Asset settings
The asset settings have their own navigation menu with three sections, Project, Components, and Financials, each with several settings pages. This page describes every setting by section. To open the settings, click Edit on the asset view, or choose Edit from the three-dot menu of an asset in the asset list.
Project
The Project section holds the general information and configuration of the asset.
General
Status
The operational status of your asset is displayed at the top of the General page. The status is automatically derived from the Balancing and trading feature configuration and from any in-progress events with operational impact on the Timeline tab. It cannot be set manually. The possible statuses are:
- Draft: The balancing and trading feature is neither enabled nor scheduled. New assets start in Draft, and assets return to Draft after a scheduled end date passes.
- Planning: The balancing and trading feature is scheduled to start at a future date but is not yet active.
- Operation: The balancing and trading feature is currently active.
- Maintenance: An event with operational impact on the Timeline tab is currently in progress (see Effect on asset status). This temporarily overrides the Operation status until the event ends.
Name
Choose any asset name of up to 50 characters that makes the asset easy to find and to group with others. We recommend agreeing on a naming convention with your team early, while you are building up your portfolio on Tensor Cloud.
Tensor features
Enable Tensor Cloud features for the asset. Each feature is activated independently with the dropdown on its card.
Balancing and trading
When enabled, the asset is included in balancing and trading operations on the platform. This includes selling electricity on JEPX or through PPAs, battery charge/discharge schedule optimization and control, and OCCTO reporting. There are three activation states:
- Disable: The feature is turned off
- Enable immediately: The feature is activated right away
- Schedule start or end: Configure scheduled start and/or end dates for the feature
When scheduling is selected, you can set a Scheduled start date, a Scheduled end date, or both, each with its own toggle. This lets you register an asset ahead of its planned go-live date and have the platform automatically begin operations once the start date is reached.
The scheduled start date must be tomorrow or later; to start operations today, choose Enable immediately instead. The scheduled end date must be after the scheduled start date. Choosing Enable immediately or Disable clears any scheduled dates. A scheduled start activates the feature at 00:00 JST on that day, and a scheduled end deactivates it at 23:59 JST on that day, meaning the asset is operational for the entire end date. Status transitions take effect within a couple of minutes of the scheduled boundary time.
To change a scheduled date, pick a new date in the scheduling card; to remove it, switch off its toggle. Deleting a schedule on an asset that is currently operational only clears the dates; the feature itself stays enabled and the asset remains in Operation status. When the scheduled end date is reached, the platform automatically disables the feature and transitions the asset back to Draft. To resume operations after that, re-enable the feature and set new dates if needed.
You will receive a notification each time an asset automatically transitions to Operation (when a scheduled start is reached) or back to Draft (when a scheduled end is reached). Notifications are not sent for transitions caused by user actions, such as scheduling a new asset or deleting an existing schedule. They are delivered through the same in-app and email notification channels you have configured in your workspace settings.
The feature takes effect only when both of these prerequisites are met:
- The asset must have a Grid code configured
- The asset must be part of a generation balancing group, assigned on the Operation page
Both prerequisites are shown on the feature card with checkmarks indicating whether they are fulfilled. The feature can still be enabled while they are missing, but the asset is only included in electricity trading and OCCTO plans once all prerequisites are met.
Asset management
Enables investor reporting, portfolio analysis, and SPV financial management. This feature uses the same dropdown as Balancing and trading: Disable, Enable immediately, or Schedule start or end.
Location
When creating a new asset, the easiest way to set the location is Select on map: click the approximate location of your asset on the map that opens, and the latitude, longitude, location name, grid area, and altitude are filled in automatically. Alternatively, type an address into the location field and click Find coordinates to look up the latitude and longitude for it.
The location must be within Japan. Locations in Okinawa are not currently supported.
Check the grid area: it cannot always be determined automatically.
While the asset is assigned to a generation or demand balancing group on the Operation page, the grid area cannot be changed. Remove the balancing groups first to change it.
By default, the Auto checkbox calculates the land area from the solar DC capacity at 10 m²/kWp. Clear the checkbox to enter the value manually if you have more accurate information.
Components
Select the solar, battery, and load cards to turn the respective components on or off. Each active component gets its own settings page in the Components section of the left side asset settings navigation bar. An asset needs at least a solar or a battery component.
The Hydro and Biomass cards add a hydro or biomass power plant. These components are available when enabled for your workspace; contact Tensor to enable them. A hydro or biomass component cannot be combined with any other component: once you select one, the other cards are disabled, and the Hydro and Biomass cards are disabled while solar, battery, or load is selected. With these cards available, an asset needs at least one solar, hydro, biomass, or battery component.
Coupling type
For assets with both solar and a battery, choose how the two systems are wired:
- AC coupled (default): The solar system and the battery each have a dedicated inverter and are connected on the AC side. This is the usual choice when a battery is added to an existing solar plant.
- DC coupled: The solar system and the battery share a single site inverter and are connected on a common DC bus. This is a common choice for new-build projects.
This toggle is only shown when the asset has both a solar system and a battery. The choice changes which fields appear in the Grid, Solar, and Battery sections, and changes how some of them are interpreted. See Battery coupling for how the topology affects the simulation.
Delete asset
Deletes the asset permanently, for everyone in your workspace. The asset is also removed from any PPAs, and all simulation results associated with it are invalidated.
Simulation
Scenario
Choose the scenario the asset operates under. A new asset defaults to the Default Scenario as defined in the Scenario section of Tensor Cloud.
Results of assets under different scenarios are not comparable. Avoid including them in the same analysis, as they can distort the overall view of your portfolio.
Generation
By default, Tensor Cloud automatically calculates the solar generation profile of your asset based on the location, tilt, azimuth, and other technical specifications you provided. To override it, select the Custom option and enter the generation profile of the asset yourself.
The custom generation profile is the total generation in kWh for each month of the asset's first year of operation. You can copy and paste it from Excel or other tools. After year 1, the profile is adjusted automatically based on the degradation rate.
Operation
Location ID
Enter the asset ID issued by the transmission and distribution utility of the Grid Zone your asset is connected to. This field is mandatory when uploading meter data to Tensor Cloud and can also be required for automatic ingestion of monitoring system data. Each location ID can only be used by one asset in the workspace.
Supply location ID
For assets that charge from the grid, enter the supply location ID issued by your grid operator. Like the location ID, each supply location ID can only be used by one asset in the workspace.
Grid code
This code is assigned when registering your asset with OCCTO and accepts up to 5 half-width characters. This is a mandatory field when using the balancing functionality of Tensor Cloud.
Contract classification number 2
This number is assigned by the TSO and accepts up to 20 alphanumeric characters. This is a mandatory field when using the balancing functionality of Tensor Cloud.
Generation balancing group
Assign the asset to one of your internally managed generation balancing groups. Only balancing groups in the asset's grid area are listed. Membership in a generation balancing group is a prerequisite for Balancing and trading.
Demand balancing group
Assign the asset to one of your internally managed demand balancing groups. Only balancing groups in the asset's grid area are listed.
Metadata
These pages hold optional information that helps you organize and analyze your portfolio.
Entering company names under Developer, EPC Company, O&M Provider, Operator, and Owner does not give these companies access to your workspace or notify them that you have associated them with an asset. These fields only help you organize your portfolio.
Developer
The name of the main developer of the asset (optional). Use it to sort and filter assets in the asset list and when analyzing simulation results.
You can manage your list of Developers from the Stakeholders page in the Tensor Cloud workspace settings.
EPC company
The name of the main EPC company (optional). Use it to sort and filter assets in the asset list and when analyzing simulation results.
You can manage your list of EPC Companies from the Stakeholders page in the Tensor Cloud workspace settings.
O&M provider
The name of the main O&M provider (optional). Use it to sort and filter assets in the asset list and when analyzing simulation results.
You can manage your list of O&M Providers from the Stakeholders page in the Tensor Cloud workspace settings.
Operator
Enter the company operating the asset in this optional field.
Owner
Enter the company owning the asset in this optional field.
METI ID
Enter the asset ID issued by the Japanese Ministry of Economy, Trade and Industry upon asset registration.
METI registration ID
Enter the asset registration ID issued by the Japanese Ministry of Economy, Trade and Industry upon asset registration. This number is needed to change legal ownership of the asset.
NFC ID
Enter the unique ID used to track and issue non-fossil certificates for the asset.
Metering day
Enter the day of the calendar month that the asset meters will be read by the grid operator, from 1 to 31. Defaults to 1.
Custom metadata
Add your own key-value pairs, for example to reference the asset in external systems. Click Add to create a pair; existing keys used on other assets in the workspace are suggested as you type. Keys can be up to 64 characters and must be unique within the asset, and values can be up to 1,024 characters.
Tags
Select existing tags or create new ones to associate with the asset. See Tags for how tags are managed across the workspace.
Components
The Components section holds the technical specifications of each component of the asset.
Grid
Grid interconnection date
Enter the date when your asset will be connected to the grid. This field is required. This does not necessarily correspond to the COD date of the solar and battery systems of your asset, as the asset might be connected to the grid before the start of commercial operations. Therefore, this field is not used to determine the start of generation in the simulation. It does serve as a reference date for CAPEX and OPEX items timed relative to grid interconnection, and the end of life of each component must fall after it.
Site AC capacity
The maximum AC capacity in kW that the site can export to or import from the grid at its connection point. This field is required and must be at least the capacity of the largest connected component: the solar AC capacity or battery power capacity for AC-coupled assets, the site inverter capacity for DC-coupled assets, or the hydro or biomass AC capacity.
Site inverter capacity
The nameplate AC capacity of the shared site inverter in kW. This field is only shown, and is required, for DC-coupled assets. All power exchanged with the grid (solar export, battery discharge, and grid charging) passes through the site inverter and is limited by this capacity.
Site inverter efficiency
The efficiency of the site inverter, entered as a percentage. Defaults to 97 percent. This field is only shown, and is required, for DC-coupled assets.
Solar
Lifecycle
Set the beginning and end of the operational lifetime of your solar system. The solar system will stop generating electricity at the end of its lifetime. You can define the lifetime either with a COD plus a number of years (20 by default) or, with Set end of life as date switched on, by entering the COD and end of life date.
When defining the lifetime in years, the end of life is the anniversary of the COD after that many years. For example, a COD of 2026-04-01 with 20 years ends on 2046-04-01.
DC capacity
This is the total nameplate capacity of all solar PV panels of your solar installation in kWp. The value must be between 1 and 10,000,000.
Simulation accuracy for systems smaller than 5 kWp is limited.
AC capacity
This is the total nameplate capacity of your solar system inverters in kW. The value must be at least 1. It may exceed the DC capacity, as under-paneled systems are valid.
This field is hidden for DC-coupled assets, which have no dedicated solar inverter. For those assets, the site inverter capacity is used instead.
Solar inverter efficiency
The efficiency of the solar inverter at its rated output, entered as a percentage between 50 and 100. Defaults to 99.5 percent.
This field is hidden for DC-coupled assets, which share a single site inverter with the battery. For those assets, the site inverter efficiency is used instead.
This value sets the inverter's efficiency at full load. Real inverters are less efficient at partial load, so the AC/DC conversion loss reported in the simulation will always be slightly larger than 100% − efficiency, and does not fall to zero even at 100 percent. See Inverter efficiency for the model behind this.
Tilt
This is the angle of horizontal tilt of the solar panels in degrees. The value must be between 0 and 90 and defaults to 20.
Azimuth
This is the rotation angle of your asset against north in degrees. The value must be between -360 and 360 and defaults to 180. 0 corresponds to north, 90 to east, 180 to south, and 270 to west.
Losses
Solar losses are specified individually and grouped into environmental, module, electrical, and operational losses. Each loss is applied in sequence during simulation, so the total is compounded rather than added.
All loss percentages accept values between 0 and 50.
Environmental losses
| Setting | Description | Default |
|---|---|---|
| Soiling | Energy loss due to dust, dirt, and debris accumulation on panels | 2% |
| Shading | Energy loss due to shadows from nearby objects or structures | 3% |
| Snow | Energy loss due to snow coverage on panels | 0% |
Tensor Cloud already models far shading in its solar generation calculations. The shading setting covers near shading only.
Module losses
| Setting | Description | Default |
|---|---|---|
| Degradation | Yearly performance decline rate of the PV modules. Accepts 0 to 10. | 0.5% |
| Degradation start month | The month in which degradation begins, 1-indexed. A start month of 13 means degradation begins in year 2. Accepts 1 to 1000. | 1 |
| Degradation change frequency | The shape of the decline over time: continuous, monthly, or annually | continuous |
| PV cell temperature coefficient | How much module output changes per °C above or below 25 °C. Accepts -10 to 0. | -0.4 %/°C |
| Nameplate rating | Deviation between actual and rated module power output | 1% |
| Light-induced degradation (LID) | Initial performance loss when modules are first exposed to sunlight | 1.5% |
| Mismatch | Energy loss due to performance variation between modules | 2% |
The degradation change frequency controls how the decline is applied between anniversaries. continuous ramps smoothly, monthly holds the rate flat within each month, and annually applies a full annual step at the start of each year.
The PV cell temperature coefficient usually ranges between -0.29 and -0.5 %/°C. This means that every 10 °C in excess results in a decrease in power of the module by 2.9% to 5%.
Electrical losses
| Setting | Description | Default |
|---|---|---|
| Connections | Energy loss at electrical connections and junction boxes | 0.5% |
| DC cable | Energy loss due to resistance in DC wiring | 1% |
Operational losses
| Setting | Description | Default |
|---|---|---|
| Availability | Energy loss due to system downtime for maintenance or failures | 3% |
Do not include expected curtailment volume in the availability setting, as curtailment assumptions are managed under Scenarios.
Battery
Lifecycle
Set the beginning and end of the operational lifetime of your battery system. The battery system will stop charging electricity at the end of its lifetime. You can define the lifetime either with a COD plus a number of years (15 by default) or, with Set end of life as date switched on, by entering the COD and end of life date.
When defining the lifetime in years, the end of life is the anniversary of the COD after that many years.
Energy capacity
This is the total energy nameplate capacity of your battery storage system in kWh which will be reduced with each battery cycle depending on the degradation rate. The value must be between 0.1 and 10,000,000.
Power capacity
This is the total power nameplate capacity of your battery storage system in kW. This will not be reduced with each battery cycle. The value must be between 0.1 and 10,000,000.
The value refers to AC power for AC-coupled assets and to DC power for DC-coupled assets. In an AC-coupled asset, the battery system includes its own inverter, so its nameplate capacity is quoted on the AC side. In a DC-coupled asset, the battery connects to the DC bus directly, and its nameplate capacity is the DC output of the cells.
Maximum cycles
This is the number of cycles the battery can undergo before the capacity drops below the OEM warranty threshold. Defaults to 4,500 and accepts 1 to 50,000.
One cycle is defined as one kWh of battery discharge per kWh of energy capacity.
Roundtrip efficiency
This is the roundtrip efficiency of your battery storage system in percent, between 50 and 100, and defaults to 92 percent. What the value should include depends on the coupling type:
- AC-coupled: Enter the combined efficiency of the battery and its battery inverter.
- DC-coupled: Enter the efficiency of the battery cells alone. Losses in the site inverter are accounted for separately.
Do not reuse battery values from an AC-coupled configuration in a DC-coupled one, as this double-counts inverter losses. See Battery coupling for the consequences.
Degradation
Specify the rate at which the capacity of the battery system decreases with usage. This is expressed as a percentage of the battery nameplate capacity at a given number of cycles.
Battery degradation defaults to 80% of nameplate capacity after 3,000 cycles and 70% after 4,500 cycles.
Try to align this setting with the battery degradation defined in the battery OEM warranty to ensure accurate simulation results.
State of charge limits
Specify the minimum and maximum state of charge allowed when operating the battery both during simulation and physical operation. The battery will not charge or discharge if the state of charge is outside these limits. The limits default to 10% and 90%. The minimum can be set between 0% and 75%, and the maximum between 50% and 100%.
For co-located battery systems, during battery operation, the SoC limits are enforced on a best-effort basis. This means that the battery will not charge or discharge if the SoC is outside these limits, but the SoC might still drift outside these limits due to self-discharge and other factors.
Cycle cost
This is an estimate of the cycle cost in JPY/kWh, between 0 and 100,000, and defaults to 10 JPY/kWh. Operationally, this value determines the minimum required financial return per kWh of energy stored and discharged required for the battery to operate.
The cycle cost should reflect your operational strategy for the battery system. Generally speaking, a lower cycle cost will lead to the battery being used more frequently, while a higher cycle cost will make battery behavior more conservative and reduce the annual number of cycles. The cycle cost takes into account all costs associated with battery operation, including losses and opportunity costs of discharging solar directly into the grid.
The cycle cost setting will affect both simulation and asset operation.
Grid charging
This setting controls whether the battery can charge from the grid. It applies to both simulations and live battery operation: the battery optimization plans grid charging, and the JEPX buy bids for it, only when it is allowed. There are two options:
- Solar-only charging (default): The battery can only be charged by solar generation from the co-located solar system
- Allow grid charging: The battery can be charged by purchasing electricity from the wholesale market when prices are low
When Allow grid charging is selected, the battery optimization will consider grid charging opportunities from the day the battery becomes operational. The battery will charge from the grid when wholesale market prices are favorable, optimizing the overall economic performance of the asset.
For standalone battery assets (without solar PV), grid charging is the only charging option, so Allow grid charging is selected automatically and cannot be changed.
Load
Load settings are currently not considered in the simulation results.
Lifecycle
Set the beginning and end of the operational lifetime of the load. The load will stop consuming electricity at the end of its lifetime. You can define the lifetime either with a COD plus a number of years (20 by default) or, with Set end of life as date switched on, by entering the COD and end of life date.
When defining the lifetime in years, the end of life is the anniversary of the COD after that many years.
Load profile
Specify the energy consumption pattern of the load in terms of minimum, maximum, and average demand, each in kW between 0 and 100,000. All three values are required and have no default.
As soon as you upload demand actuals for your asset, the load profile will be automatically adjusted to match the actual consumption pattern.
Hydro
This page appears for assets with a hydro component.
Hydro settings are currently not considered in the simulation results, and assets with a hydro component have no Simulation tab.
Lifecycle
Set the COD and the end of operation of the hydro plant. As with solar, you can enter the lifetime as a number of years after the COD (20 by default, from 1 to 100), or switch on Set end of life as date and enter the end of life date. The COD must be between 2012-01-01 and 2039-12-31. The end of life must be no later than 2059-12-30 and fall after both the COD and the grid interconnection date.
AC capacity
The nameplate capacity of the hydro plant's inverter in kW. This field is required, has no default, and must be at least 1. The site AC capacity must be at least this value.
Biomass
This page appears for assets with a biomass component. It has the same fields and rules as the Hydro page.
Biomass settings are currently not considered in the simulation results, and assets with a biomass component have no Simulation tab.
Lifecycle
Set the COD and the end of operation of the biomass plant, as a number of years after the COD (20 by default, from 1 to 100) or, with Set end of life as date switched on, as an end of life date. The date limits are the same as for hydro.
AC capacity
The nameplate capacity of the biomass plant's inverter in kW. This field is required, has no default, and must be at least 1. The site AC capacity must be at least this value.
Financials
The Financials section holds the financial settings of the asset: capital expenditures, operating expenditures, and revenue.
CAPEX
The CAPEX page lists all past and upcoming CAPEX payments of the asset. Their timing affects IRR calculations.
You can add new CAPEX payments by pressing the Add button on the top right of the CAPEX payment list, or add items from your CAPEX library with Import from library. To delete CAPEX payments, select them with the checkboxes on the left of the table and press the Delete button in the floating action bar. The same bar offers Copy to assets, which copies the selected items to other assets, and Export to library, which saves them to the CAPEX library.
Each CAPEX item is configured through a dialog with five tabs: General, Purchase, Disposal, Depreciation, and Tax.
General tab
Account
Select the appropriate financial account code by choosing from the dropdown menu. Accounts are grouped into a Solar and a Battery section, and the account you choose determines which component the CAPEX item is associated with. All CAPEX payments with the same account code will appear together on the SPV financial statements.
Description
Enter a short description of the CAPEX payment so your team can tell what it is for.
If you associate a CAPEX payment with a non-existing asset component, the payment will be ignored.
Purchase tab
Payment date
This is the date of the cash transaction related to the CAPEX item, not the invoice date. Invoice-to-cash is assumed to be EoM + 30 days. You can choose an absolute fixed date or a date relative to grid interconnection, solar COD, battery COD, solar end of life, battery end of life or decommissioning date.
Payments relative to non-existing asset components will not be considered. For example, if you set a payment date relative to battery COD, but the asset does not have a battery, the CAPEX payment will be ignored.
Amount
This can be a relative or an absolute amount in Japanese Yen. For relative amounts, you can choose them to be relative to solar DC kWp, site AC kW, battery energy capacity kWh, or battery power capacity kW.
Prefer relative amounts and dates for CAPEX payments you want to import across a large number of assets.
Consumption tax
Choose the consumption tax rate for the CAPEX payment, between 0 and 75 percent. Defaults to 0 percent, in which case no consumption tax is applied.
Disposal tab
The Disposal tab sets when and how the asset is disposed of at the end of its life.
Disposal date
Specify when the asset component will be disposed of. You can choose an absolute fixed date or a date relative to grid interconnection, solar COD, battery COD, solar end of life, battery end of life or decommissioning date. Defaults to one month after the decommissioning date.
Disposal method
Choose between two disposal methods:
- Discard (default): The asset disposal results in a cost (negative cash flow)
- Sale: The asset disposal results in revenue from selling the asset (positive cash flow)
Disposal amount
Configure the financial impact of the disposal. The field is labeled Disposal cost for a discard and Sale price for a sale, and defaults to a disposal cost of 2% of the purchase price. The amount can be:
- Absolute: Fixed amount in Japanese Yen
- Relative: Amount calculated relative to asset specifications (solar DC kWp, site AC kW, battery energy kWh, battery power kW, or percentage of original purchase price)
Consumption tax
Specify the consumption tax rate applicable to the disposal transaction, between 0 and 75 percent. Defaults to 0 percent.
ARO discount rate
For a discard, switch on Use ARO (off by default) to include the CAPEX item in Asset Retirement Obligation (ARO) calculations, then set the ARO discount rate (3 percent by default) used for calculating the present value of future disposal costs for financial reporting purposes. ARO is only calculated if the asset is part of an SPV.
For the full ARO calculation, the recognition and settlement timings, and how ARO interacts with the disposal method, see Asset retirement obligations.
Depreciation tab
Apply depreciation
Choose whether to apply depreciation to the CAPEX payment. If toggled (the default), the CAPEX payment will be depreciated over its useful life.
Depreciation settings affect the SPV financial statements, asset valuation, and residual value. They do not affect asset property taxes, which you can control under the Tax tab.
Useful life
Choose the useful life of the CAPEX payment in years, from 1 to 100. This is the number of years over which the CAPEX payment will be depreciated. Defaults to 17 years.
Method
Choose the depreciation method for the CAPEX payment. You can choose between straight line (the default), declining balance, and sum of years.
Straight-line depreciation evenly allocates an asset's cost over its useful life. It is calculated by subtracting the residual value from the cost and dividing by the useful life in years.
Declining balance depreciation applies a fixed percentage to the asset’s remaining book value each year, resulting in higher depreciation in the early years. It is calculated as (book value × depreciation rate), where the book value decreases each year but never reaches zero. The rate depends on the placed-in-service date: the constant rate on or before 2007-03-31, the 250% rate from 2007-04-01 through 2012-03-31, and the 200% rate on or after 2012-04-01.
Sum-of-years-digits depreciation allocates higher depreciation in earlier years by applying a fraction based on the sum of the asset's useful life digits. The depreciation for each year is calculated as (remaining life / sum of years) × (asset cost - residual value), where the sum of years is the total of all years in the asset’s useful life.
Depreciation start date
Choose the start date of the depreciation. With Use COD selected (the default), this is the COD date of the solar system or battery, depending on the account selected in the General tab.
Minimum value
Set a minimum value below which the asset will not depreciate further. This acts as a floor value for the depreciated asset. Defaults to an absolute value of 0.
You can specify the minimum value in two ways:
- Absolute: Fixed minimum value in Japanese Yen
- Purchase price: Minimum value as a percentage of the original purchase price
Tax tab
Settings in this tab affect the taxable value of the asset used for calculating property taxes. They do not affect depreciation payments or asset valuation. Note that there are no property taxes on assets with a tax value below 1.5 million JPY.
Apply depreciation
Choose whether to apply depreciation to the taxable value of the CAPEX payment. If toggled (the default), the taxable value of the CAPEX payment will be depreciated over its tax useful life.
Tax useful life
Choose the useful life of the CAPEX payment in years for tax purposes, from 1 to 100. Defaults to 17 years.
Method
Choose the depreciation method for the taxable value of the CAPEX payment:
- Constant declining balance (default): Applies a fixed rate to the remaining book value every year, using a half-year amount in the first year. The schedule continues past the useful life.
- 250% declining balance: Applies a 250% rate, then switches to a fixed annual amount once the guaranteed minimum is reached.
- 200% declining balance: Applies a 200% rate, then switches to a fixed annual amount once the guaranteed minimum is reached.
- Straight line: Allocates the cost evenly across the useful life.
- Sum of years: Weights depreciation toward earlier years using a fraction based on the sum of the useful-life digits.
Tax depreciation start date
Choose the start date of the tax depreciation. With Use COD selected (the default), this is the COD date of the solar system or battery, depending on the account selected in the General tab.
Minimum value
Set a minimum taxable value below which the asset will not depreciate further for tax purposes. This acts as a floor value for tax depreciation calculations. Defaults to 5 percent of the purchase price.
You can specify the minimum value in two ways:
- Absolute: Fixed minimum value in Japanese Yen
- Purchase price: Minimum value as a percentage of the original purchase price
Taxable value
Enter the taxable value of the CAPEX payment in Japanese Yen. With Use payment amount selected (the default), this is the CAPEX payment amount; clear it to enter a custom value depending on the valuation of the local tax authorities.
OPEX
The OPEX page lists the operating expenses of the asset. Each item can be recurring or one-time, with its own timing, amount, and financial account.
As on the CAPEX page, you can add items with Add or Import from library (from the OPEX library), and the floating action bar for selected items offers Copy to assets, Export to library, and Delete.
Creating expense items
Each OPEX item has the following fields.
Name
Provide a clear name for the expense item that describes its purpose, such as "Annual O&M Contract" or "Inverter Replacement Reserve".
Account
Select the appropriate financial account code for proper categorization in financial statements. Available accounts include standard OPEX categories like O&M, insurance, and asset management.
Cost driver
Choose how the expense relates to your asset components:
- Solar: Expenses directly related to the solar PV system. Affects project IRR.
- Battery: Expenses specific to battery storage components. Affects project IRR.
- Project (default): General project-level expenses not tied to specific components. Affects project IRR only.
Timing
Configure when and how often the expense occurs:
- Recurring expenses: Ongoing operating costs that occur several times over the asset's life. Set the start and end dates as exact dates, relative to asset milestones, or as simple relations, and set the frequency in monthly or yearly intervals.
- One-time expenses: Single costs such as major equipment replacements. Specify the payment date with the same date options.
Amount
Set the expense amount and how it changes over time:
- Simple amounts: Fixed amounts that stay constant throughout the payment period.
- Changing amounts: Expenses that increase or decrease over time due to inflation, escalation clauses, or other factors. Configure the direction, change amount, change unit (percentage or fixed JPY), and change frequency (annual or monthly). Add inflation (on by default) additionally applies inflation to the amount.
Amounts can be absolute in JPY, a percentage of total revenue, or relative to a specification (solar DC kWp, site AC kW, battery energy kWh, battery power kW, or site land area m²) or to usage (battery discharge kWh or site meter kWh).
Consumption tax
Configure the applicable consumption tax rate for the expense item. Defaults to 10 percent, Japan's standard rate.
Revenue
Subsidy schemes
This is the renewable energy subsidy scheme your asset operates under. Switch on the FIT toggle, the FIP toggle, or both, or leave both off for no subsidy. Subsidy schemes are only available for assets with a solar component. If both are on, the FIP start date must be after the FIT start date.
Subsidy rate
This is either the FIT or FIP rate approved for your asset in Japanese Yen.
If your FIP rate changes during the 20-year subsidy term, click the button next to the FIP rate to open the FIP rate schedule. The base rate applies from the subsidy start until the first change, and each change holds until the next one. Add a change either by year of the subsidy (year 2 to 20) or by exact date within the term. When you later move the FIP start date, Tensor Cloud asks whether the scheduled changes should move with it or keep their calendar dates.
For DC-coupled assets where the over-paneling ratio (panel DC capacity divided by site inverter capacity) is above 115%, the schedule also offers Calculate from DC retrofit. It calculates the blended rate that applies after a DC battery retrofit from the over-paneling ratio, the retrofit date (the battery COD by default), the latest reference price, and the rate before the retrofit, and adds it as a rate change. If the battery COD is after the grid interconnection date, a banner on the Revenue page suggests this calculation.
Subsidy start date
Enter your METI-approved start date for FIP or FIT in these fields. FIP subsidy does not allow start dates before April 1, 2022, and FIT does not allow for start dates before January 1, 2012. Neither allows start dates after December 31, 2039.
PPA
Associate the asset with one of the PPAs you have created in the Contracts section. An asset can be assigned to only one PPA at a time.
Markets
Choose which markets the asset participates in for revenue simulation:
- Day-ahead market: Always selected, as it is essential for revenue simulation.
- Frequency control reserve: Offline participation in the primary reserve market.
- JEPX NFC non-FIT: Sale of non-FIT non-fossil certificates on JEPX.
Environmental value
Select the bilateral non-fossil certificate (NFC) agreement to associate with the asset. Bilateral agreements are created on the Contracts page; see Bilateral agreement settings.