Raxter’s Understanding of the Cost of Capital

For the most part renewable energy generation sites require minimal maintenance and are fairly reliable and predictable in regards to production. Considering what I know about renewable energy, the largest hurdle with renewable energy projects is the bankability of the components that you are utilizing and the upfront cost.

With a reputable company that offers a production guarantee, once the upfront cost is compensated it is a guaranteed return on investment with minimal risk.

To explain our potential for success I would calculate the Weighted Average Cost of Capital for my company to help the investor understand the reliability of my company. Then I would show them the net present value of their investment over the 30 year operating period of an average solar photovoltaics system.

2 thoughts on “Raxter’s Understanding of the Cost of Capital

Leave a Reply