I am considering investing in a grid-connected solar park project in Greece with the following business plan:
Is 6.2% a good IRR for such a project?
Any other thoughts/considerations?
- Power output: 500 KWH
- €/KWH: 0.063
- Total cost: ~365000€, 80% loan and 20% equity
- Loan Interest rate/duration: 3.3% / 12 years
- Project duration: 20 years
- Calculated IRR: 6.2%, after ALL costs, including possible unexpected costs (e.g. unexpected damages)
Is 6.2% a good IRR for such a project?
Any other thoughts/considerations?