PPA Buyout Amount
Please enter the PPA buyout amount.
If the PPA has buyout provisions it will also specify that the system can be purchased at those times for the greater of a specified amount or fair market value (FMV). The specified amounts in the buyout schedule are derived from discounting future cash flows from the investor’s point of view. The various items that are taken into account include PPA revenue, incentives, ITC recapture, depreciation, operating expenses, debt service, and taxes. The calculation of the buyout amount is sensitive to the assumptions used and can vary widely by investor.