# Project with Financial Calculation by zyb26520

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```									Commonwealth Solar 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

Key
YOU MAY EDIT THESE CELLS
DO NOT EDIT THESE 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 4,000 kWh)?                                                               4,000 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 5 kilowatts (kW) or 5,000 watts (w).

Percent of
Estimated                                    Average
Optimal Annual        Percent of your      Customer Annual
System Size                                                    Generation (kWh)        Annual Usage             Usage
1 kW (~100 sqft of panels)                                                 1200                  30%                   15%
2 kW                                                              2400                  60%                   30%
3 kW                                                              3600                  90%                   45%
4 kW                                                              4800                  120%                  60%
5 kW                                                              6000                  150%                  75%

How much will a solar system cost?
Typical residential systems cost about \$12,250 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 4 kW)                                                                      4 kW
4,000 watts (w)

How much will your system cost \$/kW?                                                                                   \$12,500 per kW

Estimated total installed cost                                                                                         \$50,000

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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 qualify for the MA Company Component Adder?                                                                         No     extra \$.25/watt      \$            -

Do you think you qualify for the Moderate Home Value Adder?                                                               Yes     extra \$1.25/watt     \$             1.25

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     \$              -

Do you think you qualify for the Moderate Household Income Adder for <= \$76,296?                                          Yes     extra \$2.00/watt     \$             2.00

Do you think you will be able to benefit from the Federal and State Solar Tax Incentives?                                 Yes

Estimated Rebate (Size basis is capped at 5 kW for residential customers)                                    \$       21,000.00     Total
\$            5.25     per watt

Total Installed Cost \$                  50,000
Rebate \$                   21,000
Estimated Tax Incentives \$                    3,000
Net System Cost after rebate and \$3,000 in federal and state tax incentives                                            \$26,000

How much do you think that the price of electricity will increase each year? (default is 14%)                              14%

Estimated Simple Payback (assuming optimal production)                                                                        12    Years

Estimated Rate of Return (assuming optimal production)                                                                    11.9%

How else can I save energy at my home?
Check out www.masssave.com for more energy saving tips and rebates.

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
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Residential Solar Photovoltaic Project Simple Financial Model (1/04/08)
DATA ENTRY AND FINANCIAL SUMMARY
Key                                                                                                                                                       Tax Assumptions
Entry Cells                                                                                                                                             Federal Tax Credit                                       \$     2,000
Calculation Cells (Not for Entry)                                                                                                                       State Tax Deduction                                      \$     1,000
Pulls Data from Another Sheet
Financing Assumptions
Project and Customer Cost Assumptions                                                                                                                         100% Cash or 100% Loan                                         Cash                 Cash
Solar Photovoltaic System Size                             4,000 Watts (DC STC)                                                                         Effective Loan Interest Rate                                      7%          Loan
Total System Cost/Watt                                \$    12.50 \$/Watt (DC STC)                                                                        Loan Period                                                        10 Years (must be equal to or less than project life)
Total System Cost                                     \$   50,000                                                                                        Net Cost                                                 \$    29,000
Loan                                                     \$          -
MTC Rebate Assumptions                                                                                                                                        Customer Discount Rate                                                  5%
MTC Solar Rebate                                         \$     5.25 \$/Watt (DC STC)
Scenario A Rebate                                        \$   21,000                                                                                    Solar Project Financial Analysis Summary
Net Present Value                                        \$   42,062
Project Performance and Savings/ Cost Assumptions                                                                                                             Simple Payback                                               Year 12
Annual Net Capacity Factor                                   14.0% kW (DC STC) to kWh AC                                                                  Estimated Rate of Return                                      11.9%
Project Life                                                   25   Years
Electricity Revenue (Avoided Costs)                   \$     0.20    \$/kWh
Electricity Revenue (Avoided Costs) Annual Adjustor        14.0%    %
Renewable Energy Certificate (REC) Revenue            \$     0.05    \$/kWh
REC Revenue Annual Adjustor                                 0.0%    %
REC Revenue Term                                                5   Years (must be equal to or less than project life)
Annual Operations and Maintenance Cost                \$      -      \$/Year
Annual Operations and Maintenance Adjustor                  3.0%    %
Future Inverter Replacement Cost                      \$     0.75    \$/Watt (DC STC)
Inverter Life, Replace Every X Years                           15   Year (must be equal to or less than project life)

PRO FORMA AND PRODUCTION
Start-Up            Year                  Year               Year               Year           Year            Year           Year           Year                Year           Year           Year           Year           Year           Year           Year           Year           Year           Year           Year           Year
Project Output                                                                   0                 1                     2                  3                  4              5               6              7              8                   9              10             11             12             13             14             15             16             17             18             19             20
Annual Generation (kWh)                                                                                  4,906                 4,881              4,857         4,832          4,808           4,784          4,760          4,736               4,713          4,689          4,666          4,642          4,619          4,596          4,573          4,550    \$     4,528          4,505          4,482          4,460

Scenario A: Non-Taxable Rebate; Pro Forma Project Economics
CASH FLOW STATEMENT
Initial PV Cost                                                 \$     (29,000)
Tax Credits
State Tax Credit                                                             \$            1,000
Federal Tax Credit                                                           \$            2,000
Total Tax Credits                                    \$            3,000   \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -
Revenue
Electricity Revenue (Avoided Cost)                                             \$              981   \$             1,113   \$          1,262   \$     1,432    \$     1,624    \$      1,842    \$     2,090    \$     2,370         \$     2,689    \$     3,050    \$     3,459    \$     3,924    \$     4,451    \$     5,049    \$     5,727    \$     6,496    \$     7,368    \$     8,358    \$     9,480    \$    10,754
REC Revenue                                                                    \$              245   \$               244   \$            243   \$       242    \$       240    \$        -      \$       -      \$       -           \$       -      \$       -      \$       -      \$       -      \$       -      \$       -      \$       -      \$       -      \$       -      \$       -      \$       -      \$       -
Total Revenue (Avoided Costs)                                       \$            1,226   \$             1,357   \$          1,505   \$     1,673    \$     1,865    \$      1,842    \$     2,090    \$     2,370         \$     2,689    \$     3,050    \$     3,459    \$     3,924    \$     4,451    \$     5,049    \$     5,727    \$     6,496    \$     7,368    \$     8,358    \$     9,480    \$    10,754
Expenses
Operations & Maintenance Costs                                               \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$       -      \$          -   \$          -   \$          -   \$          -   \$          -
Inverter Replacement Cost                                                    \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$    (3,000)   \$          -   \$          -   \$          -   \$          -   \$          -
Loan Payments                                                                \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$       -      \$          -   \$          -   \$          -   \$          -   \$          -
Total Expenses                                     \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$    (3,000)   \$          -   \$          -   \$          -   \$          -   \$          -

Annual Cash Flow                                                    \$     (29,000) \$              4,226 \$              1,357 \$           1,505 \$          1,673 \$        1,865 \$         1,842 \$        2,090 \$        2,370 \$             2,689 \$        3,050 \$        3,459 \$        3,924    \$     4,451    \$     5,049    \$     2,727    \$     6,496    \$     7,368    \$     8,358    \$     9,480    \$    10,754
Cumulative Cash Flow                                                \$     (29,000) \$            (24,774) \$           (23,417) \$        (21,911) \$       (20,238) \$     (18,373) \$      (16,531) \$     (14,441) \$     (12,071) \$           (9,382) \$      (6,332) \$      (2,873) \$       1,051    \$     5,502    \$    10,551    \$    13,278    \$    19,773    \$    27,142    \$    35,500    \$    44,980    \$    55,734

DEBT SCHEDULES
Year                  Year               Year               Year           Year            Year           Year           Year                Year           Year           Year           Year           Year           Year           Year           Year           Year           Year           Year           Year
Scenario A Loan: Debt Schedule                                                                     1                     2                  3                  4              5               6              7              8                   9              10             11             12             13             14             15             16             17             18             19             20
Beginning Balance                                                                           \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -
Debt Service                                                                                \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -
Principle                                                                                   \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -
Interest                                                                                    \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -
Ending Balance                                                                              \$              -     \$               -     \$            -     \$          -   \$          -   \$           -   \$          -   \$          -        \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -   \$          -

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 entities
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

7ce62a6e-37b1-4043-a095-c111b1ca2e73.xls                                                                                                                                                                                          3