue based on sales tax expense
(flow-through expense).
Road tax ($/year)
Reduction in total revenue based on road tax expense
(flow-through expense).
Total revenue
Sales revenue + incentive revenue − credit card fees −
sales tax − road tax (annual basis).
Cost of grid electricity ($/year) Annual expense for grid energy use.
Cost of user-defined feedstock ($/year) Annual expense for use of user-defined feedstock.
Total feedstock & utilities cost ($/year)
Annual expense for all feedstock and utilities use. Note: this
does not include fixed operating expenses.
Labor ($/year)
Annual labor expense.
Planned & unplanned maintenance
($/year)
Annual expenses for maintenance.
Rent of land ($/year)
Annual expense attribution for equipment real estate rent.
Property insurance ($/year)
Annual insurance expense associated with value of
equipment. Note: insurance is proportional to the
depreciated equipment value.
Licensing & permitting ($/year)
Annual expenses associated with licensing and permitting.
Selling & administrative ($/year)
Annual expenses associated with selling and administrative
activities (management overhead).
Demand & service charges ($/year)
Annual expenses associated with grid rate structure
demand charges and service charges.
User-defined charges ($/year)
Annual expenses associated with user-defined charges.
Total operating expenses ($/year)
Annual total operating expenses. Does not include
depreciation, taxes, and interest.
EBITD ($/year)
Total annual revenue − total operating expenses. Earnings
before interest, taxes, and depreciation (EBITD).
Interest on outstanding debt ($/year)
Annual interest on outstanding debt. Note: in case of loan
debt, interest is accrued monthly.
Equipment depreciation ($/year)
Depreciation expense for equipment, calculated based on
quarter of equipment commissioning. Note: this is a tax-
accounting metric and not a cash expenditure.
Taxable income ($/year)
Income subject to taxation, before consideration of tax loss
carry-forward.
Remaining available deferred carry-
forward tax losses ($/year)
Tax loss carry-forward remaining after annual taxes payable
calculations.
Income taxes payable ($/year)
Taxes payable for the year.
Income before extraordinary items
($/year)
Income after interest, ordinary income taxes.
Sale of non-depreciable assets ($/year) Sale of non-depreciable fixed assets such as land.
Net capital gains or loss ($/year) Sale of non-depreciable fixed assets less cost basis.
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Capital gains taxes payable ($/year)
Capital gains taxes payable on sale of non-depreciable
assets gains.
Net income ($/year)
Revenues − operating expenses − interest expense − taxes
payable − depreciation expense.
Cash Flow Statement Values
Output
Description
Net annual operating cash flow
Net income + dividends.
Capital expenditure for equipment
Cash flow for initial equipment purchases.
Capital expenditure for user-defined
item
Cash flow for initial purchase of user-defined capital item.
Expenditure for non-depreciable fixed
assets
Expenditure for the purchase of non-depreciable fixed
assets such as land.
Capital expenditures for equipment
installation
Cash flow for initial installation, permitting, and
commissioning expenses.
Total capital expenditure
Total cash flow for initial equipment and installation
expenses.
Incurrence of debt
Cash flow associated with acquisition of debt financing.
Repayment of debt
Cash flow associated with repayment of debt. Note: in the
case of revolving debt, repayment is done in full at the end
of the analysis period.
Inflow of equity
Cash flow associated with equity investment.
Dividends paid
Cash flow to equity investors (dividends or owner
withdrawals).
One-time capital incentive
Cash flow from receipt of capital incentive and/or grants.
Net cash for financing activities
Incurrence of debt − repayment of debt + inflow of equity −
dividends paid + receipt of capital incentives.
Net change of cash
Annual change in cash position.
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Balance Sheet Values
Output
Description
Cumulative cash
Previous year cash position + current year net cash.
Cumulative PP&E
Total undepreciated plant, property, and equipment (PP&E).
Cumulative depreciation
Accumulated depreciation: previous year depreciation
expense + current year depreciation expense.
Net PP&E
Depreciated value of plant, property, and equipment
(PP&E): cumulative PP&E − cumulative depreciation.
Cumulative deferred tax losses
Tax loss carry-forward usable to offset future year tax
liabilities.
Total assets
Accumulated cash + accumulated PP&E − accumulated
depreciation + accumulated tax loss carry-forward.
Cumulative debt
Outstanding debt.
Total liabilities
Outstanding debt. Note: accounting is performed on annual
basis (assumes accounts payable = accounts receivable,
and maintains cash on hand for liquidity).
Cumulative capital incentives equity
Accumulated equity from one-time receipt of capital
incentives.
Cumulative investor equity
Accumulated equity from investor contributions.
Retained earnings
Previous year retained earnings + current year net income
− current year paid dividends.
Total equity
Accumulated equity from capital incentives + accumulated
equity from investor contributions + retained earnings +
accumulated tax loss carry-forward. Note: value can be
negative in highly leveraged scenarios.
Investor equity less capital incentive
Total equity − capital incentive.
Ratio Analysis
Output
Description
Returns on investor equity
Net income / investor equity. Note: investor equity = total
equity − capital incentive.
Debt/equity ratio
Total debt / total equity.
Returns on total equity
Net income / total equity. Note: total equity = investor equity
+ capital incentive.
Debt service coverage ratio (DSCR)
EBITD / interest. EBITD: earnings before interest, taxes,
and depreciation.