The PPA price escalation rate causes the PPA price to increase annually over the analysis period. It is an annual escalation rate that SAM uses to calculate the PPA price in Years Two and later of the cash flow:

PPA Price in Year n>1 = PPA Price in Year n=1 × ( 1 + PPA Price Escalation ) ^ n

The PPA escalation rate is an input that you specify on the Financial Parameters page.

SAM does not apply the inflation rate to the PPA price.

Note. You can see the annual PPA price on the Data Tables tab of the results page by displaying the PPA price variable under Annual Data.