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TCAAP Energy Integration Resiliency Framework <br />Energy Source Implementation <br /> <br /> <br /> 31 <br />Project Costs Project Debt Parameters <br />Total installed cost $23,100,000 Debt fraction 57% <br />Salvage value $809,000 Amount $13,600,000 <br /> Rate / Term 25 years, 5% <br /> <br />Analysis Parameters Tax and Insurance Rates (% of installed cost) <br />Project life 25 years Federal income tax 35%/year <br />Inflation rate 2.5% State income tax 7%/year <br />Real discount rate 8.2% Sales tax 0% <br /> Insurance 0.5%/year <br /> Property tax (% of assess. val.) 0%/year <br /> <br />Financial Targets and Constraints Incentives <br />Solution mode Calculate Subscription Price Federal ITC 30% (Expires 12-31-16) <br />Target IRR 10% in Year 25 Depreciation allocations defined. 5 year MACRS <br />Table 6: Solar advisor model financial assumptions <br />Based upon an assumed IRR of 10% for the project developer and other noted assumptions, the Project <br />Team estimated a subscription price for the solar energy of $0.129 cents/kWh (as shown in Table 7). Xcel <br />Energy retail customers who subscribe to production from the proposed solar garden under individual <br />subscriptions would receive a bill credit equal to the energy purchased multiplied by the retail rates. <br /> <br />Solar Economic Results <br />25-Year Nominal LCOE 13.90 cents/kWh <br />Solar revenues (year one) $1,865,000 <br />Project 25-year IRR 10% <br />Subscription price 12.90 cents/kWh1 <br />Note: <br />1. Subscription price does not include additional $0.02/kWh bill credit provided if RECs <br />are owned by Xcel Energy <br />Table 7: Solar advisor model economic results