269259747.

xls

Summary

COMPARISON OF SOLAR ENERGY PROGRAM FINANCING OPTIONS1

This model is intended to be used for internal discussion purposes and should be used only as
a guideline for evaluating the options. The costs for the three options are automatically
updated when changes are made to the Key Assumptions.1

OPTION A - STATUS QUO

Continue to pay retail energy cost as the Agency currently does.
PV of Retail Energy Cost

$0

OPTION B - Agency Buys Solar Panel System

Agency purchases and operates the Solar Panel System.
PV of Cost to Buy the Solar System
PV of Ongoing Operations & Maintenance
PV of One Time Inverter Replacement in Yr 15
PV of Ongoing Management Costs
Initial Project Mgmt & Installation Costs (one time cost)

$0
$0
$0
$0
$0

PV of State/Federal Solar Initiative PBI per kWh

$0

PV Cost for Option B - Cost to Buy and Operate the System

$0

Payback (years)2

NA

OPTION C - Agency Enters into 3rd Party PPA

Agency enters into a 3rd party Power Purchase Agreement (PPA) and procures electricity at
the PPA rate.
PV of PPA
PV of Ongoing Management Costs
Initial Project Mgmt & Installation Costs (one time cost)

$0
$0
$0

PV Cost for Option C - Cost for PPA

$0

Payback (years)2

(1)
Option B Break-Even3

$0

Option C Break-Even3

$0

This model assumes that payments are made at the end of each period and discounted back
to the system production date. This model does not evalute the financial impacts of any
system buyout options.
1

Payback is equal to the number of years it takes for the PV Cost of the selected option to
become equal to or less than the PV for Option A - Status Quo.
2

The Break-Even calculator computes the rate of Annual Increase in Retail Electricity (per
kWh) required to make the PV Cost of Option A - Status Quo equal to the PV Cost of the
selected alternative Option. This can viewed as the minimum rate of retail electricity cost
increase required for the selected Option to provide a lower PV Cost than the Status Quo.
3

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269259747.xls

Summary

KEY ASSUMPTIONS
System Production Date

6/1/2009

Required Field
Y Anticipated system production date

Term (years)

Y Term for the PPA agreement and the financing period; must be expressed in integers from 1 through 50.

Total System Size (kW)

Y Total Solar panel system size in kilowatts.

Cost per Watt

Gross Installed Cost of System

$0.00
$0.00

Y Cost per watt

Y System Size (kW) x Cost per Watt x 1000

Rebates/Incentives per Watt

Net Installed Cost of System

$0.00
$0.00

N Upfront rebates or incentives per watt to buy and install the system, if applicable
Y Installed cost of the system net of any upfront rebates or incentives.

Electricity Production (kWh) in year 1

Y Anticipated first year electricity production in kilowatt hours derived from a source such as PV Watts.

Annual System Production Degradation

0.00%

Y Anticipated annual rate of decline in the system's electricity production

Current Retail Electricity Cost (per kWh)

Annual Increase in Retail Electricity (per kWh)

$0.000
0.00%

Y The retail electricity cost per kWh the Agency currently pays PG&E
Y Anticipated annual rate of increase in the retail electricity cost

Discount Rate

0.00%

Y Discount rate used to calculate present value (Agency's assumed earnings rate or opportunity cost of capital)

0.00%

N This field may be left blank if the Agency elects to purchase the system with its own funds without any financing
arrangements (ie. Agency does not borrow money to pay for the system)

0.00%
0.00%
0

Y Anticipated annual cost of an Operations & Maintenance contract expressed as a percentage of the installed cost (applicable
Y to Option B - Agency Buys System).
Y Anticipated cost per KW to replace the solar system inverter in year 15 (applicable to Option B - Agency Buys System)

Agency's Annual Management Cost (Buy)

$0.00

Agency's Annual Management Cost Inflator

0.00%

N This field may be left blank if the Agency determines that no incremental staff costs would be incurred to manage the
Operations & Maintenance contract (applicable to Option B - Agency Buys System).
N

One-time Project Mgmt Cost as a % of Install

Cost (Buy)

0.00%

N This field may be left blank if the Agency determines that there are no project management costs to install the system
(applicable to Option B - Agency Buys System)..

State/Federal Solar Initiative PBI per kWh

Solar Initiative Availability (years)

$0.000
0

N This field may be left blank if the Production Based Incentive (PBI) credit is not applicable to the Agency (applicable to
Option B - Agency Buys System). Please specify the number of years the incentive credit is available.

One-time Project Mgmt Cost as a % of Install

Cost (PPA Option)

0.00%

N This field may be left blank if the Agency determines that there are no project management costs to manage the PPA vendor
to install the system (applicable to Option C - Agency Enters into PPA Contract).

Agency's Annual Management Cost (PPA)

$0.00

N This field may be left blank if the Agency determines that no incremental staff costs would be incurred to manage the PPA
contract (applicable to Option C - Agency Enters into PPA Contract).

PPA Rate (per kWh)

PPA Annual Escalator

$0.000
0.00%

Y Electricity rate paid under the PPA in year 1 (applicable to Option C - Agency Enters into PPA Contract).
Y The annual inflation factor applied to the PPA rate (applicable to Option C - Agency Enters into PPA Contract).

Agency's Cost of Borrowing Funds (financing cost)

Annual O&M as a % of Installed Cost
O&M Inflation Rate
Inverter Replacement in year 15 (per KW)

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