NPV Calculation for one branch

Input values
System cost
System size

Total system cost

Efficiency rating
Salvage value
Salvage value

14
15
16

-105000
18%
15% of systems cost
15750

Tax credit

30.00%

Depreciation per
year
Tax rate
Tax credit rate

-21000
38%
30%

Rate increase
NPV Analysis for 15 years

Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13

7000 Per KW
15 KW

-0.50%

KWH production KW by solar

23652.00
23533.74
23416.07
23298.99
23182.50
23066.58
22951.25
22836.49
22722.31
22608.70
22495.66
22383.18
22271.26

2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54

22159.91
22049.11
21938.86

2.53
2.52
2.50

Systems cost
(105000.00)

17
18
19
20
21
22
23
24
25
26
27
28
29
30

21829.17
21720.02
21611.42
21503.36
21395.85
21288.87
21182.42
21076.51
20971.13
20866.27
20761.94
20658.13
20554.84
20452.07

2.49
2.48
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33

KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate

15.00
0.18
8760.00
23652.00

1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41

Possible scenarios- there may be changes in the various costs -mosty increases which may

Input

Base case- as givenMinimum

Most Likely

Electricity Price Growth Rate[1]

3% (given)

7%

Maintenance Cost Growth 2%

Rate[2]
(given)

3.50%

Additional
Maintenance, Year 15

$400/kW (given)

$550/kW

Inverter Replacement,
Year 17

$250/kW (given)

$400/kW

Insurance Cost (as %

of system cost)

0.30% (given)

0.65%

Insurance Cost Growth

Rate

2% (given)

5%

Calculation of the salvage value

System cost
-105000

Hurdle rate

No fo years
of
depreciation
Depreciation p
Salvage value
Book value at

NPV
NPV
NPV
NPV

5
-21000
15750
0

Tax credit on
salvage
value

3%

9765

yrs
yrs
yrs
yrs

-89250
-17850

KW
2%

Grid
Total
Electricit electric
y charges savings

30
12
15
17

-5985

After tax
salvage
value

In KWH

for
for
for
for

2%

Insurance
Maint costs Total Maintcost

SIP rebate
22081.41

0.17
0.18
0.18
0.19
0.19
0.20
0.20
0.21
0.22
0.22
0.23
0.24
0.24

4020.84
4120.76
4223.16
4328.10
4435.66
4545.88
4658.85
4774.62
4893.27
5014.87
5139.49
5267.20
5398.09

(15.00)
(15.30)
(15.61)
(15.92)
(16.24)
(16.56)
(16.89)
(17.23)
(17.57)
(17.93)
(18.28)
(18.65)
(19.02)

(225.00)
(229.50)
(234.09)
(238.77)
(243.55)
(248.42)
(253.39)
(258.45)
(263.62)
(268.90)
(274.27)
(279.76)
(285.35)

(315.00)
(321.30)
(327.73)
(334.28)
(340.97)
(347.79)
(354.74)
(361.84)
(369.07)
(376.45)
(383.98)
(391.66)
(399.50)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.25
0.26
0.26

5532.24
5669.71
5810.61

(19.40)
(19.79)
(20.19)

(291.06)
(6296.88)
(302.82)

(407.49)
(415.64)
(423.95)

0.00
0.00
0.00

0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40

5955.00
6102.98
6254.64
6410.07
6569.36
6732.61
6899.91
7071.37
7247.10
7427.19
7611.75
7800.91
7994.76
8193.43

365*24
KWH

Per KW

ing * design factor

y increases which may affect the NPV

(20.59)
(21.00)
(21.42)
(21.85)
(22.29)
(22.73)
(23.19)
(23.65)
(24.13)
(24.61)
(25.10)
(25.60)
(26.12)
(26.64)

(4058.88)
(315.05)
(321.36)
(327.78)
(334.34)
(341.02)
(347.85)
(354.80)
(361.90)
(369.14)
(376.52)
(384.05)
(391.73)
(399.57)

(432.43)
(441.08)
(449.90)
(458.90)
(468.07)
(477.43)
(486.98)
(496.72)
(506.66)
(516.79)
(527.13)
(537.67)
(548.42)
(559.39)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Maximum
9%
5%
$700/kW

$550/kW

1.00%
8%

3.53%

30394.85
2944.48
6265.61
8578.14

Depreciation

Total cash flowTax rate

Net income(Cash flow
(82918.59) 31500.00
(51418.59) (51418.59)
(17850.00)
(14369.16) (5460.28)
(8908.88)
8941.12
(17850.00)
(14280.04) (5426.42)
(8853.63)
8996.37
(17850.00)
(14188.66) (5391.69)
(8796.97)
9053.03
(17850.00)
(14094.95) (5356.08)
(8738.87)
9111.13
(17850.00)
(13998.86) (5319.57)
(8679.29)
9170.71
3949.68
1500.88
2448.80
2448.80
4050.72
1539.27
2511.45
2511.45
4154.33
1578.65
2575.69
2575.69
4260.57
1619.02
2641.56
2641.56
4369.52
1660.42
2709.10
2709.10
4481.23
1702.87
2778.36
2778.36
4595.78
1746.40
2849.38
2849.38
4713.24
1791.03
2922.21
2922.21
4833.69
(1042.81)
5083.84

1836.80
(396.27)
1931.86

2996.89
(646.54)
3151.98

2996.89
(646.54)
3151.98

1463.69
5346.85
5483.39
5623.39
5766.95
5914.15
6065.08
6219.85
6378.54
6541.26
6708.11
6879.19
7054.61
7234.47

556.20
2031.80
2083.69
2136.89
2191.44
2247.38
2304.73
2363.54
2423.85
2485.68
2549.08
2614.09
2680.75
2749.10

907.49
3315.05
3399.70
3486.50
3575.51
3666.77
3760.35
3856.31
3954.70
4055.58
4159.03
4265.10
4373.86
4485.37

907.49
3315.05
3399.70
3486.50
3575.51
3666.77
3760.35
3856.31
3954.70
4055.58
4159.03
4265.10
4373.86
4485.37

Input values
System cost
System size

Total system cost

Efficiency rating
Salvage value
Salvage value

14
15
16
17
18

-105000
18%
15% of systems cost
15750

Tax credit

30.00%

Depreciation per
year
Tax rate
Tax credit rate

-21000
38%
30%

Rate increase
NPV Analysis for 15 years

Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13

7000 Per KW
15 KW

-0.50%

KWH production KW by solar

23652.00
23533.74
23416.07
23298.99
23182.50
23066.58
22951.25
22836.49
22722.31
22608.70
22495.66
22383.18
22271.26

2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54

22159.91
22049.11
21938.86
21829.17
21720.02

2.53
2.52
2.50
2.49
2.48

Systems cost
(105000.00)

9765.00

19
20
21
22
23
24
25
26
27
28
29
30

21611.42
21503.36
21395.85
21288.87
21182.42
21076.51
20971.13
20866.27
20761.94
20658.13
20554.84
20452.07

2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33

KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate

15.00
0.18
8760.00
23652.00

1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41

Possible scenarios- there may be changes in the various costs -mosty increases which may

Calculation of the salvage value

System cost
-105000

Hurdle rate

No fo years
of
depreciation
Depreciation p
Salvage value
Book value at

NPV
NPV
NPV
NPV

Tax credit on
salvage
value

4020.84
4280.79
4557.54
4852.19
5165.88
5499.85
5855.42
6233.97
6637.00
7066.08
7522.90
8009.26
8527.06

0.41
0.44
0.47
0.50
0.54

9078.33
9665.24
10290.10
10955.36
11663.62

yrs
yrs
yrs
yrs

KW
5%

0.17
0.18
0.19
0.21
0.22
0.24
0.26
0.27
0.29
0.31
0.33
0.36
0.38

30
12
15
17

9765

In KWH

Grid
Total
Electricit electric
y charges savings

for
for
for
for

-5985

After tax
salvage
value

7%

5
-21000
15750
0

5%

Insurance
Maint costs Total Maintcost
(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)

SIP rebate
22081.41

(225.00)
(236.25)
(248.06)
(260.47)
(273.49)
(287.16)
(301.52)
(316.60)
(332.43)
(349.05)
(366.50)
(384.83)
(404.07)

(682.50)
(716.63)
(752.46)
(790.08)
(829.58)
(871.06)
(914.62)
(960.35)
(1008.36)
(1058.78)
(1111.72)
(1167.31)
(1225.67)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

(28.28)
(424.27)
(29.70) (10945.48)
(31.18)
(467.76)
(32.74) (8741.15)
(34.38)
(515.70)

(1286.96)
(1351.30)
(1418.87)
(1489.81)
(1564.30)

0.00
0.00
0.00
0.00
0.00

0.57
0.61
0.66
0.70
0.75
0.81
0.86
0.92
0.99
1.06
1.13
1.21

12417.67
13220.48
14075.18
14985.14
15953.93
16985.35
18083.45
19252.55
20497.23
21822.37
23233.19
24735.21

365*24
KWH

Per KW

ing * design factor

y increases which may affect the NPV

(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)

(541.49)
(568.56)
(596.99)
(626.84)
(658.18)
(691.09)
(725.65)
(761.93)
(800.03)
(840.03)
(882.03)
(926.13)

(1642.52)
(1724.64)
(1810.88)
(1901.42)
(1996.49)
(2096.31)
(2201.13)
(2311.19)
(2426.75)
(2548.08)
(2675.49)
(2809.26)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

3.53%

74357.58
16469.91
21034.66
24274.51

Depreciation

Total cash flowTax rate

Net income(Cash flow
(82918.59) 31500.00
(51418.59) (51418.59)
(21000.00)
(17886.66) (6796.93) (11089.73)
9910.27
(21000.00)
(17672.09) (6715.39) (10956.69)
10043.31
(21000.00)
(17442.98) (6628.33) (10814.65)
10185.35
(21000.00)
(17198.36) (6535.38) (10662.98)
10337.02
(21000.00)
(7172.19) (2725.43)
(4446.76)
16553.24
4341.63
1649.82
2691.81
2691.81
4639.28
1762.93
2876.35
2876.35
4957.03
1883.67
3073.36
3073.36
5296.21
2012.56
3283.65
3283.65
5658.25
2150.13
3508.11
3508.11
6044.68
2296.98
3747.70
3747.70
6457.12
2453.71
4003.42
4003.42
6897.32
2620.98
4276.34
4276.34
7367.10
(2631.54)
8403.47
724.40
9583.61

2799.50
(999.99)
3193.32
275.27
3641.77

4567.60
(1631.56)
5210.15
449.13
5941.84

4567.60
(1631.56)
5210.15
449.13
5941.84

10233.67
10927.27
11667.31
12456.88
13299.26
14197.94
15156.68
16179.43
17270.45
18434.26
19675.67
20999.82

3888.79
4152.36
4433.58
4733.61
5053.72
5395.22
5759.54
6148.18
6562.77
7005.02
7476.76
7979.93

6344.87
6774.91
7233.73
7723.27
8245.54
8802.73
9397.14
10031.25
10707.68
11429.24
12198.92
13019.89

6344.87
6774.91
7233.73
7723.27
8245.54
8802.73
9397.14
10031.25
10707.68
11429.24
12198.92
13019.89

Input values
System cost
System size

Total system cost

Efficiency rating
Salvage value
Salvage value

14
15
16
17
18

-105000
18%
15% of systems cost
15750

Tax credit

30.00%

Depreciation per
year
Tax rate
Tax credit rate

-21000
38%
30%

Rate increase
NPV Analysis for 15 years

Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13

7000 Per KW
15 KW

-0.50%

KWH production KW by solar

23652.00
23533.74
23416.07
23298.99
23182.50
23066.58
22951.25
22836.49
22722.31
22608.70
22495.66
22383.18
22271.26

2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54

22159.91
22049.11
21938.86
21829.17
21720.02

2.53
2.52
2.50
2.49
2.48

Systems cost
(105000.00)

9765.00

19
20
21
22
23
24
25
26
27
28
29
30

21611.42
21503.36
21395.85
21288.87
21182.42
21076.51
20971.13
20866.27
20761.94
20658.13
20554.84
20452.07

2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33

KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate

15.00
0.18
8760.00
23652.00

1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41

Possible scenarios- there may be changes in the various costs -mosty increases which may

Input

Base case- as givenMinimum

Most Likely

Electricity Price Growth Rate[1]

3% (given)

7%

Maintenance Cost Growth 2%

Rate[2]
(given)

3.50%

Additional
Maintenance, Year 15

$400/kW (given)

$550/kW

Inverter Replacement,
Year 17

$250/kW (given)

$400/kW

Insurance Cost (as %

of system cost)

0.30% (given)

0.65%

Insurance Cost Growth

Rate

2% (given)

5%

Calculation of the salvage value

System cost
-105000

Hurdle rate

No fo years
of
depreciation
Depreciation p
Salvage value
Book value at

NPV
NPV
NPV
NPV

Tax credit on
salvage
value

30
12
15
17

yrs
yrs
yrs
yrs

9765

In KWH

KW
5%

Grid
Total
Electricit electric
y charges savings

for
for
for
for

-5985

After tax
salvage
value

9%

5
-21000
15750
0

8%

Insurance
Maint costs Total Maintcost

SIP rebate
22081.41

0.17
0.19
0.20
0.22
0.24
0.26
0.29
0.31
0.34
0.37
0.40
0.44
0.48

4020.84
4360.80
4729.51
5129.39
5563.08
6033.44
6543.56
7096.82
7696.86
8347.63
9053.42
9818.88
10649.07

(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)

(225.00)
(236.25)
(248.06)
(260.47)
(273.49)
(287.16)
(301.52)
(316.60)
(332.43)
(349.05)
(366.50)
(384.83)
(404.07)

(1050.00)
(1134.00)
(1224.72)
(1322.70)
(1428.51)
(1542.79)
(1666.22)
(1799.52)
(1943.48)
(2098.95)
(2266.87)
(2448.22)
(2644.08)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.52
0.57
0.62
0.67
0.74

11549.45
12525.96
13585.03
14733.64
15979.37

(28.28)
(424.27)
(29.70) (10945.48)
(31.18)
(467.76)
(32.74) (8741.15)
(34.38)
(515.70)

(2855.60)
(3084.05)
(3330.78)
(3597.24)
(3885.02)

0.00
0.00
0.00
0.00
0.00

0.80
0.87
0.95
1.04
1.13
1.23
1.34
1.47
1.60
1.74
1.90
2.07

17330.42
18795.71
20384.89
22108.43
23977.70
26005.01
28203.74
30588.36
33174.61
35979.52
39021.59
42320.87

365*24
KWH

Per KW

ing * design factor

y increases which may affect the NPV

(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)

(541.49)
(568.56)
(596.99)
(626.84)
(658.18)
(691.09)
(725.65)
(761.93)
(800.03)
(840.03)
(882.03)
(926.13)

(4195.82)
(4531.49)
(4894.01)
(5285.53)
(5708.37)
(6165.04)
(6658.24)
(7190.90)
(7766.17)
(8387.46)
(9058.46)
(9783.14)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Maximum
9%
5%
$700/kW

$550/kW

1.00%
8%

3.53%

94236.60
16092.08
21694.59
26001.05

Depreciation

Total cash flowTax rate

Net income(Cash flow
(82918.59) 31500.00
(51418.59) (51418.59)
(21000.00)
(18254.16) (6936.58) (11317.58)
9682.42
(21000.00)
(18009.45) (6843.59) (11165.86)
9834.14
(21000.00)
(17743.27) (6742.44) (11000.83)
9999.17
(21000.00)
(17453.78) (6632.43) (10821.34)
10178.66
(21000.00)
(7373.92) (2802.09)
(4571.83)
16428.17
4203.48
1597.32
2606.16
2606.16
4575.82
1738.81
2837.01
2837.01
4980.71
1892.67
3088.04
3088.04
5420.95
2059.96
3360.99
3360.99
5899.62
2241.86
3657.77
3657.77
6420.05
2439.62
3980.43
3980.43
6985.84
2654.62
4331.22
4331.22
7600.93
2888.35
4712.57
4712.57
8269.57
(1503.58)
9786.49
2395.25
11578.65

3142.44
(571.36)
3718.87
910.20
4399.89

5127.14
(932.22)
6067.62
1485.06
7178.76

5127.14
(932.22)
6067.62
1485.06
7178.76

12593.11
13695.66
14893.89
16196.07
17611.15
19148.88
20819.85
22635.54
24608.41
26752.03
29081.10
31611.60

4785.38
5204.35
5659.68
6154.50
6692.24
7276.58
7911.54
8601.50
9351.20
10165.77
11050.82
12012.41

7807.73
8491.31
9234.21
10041.56
10918.91
11872.31
12908.31
14034.03
15257.22
16586.26
18030.28
19599.19

7807.73
8491.31
9234.21
10041.56
10918.91
11872.31
12908.31
14034.03
15257.22
16586.26
18030.28
19599.19

NPV

Base case- as
given-Minimum

NPV-30 yrs

3% (given)

Maintenance Cost Growth Rate[2] NPV-12 yrs

2% (given)

Input
Electricity Price Growth Rate[1]

Additional Maintenance, Year

15

NPV- 15 yrs

$400/kW (given)

Inverter Replacement, Year 17

NPV-17 yrs

$250/kW (given)

Insurance Cost (as % of

system cost)

0.30% (given)

Insurance Cost Growth Rate

2% (given)

NPV

Most Likely

NPV

Maximum
NPV

30394.85

7%

74357.58

9%

2944.48

5%

16469.91

5%

6265.61

$700/kW

21034.66

$700/kW

8578.14

$550/kW

24274.51

$550/kW

0.65%

1.00%

5%

8%

94236.60
16092.08
21694.59
26001.05

Input values
System cost
System size

Total system cost

Efficiency rating
Salvage value
Salvage value

14
15
16
17
18

-315000
18%
15% of systems cost
47250

Tax credit

30.00%

Depreciation per
year
Tax rate
Tax credit rate

-63000
38%
30%

Rate increase
NPV Analysis for 15 years

Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13

7000 Per KW
15 KW

-0.50%

KWH production KW by solar

70956.00
70601.22
70248.21
69896.97
69547.49
69199.75
68853.75
68509.48
68166.94
67826.10
67486.97
67149.54
66813.79

2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54

66479.72
66147.32
65816.58
65487.50
65160.06

2.53
2.52
2.50
2.49
2.48

Systems cost
(315000.00)

19
20
21
22
23
24
25
26
27
28
29
30

64834.26
64510.09
64187.54
63866.60
63547.27
63229.53
62913.39
62598.82
62285.83
61974.40
61664.52
61356.20

2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33

KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate

29295.00

15.00
0.18
8760.00
23652.00
70956.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41

Possible scenarios- there may be changes in the various costs -mosty increases which may

Input

Base case- as givenMinimum

Most Likely

Electricity Price Growth Rate[1]

3% (given)

7%

Maintenance Cost Growth 2%

Rate[2]
(given)

3.50%

Additional
Maintenance, Year 15

$400/kW (given)

$550/kW

Inverter Replacement,
Year 17

$250/kW (given)

$400/kW

Insurance Cost (as %

of system cost)

0.30% (given)

0.65%

Insurance Cost Growth

Rate

2% (given)

5%

Calculation of the salvage value

System cost
-315000

Hurdle rate

No fo years
of
depreciation
Depreciation p
Salvage value
Book value at

5
-63000
47250
0

NPV
NPV
NPV
NPV

Tax credit on
salvage
value

-17955

After tax
salvage
value

yrs
yrs
yrs
yrs

KW
2%

Grid
Total
Electricit electric
y charges savings

30
12
15
17

29295

In KWH
3%

for
for
for
for

2%

Insurance
Maint costs Total Maintcost

SIP rebate
66244.23

0.17
0.18
0.18
0.19
0.19
0.20
0.20
0.21
0.22
0.22
0.23
0.24
0.24

12062.52
12362.27
12669.48
12984.31
13306.97
13637.65
13976.55
14323.86
14679.81
15044.61
15418.46
15801.61
16194.28

(15.00)
(15.30)
(15.61)
(15.92)
(16.24)
(16.56)
(16.89)
(17.23)
(17.57)
(17.93)
(18.28)
(18.65)
(19.02)

(675.00)
(688.50)
(702.27)
(716.32)
(730.64)
(745.25)
(760.16)
(775.36)
(790.87)
(806.69)
(822.82)
(839.28)
(856.06)

(945.00)
(963.90)
(983.18)
(1002.84)
(1022.90)
(1043.36)
(1064.22)
(1085.51)
(1107.22)
(1129.36)
(1151.95)
(1174.99)
(1198.49)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.25
0.26
0.26
0.27
0.28

16596.71
17009.14
17431.82
17865.00
18308.94

(19.40)
(873.18)
(19.79) (18890.65)
(20.19)
(908.46)
(20.59) (12176.63)
(21.00)
(945.16)

(1222.46)
(1246.91)
(1271.85)
(1297.28)
(1323.23)

0.00
0.00
0.00
0.00
0.00

0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40

18763.92
19230.20
19708.07
20197.82
20699.73
21214.12
21741.29
22281.56
22835.26
23402.72
23984.28
24580.28

365*24
KWH

Per KW

ing * design factor

y increases which may affect the NPV

(21.42)
(21.85)
(22.29)
(22.73)
(23.19)
(23.65)
(24.13)
(24.61)
(25.10)
(25.60)
(26.12)
(26.64)

(964.07)
(983.35)
(1003.01)
(1023.07)
(1043.54)
(1064.41)
(1085.70)
(1107.41)
(1129.56)
(1152.15)
(1175.19)
(1198.70)

(1349.69)
(1376.69)
(1404.22)
(1432.30)
(1460.95)
(1490.17)
(1519.97)
(1550.37)
(1581.38)
(1613.01)
(1645.27)
(1678.17)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Maximum
9%
5%
$700/kW

$550/kW

1.00%
8%

3.53%

113799.35
25033.23
34996.63
41934.21

Depreciation

Total cash flowTax rate

Net income(Cash flow
(248755.77) 94500.00 (154255.77) (154255.77)
(63000.00)
(52557.48) (19971.84) (32585.64)
30414.36
(63000.00)
(52290.13) (19870.25) (32419.88)
30580.12
(63000.00)
(52015.97) (19766.07) (32249.90)
30750.10
(63000.00)
(51734.84) (19659.24) (32075.60)
30924.40
(63000.00)
(51446.57) (19549.70) (31896.87)
31103.13
11849.04
4502.64
7346.40
7346.40
12152.16
4617.82
7534.34
7534.34
12462.99
4735.94
7727.06
7727.06
12781.72
4857.05
7924.67
7924.67
13108.56
4981.25
8127.30
8127.30
13443.69
5108.60
8335.09
8335.09
13787.35
5239.19
8548.15
8548.15
14139.73
5373.10
8766.63
8766.63
14501.07
(3128.42)
15251.51
4391.08
16040.55

5510.41
(1188.80)
5795.57
1668.61
6095.41

8990.66
(1939.62)
9455.94
2722.47
9945.14

8990.66
(1939.62)
9455.94
2722.47
9945.14

16450.16
16870.17
17300.84
17742.44
18195.25
18659.55
19135.63
19623.78
20124.32
20637.56
21163.82
50998.42

6251.06
6410.66
6574.32
6742.13
6914.19
7090.63
7271.54
7457.04
7647.24
7842.27
8042.25
19379.40

10199.10
10459.50
10726.52
11000.31
11281.05
11568.92
11864.09
12166.75
12477.08
12795.29
13121.57
31619.02

10199.10
10459.50
10726.52
11000.31
11281.05
11568.92
11864.09
12166.75
12477.08
12795.29
13121.57
31619.02

Input values
System cost
System size

Total system cost

Efficiency rating
Salvage value
Salvage value

14
15
16
17
18

-315000
18%
15% of systems cost
47250

Tax credit

30.00%

Depreciation per
year
Tax rate
Tax credit rate

-63000
38%
30%

Rate increase
NPV Analysis for 15 years

Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13

7000 Per KW
15 KW

-0.50%

KWH production KW by solar

70956.00
70601.22
70248.21
69896.97
69547.49
69199.75
68853.75
68509.48
68166.94
67826.10
67486.97
67149.54
66813.79

2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54

66479.72
66147.32
65816.58
65487.50
65160.06

2.53
2.52
2.50
2.49
2.48

Systems cost
(315000.00)

29295.00

19
20
21
22
23
24
25
26
27
28
29
30

64834.26
64510.09
64187.54
63866.60
63547.27
63229.53
62913.39
62598.82
62285.83
61974.40
61664.52
61356.20

2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33

KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate

15.00
0.18
8760.00
23652.00
70956.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41

Possible scenarios- there may be changes in the various costs -mosty increases which may

Input

Base case- as givenMinimum

Most Likely

Electricity Price Growth Rate[1]

3% (given)

7%

Maintenance Cost Growth 2%

Rate[2]
(given)

3.50%

Additional
Maintenance, Year 15

$400/kW (given)

$550/kW

Inverter Replacement,
Year 17

$250/kW (given)

$400/kW

Insurance Cost (as %

of system cost)

0.30% (given)

0.65%

Insurance Cost Growth

Rate

2% (given)

5%

Calculation of the salvage value

System cost
-315000

Hurdle rate

No fo years
of
depreciation
Depreciation p
Salvage value
Book value at

5
-63000
47250
0

NPV
NPV
NPV
NPV

Tax credit on
salvage
value

-17955

After tax
salvage
value

yrs
yrs
yrs
yrs

KW
5%

Grid
Total
Electricit electric
y charges savings

30
12
15
17

29295

In KWH
7%

for
for
for
for

5%

Insurance
Maint costs Total Maintcost

SIP rebate
66244.23

0.17
0.18
0.19
0.21
0.22
0.24
0.26
0.27
0.29
0.31
0.33
0.36
0.38

12062.52
12842.36
13672.62
14556.56
15497.64
16499.56
17566.26
18701.91
19910.99
21198.24
22568.70
24027.77
25581.17

(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)

(675.00)
(708.75)
(744.19)
(781.40)
(820.47)
(861.49)
(904.56)
(949.79)
(997.28)
(1047.15)
(1099.50)
(1154.48)
(1212.20)

(2047.50)
(2149.88)
(2257.37)
(2370.24)
(2488.75)
(2613.19)
(2743.85)
(2881.04)
(3025.09)
(3176.34)
(3335.16)
(3501.92)
(3677.02)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.41
0.44
0.47
0.50
0.54

27234.99
28995.73
30870.31
32866.07
34990.86

(28.28) (1272.81)
(29.70) (32836.45)
(31.18) (1403.28)
(32.74) (26223.44)
(34.38) (1547.11)

(3860.87)
(4053.91)
(4256.61)
(4469.44)
(4692.91)

0.00
0.00
0.00
0.00
0.00

0.57
0.61
0.66
0.70
0.75
0.81
0.86
0.92
0.99
1.06
1.13
1.21

37253.02
39661.43
42225.54
44955.42
47861.79
50956.05
54250.36
57757.65
61491.68
65467.12
69699.57
74205.64

365*24
KWH

Per KW

ing * design factor

y increases which may affect the NPV

(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)

(1624.47)
(1705.69)
(1790.98)
(1880.52)
(1974.55)
(2073.28)
(2176.94)
(2285.79)
(2400.08)
(2520.08)
(2646.09)
(2778.39)

(4927.55)
(5173.93)
(5432.63)
(5704.26)
(5989.47)
(6288.94)
(6603.39)
(6933.56)
(7280.24)
(7644.25)
(8026.46)
(8427.79)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Maximum
9%
5%
$700/kW

$550/kW

1.00%
8%

3.53%

223072.73
49409.74
63103.98
72823.53

Depreciation

Total cash flowTax rate

Net income(Cash flow
(248755.77) 94500.00 (154255.77) (154255.77)
(63000.00)
(53659.98) (20390.79) (33269.19)
29730.81
(63000.00)
(53016.26) (20146.18) (32870.08)
30129.92
(63000.00)
(52328.94) (19885.00) (32443.94)
30556.06
(63000.00)
(51595.08) (19606.13) (31988.95)
31011.05
(63000.00)
(21516.58) (8176.30) (13340.28)
49659.72
13024.88
4949.46
8075.43
8075.43
13917.85
5288.78
8629.06
8629.06
14871.08
5651.01
9220.07
9220.07
15888.62
6037.68
9850.94
9850.94
16974.75
6450.40
10524.34
10524.34
18134.04
6890.93
11243.10
11243.10
19371.37
7361.12
12010.25
12010.25
20691.95
7862.94
12829.01
12829.01
22101.31
(7894.63)
25210.42
2173.19
28750.84

8398.50
(2999.96)
9579.96
825.81
10925.32

13702.81
(4894.67)
15630.46
1347.38
17825.52

13702.81
(4894.67)
15630.46
1347.38
17825.52

30701.00
32781.81
35001.94
37370.64
39897.77
42593.83
45470.03
48538.30
51811.36
55302.78
59027.02
62999.47

11666.38
12457.09
13300.74
14200.84
15161.15
16185.66
17278.61
18444.55
19688.32
21015.06
22430.27
23939.80

19034.62
20324.72
21701.20
23169.80
24736.62
26408.18
28191.42
30093.74
32123.04
34287.73
36596.75
39059.67

19034.62
20324.72
21701.20
23169.80
24736.62
26408.18
28191.42
30093.74
32123.04
34287.73
36596.75
39059.67

Input values
System cost
System size

Total system cost

Efficiency rating
Salvage value
Salvage value

14
15
16
17
18

-315000
18%
15% of systems cost
47250

Tax credit

30.00%

Depreciation per
year
Tax rate
Tax credit rate

-63000
38%
30%

Rate increase
NPV Analysis for 15 years

Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13

7000 Per KW
15 KW

-0.50%

KWH production KW by solar

70956.00
70601.22
70248.21
69896.97
69547.49
69199.75
68853.75
68509.48
68166.94
67826.10
67486.97
67149.54
66813.79

2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54

66479.72
66147.32
65816.58
65487.50
65160.06

2.53
2.52
2.50
2.49
2.48

Systems cost
(315000.00)

29295.00

19
20
21
22
23
24
25
26
27
28
29
30

64834.26
64510.09
64187.54
63866.60
63547.27
63229.53
62913.39
62598.82
62285.83
61974.40
61664.52
61356.20

2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33

KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate

15.00
0.18
8760.00
23652.00
70956.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41

Possible scenarios- there may be changes in the various costs -mosty increases which may

Input

Base case- as givenMinimum

Most Likely

Electricity Price Growth Rate[1]

3% (given)

7%

Maintenance Cost Growth 2%

Rate[2]
(given)

3.50%

Additional
Maintenance, Year 15

$400/kW (given)

$550/kW

Inverter Replacement,
Year 17

$250/kW (given)

$400/kW

Insurance Cost (as %

of system cost)

0.30% (given)

0.65%

Insurance Cost Growth

Rate

2% (given)

5%

Calculation of the salvage value

System cost
-315000

Hurdle rate

No fo years
of
depreciation
Depreciation p
Salvage value
Book value at

5
-63000
47250
0

NPV
NPV
NPV
NPV

Tax credit on
salvage
value

-17955

After tax
salvage
value

yrs
yrs
yrs
yrs

KW
5%

Grid
Total
Electricit electric
y charges savings

30
12
15
17

29295

In KWH
9%

for
for
for
for

8%

Insurance
Maint costs Total Maintcost

SIP rebate
66244.23

0.17
0.19
0.20
0.22
0.24
0.26
0.29
0.31
0.34
0.37
0.40
0.44
0.48

12062.52
13082.41
14188.52
15388.16
16689.23
18100.31
19630.69
21290.46
23090.57
25042.88
27160.25
29456.65
31947.21

(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)

(675.00)
(708.75)
(744.19)
(781.40)
(820.47)
(861.49)
(904.56)
(949.79)
(997.28)
(1047.15)
(1099.50)
(1154.48)
(1212.20)

(3150.00)
(3402.00)
(3674.16)
(3968.09)
(4285.54)
(4628.38)
(4998.65)
(5398.55)
(5830.43)
(6296.86)
(6800.61)
(7344.66)
(7932.24)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.52
0.57
0.62
0.67
0.74

34648.35
37577.87
40755.08
44200.92
47938.11

(28.28) (1272.81)
(29.70) (32836.45)
(31.18) (1403.28)
(32.74) (26223.44)
(34.38) (1547.11)

(8566.81)
(9252.16)
(9992.33)
(10791.72)
(11655.06)

0.00
0.00
0.00
0.00
0.00

0.80
0.87
0.95
1.04
1.13
1.23
1.34
1.47
1.60
1.74
1.90
2.07

51991.27
56387.14
61154.67
66325.30
71933.10
78015.04
84611.22
91765.09
99523.83
107938.57
117064.78
126962.61

365*24
KWH

Per KW

ing * design factor

y increases which may affect the NPV

(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)

(1624.47)
(1705.69)
(1790.98)
(1880.52)
(1974.55)
(2073.28)
(2176.94)
(2285.79)
(2400.08)
(2520.08)
(2646.09)
(2778.39)

(12587.46)
(13594.46)
(14682.02)
(15856.58)
(17125.10)
(18495.11)
(19974.72)
(21572.70)
(23298.51)
(25162.39)
(27175.39)
(29349.42)

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Maximum
9%
5%
$700/kW

$550/kW

1.00%
8%

3.53%

282709.80
48276.24
65083.78
78003.16

Depreciation

Total cash flowTax rate

Net income(Cash flow
(248755.77) 94500.00 (154255.77) (154255.77)
(63000.00)
(54762.48) (20809.74) (33952.74)
29047.26
(63000.00)
(54028.34) (20530.77) (33497.57)
29502.43
(63000.00)
(53229.82) (20227.33) (33002.49)
29997.51
(63000.00)
(52361.33) (19897.30) (32464.02)
30535.98
(63000.00)
(22121.77) (8406.27) (13715.50)
49284.50
12610.43
4791.96
7818.47
7818.47
13727.47
5216.44
8511.03
8511.03
14942.12
5678.01
9264.12
9264.12
16262.86
6179.89
10082.97
10082.97
17698.87
6725.57
10973.30
10973.30
19260.14
7318.85
11941.28
11941.28
20957.51
7963.85
12993.66
12993.66
22802.78
8665.05
14137.72
14137.72
24808.72
(4510.74)
29359.47
7185.76
34735.94

9427.31
(1714.08)
11156.60
2730.59
13199.66

15381.41
(2796.66)
18202.87
4455.17
21536.28

15381.41
(2796.66)
18202.87
4455.17
21536.28

37779.34
41086.99
44681.68
48588.20
52833.45
57446.65
62459.55
67906.61
73825.24
80256.10
87243.31
94834.80

14356.15
15613.06
16979.04
18463.51
20076.71
21829.73
23734.63
25804.51
28053.59
30497.32
33152.46
36037.22

23423.19
25473.93
27702.64
30124.68
32756.74
35616.93
38724.92
42102.10
45771.65
49758.78
54090.85
58797.58

23423.19
25473.93
27702.64
30124.68
32756.74
35616.93
38724.92
42102.10
45771.65
49758.78
54090.85
58797.58

NPV

Base case- as
given-Minimum

NPV-30 yrs

3% (given)

Maintenance Cost Growth Rate[2] NPV-12 yrs

2% (given)

Input
Electricity Price Growth Rate[1]

Additional Maintenance, Year

15

NPV- 15 yrs

$400/kW (given)

Inverter Replacement, Year 17

NPV-17 yrs

$250/kW (given)

Insurance Cost (as % of

system cost)

0.30% (given)

Insurance Cost Growth Rate

2% (given)

NPV

Most Likely

NPV

Maximum
NPV

113799.35

7%

223072.73

9%

25033.23

5%

49409.74

5%

34996.63

$700/kW

63103.98

$700/kW

41934.21

$550/kW

72823.53

$550/kW

0.65%

1.00%

5%

8%

282709.80
48276.24
65083.78
78003.16