Microgrid & Distributed Energy Equipment worked example

Project Margin with total project contract price of 310 $: a worked example in microgrid & distributed energy equipment

Push total project contract price up to 310 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when a microgrid or distributed energy project needs a clean margin number for a go or no-go decision.

The inputs for this scenario

  • Total project contract price: 310 $ (raised for this scenario; the documented default is 125)
  • Delivered all-in project cost: 100 $ (unchanged)
  • Margin price basis (usually contract price): 100 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Project gross profit = project price - delivered project cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 210 % for project margin, the number this scenario is built around.
  • At this operating point the engine returns 210 value for project gross profit.
  • At this operating point the engine returns 310 value for project price.
  • At this operating point the engine returns 100 value for delivered project cost.

How this compares with the baseline

  • Against the tool's baseline example, where total project contract price sits at 125 $ and the headline result is 25 %, this scenario comes in 740% above the baseline at 210 %.
  • It computes project gross profit (price minus delivered cost) and divides by the chosen price basis to return gross margin percent. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Project margin: 210 % (headline result)
  • Project gross profit: 210 value
  • Project price: 310 value
  • Delivered project cost: 100 value

Run it with your numbers

  • Every input above is editable in the live Project Margin calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.