Grid Interconnection Delay Carry Cost Calculator
Estimate how much capital a renewable energy project consumes while stalled in the interconnection queue. Provide capacity, monthly fixed development costs, the expected delay, and cost of capital to quantify cash burn, financing drag, total carry, and per-megawatt exposure.
Consult your finance team for project-specific working capital and draw schedules.
Examples
- 120 MW, $185,000 monthly cost, 11-month delay, 9% cost of capital → Delay burn $2,035,000.00; Financing drag $83,943.75; Total carry $2,118,943.75; Exposure $17,657.86 per MW.
- 75 MW, $120,000 monthly cost, 8-month delay, 7% cost of capital → Delay burn $960,000.00; Financing drag $22,400.00; Total carry $982,400.00; Exposure $13,098.67 per MW.
FAQ
How do milestone payments change the result?
Increase the monthly fixed cost input during heavier spend periods to simulate milestone draws while keeping lighter months lower.
Can I compare multiple queue scenarios?
Yes—run short, base, and long delay assumptions separately, then compare the total per-megawatt figures.
Does this include tax credit step-downs?
Not directly. Use the per-megawatt cost output to evaluate whether expiring incentives outweigh the carry burden.
How can I include escalation in monthly costs?
Model conservative, base, and aggressive monthly cost assumptions to understand how inflation or contractor standby fees change the carry exposure.
Additional Information
- Interest burden assumes costs accrue evenly through the delay, so half the total burn is financed on average.
- Per-megawatt figures divide total carry cost by nameplate AC capacity for quick benchmarking across a portfolio.
- Monthly cost input should include retained EPC teams, interconnection deposits, land option payments, and overhead tied to the delayed asset.
- Total carry equals base burn plus financing drag, highlighting the cash commitment at risk if the queue extends further.