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SOLAR PV SYSTEM
<br />INVESTMENT ANALYSIS
<br />Updated 7202015
<br />Solar Cities Initiative
<br />system
<br />Size kw
<br />375
<br />Net Cash Flow Calculations
<br />611112015
<br />Y0 1 2
<br />3
<br />4
<br />5
<br />6
<br />7
<br />8
<br />9
<br />Operating Expenses
<br />Power Purchase Agreement (PPA)
<br />(41,479) (41,354)
<br />(41,230)
<br />(41,107)
<br />(40,983)
<br />O&M
<br />7,500
<br />7,688
<br />7,880
<br />8,077
<br />Total Operating Expenses
<br />41,479 41,354
<br />41,230
<br />41,10
<br />40,983
<br />7,500
<br />7,688
<br />7,880
<br />8,077
<br />Operating Income
<br />PV Photovoltaic Energy Value
<br />64,523 65,593
<br />66,687
<br />67,807
<br />68,952
<br />70,123
<br />71,321
<br />72,546
<br />73,799
<br />Total Operating Benefits
<br />64,523 65,593
<br />66,687
<br />67,807
<br />68,952
<br />70,123
<br />71,321
<br />72,546
<br />73,799
<br />Operating Cash Flow
<br />##1 23,044 24,238
<br />25,457
<br />26,700
<br />27,969
<br />62,623
<br />63,633
<br />64,667
<br />65,723
<br />Cumulative Operating Cash Flow
<br />23,044 47,282
<br />72,739
<br />99,439
<br />127,407
<br />190,030
<br />253,664
<br />318,330
<br />384,053
<br />Discounted Operating Cash Flow
<br />## $ 21,946 $ 21,985 $
<br />21,991 $
<br />21,966
<br />$ 21,914
<br />$ 46,730 $
<br />45,223 $
<br />43,769 $
<br />42,365
<br />Investment Analysis Results:
<br />Initial Installation Cost
<br />$1,050,000
<br />N PV of Cash Flow
<br />$746,546
<br />FIV of Array After 5 Years
<br />75.0%
<br />$787,500
<br />IRR (25 years)
<br />29.7%
<br />Client Buyout % of FMV
<br />5.0%
<br />($39,375)
<br />Simple Payback Period
<br />4 Yrs 10 Mos
<br />Debt Financing as % of Initial Cost
<br />20.0%
<br />$210,000
<br />Discounted Payback Period
<br />5 Yrs 3 Mos
<br />Client % of Debt Financing thru PPA
<br />40.0%
<br />($84,000)
<br />PV System Productive Life
<br />30+ years
<br />Assumptions:
<br />NOTES
<br />Cost to Install PV system ($/w)
<br />$2.80
<br />All Cash Flows Occur at the End ofthe Year.
<br />Total Installed Cost
<br />$1,050,000
<br />Client investment (buyout and debt) deferred until Year 6.
<br />O&M Cost $/w
<br />$0.02
<br />Savings from Years 1 - 5 pay for buyout and debt.
<br />O&M Cost Escalation Factor
<br />2.50%
<br />Utility blended rate includes all monthly charges.
<br />PPA - Years 1-5 ($/kwh)
<br />$0.090
<br />Wilityblended energy rate $/kwh
<br />$0.110
<br />PPA % savings from utility rate
<br />18%
<br />Discount Rate
<br />5.00%
<br />Updated 7202015
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