Tariffs, export and penalties
How the PPA tariff and escalation, the annual CUF cap, third-party export pricing, grid-charging cost and DFR shortfall penalties combine into a run's revenue.
A run's revenue is built from more than one price. The PPA tariff pays for delivered energy up to an optional annual ceiling; anything sold beyond that, or to a third party at all, is priced separately; energy drawn from the grid to charge the battery is a cost rather than a revenue line; and a shortfall against the Delivery Fulfilment Ratio (DFR) becomes a penalty deducted from what the tariff would otherwise have paid. This page is how those pieces fit together — for the fields themselves, with their defaults and ranges, see OPEX, revenue and penalties and Financing and discounting.
PPA tariff and its escalation
PPA Tariff, on the 📊 OPEX tab, is the contracted price paid per kWh of delivered energy. PPA Tariff Escalation, on the 🏦 Finance tab, applies an annual escalation to that tariff over the project's life.
The annual CUF cap
Apply Annual CUF Cap, on the 📊 OPEX tab, is an optional ceiling on how much delivered energy is paid at the PPA tariff in a year:
cap (MWh) = cap % × Contracted Capacity × 8760Energy delivered up to that cap is paid at the PPA tariff; energy delivered above it is paid at the Export Price instead. The cap is off by default. See Capacity and DFR targets for Contracted Capacity.
Third-party export pricing
Energy sold to a third party, rather than delivered against the PPA, is priced independently of the PPA tariff — either a flat Fixed Price, or a 15-minute pricing series loaded from a CSV (for example an exchange clearing price).
Export pricing also feeds two of LCOE's three energy bases: the Total generation (solar+wind) and Delivered + exported energy bases both need an Export Price configured, and the model falls back to the delivered basis without one.
Grid-charging cost
Grid Charging Price, on the 📊 OPEX tab, is what the model charges for grid energy used to charge the battery. On a Standalone project this applies to every charge cycle, since the battery has no generation of its own to draw on; on a generation-backed project it applies only when Grid charging backup when generation is short is on, and then only as a worst-case top-up.
DFR shortfall penalties
A month that misses its Peak-hour, Off-Peak, Overall Monthly or 15-minute DFR target is penalised: the shortfall is priced at a multiple of the PPA tariff and deducted from that month's revenue. The full shortfall-to-penalty formula, and which of the four buckets sets a given month's actual penalty, is on Delivery Fulfilment Ratio (DFR).
The 📊 OPEX tab's Penalty Multiplier sets the rate the shortfall is priced at, as a multiple of the PPA tariff.
Where to go next
OPEX, revenue and penalties
The tariff, cap, export price and grid-charging fields, with defaults and ranges
Delivery Fulfilment Ratio (DFR)
What DFR measures, and the full shortfall-to-penalty formula
Return metrics
How this revenue becomes IRR, NPV and the rest
Financing and discounting
PPA Tariff Escalation and the LCOE energy basis
Return metrics
One-line definitions of IRR, Equity IRR, NPV, payback, DSCR, DSRA, MoIC, PI, WACC, LCOE and LCOS, worded as the application's own Formulas guide states them.
Debt and tax
How gearing, interest, tenor, moratorium and DSRA build a levered analysis, and how corporate tax, MAT and depreciation build a post-tax one.