Residential Solar Photovoltaic Calculator
The following calculator is intended to provide residential customers with only a rough estimate of solar photovoltaic system sizing and pricing. Customers should consult installers for more information. Further disclaimer information is below.
Key
Entry Cells Calculation Cells (Not for Entry)
What is your annual electricity use?
The average home in Massachusetts consumes about 8,000 kilowatt-hours per (kWh) year. You can determine your annual electricity use by looking at your electricity bill and totaling the kWh that you use each month for a year. Typically this information is located on the lower left corner of your electricity bill. Enter your annual electricity usage (default is 8,000 kWh)? 8,000 kWh
How much will a typical solar system generate (assuming an optimal fixed south facing free from shading location)?
The following table estimates how much of your electricity use can be offset by solar systems of different sizes. It is important to note that while residential customers can apply for rebates for systems as large as they want, the maximum size that is used in the calculation of a residential rebate is 3.6 kilowatts (kW) or 3,600 watts (w). Percent of Average Customer Annual Usage 15% 30% 45% 60% 75%
System Size 1 kW (~100 sqft of panels) 2 kW 3 kW 4 kW 5 kW
Estimated Optimal Annual Generation (kWh) 1200 2400 3600 4800 6000
Percent of your Annual Usage 15% 30% 45% 60% 75%
How much will a solar system cost?
Typical residential systems cost about $9,500 per kWh installed. Some systems cost less and others cost more depending upon equipment and installation variables. Customers should consult installers for more accurate cost estimates. What size system are you interested in? (default is 2.5 kW) 2.5 kW 2,500 watts (w) $9,250 per kW $23,125
How much will your system cost $/kW (default is $9,250 per kW)? Estimated total installed cost
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How do I estimate my rebate and system cost after rebate and tax credits?
Typical rebates for residential customers cover between 20% and 50% of system costs depending on the characteristics of the household and project. At a minimum, all eligible customers qualify for $2.00 per watt, or $2,000 per kilowatt. In addition, residential customers may be eligible for up to $3,000 in federal and state tax incentives. Customers should consult with installers for more accurate cost estimates and information on rebate adders. Customers may also consult the Section 3, page 6 of the Small Renewables Solicitation for more information on eligibility requirements for various rebate adders. For details on assumptions behind this estimate, please consult the second sheet of this workbook. $ 2.00 $ 2.00 Will you use a major component that is manufactured in Massachusetts? No extra $.25/watt $ Do you think you qualify for the Moderate Home Value Adder? Moderate Income Adders (you can only qualify for one of the following Income Adders) Do you think you qualify for the Moderate Household Income Adder for <=$91,552? No extra $1.00/watt $ No extra $1.25/watt $ -
Do you think you qualify for the Moderate Household Income Adder for <= $76,296? Green Building Adders (you can only qualify for one of the following Green Building Adders) Do you think you qualify for an Energy Star Adder? Do you think you qualify for a LEED Adder? Estimated Rebate (Size basis is capped at 3.6 kW for residential customers) $ $ Total Installed Cost $ Rebate $ Tax Incentives $ Net System Cost after rebate and $3,000 in federal and state tax incentives How much do you think that the price of electricity will increase each year? (default is 5%) Estimated Simple Payback (assuming optimal production) Estimated Rate of Return (assuming optimal production)
No
extra $2.00/watt
$
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No No 5,000.00 2.00 23,125 5,000 3,000 $15,125 5% 18 4.0%
extra $.25/watt extra $1.00/watt Total per watt
$ $
-
Years
How else can I save energy at my home?
Check out www.masssave.com for more energy saving tips and rebates.
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The solar calculator is intended to provide residential customers considering the purchase and installation of solar energy equipment with a general understanding of possible financial implications of such purchase and installation. Those interested in learning more about the financial implications of the purchase and installation of solar energy equipment are urged to consult their own tax and financial experts. The information contained in this spreadsheet may not be relied on by anyone for any purposes. Furthermore, the information contained in this model does not necessarily reflect the views of the Massachusetts Technology Collaborative or the Commonwealth of Massachusetts, and reference to any specific method does not constitute an implied or expressed recommendation or endorsement. Neither the Massachusetts Technology Collaborative nor the Commonwealth of Massachusetts make any warranties or representations, expressed or implied, as to the usefulness, completeness, or accuracy of any processes, methods or other information contained, described, disclosed, or referred to in this model. Finally, neither the Massachusetts Technology Collaborative nor the Commonwealth of Massachusetts makes any representation that the use of any product, apparatus, process, method, or other information will not infringe on privately owned property rights and assumes no liability of any kind or nature for any loss, injury, or damage directly or indirectly resulting from, or occurring in connection with, the use of information contained, described, disclosed, or referred to in this Unofficial Cash Flow Model.
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Residential Solar Photovoltaic Project Simple Financial Model (1/26/07) DATA ENTRY AND FINANCIAL SUMMARY
Key Entry Cells Calculation Cells (Not for Entry) Pulls Data from Another Sheet Select Taxable or Non-Taxable Entity Project and Customer Cost Assumptions Solar Photovoltaic System Size Total System Cost/Watt Total System Cost MTC Rebate Assumptions MTC Solar Rebate Scenario A Rebate Project Performance and Savings/ Cost Assumptions Annual Net Capacity Factor Annual Production Degradation Project Life Electricity Revenue (Avoided Costs) Electricity Revenue (Avoided Costs) Annual Adjustor Renewable Energy Certificate (REC) Revenue REC Revenue Annual Adjustor REC Revenue Term Annual Operations and Maintenance Cost Annual Operations and Maintenance Adjustor Future Inverter Replacement Cost Inverter Life, Replace Every X Years $ $ 2.00 $/Watt (DC STC) 5,000 Solar Project Financial Analysis Summary Net Present Value Simple Payback Estimated Rate of Return $ (1,756) Year 18 4.0% $ $ 2,500 Watts (DC STC) 9.25 $/Watt (DC STC) 23,125 Taxable Taxable Non-Taxable Financing Assumptions 100% Cash or 100% Loan Effective Loan Interest Rate Loan Period Net Cost Loan Customer Discount Rate $ $ Tax Assumptions Federal Tax Credit State Tax Deduction $ $ 2,000 1,000
Cash 7%
Cash Loan
10 Years (must be equal to or less than project life) 18,125 5%
14.0% kW (DC STC) to kWh AC 0.50% 25 0.20 5.0% 0.05 0.0% 5 3.0% 0.75 15 % Years $/kWh % $/kWh % Years (must be equal to or less than project life) $/Year % $/Watt (DC STC) Year (must be equal to or less than project life)
$ $
$ $
PRO FORMA AND PRODUCTION
Project Output Annual Generation (kWh) Start-Up 0 Year 1 3,066 Year 2 3,051 Year 3 3,035 Year 4 3,020 Year 5 3,005 Year 6 2,990 Year 7 2,975 Year 8 2,960 Year 9 2,945 Year 10 2,931 Year 11 2,916 Year 12 2,902 Year 13 2,887 Year 14 2,873 Year 15 2,858 Year 16 2,844 $ Year 17 2,830 Year 18 2,816 Year 19 2,801 Year 20 2,787
Scenario A: Non-Taxable Rebate; Pro Forma Project Economics
CASH FLOW STATEMENT Initial PV Cost Tax Credits State Tax Credit Federal Tax Credit Total Tax Credits Revenue Electricity Revenue (Avoided Cost) REC Revenue Total Revenue (Avoided Costs) Expenses Operations & Maintenance Costs Inverter Replacement Cost Loan Payments Total Expenses Annual Cash Flow Cumulative Cash Flow $ $ $ $ $ $ $ $ $ (18,125) $ (18,125) $ 613 153 767 $ $ $ $ $ $ $ 641 153 793 $ $ $ $ $ $ $ 669 152 821 $ $ $ $ $ $ $ 699 151 850 $ $ $ $ $ $ $ 731 150 881 $ $ $ $ $ $ $ 763 763 $ $ $ $ $ $ $ 797 797 $ $ $ $ $ $ $ 833 833 $ $ $ $ $ $ $ 870 870 $ $ $ $ $ $ $ 909 909 $ $ $ $ $ $ $ 950 950 $ $ $ $ $ $ $ 993 993 $ $ $ $ $ $ $ 1,037 1,037 $ $ $ $ $ $ $ 1,083 1,083 $ $ $ $ $ $ $ 1,132 1,132 (1,875) (1,875) $ $ $ $ $ $ $ 1,182 1,182 $ $ $ $ $ $ $ 1,235 1,235 $ $ $ $ $ $ $ 1,291 1,291 1,291 188 $ $ $ $ $ $ $ $ $ 1,348 1,348 1,348 1,537 $ $ $ $ $ $ $ $ $ 1,409 1,409 1,409 2,946 $ (18,125) $ $ $ 1,000 2,000 3,000
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3,767 $ (14,359) $
793 $ (13,565) $
821 $ (12,744) $
850 $ (11,894) $
881 $ (11,013) $
763 $ (10,250) $
797 $ (9,453) $
833 $ (8,619) $
870 $ (7,749) $
909 $ (6,840) $
950 $ (5,890) $
993 $ (4,897) $
1,037 $ (3,860) $
1,083 $ (2,777) $
(743) $ (3,520) $
1,182 $ (2,338) $
1,235 $ (1,102) $
DEBT SCHEDULES
Scenario A Loan: Debt Schedule Beginning Balance Debt Service Principle Interest Ending Balance Year 1 $ $ $ $ $ $ $ $ $ $ Year 2 $ $ $ $ $ Year 3 $ $ $ $ $ Year 4 $ $ $ $ $ Year 5 $ $ $ $ $ Year 6 $ $ $ $ $ Year 7 $ $ $ $ $ Year 8 $ $ $ $ $ Year 9 $ $ $ $ $ Year 10 $ $ $ $ $ Year 11 $ $ $ $ $ Year 12 $ $ $ $ $ Year 13 $ $ $ $ $ Year 14 $ $ $ $ $ Year 15 $ $ $ $ $ Year 16 $ $ $ $ $ Year 17 $ $ $ $ $ Year 18 $ $ $ $ $ Year 19 $ $ $ $ $ Year 20 -
Disclaimer: This Unofficial Cash Flow Model is intended to provide residential entities that are considering the purchase and installation of solar energy equipment with a general understanding of possible financial implications of such purchase and installation. Those interested in learning more about the financial implications of the purchase and installation of solar energy equipment are urged to consult their own tax and financial experts. The information contained in the Unofficial Cash Flow Model may not be relied on by anyone for any purposes. Furthermore, the information contained in this model does not necessarily reflect the views of the Massachusetts Technology Collaborative or the Commonwealth of Massachusetts, and reference to any specific method does not constitute an implied or expressed recommendation or endorsement of it. Neither the Massachusetts Technology Collaborative nor the Commonwealth of Massachusetts make any warranties or representations, expressed or implied, as to the usefulness, completeness, or accuracy of any processes, methods or other information contained, described, disclosed, or referred to in this model. Finally, neither the Massachusetts Technology Collaborative nor the Commonwealth of Massachusetts makes any representation that the use of any product, apparatus, process, method, or other information will not infringe privately owned property rights and assumes no liability of any kind or nature for any loss, injury, or damage directly or indirectly resulting from, or occurring in connection with, the use of information contained, described, disclosed, or referred to in
2659e782-a015-4bff-9d8a-a99a11fd6f9c.xls
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Home Value Adder
Return to Calculator
Moderate Household Income
Return to Calculator
Energy Star Adder
Return to Calculator
LEED Adder
Return to Calculator
For more information on the adders, consult the Small Renewables Initiative Solicitation: http://www.masstech.org/RenewableEnergy/small_renewables.htm