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6/11 /2015
<br />Operating Expenses
<br />Power Purchase Agreement (PP,
<br />O&M
<br />Total Operating Expenses
<br />Operating Income
<br />PV (Photovoltaic) Energy Value
<br />Total Operating Benefits
<br />Operating Cash Flow
<br />Cumulative Operating Cash Flow
<br />Discounted Operatina Cash Flow
<br />SOLAR PV SYSTEM
<br />INVESTMENT ANALYSIS
<br />Solar Cities Initiative System 375
<br />Size kw
<br />Net Cash Flow Calculations
<br />1 2 3 4 5
<br />(41,479) (41,354) (41,230) (41,107)
<br />64
<br />23,044 47,282 I 72,739 I
<br />$ 21,946 $ 21,985 , $ 21,991 II $
<br />Investment Analvsis Results:
<br />NPV of Cash Flow $746,546
<br />IRR (25 years) 29.7%
<br />Simple Payback Period 4 Yrs 10 Mos
<br />Discounted Payback Period 5 Yrs 3 Mos
<br />PV System Productive Life 30+ years
<br />Assumptions:
<br />Cost to Install PV system ($/w) $2.80
<br />Total Installed Cost $1,050,000
<br />O&M Cost ($/w) $0.02
<br />O&M Cost Escalation Factor 2.50 %
<br />PPA - Years 1-5 ($/kwh) $0.090 _
<br />Utility blended energy rate ($/kwh) $0.110
<br />PPA % savings from utility rate 18%
<br />Discount Rate 5.00%
<br />Updated 7/20/2015
<br />6 � 7 � 8 � 9
<br />67,807 68,952 ', 70,123 I 71,321 72,546 73,799
<br />67,807 68,952 I 70,123I 71,321 I 72,546 73,799
<br />26,700I 27,969 62,623 63,633 64,667 65,723
<br />99,439I 127,407 I 190,030I 253,664 318,330I 384,053
<br />21,966 ,$ 21,914 I$ 46,730 I$ 45,223 ,$ 43,769 II $ 42,365
<br />Initial Installation Cost $1,050,000
<br />FMV of Array After 5 Years 75.0 % $787,500
<br />Client Buyout % of FMV 5.0% ($39,375)
<br />Debt Financing as % of Initial Cost 20.0% $210,000
<br />Client % of Debt Financing thru PPA 40.0% ($84,000)
<br />NOTES I I
<br />All Cash Flows Occur at the End of the Year.
<br />Client investment (buyout and debt) deferred until Year 6.
<br />Savings from Years 1- 5 pay for buyout and debt.
<br />Utility blended rate includes all monthly charges. � -
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