Kerr Spreadsheet HP 153

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.
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.
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-NonCommercialNoDerivs 3.0 Unported License.
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.
Version 1.0. 1 November 2011
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.
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/.
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.
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.
Definitions:
Simple
Payback
Internal
Rate of
Return
(IRR)
Net
Present
Value
(NPV)
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.
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),
otherwise it should not.
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.
Washington, DC Residential Photovoltaic

System Financial Consequences Calculator
Name
Address
Phone
Email
Alternative Return on
Investment
Federal Income Tax Marginal
Rate
District Income Tax Marginal
Rate
Retail Rate of Electricity
($/kWh)
Projected Non-InflationAdjusted Average Annual

Electric Rate Increase
Annual Average Electricity
Consumpion (kWh)
Owner Information
Cecily Kohler
15 D St. SE,
Washington, DC 20003
202-543-1949
cecilyk@juno.com
Enter your
variables in the
yellow boxes.
Numbers in the orange

boxes are derived from
the variable you entered
in the yellow boxes.
Enter a rate of return you would expect to make on the money you
4.0% are investing in a PV system if you invested it elsewhere.
Enter your "marginal"( the rate on the highest increment of your
15.0% annual earnings) federal income tax rate. (If you don't know, click
on the "2011 Marginal Tax Rates" tab at bottom.)
4.0%
The PEPCO residential average energy rate is ~$0.15/kWh
(kilowatt-hour), weight-averaging the summer and winter rates. If
$0.146407 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
4.2% what energy prices will do is as good as anyone's.
4,690 You can determine this by reviewing past electricity bills.
Washington, DC Residential Photovoltaic System

Financial Consequences Calculator
Name
Lighthouse
Solar
Numbers in the orange boxes

Enter your
are derived from the variable
variables in the
you entered in the yellow
yellow boxes.
boxes.
Inverter Type
Photovoltaic System Details

Provided by your vendor.
250 Provided by your vendor.
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
Aurora central panels in that array).
Installation Method
Roof Mount
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.
Monitoring
Yes
Provided by your vendor. Your and/or your vendor should be able to remotely monitor your system
production to identify and fix any problems.
PV Panel Manufacterer
PV Panel Size (Watts)
Number of PV Panels
Warranty Terms
Panel Tilt (degrees)
Percentage of Optimal PV
Panel Production (%)
Nameplate Rating (DC kW)
Invert Efficiency Factor

PVWatts2 Annual Estimated
Production (kWh)
Solar Renewable Energy

Credits/Year Production
First Year Foregone Electric
Cost
Percentage of Annual
Household Conumption (kWh)
Lumos
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?
14
96.1%
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.
Production
3,750 Number of panels multipled the panel maximum power rating in watts.
1.00
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.
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
4,325 PVWatts2 (nrel.gov/rredc/pvwatts/).
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
4.3 kilowatt-hours.
$633.14
The retail value of the electricity produced by your system.
92%
Residential Property Value Increase
Estimated Increased Property

Value ($6.00/nameplate watt)
A recent study in California estimated increased property values for PV installations on existing (very
$22,500 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
$28,500 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
Estimated Price Premium

(Low; 21X Annual Foregone
Electricity Cost)

(High; 26X Annual Foregone
Electricity Cost)
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
$13,296 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.)
$16,462
Purchase Option
Gross System Cost (dollars) (provided by vendor)
30% Federal Income Tax Credit
DC Grant (click on "DC PV Grant Calculator" tab below).
SREC 10-Year Upfront Payment (provided by vendor)
Federal and District Income Tax Due on SREC Payment
Net System Cost (dollars)
Guestimated 10-Year Upfront SREC Price in Year 11
Additio
nal
SREC
Net System Payme
Cost/Annual nt/
Electricity Salvag Annual
Savings
e
Cash
Year
(Revenues) Value
Flow
0
-$4,672
-$4,672
1
$633
$633
2
$660
$660
3
$687
$687
4
$716
$716
5
$746
$746
6
$778
$778
7
$810
$810
8
$844
$844
9
$880
$880
10
$917
$917
11
$955
$0
$955
12
$996
$996
13
$1,037
$1,037
14
$1,081
$1,081
15
$1,126
$1,126
16
$1,174
$1,174
17
$1,223
$1,223
18
$1,274
$1,274
19
$1,328
$1,328
20
$1,384
$1,384
Simple Payback (year cumulative cash flow >$0)
Internal Rate of Return (IRR)
Net Present Value (NPV)
Dollars/Nameplate
Watt ($/W)
(based on (based
Net System
Cost)
Dollars/kiloWatt
hour/year
($/kWh/year)
on Net
System
Cost)
$19,382
$5,815
$5,250
$4,500
$855
$4,672
$0
Provided by your
vendor.
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.
Cumulative
Cash
Flow
-$4,672
-$4,039
-$3,380
-$2,692
-$1,976
-$1,229
-$452
$359
$1,203
$2,083
$3,000
$3,955
$4,951
$5,988
$7,069
$8,195
$9,369
$10,592
$11,866
$13,194
$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
you that there is likely usable life (therefore value) after 20 years.
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.
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).
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.
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.
Nameplate Watts Eligible for
Subsidy
Nameplate Rating (from
above)
DC Grant Amount
3,000
750
0
3,750
3,750
$5,250.00
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.
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.
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.
Vendor
Name
Solar City
Number of PV Panels
Yingli
Purchase and Three Lease Options

Inverter Type
to be
determined
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).
Installation Method
to be
determined
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.
Warranty Terms
20 years on
leased
system; 10
Extended Warranty and Inverter Replacement Option chosen below on Purchase Option.
year standard
on purchase
option
10 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 (kWh)

Cost
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%;
93.6% 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
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
1.00 Estimated Average Annual Production below.
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
4,650 factor derived from running PVWatts2 (nrel.gov/rredc/pvwatts/).
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
4.7 Annual Estimated Production kilowatt-hours by 1000 kilowatt-hours.
$680.80 The retail value of the electricity produced by your system.
99%

Electricity Cost)
$24,840 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
$31,464 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
$14,297
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.)

Electricity Cost)
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
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
$17,701
Purchase Option
Gross System Cost (dollars) *
SREC 10-Year Upfront Payment *
Federal
District
Income and
Tax Due
on SREC
PaymentService
20
Year and
Extended
Warranty
Inverter
Replacement
(35/watt)
Guestimated 10-Year Upfront SREC Price in Year 11 ***
$23,196
$6,959
$5,640
$4,860
$923
$1,449
$8,110
$0
Lease: $0 Down Plan

Initial System Cost
Monthly Lease Payment
Annual Lease Payment
Annual Increase in Lease Payment
Acquisition Cost in Year 21
$0
$68
$816
3.9%
Lease: Initial Payment Plan

Lease: Prepay Payment Plan
Initial System Cost
$3,639 Initial System Cost
$7,278
Monthly Lease Payment
$43 Monthly Lease Payment
$0
Lease Payment
$516 Annual Increase
Lease Payment
$0
Annual Increase
in Lease
in Lease
Payment
0.0% Payment
0.0%
$0 Acquisition Cost in Year 21
Net System Additional

Annual
Cost/Annua SREC
Electricity
Cumul Electricity Payment/ Annual
CumuAnnual
Savings
Annual
lative
Savings
Salvage
Cash
lative
Lease
(Revenues Cash
Cash
Year
(Revenues) Value
Flow
Cash Flow
Costs
)
Flow
Flow
0
-$8,110
-$8,110
-$8,110
$0
$0
$0
1
$681
$681
-$7,429
-$816
$681
-$135
-$135
2
$709
$709
-$6,719
-$848
$709
-$138
-$274
3
$739
$739
-$5,980
-$881
$739
-$142
-$415
4
$770
$770
-$5,210
-$915
$770
-$145
-$560
5
$803
$803
-$4,407
-$951
$803
-$148
-$709
6
$836
$836
-$3,571
-$988
$836
-$152
-$860
7
$871
$871
-$2,700
-$1,027
$871
-$155
-$1,016
8
$908
$908
-$1,792
-$1,067
$908
-$159
-$1,174
9
$946
$946
-$846
-$1,108
$946
-$162
-$1,336
10
$986
$986
$140
-$1,151
$986
-$166
-$1,502
11
$1,027
$0
$1,027
$1,168
-$1,196
$1,027
-$169
-$1,671
12
$1,070
$1,070
$2,238
-$1,243
$1,070
-$173
-$1,843
13
$1,115
$1,115
$3,354
-$1,291
$1,115
-$176
-$2,019
14
$1,162
$1,162
$4,516
-$1,342
$1,162
-$180
-$2,199
15
$1,211
$1,211
$5,727
-$1,394
$1,211
-$183
-$2,382
16
$1,262
$1,262
$6,989
-$1,449
$1,262
-$187
-$2,569
17
$1,315
$1,315
$8,304
-$1,505
$1,315
-$190
-$2,759
18
$1,370
$1,370
$9,674
-$1,564
$1,370
-$194
-$2,952
19
$1,428
$1,428
$11,102
-$1,625
$1,428
-$197
-$3,149
Payback (year
cumulative
cash flow
20
$1,488
$1,488
$12,589 Simple
-$1,688
$1,488
-$200
-$3,350
>$0)
9.5% Internal Rate of Return (IRR)
Err:523
$5,024 Net Present Value (NPV)
($2,130)
Dollars/Nameplate
Watt ($/W)
(based on (based
Net System
Cost)
$1.96
Dollars/kiloWatt
hour/year
($/kWh/year)
on Net
System
Cost)
$1.74
$0 Acquisition Cost in Year 21
Annual
Electricity
Annual Savings
Annual
Lease (Revenues Cash
Cumu-lative
Costs
)
Flow
Cash Flow
-$3,639
-$3,639
-$3,639
-$516
$681
$165
-$3,474
-$516
$709
$193
-$3,281
-$516
$739
$223
-$3,058
-$516
$770
$254
-$2,803
-$516
$803
$287
-$2,517
-$516
$836
$320
-$2,197
-$516
$871
$355
-$1,841
-$516
$908
$392
-$1,449
-$516
$946
$430
-$1,019
-$516
$986
$470
-$549
-$516
$1,027
$511
-$38
-$516
$1,070
$554
$517
-$516
$1,115
$599
$1,116
-$516
$1,162
$646
$1,762
-$516
$1,211
$695
$2,457
-$516
$1,262
$746
$3,203
-$516
$1,315
$799
$4,002
-$516
$1,370
$854
$4,856
-$516
$1,428
$912
$5,768
Simple
Payback
(year cumulative
-$516
$1,488
$972 cash flow
$6,740
>$0)
9.2%
$2,579
$0
Annual
Annual Electricity
Annual
CumuLease
Savings
Cash
lative
Costs (Revenues)
Flow
Cash Flow
###
-$7,278
-$7,278
$0
$681
$681
-$6,597
$0
$709
$709
-$5,888
$0
$739
$739
-$5,149
$0
$770
$770
-$4,378
$0
$803
$803
-$3,576
$0
$836
$836
-$2,740
$0
$871
$871
-$1,868
$0
$908
$908
-$960
$0
$946
$946
-$14
$0
$986
$986
$972
$0
$1,027
$1,027
$1,999
$0
$1,070
$1,070
$3,070
$0
$1,115
$1,115
$4,185
$0
$1,162
$1,162
$5,347
$0
$1,211
$1,211
$6,558
$0
$1,262
$1,262
$7,820
$0
$1,315
$1,315
$9,135
$0
$1,370
$1,370
$10,505
$0
$1,428
$1,428
$11,933
Simple
(year cumulative
flow
$0Payback$1,488
$1,488 cash$13,421
>$0)
10.8%
$5,823

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 20year 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.
Note: Warranty coverage and monitoring for

20 years. Vendor provides insurance coverage 20 years. Vendor provides insurance coverage 20 years. Vendor provides insurance
against damage or theft. To calculate IRR,
against damage or theft. At the end of the
coverage against damage or theft. At the end
there must be at least one positive and one
lease you may choose to have the system
of the lease you may choose to have the
negative annual cash flow value. In this case
removed or purchase it and take over
system removed or purchase it and take
there is not a positive one, hence Microsoft
operation yourself. To make the determination over operation yourself. To make the
Excel says "#DIV/0" (attempted division by
of whether or not to acquire the PV system on determination of whether or not to acquire
zero). One should assume a negative IRR. At your roof after expiration of the lease or have the PV system on your roof after expiration
the end of the lease you may choose to have
it removed, you would compare the acquistion of the lease or have it removed, you would
the system removed or purchase it and take cost against estimated annual electricity
compare the acquistion cost against
over operation yourself. To make the
savings for the guestimated remaining life of estimated annual electricity savings for the
determination of whether or not to acquire the the acquistion. If you don't want to acquire
guestimated remaining life of the acquistion.
PV system on your roof after expiration of the after the lease expiration, put $0 in the
If you don't want to acquire after the lease
lease or have it removed, you would compare Acqusition Cost After Lease End Field. Notice expiration, put $0 in the Acqusition Cost
the acquistion cost against estimated annual
how IRR and NPV change.
After Lease End Field. Notice how IRR and
electricity savings for the guestimated
NPV change.
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.
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.
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.
Effective October 1, 2011 (and if you are already on the
District Department of Energy [DDOE] waiting list, you are
3,000 eligible for a grant based on the sie of your system in the
10,001-20,000 nameplate
this field.
Subsidy
above)
DC Grant Amount
* Provided by your vendor.
** Provided by your vendor.
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
1,140 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.
0
4,140 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.
4,140
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
$5,640.00 nameplate watts above.
*** 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.


yellow boxes.
Vendor
Name
Solar Solution
Number of PV Panels
Astronergy
Inverter Type
SMA Central
Installation Method
I-Beams
Monitoring
Included
Warranty Terms

Production (kWh)

Cost
Provided by your vendor. Your and/or your vendor should be able to remotely monitor your system production to identify and fix any problems.
"Warranty:
All solar
panels come
with a 25
years
warranty, 10
or 15 year
warranty on 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?
all inverters
and a 5-year
warranty
against any
work
performed by
Solar Solution
personnel."
4 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
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.
90.0%
Production
5.5
Annual Estimated Production kilowatt-hours by 1000 kilowatt-hours.
117%

Electricity Cost)
Electricity Cost)
$16,802
$20,802
Purchase Option
Gross System Cost (dollars)

SREC 10-Year Upfront Payment
$22,995
$6,899
$6,560
$6,000
$1,140
$4,677
$0

Cost/Annua SREC
l Electricity Payment/ Annual
CumuSavings
Salvage
Cash
lative
Year
(Revenues) Value
Flow
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
20.4%
$10,571
Dollars/Nameplate Watt ($/W) (based on Net System Cost)
$0.92

Guestimated by you. SREC markets will only continue if regulatory authorities rachet up renewable portfolio standards with solar carve outs.
A safe guess is $0, but the field is included to remind you that SRECs might still be around after a decade.
Dollars/kiloWatt hour/year ($/kWh/year) (based on Net System

Cost)
$0.86

20 years.
DC Grant Calculator
10,001-20,000 nameplate
this field.
Subsidy
above)
DC Grant Amount

eligible for a grant based on the sie of your system in the
3,000
0
Unless your nameplate rating is greater than 20,000 watts,
5,060 these two numbers should be the same. If nameplate rating
5,060 for subsidy should total 20,000.
$6,560.00 on the main worksheet automatically. (The sum of your three


yellow boxes.
Vendor
Name
Astrum Solar I-Beam
Number of PV Panels
Suntech

Inverter Type
Enphase
Installation Method
I-Beams
Monitoring
Included
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?
Warranty Terms

Production (kWh)

Cost
25 years on
panels and
inverters
14.5 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
96.0%
Production
4.8
102%

Electricity Cost)
Electricity Cost)
$14,663
$18,155
Purchase Option

$24,975 Provided by your vendor.

$7,493
$5,100
$5,723 Provided by your vendor.
$1,087
$7,747
$0 A safe guess is $0, but the field is included to remind you that SRECs might still be around after a decade.

Cost/Annua SREC
CumuSavings
Salvage
Cash
lative
Year
(Revenues) Value
Flow
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
10.4%
$5,701
Dollars/Nameplate Watt ($/W) (based on Net System Cost)
$2.15
Dollars/kiloWatt hour/year ($/kWh/year) (based on Net System

Cost)
$1.62

20 years.
DC Grant Calculator
10,001-20,000 nameplate
this field.
Subsidy
above)
DC Grant Amount

eligible for a grant based on the sie of your system in the
600 being so in that the program is to expire at the end of 2012
3,000
0


yellow boxes.
Vendor
Name
Astrum Solar Tilt Ballast
Number of PV Panels
Suntech

Inverter Type
Enphase
Installation Method
Ballast
Monitoring
Included
Warranty Terms

Production (kWh)

Cost
25 years on
panels and
inverters
96.2%
Production
5.4
115%

Electricity Cost)
Electricity Cost)
$16,653
$20,618
Purchase Option

$25,500
$7,650
$5,580
$6,500
$1,235
$7,005
$0

Cost/Annua SREC
CumuSavings
Salvage
Cash
lative
Year
(Revenues) Value
Flow
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%
$8,199
Dollars/Nameplate
Watt ($/W)
(based on (based
Net System
Cost)
$1.72
Dollars/kiloWatt
hour/year
($/kWh/year)
on Net
System
$1.29
Cost)


20 years.
DC Grant Calculator
10,001-20,000 nameplate
this field.
Subsidy
above)
DC Grant Amount

0


yellow boxes.
Owner Information
Vendor
Name
Astrum Solar Flat Ballast
Number of PV Panels
Suntech

Inverter Type
Enphase
Installation Method
Monitoring
Ballast
Included
Warranty Terms

Production (kWh)

Cost
25 years on
panels and
inverters
86.5%
Production
7.4
$1,090.54 The retail value of the electricity produced by your system.
159%

Electricity Cost)
Electricity Cost)
$22,901
$28,354
Purchase Option
$34,320
$10,296
$7,740
$8,938
$1,698
$9,044
$0

Cost/Annua SREC
CumuSavings
Salvage
Cash
lative
Year
(Revenues) Value
Flow
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%
$11,842
Dollars/Nameplate
Watt ($/W)
(based on (based
Net System
Cost)
$1.45
Dollars/kiloWatt
hour/year
($/kWh/year)
on Net
System
$1.21
Cost)


20 years.
DC Grant Calculator
10,001-20,000 nameplate
this field.
Subsidy
above)
DC Grant Amount
0
Results (With DC Grant)

Metric
How To Generally
Interpret
Acquistion Method: Configuration

Gross System Cost
Net System Cost (after subsidies)
for Purchase Options or Initial
System Cost for Lease Options
Annual Lease Payment (just for
lease options)
(just for lease options)
Dollars Per Watt Nameplate Watt
(based on Net System Cost)
Dollars Per Kilowatt-Hour/Year
Generally, the lower the

better, but SP, IRR and NPV
better metrics.
NPV and IRR (below) are
better metrics of value.
Lower the better. $/kWh/year

is a better metric as it factors
in system efficiency.
Vendor Vendor Vendor Vendor Vendor Vendor Vendor

Vendor
AVERAGES
B
B
B
B
C
D1
D2
D3
Initial Costs
Lease:
Lease:
Lease:
Purchase
PURCHAS
0%
Initial
Purchase:
Purchase:
LEASE
Purchase Purchase
Prepay Purchase
: Tilt
E
Down
Payment
I-Beam
Flat Ballast
OPTIONS
Plan
Ballast
OPTIONS
Plan
Plan
$19,382 $23,196
na
na
na $22,995 $24,975 $25,500
$34,320
$25,061
na
Vendor A
$4,672
$8,110
$0
$3,639
$7,278
$4,677
$7,747
$7,005
$9,044
$6,876
$3,639
na
na
$816
$516
$0
na
na
na
na
na
$444
na
na
3.9%
0.0%
0.0%
na
na
na
na
na
1.3%
$1.25
$1.96
na
na
na
$0.92
$2.15
$1.72
$1.45
$1.57
na
$1.08
$1.74
na
na
na
$0.86
$1.62
$1.29
$1.21
$1.30
na
Production Results
Nameplate Rating (DC Watts)
Percentage of Annual Consumption
Offset
Indicative of the size of panel

array on roof.
Closer to 100% the better
(unless you anticipate much
higher (electric car) or lower
(efficiency improvements)
loads.
3,750
4,140
4,140
4,140
4,140
5,060
3,600
4,080
6,240
4,478
na
92%
99%
99%
99%
99%
117%
102%
96%
159%
111%
na
12
10
10
11
Financial Results
Simple Payback (SP)
The year cash flow turns

positive.

Higher the better.

Higher the better.
16.23%
9.46% Err:523
9.20% 10.83% 20.35%
$7,431
$5,024 ($2,130) $2,579 $5,823 $10,571
10.35%
$5,701
13.46%
$8,199
14.39%
$11,842
14.04%
$8,128
10.02%
$2,091
Higher the better.
$22,500
$24,840
na
na
na
$30,360
$21,600 $24,480
$37,440
$26,870
na
Higher the better.
$28,500
$31,464
na
na
na
$38,456
$27,360 $31,008
$47,424
$34,035
na
Estimated Price Premium (Low; 21X

Higher the better.
Annual Foregone Electricity Cost)
$13,296
$14,297
na
na
na
$16,802
$14,663 $16,653
$22,901
$16,435
na
Estimated Price Premium (High; 26X

Higher the better.
$16,462
$17,701
na
na
na
$20,802
$18,155 $20,618
$28,354
$20,349
na
Estimated Increased Property Value

($6.00/nameplate watt)
10
never
Lighthouse SolarCity SolarCity SolarCity SolarCitySolar Solu Astrum
Astrum
Astrum
Tax Rate
10%
15%
25%
28%
36%
39.60%
2011 Personal Federal Income Tax Rates

Single
Married Filing Joint
Up to $8,600
Up to $17,200
$8,601 $34,900
$17,201 $69,800
$34,901 $84,500
$69,801 $140,850
$84,501 $195,950
$140,851 $237,700
$195,951 $383,350
$237,701 $383,350
Over $383,350
Over $383,350
Source: http://www.mydollarplan.com/tax-brackets/
2011 Personal District of Columbia Income Tax Rates

Tax Rate
Personal
4.10%
$0-$10,000
6.00%
$10,001-$40,000
8.50%
$40,001-$350,000
8.95%
$350,001+
Source: http://cfo.dc.gov/cfo/cwp/view,a,1324,q,610984.asp
Rates
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
Results (With DC Grant)

Metric
How To Generally
Interpret
Acquistion Method: Configuration

Gross System Cost
Net System Cost (after subsidies)
for Purchase Options or Initial
System Cost for Lease Options
Annual Lease Payment (just for
lease options)
(just for lease options)
Dollars Per Watt Nameplate Watt
Dollars Per Kilowatt-Hour/Year
Generally, the lower the

better, but SP, IRR and NPV
better metrics.
NPV and IRR (below) are
better metrics of value.
Lower the better. $/kWh/year

is a better metric as it factors
in system efficiency.
Vendor Vendor Vendor Vendor Vendor Vendor Vendor

Vendor
AVERAGES
B
B
B
B
C
D1
D2
D3
Initial Costs
Lease:
Lease:
Lease:
Purchase
PURCHAS
0%
Initial
Purchase:
Purchase:
LEASE
Purchase Purchase
Prepay Purchase
: Tilt
E
Down
Payment
I-Beam
Flat Ballast
OPTIONS
Plan
Ballast
OPTIONS
Plan
Plan
$19,382 $23,196
na
na
na $22,995 $24,975 $25,500
$34,320
$25,061
na
Vendor A
$4,672
$8,110
$0
$3,639
$7,278
$4,677
$7,747
$7,005
$9,004
$6,876
$3,639
na
na
$816
$516
$0
na
na
na
na
na
$444
na
na
3.9%
0.0%
0.0%
na
na
na
na
na
1.3%
$1.25
$1.96
na
na
na
$0.92
$2.15
$1.72
$1.45
$1.57
na
$1.08
$1.74
na
na
na
$0.86
$1.62
$1.29
$1.21
$1.30
na
Production Results
Nameplate Rating (DC Watts)
Percentage of Annual Consumption
Offset
Indicative of the size of panel

array on roof.
Closer to 100% the better
(unless you anticipate much
higher (electric car) or lower
(efficiency improvements)
loads.
3,750
4,140
4,140
4,140
4,140
5,060
3,600
4,080
6,240
4,478
na
92%
99%
99%
99%
99%
117%
102%
96%
159%
111%
na
12
10
10
11
Financial Results
Simple Payback (SP)
The year cash flow turns

positive.

Higher the better.

Higher the better.
16.23%
9.46% Err:523 29.20% 10.83% 20.35%
$7,431
$5,024 ($2,130) $2,579 $5,823 $10,571
10.35%
$5,701
13.46%
$8,199
14.39%
$11,842
14.04%
$8,128
10.02%
$2,091
Higher the better.
$22,500
$24,840
na
na
na
$30,360
$31,600 $24,480
$37,440
$26,870
na
Higher the better.
$28,500
$31,464
na
na
na
$38,456
$27,360 $31,008
$47,424
$34,035
na
Estimated Price Premium (Low; 21X

Higher the better.
$13,296
$14,297
na
na
na
$16,802
$14,663 $16,653
$22,901
$16,435
na
Estimated Price Premium (High; 26X

Higher the better.
$16,462
$17,701
na
na
na
$20,802
$1,815 $20,618
$28,354
$20,349
na

10
never

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Introduction

Author: Andy Kerr.

Estimating the Financial Value of a Residential Photovoltaic Power

Washington, DC Residential Photovoltaic

Projected Non-InflationAdjusted Average Annual

Numbers in the orange

Washington, DC Residential Photovoltaic System

Numbers in the orange boxes

Photovoltaic System Details

Invert Efficiency Factor

Solar Renewable Energy

The retail value of the electricity produced by your system.

Estimated Increased Property

Estimated Price Premium

Estimated Price Premium

Provided by your vendor.

Note: Warranty coverage only 10 years. Monitioring only for 5 years. No

Effective October 1, 2011 (and if you are

Washington, DC Residential Photovoltaic System Financial

Enter your variables in the

Purchase and Three Lease Options

Photovoltaic System Details

Provided by your vendor.

Invert Efficiency Factor

Solar Renewable Energy

Estimated Increased Property

Estimated Price Premium

Lease: $0 Down Plan

Lease: Initial Payment Plan

$0 Acquisition Cost in Year 21

Net System Additional

$0 Acquisition Cost in Year 21

Note: Warranty coverage only 10 years. Monitioring only for 5 years. No

Note: Warranty coverage and monitoring for

Washington, DC Residential Photovoltaic System Financial

Enter your variables in the

Photovoltaic System Details

Invert Efficiency Factor

Solar Renewable Energy

Estimated Increased Property

Gross System Cost (dollars)

Net System Additional

Provided by your vendor.

Provided by your vendor.

Dollars/kiloWatt hour/year ($/kWh/year) (based on Net System

Note: Warranty coverage only 10 years. Monitioring only for 5 years. No

Effective October 1, 2011 (and if you are already on the

Washington, DC Residential Photovoltaic System Financial

Enter your variables in the

Astrum Solar I-Beam

Photovoltaic System Details

Provided by your vendor.

Invert Efficiency Factor

Solar Renewable Energy

Estimated Increased Property

Gross System Cost (dollars)

$24,975 Provided by your vendor.

Net System Additional

Dollars/kiloWatt hour/year ($/kWh/year) (based on Net System

Note: Warranty coverage only 10 years. Monitioring only for 5 years. No

Effective October 1, 2011 (and if you are already on the

Washington, DC Residential Photovoltaic System Financial

Enter your variables in the