---
type: permanent
status: verified
source: "manohargupta.com/journal/8760-energy-simulation (2026-02-15)"
tags: [knowledge, solar, finance, modeling]
---
# 🌞 The 8760 Energy Simulation Model
> An atomic concept note, distilled from Manohar's own explainer.

## What "8760" means
**8,760 = hours in a year** (365 × 24). An 8760 model builds an **hourly profile of expected solar generation for every hour of the year** — not daily/monthly averages.

## Why hourly granularity matters (for project finance)
- **Solar variability** — peaks at noon, zero at night
- **Grid constraints** — hourly profiles reveal **clipping & curtailment** risk
- **Revenue forecasting** — **time-of-day pricing** changes economics
- **Degradation** — performance shifts hour-by-hour across the asset's life

## Key inputs
- Irradiance: **GHI, DNI, DHI** · temperature
- System specs: module type, **tilt, azimuth**
- Loss factors: soiling, shading, inverter efficiency

## The method (Manohar's approach)
**Python + Pandas** for flexible custom analysis, **validated against PVsyst** for industry credibility.

> **Key takeaway:** *Never rely on simple capacity-factor estimates for serious project-finance work.* The hourly shape is where the risk (and the money) lives.

## Used in
[[REModel]] · [[8760 Energy Simulation]] · the [[Renewables Overview|ReNew]] day job

## Related
[[Renewables Overview]] · [[Finance Overview]] · [[MOC - Renewables]]