Kerr Spreadsheet HP153

Introduction
Four DC area vendors bid to install a photovoltatic panel system on the same address in Washington, DC.
All offered the purchase option. One, SolarCity, also offered three leasing options. Another, Astrum Solar,
offered three distinct configuration options. All the bids are summarized on the "Results" tab below.
Please review the "Legal Stuff" and Generall Comments and Definitions" tabs below.
Instructions
You may use this Excel Workbook to contrast and compare the individual bids you get for your dwelling.
To do so (you may wish to make a copy of this Excel document first and work from that):
1. Fill in your own information on the "Owner Information" tab below.
2. The boxes shaded in yellow are user-provided information. Change all that need to be changed to fit
your situation.
3. The boxes shaded in orange are results that based based on the inputs you provided in the yellow
boxes.
4. If you change the name of a vendor on a work sheet, be sure to change the name on the tab at the
bottom of the sheet.
5. For each bid, enter the relevant information on one of the vendor tabs below.
6. If you receive bids for leasing, you have to use the SolarCity tab. If more than one company offers you
a leasing option(s), you have to copy of the worksheet.
7. To avoid either Excel jibberish in all the cells and/or confusing and inaccurate results, delete the
information in the yellow fields on each worksheet (tabbed below) you are not using. If you just remove
a worksheet, the results page will have columns of Excel jibberish.
About: The Larch Company (www.andykerr.net) is the consulting firm of Andy Kerr (andykerr@andykerr.net).
The Larch Company is a non-membership for-profit conservation organization that represents species that cannot
talk and humans not yet born. As a deciduous conifer, the western larch has a contrary nature. Andy has installed
four solar water heaters and four photovoltaic systems on roof tops he has lived under. He lives in Washington,
DC and Ashland, OR.
The Larch Company 2011. Non-commerical use freely granted to the public domain. Commercial use
available for reasonable fee. This work is licensed under a Creative Commons Attribution-NonCommercial-
NoDerivs 3.0 Unported License.
Version 1.0. 1 November 2011
Author: Andy Kerr.
Disclaimer: The Larch Company makes no warranty as to the accuracy of the information and assumptions
contained herein. It is prudent to independently verify before making decisions as to investing, purchasing, tax
reporting, or similar activities. Andy Kerr is neither a lawyer nor an accountant.
Support: While I endeavored to make this product something that one can easily understand, it is offered as is
and without cost (subject to the terms above). If you want help in either specifying your PV system, selecting a
vendor or using this DC PV Calculator, my services may be retained on an hourly basis.
Simple
Payback
Internal
Rate of
Return
(IRR)
Estimating the Financial Value of a Residential Photovoltaic Power
System in Washington, DC
Installing a residential photovoltaic electric power station is the right thing for the Earth. You can
reduce your carbon footprint by switching your consumption of coal-fired electricity that warms the
atmosphere with carbon dioxide, pollutes the air with mercury and fills the lungs with particulates to
renewable and sun-fired electricity that is renewable and sustainable. Putting solar panels on your roof
may also be an attractive financial investment. Government incentives are available that can both
reduce the initial cost of a a PV system and also possibly allow you receive a reasonable return on
investment. Your electric utility has to credit your account for electricity you produce. You can "sell" the
energy to the utility when you are making more than you are using and "buy" it back when you need it.
By entering a few values below, you can determine how an investment solar power compares to other
investments. It may be that you can do well while doing good.
First Things First. Before simply scaling a photovoltaic power system on your roof to meet the current annual
electrical demand of your house, take cost-effective steps to reduce your overall electricity use. Do you have
compact fluorescent (or even better LED) bulbs in every socket? Have you insulated as much as you can and sealed
air leaks, thereby reducing air-conditioning loads? Have you installed solar water heating, a clothesline and ceiling
fans? Every dollar you spend reducing your electricity demand can save you $5 on the cost supplying your electricity
from a photovoltaic power system.
Right-Sizing Your System. Presently, PEPCO does not pay residential consumer-generators for the electricity they
"sell" to the grid in excess of what they "buy" from the grid over the course of a year. That may or may not change.
If it does change, then a photovoltatic power system will turn out to be better investment. If it does not change,
one's initial reaction is to not produce any more than one consumeslest the utility benefit. However, given the
current subsidies, the current and potential financial benefits of Solar Renewable Energy Credits and the potential
increase of your electric consumption (e.g. plug-in hybrid vehicles)and assuming one has the roof spaceone may
want to size a system larger than necessary to produce just as much electricity as one consumes now. It may be
that installing a larger PV system than necessary to meet your demands today may still be financially attractive. Just
not quite as attractive if things don't change, but more so if it does. You have to plug in the assumptions and run
the numbers to see. Welcome to the potential risks and rewards of capitalism as a consumer-generator, as PEPCO
calls us.
Investment Horizon. The derived figures for Internal Rate of Return and Net Present Value are calculated for 20
years. For a business, 10 years is a long-term investment. Many homeowners buy a house with a 30-year mortgage,
even though they don't plan to stay that long in the same place. Photovoltaic panels are generally warranteed for 25
years.
The number of years it take for the cumulative cash flow of ain investment to turn positive. An
unsophisticated, but commonly understood, financial concept.
The rate of return that would make the present value of future cash flows plus the final market value of
an investment or business opportunity equal to the current market price of the investment or
opportunity. Also called dollar-weighted rate of return.
Definitions:
How Old is Your Roof? Roofs typically last 20-30 years. If yours has less than a decade or so of life left, you may
want to re-roof before installing a PV system. If you reroof later, you may have to pay to have the PV system
removed and reinstalled (some vendors offer this service for free). It may also be possible to span the PV system on
I-beams accross the party walls of of a townhouse that would allow a roofer to re-roof under the PV array. Consult
with a roofer as well as your PV installer. See http://howsolarworks.1bog.org/solar-roofing/.
Debt Financing. This analysis presumes that you reallocate funds already in your savings or another investment
vehicle to invest in a photovoltaic power system. If you take out a loan to pay the initial cost to avoid the upfront
cash outlay, you'll need to factor in the cost of repaying the loan. If your projected Internal Rate of Return for the
10 to 20-year investment is significantly more than the interest rate you would pay for your loan of X years,
borrowing the money to finance a photovoltaic power system on your roof still may be a worthwhile investment. It is
best to view a PV system on your roof as an illiquid asset, not unlike the home upon which it sits.
Business or Pleasure? Do you run a business out of your home? If you have a business with enough tax liability,
you can reduce your taxes (and increase the IRR and NPV) by taking accelerlated depreciation on the Gross Capital
Cost of the PV System. Please consult your accountant.
Net
Present
Value
(NPV)
Salvage
Value
At the end of the 20-year analysis period, the PV system will likely have a salvage value (what you could
sell the parts for, minus the cost of repairing the holes in your roof). It wont' likely be a lot, so the NPV
and IRR analyses didn't factor in salvage value.
Net Present Value is used in capital budgeting to analyze the profitability of an investment or project.
NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation
and returns into account. The present value of an investment's future net cash flows minus the initial
investment. If positive, the investment should be made (unless an even better investment exists),
Name Cecily Kohler
Address
15 D St. SE,
Washington, DC 20003
Phone 202-543-1949
Email cecilyk@juno.com
Alternative Return on
Investment 4.0%
Federal Income Tax Marginal
Rate 15.0%
District Income Tax Marginal
Rate 4.0%
Retail Rate of Electricity
($/kWh) $0.146407
Projected Non-Inflation-
Adjusted Average Annual
Electric Rate Increase 4.2%
Annual Average Electricity
Consumpion (kWh) 4,690
The PEPCO residential average energy rate is ~$0.15/kWh (kilowatt-
hour), weight-averaging the summer and winter rates. If you know
of a more accurate number, then enter here.
DC residential power rates increased an average of 4.2% annually
from 1997 to 2007. While past performance is not guarantee of
future results, it might be an indicator. Most believe prices will not
decrease, but will increase. Just how much no one knows. It is
better to guess something and be closer to being approximately
right than to put zero and likely be precisely wrong. Your guess at
what energy prices will do is as good as anyone's.
Washington, DC Residential Photovoltaic
System Financial Consequences Calculator
Enter your
variables in the
yellow boxes.
Owner Information
Numbers in the orange
boxes are derived from
the variable you entered
You can determine this by reviewing past electricity bills.
Enter your "marginal"( the rate on the highest increment of your
annual earnings) federal income tax rate. (If you don't know, click
on the "2011 Marginal Tax Rates" tab at bottom.)
Enter a rate of return you would expect to make on the money you
are investing in a PV system if you invested it elsewhere.
Name
Lighthouse
Solar
PV Panel Manufacterer Lumos
PV Panel Size (Watts) 250
Number of PV Panels 15
Inverter Type Aurora central
Installation Method Roof Mount
Monitoring Yes
Warranty Terms
Panel Tilt (degrees) 14
Percentage of Optimal PV
Panel Production (%) 96.1%
Nameplate Rating (DC kW) 3,750
Invert Efficiency Factor 1.00
PVWatts2 Annual Estimated
Production (kWh) 4,325
Solar Renewable Energy
Credits/Year Production 4.3
First Year Foregone Electric
Cost $633.14
Percentage of Annual
Household Conumption (kWh) 92%
Estimated Increased Property
Value ($6.00/nameplate watt) $22,500
A recent study in California estimated increased property values for PV installations on existing (very
surprisingly, it was significant more than for new construction) homes at between $6.00-
$6.60/installed nameplate watt. The study also estimateda houising price premium to annual energy
savings ratio of between 21:1 and 26:1. The values at right show the low and high range for both
approaches. The study examined repeat sales (before and after PV installation) of 28,313 homes
selling twice, of which 394 are PV and all in California, which has over half of the installed solar electric
capacity in the United States. Is this report relevant to elsewhere? A hypothetical home buyer in
California is more likely to be aware of PV value than elsewhere. However, as California goes, so goes
the rest of the states eventually. Don't get hung up on any of these numbers, but just consider their
magnitude compared to the net system cost in the Purchase Option. This data suggests that your
home value will go up at least twice what it costs you to install a PV system. If if these estimates are
twice what they actually are, your house value will go up at least the amount you spent on the PV
system. (See : Hoen, Ben, Ryan Wiser, Peter Cappers and Mark Thayer. 2011. An Analysis of the
Effects of Residental Photovoltaic Energy Systems on Home Sales Prices in California. Ernest Orlando
Lawrence Berkeley National Laboratory. LBL-4476E. Download from
http://eetd.lbl.gov/ea/emp/reports/lbnl-4476e.pdf.)
Photovoltaic System Details
Provided by your vendor.
Number of panels multipled the panel maximum power rating in watts.
While microinverters are more efficient in design (and more expensive), just how much more efficient
in practice is not a totally settled question. Enphase, the largest perveyor by far of microinverters
claims 15% more power production for the same system using a central inverter. If you are using a
central inverter, enter "1.00" in the box to left. If you are using a microverter enter a factor to reflect
the percentage of estimated increased production (for 15% enter 1.15). The increase will be reflected
in PVWatts2 Estimated Average Annual Production below.
Provided by your vendor. There are two general types of inverters in photovoltaic power system.
Traditionally, the photvoltaic panels have been wired through one "central" inverter to convert the
direct current (DC) energy produced by the panels to alternating current (AC) used by the building. A
new design is the "microinverter," one each of which is wired to each PV panel. Each microiverter
operates independently so if one inverter fails the rest of the PV system still produces power.
Microinverters are more efficient because (a) line losses associated with running DC current from the
panels to the inverter are less; (b) each microinverter optimizes the production of the panel through
"maximum power point tracking" and avoiding inevitable panel mismatch (each panel is a little
different and the lowest common denominator rule applies in terms of energy production; and (c)
shading losses are minimized (shading even a few cells on one panel can reduce the output of all
panels in that array).
Provided by your vendor.Insert either roof-mount brackets (penetrating roof); I-beams spanning party
walls or wood joists spanning party walls or ballast (concrete blocks to hold frame in place.
This number is derived by multiplying the nameplate size of the Photovoltaic System times the inverter
type factor times 1.2, the latter of which is a Washington, DC-specific factor derived from running
PVWatts2 (nrel.gov/rredc/pvwatts/).
How many years on the panels; on the inverter; and on the entire system? Can you buy an extended
warranty now to cover the difference out to 20 years?
The retail value of the electricity produced by your system.
Panel tilt provided by your vendor; you enter percentage of optimal PV Panel Production from data
below. Panel tilt (angle above horizontal) is important for optimizing energy production. If the sun
shined evenly all year, optimal tilt would be eagle to latitude. PVWatts2 factors in seasonal weather
conditions. As Some vendors install panels horizontal (0) on flat DC townhouse roofs to get the most
panels in the available area. Tilting the panels mean that space must left between the east-west rows
so the panels to the south don't shade panels to the north. However, 0 panels have a 13.5% decrease
from optimum energy production. Tilting may reduce the number of panels, but increased energy
production from the array may offset it. As the power curve is non-linear, even a moderate tilt can
signifcantly increase production over flat. One tries to minimize total system cost (more PV panels
more cost) and maximize annual energy production (best angle) while producing as close to 100% of
your annual energy demand as possible. Here are percentage of maximum production for panels
facing true south: 90 (vertical):61.4%; 45:98.2%; 40:99.4%, 38.8 (Washington, DC
latitude):99.6%; 35:100%; 30:100%; 25:99.4%; 20:98.1%; 15:96.2%; 10:93.6%; 5: 90.4%;
0(horizontal): 86.5%. Enter a percentage into the yellow box at left based on panel degrees.
Residential Property Value Increase
Washington, DC Residential Photovoltaic System
Financial Consequences Calculator
Enter your
variables in
the yellow
boxes.
Numbers in the orange boxes
are derived from the variable
you entered in the yellow
boxes.
Provided by your vendor. Your and/or your vendor should be able to remotely monitor your system
production to identify and fix any problems.
Production
From Wikipedia: "Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits are
a form of Renewable Energy Certificate or "Green tag". SRECs exist in states that have Renewable
Portfolio Standard (RPS) legislation with specific requirements for solar energy, usually referred to as a
"solar carve-out". SRECs represent the environmental attributes from a solar facility, and are produced
each time a solar system produces one megawatt-hour (MWh) of production. The additional income
received from selling SRECs increases the economic value of a solar investment and assists with the
financability of solar technology. In conjunction with state and federal incentives, solar system owners
can recover their investment in solar by selling their SRECs through spot market sales or long-term
sales." This value is derived by dividing PVWatts2 Annual Estimated Production kilowatt-hours by 1000
kilowatt-hours.
Value ($7.60/nameplate watt) $28,500
Estimated Price Premium
(Low; 21X Annual Foregone
Electricity Cost) $13,296
(High; 26X Annual Foregone
$19,382
$5,815
$5,250
$4,500
$855
$4,672
$0
Year
Net System
Cost/Annual
Electricity
Savings
(Revenues)
Additio
nal
SREC
Payme
nt/
Salvag
e
Value
Annual
Cash
Flow
Cumu-
lative
Cash
Flow
0 -$4,672 -$4,672 -$4,672
1 $633 $633 -$4,039
2 $660 $660 -$3,380
3 $687 $687 -$2,692
4 $716 $716 -$1,976
5 $746 $746 -$1,229
6 $778 $778 -$452
7 $810 $810 $359
8 $844 $844 $1,203
9 $880 $880 $2,083
10 $917 $917 $3,000
11 $955 $0 $955 $3,955
12 $996 $996 $4,951
13 $1,037 $1,037 $5,988
14 $1,081 $1,081 $7,069
15 $1,126 $1,126 $8,195
16 $1,174 $1,174 $9,369
17 $1,223 $1,223 $10,592
18 $1,274 $1,274 $11,866
19 $1,328 $1,328 $13,194
20 $1,384 $1,384 $14,577
16.2% $16
$7,431 $3,565
$1.25
$1.08
Note: Warranty coverage only 10 years. Monitioring only for 5 years. No
performance guarantee (they pay for lost power production. Your home
insurance policy probably covers against damage or theft (check with your
agent). This example projects another 10-year upfront SREC payment in
Year 11 (first yellow box above). There is no guarantee that such an option
will be offered at any price. There is some probability that there will be, so
it is better to guestimate and be more likely to be approximately right than
assume zero and be more likely to be precisely wrong. The IRR and NPV
analyses are for a 20-year period. In year 21, the panels will still be under
warranty and in all likelihood still producing usable amounts of energy. The
inverter may still have useful life (especially if it was replaced along the
way). Therefore, there is some "salvage" value (what it is worth if you sold
the usuable parts in Year 21). Unless there is a game-changing technology,
they will likely be worth something. For every $1000 you guestimate, the
IRR goes up ~0.1% and the NPV goes up a few hundred dollars, so it
doesn't change either very much. The purpose of including it is to remind
DC Grant Calculator
Internal Rate of Return (IRR)
Simple Payback (year cumulative cash flow >$0)
Dollars/kiloWatt hour/year ($/kWh/year) (based on Net System
Dollars/Nameplate Watt ($/W) (based on Net System Cost)
Guestimated by you. SREC markets will only continue if regulatory
Net System Cost (dollars)
Guestimated 10-Year Upfront SREC Price in Year 11
Gross System Cost (dollars) (provided by vendor)
30% Federal Income Tax Credit
DC Grant (click on "DC PV Grant Calculator" tab below).
Federal and District Income Tax Due on SREC Payment
A recent study in California estimated increased property values for PV installations on existing (very
surprisingly, it was significant more than for new construction) homes at between $6.00-
$6.60/installed nameplate watt. The study also estimateda houising price premium to annual energy
savings ratio of between 21:1 and 26:1. The values at right show the low and high range for both
approaches. The study examined repeat sales (before and after PV installation) of 28,313 homes
selling twice, of which 394 are PV and all in California, which has over half of the installed solar electric
capacity in the United States. Is this report relevant to elsewhere? A hypothetical home buyer in
California is more likely to be aware of PV value than elsewhere. However, as California goes, so goes
the rest of the states eventually. Don't get hung up on any of these numbers, but just consider their
magnitude compared to the net system cost in the Purchase Option. This data suggests that your
home value will go up at least twice what it costs you to install a PV system. If if these estimates are
twice what they actually are, your house value will go up at least the amount you spent on the PV
system. (See : Hoen, Ben, Ryan Wiser, Peter Cappers and Mark Thayer. 2011. An Analysis of the
Effects of Residental Photovoltaic Energy Systems on Home Sales Prices in California. Ernest Orlando
Lawrence Berkeley National Laboratory. LBL-4476E. Download from
http://eetd.lbl.gov/ea/emp/reports/lbnl-4476e.pdf.)
SREC 10-Year Upfront Payment (provided by vendor)
Purchase Option
Net Present Value (NPV)
IF PV system is 3,000
nameplate watts or less, enter
nameplate rating in kWh. If
more than 3,000, enter
"3,000" in this field). 3,000
IF PV system is between
3,001 and 10,000 nameplate
watts, enter nameplate rating
number minus 3,000. if
System is greater 10,001
watts or greater, entier
"7,000" in this field. 750
If PV system is between
10,001-20,000 nameplate
watts enter nameplate rating
minus 10,000. If PV system is
greater 20,001 watts or
greater, entire "10,000" in
this field. 0
Nameplate Watts Eligible for
Subsidy 3,750
Nameplate Rating (from
above) 3,750
DC Grant Amount $5,250.00
Unless your nameplate rating is greater than
20,000 watts, these two numbers should be
the same. If nameplate rating is greater than
20,000 watts, then nameplate watts eligible
You are eligible for this amount and the
number will show up on the main worksheet
automatically. (The sum of your three entries
in the yellow boxes at left must total the total
PV nameplate watts above.
If you are eligible (meaning that you are on the waiting list andmost importantlythe
District Department of Energy is actually giving out grants, fill in the three yellow boxes
below, as instructed. If you are not eligible, make sure each yellow box has a zero ("0") in it.
Effective October 1, 2011 (and if you are
already on the District Department of Energy
[DDOE] waiting list, you are eligible for a
grant based on the sie of your system in the
amount of: (1) $1.50 for each of the first
3,000 installed watts or watt-equivalents of
capacity; (2) $1.00 for each of the next 7,000
installed watts or watt-equivalents of capacity;
and (3) $0.50 for each of the next 10,000
installed watts or watt-equivalents of capacity.
No additional funding will be provided for
installed capacity above 20,000 watts. (If you
are already on the waiting list, you should not
count on being so in that the program is to
expire at the end of 2012 unless extended by
the DC Council.) The question as to whether
or not the DC rebate is federal and/or district
taxable income has been resolved to my
satisfaction: it is not taxable. However, I am
not a tax professional, so please consult your
Name Solar City
PV Panel Manufacterer Yingli
Inverter Type
to be
determined
Installation Method
to be
determined
Warranty Terms
20 years on
leased
system; 10
year standard
on purchase
option
Cost $680.80
Value ($6.00/nameplate
watt) $24,840
watt) $31,464
While microinverters are more efficient in design (and more expensive), just how much more efficient in practice is not a totally settled question. Enphase, the largest
perveyor by far of microinverters claims 15% more power production for the same system using a central inverter. If you are using a central inverter, enter "1.00" in the box
to left. If you are using a microverter enter a factor to reflect the percentage of estimated increased production (for 15% enter 1.15). The increase will be reflected in
PVWatts2 Estimated Average Annual Production below.
Washington, DC Residential Photovoltaic System Financial
Consequences Calculator
Purchase and Three Lease Options
Provided by your vendor. There are two general types of inverters in photovoltaic power system. Traditionally, the photvoltaic panels have been wired through one "central"
inverter to convert the direct current (DC) energy produced by the panels to alternating current (AC) used by the building. A new design is the "microinverter," one each of
which is wired to each PV panel. Each microiverter operates independently so if one inverter fails the rest of the PV system still produces power. Microinverters are more
efficient because (a) line losses associated with running DC current from the panels to the inverter are less; (b) each microinverter optimizes the production of the panel
through "maximum power point tracking" and avoiding inevitable panel mismatch (each panel is a little different and the lowest common denominator rule applies in terms of
energy production; and (c) shading losses are minimized (shading even a few cells on one panel can reduce the output of all panels in that array).
This number is derived by multiplying the nameplate size of the Photovoltaic System times the inverter type factor times 1.2, the latter of which is a Washington, DC-specific
factor derived from running PVWatts2 (nrel.gov/rredc/pvwatts/).
A recent study in California estimated increased property values for PV installations on existing (very surprisingly, it was significant more than for new construction) homes at
between $6.00-$6.60/installed nameplate watt. The study also estimateda houising price premium to annual energy savings ratio of between 21:1 and 26:1. The values at
right show the low and high range for both approaches. The study examined repeat sales (before and after PV installation) of 28,313 homes selling twice, of which 394 are PV
and all in California, which has over half of the installed solar electric capacity in the United States. Is this report relevant to elsewhere? A hypothetical home buyer in
California is more likely to be aware of PV value than elsewhere. However, as California goes, so goes the rest of the states eventually. Don't get hung up on any of these
numbers, but just consider their magnitude compared to the net system cost in the Purchase Option. This data suggests that your home value will go up at least twice what
it costs you to install a PV system. If if these estimates are twice what they actually are, your house value will go up at least the amount you spent on the PV system. (See :
Hoen, Ben, Ryan Wiser, Peter Cappers and Mark Thayer. 2011. An Analysis of the Effects of Residental Photovoltaic Energy Systems on Home Sales Prices in California. Ernest
Orlando Lawrence Berkeley National Laboratory. LBL-4476E. Download from http://eetd.lbl.gov/ea/emp/reports/lbnl-4476e.pdf.)
Production
Provided by your vendor.Insert either roof-mount brackets (penetrating roof); I-beams spanning party walls or wood joists spanning party walls or ballast (concrete blocks to
hold frame in place.
From Wikipedia: "Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits are a form of Renewable Energy Certificate or "Green tag". SRECs exist in
states that have Renewable Portfolio Standard (RPS) legislation with specific requirements for solar energy, usually referred to as a "solar carve-out". SRECs represent the
environmental attributes from a solar facility, and are produced each time a solar system produces one megawatt-hour (MWh) of production. The additional income received
from selling SRECs increases the economic value of a solar investment and assists with the financability of solar technology. In conjunction with state and federal incentives,
solar system owners can recover their investment in solar by selling their SRECs through spot market sales or long-term sales." This value is derived by dividing PVWatts2
Annual Estimated Production kilowatt-hours by 1000 kilowatt-hours.
Numbers in the orange boxes are derived from the variable you
entered in the yellow boxes.
Provided by your vendor. Your and/or your vendor should be able to remotely monitor your system production to identify and fix any problems.
Panel tilt provided by your vendor; you enter percentage of optimal PV Panel Production from data below. Panel tilt (angle above horizontal) is important for optimizing energy
production. If the sun shined evenly all year, optimal tilt would be eagle to latitude. PVWatts2 factors in seasonal weather conditions. As Some vendors install panels
horizontal (0) on flat DC townhouse roofs to get the most panels in the available area. Tilting the panels mean that space must left between the east-west rows so the panels
to the south don't shade panels to the north. However, 0 panels have a 13.5% decrease from optimum energy production. Tilting may reduce the number of panels, but
increased energy production from the array may offset it. As the power curve is non-linear, even a moderate tilt can signifcantly increase production over flat. One tries to
minimize total system cost (more PV panels more cost) and maximize annual energy production (best angle) while producing as close to 100% of your annual energy demand
as possible. Here are percentage of maximum production for panels facing true south: 90 (vertical):61.4%; 45:98.2%; 40:99.4%, 38.8 (Washington, DC
latitude):99.6%; 35:100%; 30:100%; 25:99.4%; 20:98.1%; 15:96.2%; 10:93.6%; 5: 90.4%; 0(horizontal): 86.5%. Enter a percentage into the yellow box at left
based on panel degrees.
Extended Warranty and Inverter Replacement Option chosen below on Purchase Option.
Enter your variables in the
yellow boxes.
Vendor
$23,196 $0 $3,639 $7,278
$6,959 $68 $43 $0
$5,640 $816 $516 $0
$4,860 3.9% 0.0% 0.0%
$923 $0 $0 $0
$1,449
$8,110
$0
Year
Net System
Cost/Annua
l Electricity
Savings
(Revenues)
Additional
SREC
Payment/
Salvage
Value
Annual
Cash
Flow
Cumu-
lative
Cash Flow
Annual
Lease
Costs
Annual
Electricity
Savings
(Revenues
)
Annual
Cash
Flow
Cumu-
lative
Cash
Flow
Annual
Lease
Costs
Annual
Electricity
Savings
(Revenue
s)
Annual
Cash
Flow
Cumu-lative
Cash Flow
Annua
l
Lease
Costs
Annual
Electricity
Savings
(Revenues)
Annual
Cash
Flow
Cumu-
lative
Cash Flow
0 -$8,110 -$8,110 -$8,110 $0 $0 $0 -$3,639 -$3,639 -$3,639 #### -$7,278 -$7,278
1 $681 $681 -$7,429 -$816 $681 -$135 -$135 -$516 $681 $165 -$3,474 $0 $681 $681 -$6,597
2 $709 $709 -$6,719 -$848 $709 -$138 -$274 -$516 $709 $193 -$3,281 $0 $709 $709 -$5,888
3 $739 $739 -$5,980 -$881 $739 -$142 -$415 -$516 $739 $223 -$3,058 $0 $739 $739 -$5,149
4 $770 $770 -$5,210 -$915 $770 -$145 -$560 -$516 $770 $254 -$2,803 $0 $770 $770 -$4,378
5 $803 $803 -$4,407 -$951 $803 -$148 -$709 -$516 $803 $287 -$2,517 $0 $803 $803 -$3,576
6 $836 $836 -$3,571 -$988 $836 -$152 -$860 -$516 $836 $320 -$2,197 $0 $836 $836 -$2,740
7 $871 $871 -$2,700 -$1,027 $871 -$155 -$1,016 -$516 $871 $355 -$1,841 $0 $871 $871 -$1,868
8 $908 $908 -$1,792 -$1,067 $908 -$159 -$1,174 -$516 $908 $392 -$1,449 $0 $908 $908 -$960
9 $946 $946 -$846 -$1,108 $946 -$162 -$1,336 -$516 $946 $430 -$1,019 $0 $946 $946 -$14
10 $986 $986 $140 -$1,151 $986 -$166 -$1,502 -$516 $986 $470 -$549 $0 $986 $986 $972
11 $1,027 $0 $1,027 $1,168 -$1,196 $1,027 -$169 -$1,671 -$516 $1,027 $511 -$38 $0 $1,027 $1,027 $1,999
12 $1,070 $1,070 $2,238 -$1,243 $1,070 -$173 -$1,843 -$516 $1,070 $554 $517 $0 $1,070 $1,070 $3,070
13 $1,115 $1,115 $3,354 -$1,291 $1,115 -$176 -$2,019 -$516 $1,115 $599 $1,116 $0 $1,115 $1,115 $4,185
14 $1,162 $1,162 $4,516 -$1,342 $1,162 -$180 -$2,199 -$516 $1,162 $646 $1,762 $0 $1,162 $1,162 $5,347
15 $1,211 $1,211 $5,727 -$1,394 $1,211 -$183 -$2,382 -$516 $1,211 $695 $2,457 $0 $1,211 $1,211 $6,558
16 $1,262 $1,262 $6,989 -$1,449 $1,262 -$187 -$2,569 -$516 $1,262 $746 $3,203 $0 $1,262 $1,262 $7,820
17 $1,315 $1,315 $8,304 -$1,505 $1,315 -$190 -$2,759 -$516 $1,315 $799 $4,002 $0 $1,315 $1,315 $9,135
18 $1,370 $1,370 $9,674 -$1,564 $1,370 -$194 -$2,952 -$516 $1,370 $854 $4,856 $0 $1,370 $1,370 $10,505
19 $1,428 $1,428 $11,102 -$1,625 $1,428 -$197 -$3,149 -$516 $1,428 $912 $5,768 $0 $1,428 $1,428 $11,933
20 $1,488 $1,488 $12,589 -$1,688 $1,488 -$200 -$3,350 -$516 $1,488 $972 $6,740 $0 $1,488 $1,488 $13,421
9.5% #NUM! 9.2% 10.8%
$5,024 ($2,130) $2,579 $5,823
$1.96
$1.74
SREC 10-Year Upfront Payment *
Annual Increase in Lease Payment
Guestimated 10-Year Upfront SREC Price in Year 11 ***
Acquisition Cost in Year 21 Acquisition Cost in Year 21 Acquisition Cost in Year 21
Annual Increase in Lease Annual Increase in Lease
Net Present Value (NPV) Net Present Value (NPV)
Simple Payback (year cumulative cash flow
Monthly Lease Payment Monthly Lease Payment
Annual Lease Payment
Monthly Lease Payment
Annual Lease Payment Annual Lease Payment DC Grant (click on "DC PV Grant Calculator" tab below).
Initial System Cost Initial System Cost Initial System Cost
Lease: Initial Payment Plan
Gross System Cost (dollars) *
Lease: Prepay Payment Plan Lease: $0 Down Plan
Simple Payback (year cumulative cash flow
20 Year Extended Warranty and Inverter Replacement Service
Purchase Option
Simple Payback (year cumulative cash flow >$0) Simple Payback (year cumulative cash flow
nameplate watts or less,
enter nameplate rating in
kWh. If more than 3,000,
enter "3,000" in this field). 3,000
"7,000" in this field. 1,140
10,001-20,000 nameplate
this field. 0
Subsidy 4,140
above) 4,140
Note: Warranty coverage and monitoring for
20 years. Vendor provides insurance coverage
against damage or theft. At the end of the
lease you may choose to have the system
removed or purchase it and take over
operation yourself. To make the
determination of whether or not to acquire
the PV system on your roof after expiration of
the lease or have it removed, you would
compare the acquistion cost against
estimated annual electricity savings for the
guestimated remaining life of the acquistion.
If you don't want to acquire after the lease
expiration, put $0 in the Acqusition Cost After
Lease End Field. Notice how IRR and NPV
change.
DC Grant Calculator
If you are eligible (meaning that you are on the waiting list andmost importantlythe District
Department of Energy is actually giving out grants, fill in the three yellow boxes below, as instructed. If
you are not eligible, make sure each yellow box has a zero ("0") in it.
At the end of the 20-year lease, the lessee has three options: (1) lease renewal in 5-year terms with existing equipment; (2) lease
upgrade with new equipment and new 20-year lease; and (3) freemoval and roof repair with 1-year warranty (if not elected and Solar City
doesn't come andremove the system within 90 days, the lessee is the owner of the system.
agent). This example projects another 10-year upfront SREC payment in Year
11 (first yellow box above). There is no guarantee that such an option will be
offered at any price. There is some probability that there will be, so it is better
to guestimate and be more likely to be approximately right than assume zero
and be more likely to be precisely wrong. The IRR and NPV analyses are for a
20-year period. In year 21, the panels will still be under warranty and in all
likelihood still producing usable amounts of energy. The inverter may still have
useful life (especially if it was replaced along the way). Therefore, there is some
"salvage" value (what it is worth if you sold the usuable parts in Year 21).
Unless there is a game-changing technology, they will likely be worth
something. For every $1000 you guestimate, the IRR goes up ~0.1% and the
NPV goes up a few hundred dollars, so it doesn't change either very much. The
purpose of including it is to remind you that there is likely usable life (therefore
value) after 20 years.
Unless your nameplate rating is greater than 20,000 watts,
these two numbers should be the same. If nameplate rating
is greater than 20,000 watts, then nameplate watts eligible
for subsidy should total 20,000.
You are eligible for this amount and the number will show
up on the main worksheet automatically. (The sum of your
three entries in the yellow boxes at left must total the total
PV nameplate watts above.
Effective October 1, 2011 (and if you are already on the
District Department of Energy [DDOE] waiting list, you are
eligible for a grant based on the sie of your system in the
amount of: (1) $1.50 for each of the first 3,000 installed
watts or watt-equivalents of capacity; (2) $1.00 for each of
the next 7,000 installed watts or watt-equivalents of
capacity; and (3) $0.50 for each of the next 10,000
installed watts or watt-equivalents of capacity. No additional
funding will be provided for installed capacity above 20,000
watts. (If you are already on the waiting list, you should not
count on being so in that the program is to expire at the end
of 2012 unless extended by the DC Council.) The question
as to whether or not the DC rebate is federal and/or district
taxable income has been resolved to my satisfaction: it is
not taxable. However, I am not a tax professional, so please
consult your professional tax advisor.
20 years. Vendor provides insurance
coverage against damage or theft. At the
end of the lease you may choose to have the
system removed or purchase it and take
over operation yourself. To make the
determination of whether or not to acquire
the PV system on your roof after expiration
of the lease or have it removed, you would
compare the acquistion cost against
estimated annual electricity savings for the
guestimated remaining life of the acquistion.
If you don't want to acquire after the lease
expiration, put $0 in the Acqusition Cost
After Lease End Field. Notice how IRR and
NPV change.
20 years. Vendor provides insurance coverage
against damage or theft. To calculate IRR,
there must be at least one positive and one
negative annual cash flow value. In this case
there is not a positive one, hence Microsoft
Excel says "#DIV/0" (attempted division by
zero). One should assume a negative IRR. At
the end of the lease you may choose to have
the system removed or purchase it and take
over operation yourself. To make the
determination of whether or not to acquire the
PV system on your roof after expiration of the
lease or have it removed, you would compare
the acquistion cost against estimated annual
electricity savings for the guestimated
remaining life of the acquistion. If you don't
want to acquire after the lease expiration, put
$0 in the Acqusition Cost After Lease End
*** Guestimated by you. SREC markets will only continue if regulatory authorities rachet up renewable
portfolio standards with solar carve outs. A safe guess is $0, but the field is included to remind you that
SRECs might still be around after a decade.
** Provided by your vendor.
* Provided by your vendor.
Name
Solar
Solution
PV Panel Manufacterer Astronergy
Inverter Type SMA Central
Installation Method I-Beams
Monitoring Included
Warranty Terms
"Warranty:
All solar
panels come
with a 25
years
warranty, 10
or 15 year
warranty on
all inverters
and a 5-year
warranty
against any
work
performed by
Solar
Solution
Cost $800.08
watt) $30,360
watt) $38,456
$22,995
$6,899
$6,560
$6,000
$1,140
$4,677
$0
Year
Net System
Cost/Annua
l Electricity
Savings
(Revenues)
Additional
SREC
Payment/
Salvage
Value
Annual
Cash
Flow
Cumu-
lative
Cash Flow
0 -$4,677 -$4,677 -$4,677
1 $800 $800 -$3,876
2 $834 $834 -$3,043
3 $869 $869 -$2,174
4 $905 $905 -$1,269
5 $943 $943 -$326
6 $983 $983 $657
7 $1,024 $1,024 $1,681
8 $1,067 $1,067 $2,748
9 $1,112 $1,112 $3,860
10 $1,159 $1,159 $5,019
11 $1,207 $0 $1,207 $6,226
12 $1,258 $1,258 $7,484
13 $1,311 $1,311 $8,795
14 $1,366 $1,366 $10,161
15 $1,423 $1,423 $11,584
16 $1,483 $1,483 $13,067
17 $1,545 $1,545 $14,613
18 $1,610 $1,610 $16,223
19 $1,678 $1,678 $17,901
20 $1,748 $1,748 $19,649
Guestimated by you. SREC markets will only continue if regulatory authorities rachet up renewable portfolio standards with solar carve
SREC 10-Year Upfront Payment
Gross System Cost (dollars)
While microinverters are more efficient in design (and more expensive), just how much more efficient in practice is not a totally settled question. Enphase, the largest perveyor
by far of microinverters claims 15% more power production for the same system using a central inverter. If you are using a central inverter, enter "1.00" in the box to left. If
you are using a microverter enter a factor to reflect the percentage of estimated increased production (for 15% enter 1.15). The increase will be reflected in PVWatts2
Estimated Average Annual Production below.
production. If the sun shined evenly all year, optimal tilt would be eagle to latitude. PVWatts2 factors in seasonal weather conditions. As Some vendors install panels horizontal
(0) on flat DC townhouse roofs to get the most panels in the available area. Tilting the panels mean that space must left between the east-west rows so the panels to the
south don't shade panels to the north. However, 0 panels have a 13.5% decrease from optimum energy production. Tilting may reduce the number of panels, but increased
energy production from the array may offset it. As the power curve is non-linear, even a moderate tilt can signifcantly increase production over flat. One tries to minimize total
system cost (more PV panels more cost) and maximize annual energy production (best angle) while producing as close to 100% of your annual energy demand as possible.
Here are percentage of maximum production for panels facing true south: 90 (vertical):61.4%; 45:98.2%; 40:99.4%, 38.8 (Washington, DC latitude):99.6%;
35:100%; 30:100%; 25:99.4%; 20:98.1%; 15:96.2%; 10:93.6%; 5: 90.4%; 0(horizontal): 86.5%. Enter a percentage into the yellow box at left based on panel
degrees.
How many years on the panels; on the inverter; and on the entire system? Can you buy an extended warranty now to cover the difference out to 20 years?
Vendor
yellow boxes.
Production
and all in California, which has over half of the installed solar electric capacity in the United States. Is this report relevant to elsewhere? A hypothetical home buyer in California
is more likely to be aware of PV value than elsewhere. However, as California goes, so goes the rest of the states eventually. Don't get hung up on any of these numbers, but
just consider their magnitude compared to the net system cost in the Purchase Option. This data suggests that your home value will go up at least twice what it costs you to
install a PV system. If if these estimates are twice what they actually are, your house value will go up at least the amount you spent on the PV system. (See : Hoen, Ben, Ryan
Wiser, Peter Cappers and Mark Thayer. 2011. An Analysis of the Effects of Residental Photovoltaic Energy Systems on Home Sales Prices in California. Ernest Orlando Lawrence
Berkeley National Laboratory. LBL-4476E. Download from http://eetd.lbl.gov/ea/emp/reports/lbnl-4476e.pdf.)
Purchase Option
20.4%
$10,571
$0.92
$0.86
"7,000" in this field. 2,060
10,001-20,000 nameplate
minus 10,000. If PV system
is greater 20,001 watts or
this field. 0
Subsidy 5,060
above) 5,060
You are eligible for this amount and the number will show up
DC Grant Calculator
Name Astrum Solar
PV Panel Manufacterer Suntech
Inverter Type Enphase
Installation Method I-Beams
Monitoring Included
Warranty Terms
25 years on
panels and
inverters
Panel Tilt (degrees) 14.5
Cost $698.26
watt) $21,600
watt) $27,360
$24,975
$7,493
$5,100
$5,723
$1,087
$7,747
$0
Year
Net System
Cost/Annua
l Electricity
Savings
(Revenues)
Additional
SREC
Payment/
Salvage
Value
Annual
Cash
Flow
Cumu-
lative
Cash Flow
0 -$7,747 -$7,747 -$7,747
1 $698 $698 -$7,049
2 $728 $728 -$6,321
3 $758 $758 -$5,563
4 $790 $790 -$4,773
5 $823 $823 -$3,950
6 $858 $858 -$3,092
7 $894 $894 -$2,198
8 $931 $931 -$1,267
9 $970 $970 -$296
10 $1,011 $1,011 $715
11 $1,054 $0 $1,054 $1,768
12 $1,098 $1,098 $2,866
13 $1,144 $1,144 $4,010
14 $1,192 $1,192 $5,202
15 $1,242 $1,242 $6,444
16 $1,294 $1,294 $7,739
17 $1,349 $1,349 $9,087
18 $1,405 $1,405 $10,493
19 $1,464 $1,464 $11,957
20 $1,526 $1,526 $13,483
outs. A safe guess is $0, but the field is included to remind you that SRECs might still be around after a decade.
yellow boxes.
Vendor
I-Beam
degrees.
Production
Purchase Option
10.4%
$5,701
$2.15
$1.62
"7,000" in this field. 600
10,001-20,000 nameplate
this field. 0
Subsidy 3,600
above) 3,600
DC Grant Calculator
Name Astrum Solar
Installation Method Ballast
Monitoring Included
Warranty Terms
25 years on
panels and
inverters
Cost $793.01
watt) $24,480
watt) $31,008
$25,500
$7,650
$5,580
$6,500
$1,235
$7,005
$0
Year
Net System
Cost/Annua
l Electricity
Savings
(Revenues)
Additional
SREC
Payment/
Salvage
Value
Annual
Cash
Flow
Cumu-
lative
Cash Flow
0 -$7,005 -$7,005 -$7,005
1 $793 $793 -$6,212
2 $826 $826 -$5,386
3 $861 $861 -$4,525
4 $897 $897 -$3,628
5 $935 $935 -$2,693
6 $974 $974 -$1,719
7 $1,015 $1,015 -$704
8 $1,058 $1,058 $354
9 $1,102 $1,102 $1,456
10 $1,148 $1,148 $2,604
11 $1,197 $0 $1,197 $3,801
12 $1,247 $1,247 $5,048
13 $1,299 $1,299 $6,347
14 $1,354 $1,354 $7,701
15 $1,411 $1,411 $9,112
16 $1,470 $1,470 $10,582
17 $1,532 $1,532 $12,113
18 $1,596 $1,596 $13,709
19 $1,663 $1,663 $15,372
20 $1,733 $1,733 $17,105
13.5%
yellow boxes.
Vendor
Tilt Ballast
degrees.
Production
Purchase Option
$8,199
$1.72
$1.29
"7,000" in this field. 1,080
10,001-20,000 nameplate
this field. 0
Subsidy 4,080
above) 4,080
DC Grant Calculator
Name Astrum Solar
Installation Method Ballast
Monitoring Included
Warranty Terms
25 years on
panels and
inverters
Flat Ballast
yellow boxes.
Owner Information
Vendor
While microinverters are more efficient in design (and more expensive), just how much more efficient in practice is not a totally settled question. Enphase, the largest
perveyor by far of microinverters claims 15% more power production for the same system using a central inverter. If you are using a central inverter, enter "1.00" in the box
to left. If you are using a microverter enter a factor to reflect the percentage of estimated increased production (for 15% enter 1.15). The increase will be reflected in
PVWatts2 Estimated Average Annual Production below.
production. If the sun shined evenly all year, optimal tilt would be eagle to latitude. PVWatts2 factors in seasonal weather conditions. As Some vendors install panels
horizontal (0) on flat DC townhouse roofs to get the most panels in the available area. Tilting the panels mean that space must left between the east-west rows so the panels
to the south don't shade panels to the north. However, 0 panels have a 13.5% decrease from optimum energy production. Tilting may reduce the number of panels, but
increased energy production from the array may offset it. As the power curve is non-linear, even a moderate tilt can signifcantly increase production over flat. One tries to
minimize total system cost (more PV panels more cost) and maximize annual energy production (best angle) while producing as close to 100% of your annual energy demand
as possible. Here are percentage of maximum production for panels facing true south: 90 (vertical):61.4%; 45:98.2%; 40:99.4%, 38.8 (Washington, DC
latitude):99.6%; 35:100%; 30:100%; 25:99.4%; 20:98.1%; 15:96.2%; 10:93.6%; 5: 90.4%; 0(horizontal): 86.5%. Enter a percentage into the yellow box at left
based on panel degrees.
Production
Cost $1,090.54
watt) $37,440
watt) $47,424
$34,320
$10,296
$7,740
$8,938
$1,698
$9,044
$0
Year
Net System
Cost/Annua
l Electricity
Savings
(Revenues)
Additional
SREC
Payment/
Salvage
Value
Annual
Cash
Flow
Cumu-
lative
Cash Flow
0 -$9,044 -$9,044 -$9,044
1 $1,091 $1,091 -$7,953
2 $1,136 $1,136 -$6,817
3 $1,184 $1,184 -$5,633
4 $1,234 $1,234 -$4,399
5 $1,286 $1,286 -$3,114
6 $1,340 $1,340 -$1,774
7 $1,396 $1,396 -$378
8 $1,455 $1,455 $1,076
9 $1,516 $1,516 $2,592
10 $1,579 $1,579 $4,171
11 $1,646 $0 $1,646 $5,817
12 $1,715 $1,715 $7,532
13 $1,787 $1,787 $9,318
14 $1,862 $1,862 $11,180
15 $1,940 $1,940 $13,120
16 $2,021 $2,021 $15,141
17 $2,106 $2,106 $17,248
18 $2,195 $2,195 $19,443
19 $2,287 $2,287 $21,730
20 $2,383 $2,383 $24,113
14.4%
$11,842
$1.45
$1.21
Purchase Option
"7,000" in this field. 3,240
10,001-20,000 nameplate
this field. 0
Subsidy 6,240
above) 6,240
You are eligible for this amount and the number will show
DC Grant Calculator
Metric
How To Generally
Interpret
Vendor A
Vendor
B
Vendor
B
Vendor
B
Vendor
B
Vendor
C
Vendor
D1
Vendor
D2
Vendor
D3
Acquistion Method: Configuration Purchase Purchase
Lease:
0%
Down
Plan
Lease:
Initial
Payment
Plan
Lease:
Prepay
Plan
Purchase
Purchase:
I-Beam
Purchas
e: Tilt
Ballast
Purchase:
Flat Ballast
PURCHAS
E
OPTIONS
LEASE
OPTIONS
Gross System Cost $19,382 $23,196 na na na $22,995 $24,975 $25,500 $34,320 $25,061 na
Net System Cost (after subsidies)
for Purchase Options or Initial
System Cost for Lease Options
Generally, the lower the
better, but SP, IRR and NPV
better metrics.
$4,672 $8,110 $0 $3,639 $7,278 $4,677 $7,747 $7,005 $9,044 $6,876 $3,639
Annual Lease Payment (just for
lease options)
na na $816 $516 $0 na na na na na $444
(just for lease options)
na na 3.9% 0.0% 0.0% na na na na na 1.3%
Dollars Per Watt Nameplate Watt
(based on Net System Cost)
$1.25 $1.96 na na na $0.92 $2.15 $1.72 $1.45 $1.57 na
Dollars Per Kilowatt-Hour/Year
$1.08 $1.74 na na na $0.86 $1.62 $1.29 $1.21 $1.30 na
Nameplate Rating (DC Watts)
Indicative of the size of panel
array on roof.
3,750 4,140 4,140 4,140 4,140 5,060 3,600 4,080 6,240 4,478 na
Percentage of Annual Consumption
Offset
Closer to 100% the better
(unless you anticipate much
higher (electric car) or lower
(efficiency improvements)
loads.
92% 99% 99% 99% 99% 117% 102% 96% 159% 111% na
Simple Payback (SP)
The year cash flow turns
positive.
7 10 never 12 10 6 10 8 8 8 11
Internal Rate of Return (IRR) Higher the better. 16.23% 9.46% #NUM! 9.20% 10.83% 20.35% 10.35% 13.46% 14.39% 14.04% 10.02%
Net Present Value (NPV) Higher the better. $7,431 $5,024 ($2,130) $2,579 $5,823 $10,571 $5,701 $8,199 $11,842 $8,128 $2,091
Estimated Increased Property Value
($6.00/nameplate watt)
Higher the better. $22,500 $24,840 na na na $30,360 $21,600 $24,480 $37,440 $26,870 na
Estimated Price Premium (Low; 21X
Annual Foregone Electricity Cost)
Estimated Price Premium (High; 26X
Lighthouse SolarCity SolarCity SolarCity SolarCitySolar Solution Astrum Astrum Astrum
Financial Results
Production Results
Initial Costs
Results (With DC Grant)
NPV and IRR (below) are
better metrics of value.
Lower the better. $/kWh/year
is a better metric as it factors
in system efficiency.
AVERAGES
Tax Rate Single Married Filing Joint
10% Up to $8,600 Up to $17,200
15% $8,601 $34,900 $17,201 $69,800
25% $34,901 $84,500 $69,801 $140,850
28% $84,501 $195,950 $140,851 $237,700
36% $195,951 $383,350 $237,701 $383,350
39.60% Over $383,350 Over $383,350
Tax Rate Personal
4.10% $0-$10,000
6.00% $10,001-$40,000
8.50% $40,001-$350,000
8.95% $350,001+
2011 Personal Federal Income Tax Rates
Source: http://www.mydollarplan.com/tax-brackets/
2011 Personal District of Columbia Income Tax Rates
Source: http://cfo.dc.gov/cfo/cwp/view,a,1324,q,610984.asp
Head of Household
Up to $12,250
$12,251 $46,750
$46,751 $120,700
$120,701 $216,800
$216,801 $383,350
Over $383,350
2011 Personal Federal Income Tax Rates
Source: http://www.mydollarplan.com/tax-brackets/
Metric
How To Generally
Interpret
Vendor A
Vendor
B
Vendor
B
Vendor
B
Vendor
B
Vendor
C
Vendor
D1
Vendor
D2
Vendor
D3
Acquistion Method: Configuration Purchase Purchase
Lease:
0%
Down
Plan
Lease:
Initial
Payment
Plan
Lease:
Prepay
Plan
Purchase
Purchase:
I-Beam
Purchas
e: Tilt
Ballast
Purchase:
Flat Ballast
PURCHAS
E
OPTIONS
LEASE
OPTIONS
Gross System Cost $19,382 $23,196 na na na $22,995 $24,975 $25,500 $34,320 $25,061 na
Net System Cost (after subsidies)
for Purchase Options or Initial
System Cost for Lease Options
Generally, the lower the
better, but SP, IRR and NPV
better metrics.
$4,672 $8,110 $0 $3,639 $7,278 $4,677 $7,747 $7,005 $9,004 $6,876 $3,639
Annual Lease Payment (just for
lease options)
na na $816 $516 $0 na na na na na $444
(just for lease options)
na na 3.9% 0.0% 0.0% na na na na na 1.3%
Dollars Per Watt Nameplate Watt
$1.25 $1.96 na na na $0.92 $2.15 $1.72 $1.45 $1.57 na
Dollars Per Kilowatt-Hour/Year
$1.08 $1.74 na na na $0.86 $1.62 $1.29 $1.21 $1.30 na
Nameplate Rating (DC Watts)
Indicative of the size of panel
array on roof.
3,750 4,140 4,140 4,140 4,140 5,060 3,600 4,080 6,240 4,478 na
Percentage of Annual Consumption
Offset
Closer to 100% the better
(unless you anticipate much
higher (electric car) or lower
(efficiency improvements)
loads.
92% 99% 99% 99% 99% 117% 102% 96% 159% 111% na
Simple Payback (SP)
The year cash flow turns
positive.
7 10 never 12 10 6 10 8 8 8 11
Internal Rate of Return (IRR) Higher the better. 16.23% 9.46% #NUM! 29.20% 10.83% 20.35% 10.35% 13.46% 14.39% 14.04% 10.02%
Net Present Value (NPV) Higher the better. $7,431 $5,024 ($2,130) $2,579 $5,823 $10,571 $5,701 $8,199 $11,842 $8,128 $2,091
Estimated Price Premium (Low; 21X
Estimated Price Premium (High; 26X
Financial Results
Results (With DC Grant)
AVERAGES
Initial Costs
NPV and IRR (below) are
better metrics of value.
Lower the better. $/kWh/year
is a better metric as it factors
in system efficiency.
Production Results

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