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Solar Energy Cash Flow Calculator by Paul Gipe

Enter data in these cells.

SolarShare Toronto
Project Description
Location Toronto
Rated Power DC (kW) 200
Type (Residential or Commercial)
Commercial

Solar Resource
Yield (kWh/kW/yr) 1,200
Annual Decrease in Yield -0.8%
Availability 100%
Array Efficiency 100%

Cost
Specific Cost ($/kW) $8,000
Installed Cost $1,600,000
Total Installed Cost $1,600,000

Financing Terms
Equity to Debt 20%
Return on Equity 13.0%
Term of Debt 10
Interest on Debt 7.0%
Discount Rate (nominal) 8.2%
Inflation Rate (General) 2.5%
Inflation Rate (Energy) 3.0%
Equity $320,000
Debt $1,280,000

Federal Tax Position


Use Federal Subsidy (yes or no)
yes
Type of Subsidy payment/kWh
Tax Credit
Buy-Down Payment 0
Year 1 Payment/kWh 0
Federal Tax Rate 25%
Federal Sales Tax 6%

Provincial Tax Position


Use Provincial Subsidy (yes or no)
Type of Subsidy
Provincial Tax Credit
Buy-Down Payment 0
Year 1 Payment/kWh 0
Provincial Tax Rate 11%
Provincial Sales Tax 11%

Annual Reoccurring Expenses


Total Expense 1.2%
Applies to % of Installed Costs 100%

Power Purchase Agreement or Contract


Tariff T1 ($/kWh) $0.420
Term T1 (yr) 20
Tariff T2 ($/kWh) $0.000
Term T2 (yr) 0
Portion of T1 Adjusted for Inflation 0%
Portion of T2 Adjusted for Inflation 0%

Avoided Cost of Energy ($/kWh) $0.10


ator by Paul Gipe

Results
Determines yield. IRR-20 yr 1.8%
Note that some projects are rated in kW AC. IRR-30 yr 8.8%
Determines tax treatment. ROE-20 yr 2%
ROE-30 yr 18%
NPV-20 yr ($185,466)
See tab: Yield Examples NPV-30 yr $37,843
Allowance for cell degradation over time. PI-20 yr -0.58
Allowance for downtime to perform maintenance. PI-30 yr 0.12
Any other losses not included in Yield estimate.

Desired. Used in WACC.

Weighted Average Cost of Capital. Used in NPV.

Use of subsidy optional.


Type "payment/kWh", "tax credit", or "buy-down".
There may be no tax credit available.
There may be no payment available.
There may be no payment available.

Use of subsidy optional.


Type "payment/kWh", "tax credit", or "buy-down".
There may be no tax credit available.
There may be no payment available.
There may be no payment available.

See tab: Annual Cost Examples

Current retail price of electricity.


Annualized
Annualized
Using WACC
Using WACC
NPV/Equity Investment
NPV/Equity Investment
Results

SolarShare Project
$3,000,000

$2,500,000
Cumulative Cash Flow

$2,000,000

$1,500,000

$1,000,000

$500,000

$0

($500,000)

($1,000,000)
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34

Year
Cash Flow
Year 0 1 2 3
Income
Revenue from Generation $0 $103,200 $102,374 $101,555
Provincial Sales Tax Rebate $177,600
Expenses
Equity Investment $320,000
Federal Sales Tax $96,000
Provincial Sales Tax $177,600
Annual Reoccurring Costs $0 $19,200 $19,680 $20,172
Debt Repayment $0 $182,243 $182,243 $182,243

Before Tax
Profit (Loss) ($593,600) $79,357 ($99,549) ($100,860)
Cumulative Profit (Loss) ($593,600) ($514,243) ($613,792) ($714,652)

After Tax
After Tax Value of Depreciation $144,400 $216,600 $108,300 $54,150
After Tax Value of Interest Expense $0 $32,346 $30,005 $27,500
After Tax Value of Annual Reoccurring Costs $0 $6,931 $7,104 $7,282

Profit (Loss) ($449,200) $335,234 $45,860 ($11,928)


Cumulative Profit (Loss) ($449,200) ($113,966) ($68,106) ($80,034)

IRR-20 yr 1.8%
IRR-30 yr 8.8%
ROE-20 yr 2% Annualized
ROE-30 yr 18% Annualized
NPV-20 yr ($185,466) Using WACC
NPV-30 yr $37,843 Using WACC
PI-20 yr -0.58 NPV/Equity Investment
PI-30 yr 0.12 NPV/Equity Investment
4 5 6 7 8 9 10

$100,743 $99,937 $99,138 $98,344 $97,558 $96,777 $96,003

$20,676 $21,193 $21,723 $22,266 $22,823 $23,393 $23,978


$182,243 $182,243 $182,243 $182,243 $182,243 $182,243 $182,243

($102,177) ($103,499) ($104,829) ($106,165) ($107,508) ($108,859) ($110,218)


($816,828) ($920,328) ### ### ### ### ###

$27,075 $13,538 $6,769 $3,384 $1,692 $846 $423


$24,819 $21,951 $18,883 $15,599 $12,086 $8,326 $4,304
$7,464 $7,651 $7,842 $8,038 $8,239 $8,445 $8,656

($42,818) ($60,360) ($71,335) ($79,143) ($85,491) ($91,242) ($96,835)


($122,853) ($183,212) ($254,548) ($333,691) ($419,183) ($510,424) ($607,260)
11 12 13 14 15 16 17

$93,020 $92,276 $91,538 $90,806 $90,079 $89,358 $88,644

$24,578 $25,192 $25,822 $26,467 $27,129 $27,807 $28,503


$0 $0 $0 $0 $0 $0 $0

$68,443 $67,084 $65,716 $64,338 $62,950 $61,551 $60,141


### ### ### ### ### ### ###

$212 $106 $53 $26 $13 $7 $3


$0 $0 $0 $0 $0 $0 $0
$8,873 $9,094 $9,322 $9,555 $9,794 $10,038 $10,289

$77,527 $76,284 $75,091 $73,919 $72,757 $71,596 $70,434


($529,733) ($453,449) ($378,358) ($304,439) ($231,682) ($160,086) ($89,652)
18 19 20 21 22 23 24 25

$87,934 $87,231 $86,533 $36,914 $37,717 $38,538 $39,376 $40,233

$29,215 $29,945 $30,694 $31,461 $32,248 $33,054 $33,881 $34,728


$0 $0 $0 $0 $0 $0 $0 $0

$58,719 $57,286 $55,839 $5,452 $5,469 $5,484 $5,496 $5,506


($948,965) ### ### ($830,388) ($824,919) ($819,436) ($813,940) ($808,434)
$0

$2 $1 $0 $144,400 $144,400 $144,400 $144,400 $144,400


$0 $0 $0 $0 $0 $0 $0 $0
$10,547 $10,810 $11,081 $11,358 $11,642 $11,933 $12,231 $12,537

$69,268 $68,097 $66,920 $161,210 $161,511 $161,816 $162,127 $162,442


($20,385) $47,712 ### $275,842 $437,353 $599,169 $761,296 $923,738
26 27 28 29 30 31 32

$41,109 $42,003 $42,917 $43,851 $44,805 $45,780 $46,776

$35,596 $36,486 $37,398 $38,333 $39,291 $40,273 $41,280


$0 $0 $0 $0 $0 $0 $0

$5,513 $5,518 $5,519 $5,518 $5,514 $5,507 $5,496


($802,921) ($797,403) ($791,884) ($786,366) ($780,851) ($775,344) ($769,848)

$144,400 $144,400 $144,400 $144,400 $144,400 $144,400 $144,400


$0 $0 $0 $0 $0 $0 $0
$12,850 $13,171 $13,501 $13,838 $14,184 $14,539 $14,902

$162,763 $163,089 $163,420 $163,756 $164,098 $164,446 $164,798


### ### ### ### ### ### ###
33 34 35

$47,794 $48,834 $49,897

$42,312 $43,370 $44,454


$0 $0 $0

$5,482 $5,464 $5,443


($764,366) ($758,902) ($753,459)

$144,400 $144,400 $144,400


$0 $0 $0
$15,275 $15,657 $16,048

$165,157 $165,521 $165,891


### ### ###
Annual Reoccurring Expenses

Total Expense 1.2%


Inflation Rate (General) 2.5%
Installed Cost ###
Applies to % of Installed Costs 100%

Year 0 1 2 3 4 5
$0 ### ### ### ### ###
6 7 8 9 10 11 12 13 14 15 16
### ### ### ### ### ### ### ### ### ### ###
17 18 19 20 21 22 23 24 25 26 27
### ### ### ### ### ### ### ### ### ### ###
28 29 30 31 32 33 34 35
### ### ### ### ### ### ### ###
Commercial Deductions

Installed Cost ###


Class 43.2 Depreciation 50%
First Year Rule 50%
Federal Tax Rate 25%
Provincial Tax Rate 11%
Total Corporate Tax Rate 36.1%

CCA Capital Cost Allowance Canada 43.2


Year 0 1 2 3
Opening Balance ### 1,200,000 600,000 300,000
Depreciation 400,000 600,000 300,000 150,000

Earnings Before Tax, Depreciation,


& Amortization
Maximum Depreciation 400,000 600,000 300,000 150,000
Closing Balance ### 600,000 300,000 150,000

After Tax Value of Depreciation 144,400 216,600 108,300 54,150


After Tax Value of Interest Expense 0 32,346 30,005 27,500
After Tax Value of Annual Reoccurring Costs 0 6,931 7,104 7,282
4 5 6 7 8 9 10 11 12
150,000 75,000 37,500 18,750 9,375 4,688 2,344 1,172 586
75,000 37,500 18,750 9,375 4,688 2,344 1,172 586 293

75,000 37,500 18,750 9,375 4,688 2,344 1,172 586 293


75,000 37,500 18,750 9,375 4,688 2,344 1,172 586 293

27,075 13,538 6,769 3,384 1,692 846 423 212 106


24,819 21,951 18,883 15,599 12,086 8,326 4,304 0 0
7,464 7,651 7,842 8,038 8,239 8,445 8,656 8,873 9,094
13 14 15 16 17 18 19 20 21 22
293 146 73 37 18 9 5 2 1 1
146 73 37 18 9 5 2 1 1 0

146 73 37 18 9 5 2 1 1 0
146 73 37 18 9 5 2 1 1 0

53 26 13 7 3 2 1 0 0 0
0 0 0 0 0 0 0 0 0 0
9,322 9,555 9,794 10,038 10,289 10,547 10,810 11,081 ### ###
23 24 25 26 27 28 29 30 31 32 33 34 35
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
### ### ### ### ### ### ### ### ### ### ### ### ###
Annual Generation Revenue

Solar Resource
Rated Power DC (kW) 200
Yield (kWh/kW/yr) 1,200
Annual Decrease in Yield -0.8%
Availability 100%
Array Efficiency 100%

Energy Generation Year 0 1 2 3 4


Gross kWh/yr 0 240,000 238,080 236,175 234,286
Net kWh/yr 0 240,000 238,080 236,175 234,286

Revenue
Gross Revenue $0 ### $99,994 $99,194 $98,400
Federal Production Payment $0 $2,400 $2,381 $2,362 $2,343
Federal Buy-Down Payment $0

Provincial Production Payment $0


State or Provincial Buy-Down Payment $0
Total $0 ### ### ### ###
5 6 7 8 9 10 11 12 13 14 15
232,412 ### ### ### ### ### ### ### ### ### ###
232,412 ### ### ### ### ### ### ### ### ### ###

$97,613 ### ### ### ### ### ### ### ### ### ###
$2,324 $2,306 $2,287 $2,269 $2,251 $2,233 $0 $0 $0 $0 $0

$99,937 ### ### ### ### ### ### ### ### ### ###
16 17 18 19 20 21 22 23 24 25 26
### ### ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ### ### ### ###
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

### ### ### ### ### ### ### ### ### ### ###
27 28 29 30 31 32 33 34 35
### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ###

### ### ### ### ### ### ### ### ###


$0 $0 $0 $0 $0 $0 $0 $0 $0

### ### ### ### ### ### ### ### ###


Inflation of Electricity Price

Price in Year 0 $0.10


Inflation Rate (Energy) 3%
Year 0 1 2 3 4 5 6
$/kWh ### ### ### ### ### ### ###

Inflation of Tariff Payment


Tariff T1 ($/kWh) $0.42
Term T1 (yr) 20
Tariff T2 ($/kWh) $0.00
Term T2 (yr) 0
Portion of T1 Adjusted for Inflation0%
Portion of T2 Adjusted for Inflation0%
Year 0 1 2 3 4 5 6
$/kWh ### ### ### ### ### ### ###
7 8 9 10 11 12 13 14 15 16 17
### ### ### ### ### ### ### ### ### ### ###

7 8 9 10 11 12 13 14 15 16 17
### ### ### ### ### ### ### ### ### ### ###
18 19 20 21 22 23 24 25 26 27 28
### ### ### ### ### ### ### ### ### ### ###

18 19 20 21 22 23 24 25 26 27 28
### ### ### ### ### ### ### ### ### ### ###
29 30 31 32 33 34 35
### ### ### ### ### ### ###

29 30 31 32 33 34 35
### ### ### ### ### ### ###
Federal Tax Credits, Buy-Downs, or Production Payments

Federal Tax Credit


Type Tax Credit Cap
$
Commercial 30% ###
Residential 30% $2,000

Federal Buy-Down (Subsidy) Payment


Type Payment Cap
$/kW kW
Commercial $0 ###
Residential $0 100

Federal Production Payment


Type Payment
Years $/kWh
Term 10
Commercial $0.01
Residential $0.01
State or Provincial Tax Credits, Buy-Downs, or Production Payments

State or Provincial Tax Credit


Type Tax Credit Cap
kW
Commercial 30% ###
Residential 30% $2,000

State or Provincial Buy-Down (Subsidy) Payment


Type Payment Cap
$/kW kW
Commercial $0 100
Residential $0 100

State or Provincial Production Payment


Type Payment
Years $/kWh
Term 10
Commercial $0.00
Residential $0.00
Debt Repayment

Debt ###
Term 10
Interest on Debt 7.0%

Year 0 1 2 3 4 5
Beginning Balance $0 ### ### ### ### ###
Principal Payment $0 ($92,643) ($99,128) ($106,067) ### ###
Closing Balance $0 ### ### $982,161 ### ###

Payment $0 $182,243 $182,243 $182,243 ### ###


Interest Payment $0 $89,600 $83,115 $76,176 $68,751 $60,807
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
### ### ### ### ### $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
### ### ### ### ### $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
### ### ### ### $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

### ### ### ### ### $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


$52,306 $43,211 $33,478 $23,065 $11,922 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
21 22 23 24 25 26 27 28 29 30 31 32 33
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
34 35
$0 $0 ###
$0 $0 ###
$0 $0 ###

$0 $0 ###
$0 $0 $542,432
Solar Radiation & Yields on Tilted Surface

mono-Si poly-Si Source


kWh/m2/ykWh/kW/ykWh/kW/y
Germany
Hamburg 1,110 938 RetScreen
Kassel 1,100 932 RetScreen
Nuernburg 1,180 994 RetScreen
Stuttgart 1,300 1,089 RetScreen

Canada
Toronto, ON 1,450 1,217 1,089 RetScreen
Toronto, ON/Sanyo 1,180 RetScreen
Toronto, ON 1,486 1,083 NREL
Wiarton, ON 1,590 1,345 RetScreen
Ottawa, ON 1,490 1,262 RetScreen
Ottawa, ON 1,580 1,166 NREL

France
Nice, France 1,790 1,457 RetScreen

Italy
Rome 1,400 RetScreen

Spain
Madrid 1,442 RetScreen

USA
Bakersfield, CA 1,965 1,637 RetScreen
Bakersfield, CA 2,124 1,461 NREL
Sacramento, CA 1,920 1,599 RetScreen
Average, CA 1,500 RetScreen
Salem, OR 1,500 1,253 RetScreen
Bend, OR 1,590 1,328 RetScreen
Average, OR 1,168 RetScreen
Albany, NY 1,540 1,318 RetScreen
New York, NY 1,353 RetScreen
New York, NY 1,218 NREL
Madison, WI 1,375 RetScreen
Milwaulkee, WI 1,500 1,350 RetScreen
Milwaulkee, WI 1,653 1,227 NREL
Eau Claire, WI 1,367 RetScreen
Minneapolis, MN1,730 1,286 NREL
Source:
RETScreen
® Solar
Resource
and System
Load
Calculation -
Photovoltaic
Project

http://rredc
.nrel.gov/s
olar/codes_
algs/PVWA
TTS/

Average
generation
from solar in
California in
2005 ~1,500
kWh/kW is
~203 GWh.
CEC-300-
2006-009-F.
Average
generation
from solar in
California is
1,150
kWh/kW,
Measured
Performance
of California
Buydown
Program,
Residential
PV Systems,
Regional
Economic
Research.

Average
generation
for Oregon
~1,168
kWh/kW.
ODOE,
Christopher
Dymond.
Annual Reoccurring (Running) Costs

Fesa B31 Reoccurring Expenses


Year 2
Installed Cost ###
Reoccurring Expenses % of Installed Cost
Deductible start-up costs
Management 6,691 0.3%
Tax advice 1,500 0.1%
Land lease 500 0.0%
System monitoring 2,979 0.2%
Maintenance and repair 1,020 0.1%
Provision for removal 1,065 0.1%
Insurance 5,477 0.3%
Subtotal of expenses 19,232 1.0%

Regionsonne Breisgau Buergerbeteiligung


Year 1
Installed Cost ###
Reoccurring Expenses % of Installed Cost
Deductible start-up costs 0.0%
Management 12,915 0.5%
Tax advice 0.0%
Land lease 0.0%
System monitoring 0.0%
Maintenance and repair 9,228 0.4%
Provision for removal 1,820 0.1%
Insurance 7,175 0.3%
Subtotal of expenses 31,138 1.2%

Stuttgart School Roof Top Buergerbeteiligung


Year 1
Installed Cost ###
Reoccurring Expenses % of Installed Cost
Deductible start-up costs 0 0.0%
Management 6,163 0.2%
Tax advice 1,530 0.1%
Land lease 0 0.0%
Roof reconstruction 0 0.0%
System monitoring 0.0%
Maintenance and repair 5,507 0.2%
Provision for removal 720 0.0%
Insurance 3,231 0.1%
Partner commission 1,250 0.0%
Subtotal of expenses 18,401 0.7%

Average
Total Installed Cost ###
Total Expenses 68,771 1.2%