ABSTRACT
The ability to finance an energy project is the litmus test of the viability of any energy project. If it is financeable, the project developer will be able to build and operate the project with sufficient revenue sources to repay its capital investment and obtain an adequate return on that capital over a reasonable period of time. The International Energy Agency defines renewable energy as energy that is derived from natural processes that are replenished constantly. In a broad overview of the analysis each project can be broken down into three principal items—project cost, revenue sources and expense or cost centers. A central theme for every renewable energy project is deriving the expected energy savings. The simple payback is often used with the renewable energy industry to calculate the time it takes for the purchaser of the renewable system to recoup their investment.
