The Permitting Game

So you want to build an energy project, eh?

Here's the thing about building stuff: it costs money. And people generally don't spend money unless they expect to make it back, plus some.

This isn't cynicism—it's just how capital allocation works. Money flows toward returns.

The good news? Renewables now pencil out. Solar and wind are genuinely profitable. The economics work.

Brass Tacks: The Numbers

Net Present Value (NPV)

A dollar today is worth more than a dollar next year. NPV discounts all future cash flows back to present value. Positive NPV means the project creates value; negative means it destroys it.

Internal Rate of Return (IRR)

The annualized return a project generates on invested capital. This is the number that gets compared against alternatives. Higher IRR, more attractive project.

The Hurdle Rate

Developers don't just need positive returns—they need returns that clear their hurdle rate.

For energy projects, this typically runs 10-15%. It reflects:

  • Cost of capital (what investors demand)
  • Risk premium (uncertainty isn't free)
  • Opportunity cost (this money could go elsewhere)

IRR above hurdle → green light
IRR below hurdle → project dies

Ready to Build?

You've got a solid renewable energy project. The economics work. Returns clear the hurdle rate. On paper, this thing should get built.

Now you just need a permit.