Financial metrics glossary

NOI:

Short for Net Operating Income, NOI is total revenue minus operating expenses. NOI is a pre-tax number.

IRR:

Short for Internal Rate of Return, IRR is a metric used to estimate the return on an investment both pre-tax and post-tax.

NPV:

Short for Net Present Value, NPV is the present value of cashflows subtracted from the initial Investment required.

PPA:

Short for Power Purchase Agreement, PPA is the agreement between an off-taker and third-party developer that allows the developer to install and maintain a photovoltaic (PV) system on the off-taker’s property at no upfront cost.

Off-taker:

An off-taker is someone who purchases renewable energy, and one of the parties involved in a PPA (Power Purchase Agreement).

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