Wells Fargo Case

NPV Calculation for one branch Input values System cost System size

 Total  Total system cost cost Efciency rating Salvage value Salvage value

 Ta!  Ta! cre"it cre"it

 Year  Year 0 1  #  5 , 7 8 . 10 11 1 1# 1 15 1,

-105000 18% 15% o systems cost 15750

#0$00%

/ereciation er year  Ta!  Ta! rate  Ta!  Ta! cre"it cre"it rate

&ate increase 'P( )nalysis or 15 years

7000 Per KW 15 KW

-1000 #8% #0%

-0$50%

KWH production production KW by solar solar #,5$00 #5##$7 #1,$07 #.8$.. #18$50 #0,,$58 .51$5 8#,$. 7$#1 ,08$70 .5$,, #8#$18 71$,

$70 $,. $,7 $,, $,5 $,# $, $,1 $5. $58 $57 $5, $5

15.$.1 0.$11 1.#8$8,

$5# $5 $50

Systems cost cost *105000$00+

17 18 1. 0 1  #  5 , 7 8 . #0

18.$17 170$0 1,11$ 150#$#, 1#.5$85 188$87 118$ 107,$51 0.71$1# 08,,$7 07,1$. 0,58$1# 055$8 05$07

$. $8 $7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total  Total S2P re3ate re3ate

15$00 0$18 87,0$00 #,5$00

1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3l Possi3le e scenario scenarioss- t4ere t4ere may 3e c4anges c4anges in t4e variou various s costs costs -mosty -mosty increas increas

17 18 1. 0 1  #  5 , 7 8 . #0

18.$17 170$0 1,11$ 150#$#, 1#.5$85 188$87 118$ 107,$51 0.71$1# 08,,$7 07,1$. 0,58$1# 055$8 05$07

$. $8 $7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total  Total S2P re3ate re3ate

15$00 0$18 87,0$00 #,5$00

1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3l Possi3le e scenario scenarioss- t4ere t4ere may 3e c4anges c4anges in t4e variou various s costs costs -mosty -mosty increas increas

Input

Base case- as givenMinimum

Most Likely

Electricity Price ro

3% (given)

7%

:aintenance ;ost 

2% (given)

3.50%

Additional Maintenance, Year 5

$400/kW (given)

$550/kW

!nverter "e#laceent, Year 

$250/kW (given)

$400/kW

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

0.65%

!n&'rance o&t +rot"ate

2% (given)

5%

Calculation of the salvage value System cost -105000

Hurdle rate

'o o years o "ereciation /ereciation Salvage value
NPV NPV NPV NPV

5 -1000 15750 0

 Ta!  Ta! cre"it cre"it on salvage value

#%

.7,5

yr yr yr yr

-8.50 -17850

KW %

(rid 'otal )lectricit electric y charges savings

! "# "$ "%

-5.85

)ter ta! salvage value

2n KW>

for for for for

%

Insurance &aint costs 'otal &ain cost

SIP rebate 081$1

0$17 0$18 0$18 0$1. 0$1. 0$0 0$0 0$1 0$ 0$ 0$# 0$ 0$

00$8 10$7, #$1, #8$10 #5$,, 55$88 ,58$85 77$, 8.#$7 501$87 51#.$. 5,7$0 5#.8$0.

*15$00+ *15$#0+ *15$,1+ *15$.+ *1,$+ *1,$5,+ *1,$8.+ *17$#+ *17$57+ *17$.#+ *18$8+ *18$,5+ *1.$0+

*5$00+ *.$50+ *#$0.+ *#8$77+ *#$55+ *8$+ *5#$#.+ *58$5+ *,#$,+ *,8$.0+ *7$7+ *7.$7,+ *85$#5+

*#15$00+ *#1$#0+ *#7$7#+ *##$8+ *#0$.7+ *#7$7.+ *#5$7+ *#,1$8+ *#,.$07+ *#7,$5+ *#8#$.8+ *#.1$,,+ *#..$50+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

0$5 0$, 0$,

55#$ 5,,.$71 5810$,1

*1.$0+ *1.$7.+ *0$1.+

*.1$0,+ *,.,$88+ *#0$8+

*07$.+ *15$,+ *#$.5+

0$00 0$00 0$00

0$7 0$8 0$. 0$#0 0$#1 0$# 0$## 0$# 0$#5 0$#, 0$#7 0$#8 0$#. 0$0

5.55$00 ,10$.8 ,5$, ,10$07 ,5,.$#, ,7#$,1 ,8..$.1 7071$#7 77$10 77$1. 7,11$75 7800$.1 7..$7, 81.#$#

#,5 KW>

Per KW n actor

s 4ic4 may a6ect t4e 'P(

*0$5.+ *1$00+ *1$+ *1$85+ *$.+ *$7#+ *#$1.+ *#$,5+ *$1#+ *$,1+ *5$10+ *5$,0+ *,$1+ *,$,+

*058$88+ *#15$05+ *#1$#,+ *#7$78+ *##$#+ *#1$0+ *#7$85+ *#5$80+ *#,1$.0+ *#,.$1+ *#7,$5+ *#8$05+ *#.1$7#+ *#..$57+

*#$#+ *1$08+ *.$.0+ *58$.0+ *,8$07+ *77$#+ *8,$.8+ *.,$7+ *50,$,,+ *51,$7.+ *57$1#+ *5#7$,7+ *58$+ *55.$#.+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

Maximum

% 5% $700/k

$550/k

!.00%

"%

*$+

!,-*.$ #,--*-. /#/$*/" .$%.*"-

0epreciation

'otal cash 1o2'a3 rate Net income4Cash 1o2 *8.18$5.+ #1500$00 *5118$5.+ *5118$5.+ *17850$00+ *1#,.$1,+ *5,0$8+ *8.08$88+ 8.1$1 *17850$00+ *180$0+ *5,$+ *885#$,#+ 8..,$#7 *17850$00+ *1188$,,+ *5#.1$,.+ *87.,$.7+ .05#$0# *17850$00+ *10.$.5+ *5#5,$08+ *87#8$87+ .111$1# *17850$00+ *1#..8$8,+ *5#1.$57+ *8,7.$.+ .170$71 #..$,8 1500$88 8$80 8$80 050$7 15#.$7 511$5 511$5 15$## 1578$,5 575$,. 575$,. ,0$57 1,1.$0 ,1$5, ,1$5, #,.$5 1,,0$ 70.$10 70.$10 81$# 170$87 778$#, 778$#, 5.5$78 17,$0 8.$#8 8.$#8 71#$ 17.1$0# .$1 .$1 8##$,. *10$81+ 508#$8

18#,$80 *#.,$7+ 1.#1$8,

..,$8. *,,$5+ #151$.8

..,$8. *,,$5+ #151$.8

1,#$,. 5#,$85 58#$#. 5,#$#. 57,,$.5 5.1$15 ,0,5$08 ,1.$85 ,#78$5 ,51$, ,708$11 ,87.$1. 705$,1 7#$7

55,$0 0#1$80 08#$,. 1#,$8. 1.1$ 7$#8 #0$7# #,#$5 #$85 85$,8 5.$08 ,1$0. ,80$75 7.$10

.07$. ##15$05 ##..$70 #8,$50 #575$51 #,,,$77 #7,0$#5 #85,$#1 #.5$70 055$58 15.$0# ,5$10 #7#$8, 85$#7

.07$. ##15$05 ##..$70 #8,$50 #575$51 #,,,$77 #7,0$#5 #85,$#1 #.5$70 055$58 15.$0# ,5$10 #7#$8, 85$#7

Input values System cost System size

 Total system cost Efciency rating Salvage value Salvage value

 Ta! cre"it

 Year 0 1  #  5 , 7 8 . 10 11 1 1# 1 15 1, 17 18

-105000 18% 15% o systems cost 15750

#0$00%

/ereciation er year  Ta! rate  Ta! cre"it rate

&ate increase 'P( )nalysis or 15 years

7000 Per KW 15 KW

-1000 #8% #0%

-0$50%

KWH production KW by solar #,5$00 #5##$7 #1,$07 #.8$.. #18$50 #0,,$58 .51$5 8#,$. 7$#1 ,08$70 .5$,, #8#$18 71$,

$70 $,. $,7 $,, $,5 $,# $, $,1 $5. $58 $57 $5, $5

15.$.1 0.$11 1.#8$8, 18.$17 170$0

$5# $5 $50 $. $8

Systems cost *105000$00+

.7,5$00

1. 0 1  #  5 , 7 8 . #0

1,11$ 150#$#, 1#.5$85 188$87 118$ 107,$51 0.71$1# 08,,$7 07,1$. 0,58$1# 055$8 05$07

$7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total S2P re3ate

15$00 0$18 87,0$00 #,5$00

1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3le scenarios- t4ere may 3e c4anges in t4e various costs -mosty increas

Calculation of the salvage value System cost -105000

Hurdle rate

'o o years o "ereciation /ereciation Salvage value
NPV NPV NPV NPV

5 -1000 15750 0

 Ta! cre"it on salvage value

KW 5%

0$17 0$18 0$1. 0$1 0$ 0$ 0$, 0$7 0$. 0$#1 0$## 0$#, 0$#8

00$8 80$7. 557$5 85$1. 51,5$88 5..$85 5855$ ,##$.7 ,,#7$00 70,,$08 75$.0 800.$, 857$0,

0$1 0$ 0$7 0$50 0$5

.078$## .,,5$ 10.0$10 10.55$#, 11,,#$,

yr yr yr yr

.7,5

2n KW>

(rid 'otal )lectricit electric y charges savings

! "# "$ "%

-5.85

)ter ta! salvage value

7%

for for for for

5%

Insurance &aint costs 'otal &ain cost *15$00+ *15$75+ *1,$5+ *17$#,+ *18$#+ *1.$1+ *0$10+ *1$11+ *$1,+ *#$7+ *$#+ *5$,,+ *,$.+

SIP rebate 081$1

*5$00+ *#,$5+ *8$0,+ *,0$7+ *7#$.+ *87$1,+ *#01$5+ *#1,$,0+ *##$#+ *#.$05+ *#,,$50+ *#8$8#+ *0$07+

*,8$50+ *71,$,#+ *75$,+ *7.0$08+ *8.$58+ *871$0,+ *.1$,+ *.,0$#5+ *1008$#,+ *1058$78+ *1111$7+ *11,7$#1+ *15$,7+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

*8$8+ *$7+ *.$70+ *10.5$8+ *#1$18+ *,7$7,+ *#$7+ *871$15+ *#$#8+ *515$70+

*18,$.,+ *1#51$#0+ *118$87+ *18.$81+ *15,$#0+

0$00 0$00 0$00 0$00 0$00

0$57 0$,1 0$,, 0$70 0$75 0$81 0$8, 0$. 0$.. 1$0, 1$1# 1$1

117$,7 1#0$8 1075$18 1.85$1 15.5#$.# 1,.85$#5 1808#$5 1.5$55 0.7$# 18$#7 ###$1. 7#5$1

#,5 KW>

Per KW n actor

s 4ic4 may a6ect t4e 'P(

*#,$10+ *#7$.0+ *#.$80+ *1$7.+ *#$88+ *,$07+ *8$#8+ *50$80+ *5#$#+ *5,$00+ *58$80+ *,1$7+

*51$.+ *5,8$5,+ *5.,$..+ *,,$8+ *,58$18+ *,.1$0.+ *75$,5+ *7,1$.#+ *800$0#+ *80$0#+ *88$0#+ *.,$1#+

*1,$5+ *17$,+ *1810$88+ *1.01$+ *1..,$.+ *0.,$#1+ *01$1#+ *#11$1.+ *,$75+ *58$08+ *,75$.+ *80.$,+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

*$+

%-$%*$. "/-/,*," #"!-*// #-#%-*$"

0epreciation

'otal cash 1o2'a3 rate Net income4Cash 1o2 *8.18$5.+ #1500$00 *5118$5.+ *5118$5.+ *1000$00+ *1788,$,,+ *,7.,$.#+ *1108.$7#+ ..10$7 *1000$00+ *17,7$0.+ *,715$#.+ *10.5,$,.+ 100#$#1 *1000$00+ *17$.8+ *,,8$##+ *1081$,5+ 10185$#5 *1000$00+ *171.8$#,+ *,5#5$#8+ *10,,$.8+ 10##7$0 *1000$00+ *717$1.+ *75$#+ *,$7,+ 1,55#$ #1$,# 1,.$8 ,.1$81 ,.1$81 ,#.$8 17,$.# 87,$#5 87,$#5 .57$0# 188#$,7 #07#$#, #07#$#, 5.,$1 01$5, #8#$,5 #8#$,5 5,58$5 150$1# #508$11 #508$11 ,0$,8 .,$.8 #77$70 #77$70 ,57$1 5#$71 00#$ 00#$ ,8.7$# ,0$.8 7,$# 7,$# 7#,7$10 *,#1$5+ 80#$7 7$0 .58#$,1

7..$50 *...$..+ #1.#$# 75$7 #,1$77

5,7$,0 *1,#1$5,+ 510$15 .$1# 5.1$8

5,7$,0 *1,#1$5,+ 510$15 .$1# 5.1$8

10##$,7 10.7$7 11,,7$#1 15,$88 1#..$, 11.7$. 1515,$,8 1,17.$# 1770$5 18#$, 1.,75$,7 0...$8

#888$7. 15$#, ##$58 7##$,1 505#$7 5#.5$ 575.$5 ,18$18 ,5,$77 7005$0 77,$7, 7.7.$.#

,#$87 ,77$.1 7##$7# 77#$7 85$5 880$7# .#.7$1 100#1$5 10707$,8 11.$ 11.8$. 1#01.$8.

,#$87 ,77$.1 7##$7# 77#$7 85$5 880$7# .#.7$1 100#1$5 10707$,8 11.$ 11.8$. 1#01.$8.

Input values System cost System size

 Total system cost Efciency rating Salvage value Salvage value

 Ta! cre"it

 Year 0 1  #  5 , 7 8 . 10 11 1 1# 1 15 1, 17 18

-105000 18% 15% o systems cost 15750

#0$00%

/ereciation er year  Ta! rate  Ta! cre"it rate

&ate increase 'P( )nalysis or 15 years

7000 Per KW 15 KW

-1000 #8% #0%

-0$50%

KWH production KW by solar #,5$00 #5##$7 #1,$07 #.8$.. #18$50 #0,,$58 .51$5 8#,$. 7$#1 ,08$70 .5$,, #8#$18 71$,

$70 $,. $,7 $,, $,5 $,# $, $,1 $5. $58 $57 $5, $5

15.$.1 0.$11 1.#8$8, 18.$17 170$0

$5# $5 $50 $. $8

Systems cost *105000$00+

.7,5$00

1. 0 1  #  5 , 7 8 . #0

1,11$ 150#$#, 1#.5$85 188$87 118$ 107,$51 0.71$1# 08,,$7 07,1$. 0,58$1# 055$8 05$07

$7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total S2P re3ate

15$00 0$18 87,0$00 #,5$00

1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3le scenarios- t4ere may 3e c4anges in t4e various costs -mosty increas

Input

Base case- as givenMinimum

Most Likely

Electricity Price ro

3% (given)

7%

:aintenance ;ost 

2% (given)

3.50%

Additional Maintenance, Year 5

$400/kW (given)

$550/kW

!nverter "e#laceent, Year 

$250/kW (given)

$400/kW

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

0.65%

!n&'rance o&t +rot"ate

2% (given)

5%

Calculation of the salvage value System cost -105000

Hurdle rate

'o o years o "ereciation /ereciation Salvage value
NPV NPV NPV NPV

5 -1000 15750 0

 Ta! cre"it on salvage value

yr yr yr yr

.7,5

2n KW>

KW 5%

(rid 'otal )lectricit electric y charges savings

! "# "$ "%

-5.85

)ter ta! salvage value

.%

for for for for

8%

Insurance &aint costs 'otal &ain cost

SIP rebate 081$1

0$17 0$1. 0$0 0$ 0$ 0$, 0$. 0$#1 0$# 0$#7 0$0 0$ 0$8

00$8 #,0$80 7.$51 51.$#. 55,#$08 ,0##$ ,5#$5, 70.,$8 7,.,$8, 8#7$,# .05#$ .818$88 10,.$07

*15$00+ *15$75+ *1,$5+ *17$#,+ *18$#+ *1.$1+ *0$10+ *1$11+ *$1,+ *#$7+ *$#+ *5$,,+ *,$.+

*5$00+ *#,$5+ *8$0,+ *,0$7+ *7#$.+ *87$1,+ *#01$5+ *#1,$,0+ *##$#+ *#.$05+ *#,,$50+ *#8$8#+ *0$07+

*1050$00+ *11#$00+ *1$7+ *1#$70+ *18$51+ *15$7.+ *1,,,$+ *17..$5+ *1.#$8+ *0.8$.5+ *,,$87+ *8$+ *,$08+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

0$5 0$57 0$, 0$,7 0$7

115.$5 155$., 1#585$0# 17##$, 15.7.$#7

*8$8+ *$7+ *.$70+ *10.5$8+ *#1$18+ *,7$7,+ *#$7+ *871$15+ *#$#8+ *515$70+

*855$,0+ *#08$05+ *###0$78+ *#5.7$+ *#885$0+

0$00 0$00 0$00 0$00 0$00

0$80 0$87 0$.5 1$0 1$1# 1$# 1$# 1$7 1$,0 1$7 1$.0 $07

17##0$ 187.5$71 0#8$8. 108$# #.77$70 ,005$01 80#$7 #0588$#, ##17$,1 #5.7.$5 #.01$5. #0$87

#,5 KW>

Per KW n actor

s 4ic4 may a6ect t4e 'P(

*#,$10+ *#7$.0+ *#.$80+ *1$7.+ *#$88+ *,$07+ *8$#8+ *50$80+ *5#$#+ *5,$00+ *58$80+ *,1$7+

*51$.+ *5,8$5,+ *5.,$..+ *,,$8+ *,58$18+ *,.1$0.+ *75$,5+ *7,1$.#+ *800$0#+ *80$0#+ *88$0#+ *.,$1#+

*1.5$8+ *5#1$.+ *8.$01+ *585$5#+ *5708$#7+ *,1,5$0+ *,,58$+ *71.0$.0+ *77,,$17+ *8#87$,+ *.058$,+ *.78#$1+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

Maximum

% 5% $700/k

$550/k

!.00%

"%

*$+

,-#/*/! "/!,#*!. #"/,-*$, #/!!"*!$

0epreciation

'otal cash 1o2'a3 rate Net income4Cash 1o2 *8.18$5.+ #1500$00 *5118$5.+ *5118$5.+ *1000$00+ *185$1,+ *,.#,$58+ *11#17$58+ .,8$ *1000$00+ *1800.$5+ *,8#$5.+ *111,5$8,+ .8#$1 *1000$00+ *177#$7+ *,7$+ *11000$8#+ ....$17 *1000$00+ *175#$78+ *,,#$#+ *1081$#+ 10178$,, *1000$00+ *7#7#$.+ *80$0.+ *571$8#+ 1,8$17 0#$8 15.7$# ,0,$1, ,0,$1, 575$8 17#8$81 8#7$01 8#7$01 .80$71 18.$,7 #088$0 #088$0 50$.5 05.$., ##,0$.. ##,0$.. 58..$, 1$8, #,57$77 #,57$77 ,0$05 #.$, #.80$# #.80$# ,.85$8 ,5$, ##1$ ##1$ 7,00$.# 888$#5 71$57 71$57 8,.$57 *150#$58+ .78,$. #.5$5 11578$,5

#1$ *571$#,+ #718$87 .10$0 #..$8.

517$1 *.#$+ ,0,7$, 185$0, 7178$7,

517$1 *.#$+ ,0,7$, 185$0, 7178$7,

15.#$11 1#,.5$,, 18.#$8. 1,1.,$07 17,11$15 1.18$88 081.$85 ,#5$5 ,08$1 ,75$0# .081$10 #1,11$,0

785$#8 50$#5 5,5.$,8 ,15$50 ,,.$ 77,$58 7.11$5 8,01$50 .#51$0 101,5$77 11050$8 101$1

7807$7# 8.1$#1 .#$1 1001$5, 10.18$.1 1187$#1 1.08$#1 10#$0# 1557$ 1,58,$, 180#0$8 1.5..$1.

7807$7# 8.1$#1 .#$1 1001$5, 10.18$.1 1187$#1 1.08$#1 10#$0# 1557$ 1,58,$, 180#0$8 1.5..$1.

Input

#

Base case- as given-Minimum

Electricity Price rot4 &at

 130 *r&

3% (given)

:aintenance ;ost rot4

 12 *r&

2% (given)

Additional Maintenance, Year 5

 1 5 *r&

$400/kW (given)

!nverter "e#laceent, Year 

1 *r&

$250/kW (given)

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

!n&'rance o&t +rot- "ate

2% (given)

#

Most Likely

#

Maximum NPV

3034.5

7%

435.5

%

244.4

5%

646.

5%

6265.6

$700/k

2034.66

$700/k

5.4

$550/k

2424.5

$550/k

0.65%

!.00%

5%

"%

.#,$,0 1,0.$08 1,.$5. ,001$05

Input values System cost System size

 Total system cost Efciency rating Salvage value Salvage value

 Ta! cre"it

 Year 0 1  #  5 , 7 8 . 10 11 1 1# 1 15 1, 17 18

-#15000 18% 15% o systems cost 750

#0$00%

/ereciation er year  Ta! rate  Ta! cre"it rate

&ate increase 'P( )nalysis or 15 years

7000 Per KW 15 KW

-,#000 #8% #0%

-0$50%

KWH production KW by solar 70.5,$00 70,01$ 708$1 ,.8.,$.7 ,.57$. ,.1..$75 ,885#$75 ,850.$8 ,81,,$. ,78,$10 ,78,$.7 ,71.$5 ,,81#$7.

$70 $,. $,7 $,, $,5 $,# $, $,1 $5. $58 $57 $5, $5

,,7.$7 ,,17$# ,581,$58 ,587$50 ,51,0$0,

$5# $5 $50 $. $8

Systems cost *#15000$00+

1. 0 1  #  5 , 7 8 . #0

,8#$, ,510$0. ,187$5 ,#8,,$,0 ,#57$7 ,#.$5# ,.1#$#. ,5.8$8 ,85$8# ,1.7$0 ,1,,$5 ,1#5,$0

$7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total S2P re3ate

..5$00

15$00 0$18 87,0$00 #,5$00 70.5,$00 1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3le scenarios- t4ere may 3e c4anges in t4e various costs -mosty increas

Input

Base case- as givenMinimum

Most Likely

Electricity Price ro

3% (given)

7%

:aintenance ;ost 

2% (given)

3.50%

Additional Maintenance, Year 5

$400/kW (given)

$550/kW

!nverter "e#laceent, Year 

$250/kW (given)

$400/kW

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

0.65%

!n&'rance o&t +rot"ate

2% (given)

5%

Calculation of the salvage value System cost -#15000

Hurdle rate

'o o years o "ereciation /ereciation Salvage value
NPV NPV NPV NPV

5 -,#000 750 0

 Ta! cre"it on salvage value

yr yr yr yr

..5

2n KW>

KW %

(rid 'otal )lectricit electric y charges savings

! "# "$ "%

-17.55

)ter ta! salvage value

#%

for for for for

%

Insurance &aint costs 'otal &ain cost

SIP rebate ,,$#

0$17 0$18 0$18 0$1. 0$1. 0$0 0$0 0$1 0$ 0$ 0$# 0$ 0$

10,$5 1#,$7 1,,.$8 1.8$#1 1##0,$.7 1#,#7$,5 1#.7,$55 1##$8, 1,7.$81 150$,1 1518$, 15801$,1 1,1.$8

*15$00+ *15$#0+ *15$,1+ *15$.+ *1,$+ *1,$5,+ *1,$8.+ *17$#+ *17$57+ *17$.#+ *18$8+ *18$,5+ *1.$0+

*,75$00+ *,88$50+ *70$7+ *71,$#+ *7#0$,+ *75$5+ *7,0$1,+ *775$#,+ *7.0$87+ *80,$,.+ *8$8+ *8#.$8+ *85,$0,+

*.5$00+ *.,#$.0+ *.8#$18+ *100$8+ *10$.0+ *10#$#,+ *10,$+ *1085$51+ *1107$+ *11.$#,+ *1151$.5+ *117$..+ *11.8$.+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

0$5 0$, 0$, 0$7 0$8

1,5.,$71 1700.$1 17#1$8 178,5$00 18#08$.

*1.$0+ *87#$18+ *1.$7.+ *188.0$,5+ *0$1.+ *.08$,+ *0$5.+ *117,$,#+ *1$00+ *.5$1,+

*1$,+ *1,$.1+ *171$85+ *1.7$8+ *1##$#+

0$00 0$00 0$00 0$00 0$00

0$. 0$#0 0$#1 0$# 0$## 0$# 0$#5 0$#, 0$#7 0$#8 0$#. 0$0

187,#$. 1.#0$0 1.708$07 01.7$8 0,..$7# 11$1 171$. 81$5, 8#5$, #0$7 #.8$8 580$8

#,5 KW>

Per KW n actor

s 4ic4 may a6ect t4e 'P(

*1$+ *1$85+ *$.+ *$7#+ *#$1.+ *#$,5+ *$1#+ *$,1+ *5$10+ *5$,0+ *,$1+ *,$,+

*.,$07+ *.8#$#5+ *100#$01+ *10#$07+ *10#$5+ *10,$1+ *1085$70+ *1107$1+ *11.$5,+ *115$15+ *1175$1.+ *11.8$70+

*1#.$,.+ *1#7,$,.+ *10$+ *1#$#0+ *1,0$.5+ *1.0$17+ *151.$.7+ *1550$#7+ *1581$#8+ *1,1#$01+ *1,5$7+ *1,78$17+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

Maximum

% 5% $700/k

$550/k

!.00%

"%

*$+

""%,,*$ #$!*# -,,/*/ -",-*#"

0epreciation

'otal cash 1o2'a3 rate Net income4Cash 1o2 *8755$77+ .500$00 *1555$77+ *1555$77+ *,#000$00+ *5557$8+ *1..71$8+ *#585$,+ #01$#, *,#000$00+ *5.0$1#+ *1.870$5+ *#1.$88+ #0580$1 *,#000$00+ *5015$.7+ *1.7,,$07+ *#.$.0+ #0750$10 *,#000$00+ *517#$8+ *1.,5.$+ *#075$,0+ #0.$0 *,#000$00+ *51,$57+ *1.5.$70+ *#18.,$87+ #110#$1# 118.$0 50$, 7#,$0 7#,$0 115$1, ,17$8 75#$# 75#$# 1,$.. 7#5$. 777$0, 777$0, 1781$7 857$05 7.$,7 7.$,7 1#108$5, .81$5 817$#0 817$#0 1##$,. 5108$,0 8##5$0. 8##5$0. 1#787$#5 5#.$1. 858$15 858$15 11#.$7# 5#7#$10 87,,$,# 87,,$,# 1501$07 *#18$+ 1551$51 #.1$08 1,00$55

5510$1 *1188$80+ 57.5$57 1,,8$,1 ,0.5$1

8..0$,, *1.#.$,+ .55$. 7$7 ..5$1

8..0$,, *1.#.$,+ .55$. 7$7 ..5$1

1,50$1, 1,870$17 17#00$8 177$ 181.5$5 18,5.$55 1.1#5$,# 1.,#$78 01$# 0,#7$5, 11,#$8 50..8$

,51$0, ,10$,, ,57$# ,7$1# ,.1$1. 70.0$,# 771$5 757$0 7,7$ 78$7 80$5 1.#7.$0

101..$10 105.$50 107,$5 11000$#1 1181$05 115,8$. 118,$0. 11,,$75 177$08 17.5$. 1#11$57 #1,1.$0

101..$10 105.$50 107,$5 11000$#1 1181$05 115,8$. 118,$0. 11,,$75 177$08 17.5$. 1#11$57 #1,1.$0

Input values System cost System size

 Total system cost Efciency rating Salvage value Salvage value

 Ta! cre"it

 Year 0 1  #  5 , 7 8 . 10 11 1 1# 1 15 1, 17 18

-#15000 18% 15% o systems cost 750

#0$00%

/ereciation er year  Ta! rate  Ta! cre"it rate

&ate increase 'P( )nalysis or 15 years

7000 Per KW 15 KW

-,#000 #8% #0%

-0$50%

KWH production KW by solar 70.5,$00 70,01$ 708$1 ,.8.,$.7 ,.57$. ,.1..$75 ,885#$75 ,850.$8 ,81,,$. ,78,$10 ,78,$.7 ,71.$5 ,,81#$7.

$70 $,. $,7 $,, $,5 $,# $, $,1 $5. $58 $57 $5, $5

,,7.$7 ,,17$# ,581,$58 ,587$50 ,51,0$0,

$5# $5 $50 $. $8

Systems cost *#15000$00+

..5$00

1. 0 1  #  5 , 7 8 . #0

,8#$, ,510$0. ,187$5 ,#8,,$,0 ,#57$7 ,#.$5# ,.1#$#. ,5.8$8 ,85$8# ,1.7$0 ,1,,$5 ,1#5,$0

$7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total S2P re3ate

15$00 0$18 87,0$00 #,5$00 70.5,$00 1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3le scenarios- t4ere may 3e c4anges in t4e various costs -mosty increas

Input

Base case- as givenMinimum

Most Likely

Electricity Price ro

3% (given)

7%

:aintenance ;ost 

2% (given)

3.50%

Additional Maintenance, Year 5

$400/kW (given)

$550/kW

!nverter "e#laceent, Year 

$250/kW (given)

$400/kW

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

0.65%

!n&'rance o&t +rot"ate

2% (given)

5%

Calculation of the salvage value System cost -#15000

Hurdle rate

'o o years o "ereciation /ereciation Salvage value
NPV NPV NPV NPV

5 -,#000 750 0

 Ta! cre"it on salvage value

yr yr yr yr

..5

2n KW>

KW 5%

(rid 'otal )lectricit electric y charges savings

! "# "$ "%

-17.55

)ter ta! salvage value

7%

for for for for

5%

Insurance &aint costs 'otal &ain cost

SIP rebate ,,$#

0$17 0$18 0$1. 0$1 0$ 0$ 0$, 0$7 0$. 0$#1 0$## 0$#, 0$#8

10,$5 18$#, 1#,7$, 155,$5, 15.7$, 1,..$5, 175,,$, 18701$.1 1..10$.. 11.8$ 5,8$70 07$77 5581$17

*15$00+ *15$75+ *1,$5+ *17$#,+ *18$#+ *1.$1+ *0$10+ *1$11+ *$1,+ *#$7+ *$#+ *5$,,+ *,$.+

*,75$00+ *708$75+ *7$1.+ *781$0+ *80$7+ *8,1$.+ *.0$5,+ *..$7.+ *..7$8+ *107$15+ *10..$50+ *115$8+ *11$0+

*07$50+ *1.$88+ *57$#7+ *#70$+ *88$75+ *,1#$1.+ *7#$85+ *881$0+ *#05$0.+ *#17,$#+ *###5$1,+ *#501$.+ *#,77$0+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

0$1 0$ 0$7 0$50 0$5

7#$.. 8..5$7# #0870$#1 #8,,$07 #..0$8,

*8$8+ *17$81+ *.$70+ *#8#,$5+ *#1$18+ *10#$8+ *#$7+ *,#$+ *#$#8+ *157$11+

*#8,0$87+ *05#$.1+ *5,$,1+ *,.$+ *,.$.1+

0$00 0$00 0$00 0$00 0$00

0$57 0$,1 0$,, 0$70 0$75 0$81 0$8, 0$. 0$.. 1$0, 1$1# 1$1

#75#$0 #.,,1$# 5$5 .55$ 78,1$7. 50.5,$05 550$#, 57757$,5 ,1.1$,8 ,5,7$1 ,.,..$57 705$,

#,5 KW>

Per KW n actor

s 4ic4 may a6ect t4e 'P(

*#,$10+ *#7$.0+ *#.$80+ *1$7.+ *#$88+ *,$07+ *8$#8+ *50$80+ *5#$#+ *5,$00+ *58$80+ *,1$7+

*1,$7+ *1705$,.+ *17.0$.8+ *1880$5+ *1.7$55+ *07#$8+ *17,$.+ *85$7.+ *00$08+ *50$08+ *,,$0.+ *778$#.+

*.7$55+ *517#$.#+ *5#$,#+ *570$,+ *5.8.$7+ *,88$.+ *,,0#$#.+ *,.##$5,+ *780$+ *7,$5+ *80,$,+ *87$7.+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

Maximum

% 5% $700/k

$550/k

!.00%

"%

*$+

##!%#*% -,-!,*%/"!*,. %#.#*$

0epreciation

'otal cash 1o2'a3 rate Net income4Cash 1o2 *8755$77+ .500$00 *1555$77+ *1555$77+ *,#000$00+ *5#,5.$.8+ *0#.0$7.+ *##,.$1.+ .7#0$81 *,#000$00+ *5#01,$,+ *01,$18+ *#870$08+ #01.$. *,#000$00+ *5#8$.+ *1.885$00+ *##$.+ #055,$0, *,#000$00+ *515.5$08+ *1.,0,$1#+ *#1.88$.5+ #1011$05 *,#000$00+ *151,$58+ *817,$#0+ *1##0$8+ .,5.$7 1#0$88 ..$, 8075$# 8075$# 1#.17$85 588$78 8,.$0, 8,.$0, 1871$08 5,51$01 .0$07 .0$07 15888$, ,0#7$,8 .850$. .850$. 1,.7$75 ,50$0 105$# 105$# 181#$0 ,8.0$.# 11#$10 11#$10 1.#71$#7 7#,1$1 1010$5 1010$5 0,.1$.5 78,$. 18.$01 18.$01 101$#1 *78.$,#+ 510$ 17#$1. 8750$8

8#.8$50 *...$.,+ .57.$., 85$81 10.5$#

1#70$81 *8.$,7+ 15,#0$, 1#7$#8 1785$5

1#70$81 *8.$,7+ 15,#0$, 1#7$#8 1785$5

#0701$00 #781$81 #5001$. #7#70$, #.8.7$77 5.#$8# 570$0# 85#8$#0 51811$#, 55#0$78 5.07$0 ,...$7

11,,,$#8 157$0. 1##00$7 100$8 151,1$15 1,185$,, 1778$,1 18$55 1.,88$# 1015$0, #0$7 #.#.$80

1.0#$, 0#$7 1701$0 #1,.$80 7#,$, ,08$18 81.1$ #00.#$7 #1#$0 #87$7# #,5.,$75 #.05.$,7

1.0#$, 0#$7 1701$0 #1,.$80 7#,$, ,08$18 81.1$ #00.#$7 #1#$0 #87$7# #,5.,$75 #.05.$,7

Input values System cost System size

 Total system cost Efciency rating Salvage value Salvage value

 Ta! cre"it

 Year 0 1  #  5 , 7 8 . 10 11 1 1# 1 15 1, 17 18

-#15000 18% 15% o systems cost 750

#0$00%

/ereciation er year  Ta! rate  Ta! cre"it rate

&ate increase 'P( )nalysis or 15 years

7000 Per KW 15 KW

-,#000 #8% #0%

-0$50%

KWH production KW by solar 70.5,$00 70,01$ 708$1 ,.8.,$.7 ,.57$. ,.1..$75 ,885#$75 ,850.$8 ,81,,$. ,78,$10 ,78,$.7 ,71.$5 ,,81#$7.

$70 $,. $,7 $,, $,5 $,# $, $,1 $5. $58 $57 $5, $5

,,7.$7 ,,17$# ,581,$58 ,587$50 ,51,0$0,

$5# $5 $50 $. $8

Systems cost *#15000$00+

..5$00

1. 0 1  #  5 , 7 8 . #0

,8#$, ,510$0. ,187$5 ,#8,,$,0 ,#57$7 ,#.$5# ,.1#$#. ,5.8$8 ,85$8# ,1.7$0 ,1,,$5 ,1#5,$0

$7 $5 $ $# $ $1 $#. $#8 $#7 $#, $#5 $##

KW production cost System size efciency rate time System size efciency rate  Time Energy Pro"uction cost Calculation of SIP rebate )moount o S2P re3ate S2P re3ate System rating /esign actor )mount o S2P re3ate  Total S2P re3ate

15$00 0$18 87,0$00 #,5$00 70.5,$00 1.50$00 System rating  "esi 1$58 0$. 1.50 1$.5 081$1

Possi3le scenarios- t4ere may 3e c4anges in t4e various costs -mosty increas

Input

Base case- as givenMinimum

Most Likely

Electricity Price ro

3% (given)

7%

:aintenance ;ost 

2% (given)

3.50%

Additional Maintenance, Year 5

$400/kW (given)

$550/kW

!nverter "e#laceent, Year 

$250/kW (given)

$400/kW

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

0.65%

!n&'rance o&t +rot"ate

2% (given)

5%

Calculation of the salvage value System cost -#15000

Hurdle rate

'o o years o "ereciation /ereciation Salvage value
NPV NPV NPV NPV

5 -,#000 750 0

 Ta! cre"it on salvage value

yr yr yr yr

..5

2n KW>

KW 5%

(rid 'otal )lectricit electric y charges savings

! "# "$ "%

-17.55

)ter ta! salvage value

.%

for for for for

8%

Insurance &aint costs 'otal &ain cost

SIP rebate ,,$#

0$17 0$1. 0$0 0$ 0$ 0$, 0$. 0$#1 0$# 0$#7 0$0 0$ 0$8

10,$5 1#08$1 1188$5 15#88$1, 1,,8.$# 18100$#1 1.,#0$,. 1.0$, #0.0$57 50$88 71,0$5 .5,$,5 #1.7$1

*15$00+ *15$75+ *1,$5+ *17$#,+ *18$#+ *1.$1+ *0$10+ *1$11+ *$1,+ *#$7+ *$#+ *5$,,+ *,$.+

*,75$00+ *708$75+ *7$1.+ *781$0+ *80$7+ *8,1$.+ *.0$5,+ *..$7.+ *..7$8+ *107$15+ *10..$50+ *115$8+ *11$0+

*#150$00+ *#0$00+ *#,7$1,+ *#.,8$0.+ *85$5+ *,8$#8+ *..8$,5+ *5#.8$55+ *58#0$#+ *,.,$8,+ *,800$,1+ *7#$,,+ *7.#$+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

0$5 0$57 0$, 0$,7 0$7

#,8$#5 #7577$87 0755$08 00$. 7.#8$11

*8$8+ *17$81+ *.$70+ *#8#,$5+ *#1$18+ *10#$8+ *#$7+ *,#$+ *#$#8+ *157$11+

*85,,$81+ *.5$1,+ *...$##+ *107.1$7+ *11,55$0,+

0$00 0$00 0$00 0$00 0$00

0$80 0$87 0$.5 1$0 1$1# 1$# 1$# 1$7 1$,0 1$7 1$.0 $07

51..1$7 5,#87$1 ,115$,7 ,,#5$#0 71.##$10 78015$0 8,11$ .17,5$0. ..5#$8# 107.#8$57 1170,$78 1,.,$,1

#,5 KW>

Per KW n actor

s 4ic4 may a6ect t4e 'P(

*#,$10+ *#7$.0+ *#.$80+ *1$7.+ *#$88+ *,$07+ *8$#8+ *50$80+ *5#$#+ *5,$00+ *58$80+ *,1$7+

*1,$7+ *1705$,.+ *17.0$.8+ *1880$5+ *1.7$55+ *07#$8+ *17,$.+ *85$7.+ *00$08+ *50$08+ *,,$0.+ *778$#.+

*1587$,+ *1#5.$,+ *1,8$0+ *1585,$58+ *1715$10+ *18.5$11+ *1..7$7+ *157$70+ *#.8$51+ *51,$#.+ *7175$#.+ *.#.$+

0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00 0$00

Maximum

% 5% $700/k

$550/k

!.00%

"%

*$+

#.#%!,*.! -.#%/*#/$!.*%. %.!!*"/

0epreciation

'otal cash 1o2'a3 rate Net income4Cash 1o2 *8755$77+ .500$00 *1555$77+ *1555$77+ *,#000$00+ *57,$8+ *080.$7+ *##.5$7+ .07$, *,#000$00+ *508$#+ *05#0$77+ *##.7$57+ .50$# *,#000$00+ *5#.$8+ *07$##+ *##00$.+ ...7$51 *,#000$00+ *5#,1$##+ *1.8.7$#0+ *#,$0+ #05#5$.8 *,#000$00+ *11$77+ *80,$7+ *1#715$50+ .8$50 1,10$# 7.1$., 7818$7 7818$7 1#77$7 51,$ 8511$0# 8511$0# 1.$1 5,78$01 .,$1 .,$1 1,,$8, ,17.$8. 1008$.7 1008$.7 17,.8$87 ,75$57 10.7#$#0 10.7#$#0 1.,0$1 7#18$85 11.1$8 11.1$8 0.57$51 7.,#$85 1..#$,, 1..#$,, 80$78 8,,5$05 11#7$7 11#7$7 808$7 *510$7+ .#5.$7 7185$7, #7#5$.

.7$#1 *171$08+ 1115,$,0 7#0$5. 1#1..$,,

15#81$1 *7.,$,,+ 180$87 55$17 15#,$8

15#81$1 *7.,$,,+ 180$87 55$17 15#,$8

#777.$# 108,$.. ,81$,8 8588$0 58##$5 57,$,5 ,5.$55 ,7.0,$,1 7#85$ 805,$10 87#$#1 .8#$80

1#5,$15 15,1#$0, 1,.7.$0 18,#$51 007,$71 18.$7# #7#$,# 580$51 805#$5. #0.7$# ##15$, #,0#7$

##$1. 57#$.# 770$, #01$,8 #75,$7 #5,1,$.# #87$. 10$10 5771$,5 .758$78 50.0$85 587.7$58

##$1. 57#$.# 770$, #01$,8 #75,$7 #5,1,$.# #87$. 10$10 5771$,5 .758$78 50.0$85 587.7$58

Input

#

Base case- as given-Minimum

Electricity Price rot4 &at

 130 *r&

3% (given)

:aintenance ;ost rot4

 12 *r&

2% (given)

Additional Maintenance, Year 5

 1 5 *r&

$400/kW (given)

!nverter "e#laceent, Year 

1 *r&

$250/kW (given)

!n&'rance o&t (a& % o &*&te co&t)

0.30% (given)

!n&'rance o&t +rot- "ate

2% (given)