Green Hydrogen Financial Model – Electrolysis & Onsite Solar in Excel
$149.00
Description
A detailed, institutional-grade green hydrogen financial model for a hydrogen production plant using the electrolysis process with an onsite solar plant, covering construction, operation and financing across a fully flexible timeline — with three integrated statements, a cash waterfall and complete lender metrics, built in Excel.
Green hydrogen is the cleanest route to a hydrogen economy and the hardest to finance. Electrolysis splits water using electricity, so the entire economics of the plant rest on where that electricity comes from and what it costs. Buy it from the grid and your hydrogen is only as green as the grid mix, and only as cheap as the tariff. Generate it onsite from solar and you control both — but you have also just added a second capital-intensive asset to the project.
This green hydrogen financial model was built to hold that combined structure. It helps you assess the financial viability of setting up and operating a hydrogen gas production project using electrolysis powered by an onsite solar plant, capturing every essential input across construction, operation and financing — and resolving them into the metrics a developer, sponsor or lender needs to reach a decision.
Because it follows project finance convention, the model produces the complete suite of bankability outputs — Project and Equity IRR and NPV, minimum and average DSCR, LLCR, PLCR, equity payback and a full cash waterfall — the numbers that decide whether a project reaches financial close.
Electrolyser Capacity Drives Everything
Production in this green hydrogen financial model is built from the electrolyser outward — processing capacity and conversion factor determine how many kilograms of hydrogen the plant yields, and everything downstream follows from there. That is the correct structure, because electrolyser capacity and efficiency are the two technical variables that most directly set the cost per kilogram.
Electricity cost sits as its own explicit driver rather than being absorbed into general operating expense. In a business where power is the dominant input cost, that separation is essential — it lets you test the onsite solar plant against grid alternatives, and see exactly how much of your production cost is energy.
Assumptions You Control
Every driver of viability is an explicit, editable input. The assumptions cover:
| Development & Construction | Development cost, construction cost and developer’s fee |
| Electrolyser | Processing capacity and conversion factor |
| Revenue | Hydrogen gas sales and other sources of revenue |
| Variable O&M | Cost of electricity, plus O&M per kilogram across eight subheads — staff, water, consumables, transport, fuel and more |
| Fixed Costs | SPV cost, insurance, land lease, community payment, management fee and more |
| Funding Profile | Cash equity, bridge loan, bank debt, DSRA and bank overdraft |
| Debt Repayment | Annuity, sculpted and even-principal options |
| Adjustments | Inflation and indexation, depreciation options, working capital and decommissioning reserve |
Lender & Investor Outputs
This is where the green hydrogen financial model earns its keep — resolving your assumptions into the full set of metrics a financing decision turns on:
- Project IRR & NPV — returns to the project as a whole
- Equity IRR & NPV — returns to shareholders after debt service
- Minimum & Average DSCR — the coverage lenders scrutinise first
- LLCR & PLCR — loan life and project life coverage ratios
- Equity Payback Period — time to recover shareholder investment
- Cash Waterfall & Debt Service Profile — the full cascade of cash through the structure
- Integrated Financial Statements & Dashboard — income statement, balance sheet, cash flow and a fully linked dashboard
Two Phases, a Flexible Timeline and Three Scenarios
The model separates construction and operation cleanly, and lets you set the length and granularity of each — monthly, quarterly, semi-annual or annual — independently. That flexibility matters for a solar-coupled plant, where seasonal generation patterns are invisible in an annual view but obvious in a monthly one.
Every revenue and cost assumption can be entered across three scenarios and switched at a button. The debt funding drawdown carries three scenarios of its own — valuable when negotiating terms with financial institutions — and repayment can be profiled as annuity, even-principal or sculpted, each showing its impact on IRR immediately.
Who This Green Hydrogen Financial Model Is For
- Green hydrogen developers building the case for an electrolysis plant
- Renewable energy and infrastructure investors assessing returns and structuring equity
- Lenders and debt advisors testing coverage ratios and debt sizing
- Project finance advisors preparing bankable models for financial close
- Energy transition teams evaluating hydrogen against other decarbonisation routes
Why This Model
Onsite solar integrated
The captive power plant is part of the structure, so you can see what self-generation does to production cost and returns.
Electricity cost isolated
Power sits as its own driver, so you can stress the dominant input cost in electrolysis without touching anything else.
Fully transparent
Clearly defined input, calculation and output cells, with a colour-coded heat map so even a first-time user can navigate it.
New to these metrics? Read an overview of the debt service coverage ratio. For a model built to your own specification, see our project finance advisory services, or browse the full range of PPP and project finance templates.
Assess Your Green Hydrogen Project
Electrolysis with onsite solar, construction and operation phases, three scenarios, a full cash waterfall and every lender metric from Project IRR to LLCR.
