Electrolyzer Stack Replacement Reserve

Calculate the annual reserve contribution required to fund electrolyzer stack replacements by blending event cost, replacement cadence, reserve yield, and optional inflation and production data.

Total cash required for the next full stack replacement including installation.
Expected years between major stack swaps based on warranties or degradation studies.
Annual interest rate earned on the restricted reserve account.
Leave blank for zero. Annual cost inflation for replacement events.
Leave blank to skip the per-kg reserve surcharge.

Financial planning aid—align reserve contributions with audited depreciation schedules and lender covenants before implementation.

Examples

  • $4,800,000 cost, 6-year interval, 3.5% yield, 2.2% inflation, 3,150,000 kg/year output ⇒ Set aside $716,980.24 per year ($59,748.35 per month) to fund a future cost of $5,430,381.15 after 6 years with 3.50% yield and 2.20% inflation. This equals 0.23 USD per kilogram of hydrogen.
  • $2,900,000 cost, 5-year interval, 0% yield, inflation blank ⇒ Set aside $580,000.00 per year ($48,333.33 per month) to fund a future cost of $2,900,000.00 after 5 years with 0.00% yield and 0.00% inflation.

FAQ

Can I apply different inflation and yield assumptions?

Yes. Enter the expected reserve account yield and the inflation rate for stack costs separately. The calculator compounds them independently so you can model conservative funding policies.

How do I handle partial stack replacements?

Scale the replacement cost to the share of modules you plan to swap and rerun the calculation. Maintaining separate reserves per module family keeps fund balances transparent for auditors.

Does the per-kg surcharge include stack downtime losses?

No. The surcharge only reflects the cash you need to set aside. Add lost-margin assumptions separately when modelling outage economics.

What if my reserve earns variable returns?

Use a conservative average yield or run scenarios with low, base, and high rates. Document the selected value in your asset management policy to satisfy lender requirements.

Additional Information

  • Result unit: USD per year and per month required for the sinking fund, plus per-kg surcharge when production is provided.
  • Reserve yield and inflation are treated as nominal annual rates; the calculator compounds both over the replacement interval.
  • If yield is zero, the formula defaults to straight-line accrual of the inflation-adjusted future cost.

Related calculators