Download - Commercial Sample Proposal
Prepared ForSample
(704) 491-7850 [email protected]
This proposal describes costs and
benets of a solar photo voltaic
(PV) generating system for your
commercial property. This is an
initial estimate based upon
information gathered from your
utility bills, views of your property
from Google Earth. The nal solar
PV system size, design and
nancial numbers are pending (1)
Physical Site Survey and
Engineering (2) Financing
Application (if applicable) and (3)
Agreement with your Utility
concerning post-solar rate
structure and grid interconnection
terms. Renu Energy Licensing
Information - NC General
Contractor License: 76615 - NC
Electrical License: 20334u - SC
Prepared ByJe땚䋚rey Aliotta (980) 322-4232 [email protected]
3/21/2016
Sample
Table Of Contents
1. Project Summary 1
2. Project Details
2.1 PV System Details 2
2.2 Rebates and Incentives 3
2.3 Utility Rates 4
2.4 Current Electric Bill 4
2.5 New Electric Bill 5
3. Cash Flow Analysis
3.1 Commercial Loan (~20% Down) 6
3.2 Cash 7
1. Project Summary
Payment Options Commercial Loan (~20% Down) Cash
Down Payment $50,000 $230,000
Monthly Payment $1,167 -
Interest Rate 4.79% 0%
Term 20 Years 1 Years
Rebates and Incentives $144,325 $144,325
30-Year Electricity Savings $453,100 $453,100
30-Year ROI 510.28% 154.46%
Payback Period 0.6 Years 9.00 Years
1
Combined Solar PV RatingPower Rating: 100,000 W DCPower Rating: 84,550 W AC-CEC
Cumulative Energy Costs By Payment Option
Avoided Utility Cost Commercial Loan (~20% Down) Cash
0 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30
$0
$200,000
$400,000
Cum
ulative Energy Cost
Page 1
1. Incentive values are estimated and do not include tax e땚䋚ects. Tax deductions savings, if any, are estimated using the following income taxrates: State - 4%, Federal - 35%.
Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]
2.1 PV System DetailsGeneral InformationFacility: SampleAddress: 2900 Gri惃ꎏth Street, 28203
Solar PV Equipment DescriptionSolar Panels: Standard ModulesInverters: Standard Inverter
Solar PV Equipment Typical LifespanSolar Panels: Greater than 30 Years.Inverters: 25 Years
Solar Power System Cost And IncentivesSolar Power System Cost: $230,000Federal Tax Credit: -$69,000Federal Depreciation: -$68,425State (NC) Deprecation: -$6,900Net Solar Power System Cost: $85,675
Solar PV System RatingPower Rating: 100,000 W DCPower Rating: 84,550 W AC-CEC
Energy Consumption MixAnnual Energy Use: 235,459 kWh
Utility: 106,318 kWh (45%)
Solar: 129,141 kWh (55%)
Monthly Energy Consumption vs Production
Consumption (kWh) Solar Production (kWh)
1/25
2/25
2/25
3/25
3/25
4/25
4/25
5/25
5/25
6/25
6/25
7/25
7/25
8/25
8/25
9/25
9/25
10/25
10/25
11/25
11/25
12/25
12/25
1/25
0
10,000
20,000
30,000
40,000
Energy (kWh)
Page 2Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]
2.2 Rebates and IncentivesThis section summarizes all incentives available for this project. The actual rebate and incentive amountsfor this project are shown in each example.
Business Energy Investment Tax Credit (ITC)Businesses that install solar photovoltaic (PV) systems are eligible to receive a tax credit in the amount of30% of the total PV system cost. Unlike tax deductions, this tax credit can be used to directly o땚䋚set your taxliability dollar for dollar. If your tax credit exceeds your tax liability you can roll the credit into future taxperiods for 20 years.
System Cost x 30% = Federal Tax Credit
$230,000 x 30% = $69,000
Federal Modied Accelerated Cost-Recovery System (MACRS)Under the federal Modied Cost Recovery System (MACRS), businesses may recover investments in certainproperty through depreciation deductions. The MACRS establishes a set of class lives for various types ofproperty over which the property may be depreciated. For PV systems, the taxable basis of the equipmentmust be reduced by 50% of any federal tax credits associated with the system.
Year Federal Tax Deduction
1 $39,100
2 $62,560
3 $37,536
4 $22,522
5 $22,522
6 $11,261
Totals: $195,500
State (NC) North Carolina Deprecation ScheduleAccording to the North Carolina 2015 Cost Index and Depreciation Schedules(http://www.dor.state.nc.us/publications/cost_archive/15archive/2015_costindex.pdf). Solar Photovoltaicequipment has a specied life of 18 years. The annual deprecation schedule is as follows: 6%, 5%, 4%, 4%,5%, 2%, 0 %, 4%, 3%, 6%, 6 %, 8%, 8 %, 7%, 7 %.
Year State Tax Deduction
1 $13,800
2 $11,500
3 $9,200
4 $9,200
5 $11,500
6 $4,600
7 $0
8 $9,200
9 $6,900
10 $13,800
11 $13,800
12 $18,400
13 $18,400
Page 3Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]
2.3 Utility RatesThe table below shows the rates associate with your current utility rate schedule (LGS - 100 BillingDemand).Your estimated electric bills after solar are shown on the following page.
Fixed Charges Energy Charges Demand Charges
TypeLGS - 100 Billing
DemandType
LGS - 100 Billing
DemandType
LGS - 100 Billing
Demand
A Monthly $23.91 A Tier 1 < 3000 $0.11479 A Tier 2 > 30 $3.81
N/A - A Tier 2 < 12500 $0.07037 N/A -
N/A - A Tier 3 < 18500 $0.06602 N/A -
N/A - A Tier 4 < 152500 $0.05818 N/A -
N/A - A Tier 5 > 152500 $0.05722 N/A -
2.4 Current Electric BillThe table below shows your annual electricity costs based on the most current utility rates and yourprevious 12 months of electrical usage.
Rate Schedule: DUKE - LGS - 100 Billing Demand
Time Periods Energy Use (kWh) Max Demand (kW) Charges
Bill Range & Season TotalNC
MaxFixed Energy Demand Total
01/25/16 - 02/25/16 A 14,459 52 $25 $1,211 $89 $1,325
02/25/16 - 03/25/16 A 15,000 55 $25 $1,249 $101 $1,375
03/25/15 - 04/25/15 A 15,500 65 $25 $1,284 $141 $1,450
04/25/15 - 05/25/15 A 17,500 65 $25 $1,424 $141 $1,590
05/25/15 - 06/25/15 A 19,000 100 $25 $1,524 $283 $1,832
06/25/15 - 07/25/15 A 25,000 100 $25 $1,894 $283 $2,202
07/25/15 - 08/25/15 A 28,000 100 $25 $2,079 $283 $2,387
08/25/15 - 09/25/15 A 30,000 100 $25 $2,203 $283 $2,511
09/25/15 - 10/25/15 A 25,000 100 $25 $1,894 $283 $2,202
10/25/15 - 11/25/15 A 15,500 75 $25 $1,284 $182 $1,491
11/25/15 - 12/25/15 A 15,500 75 $25 $1,284 $182 $1,491
12/25/15 - 01/25/16 A 15,000 55 $25 $1,249 $101 $1,375
Totals: 235,459 $304 $18,577 $2,350 $21,231
Page 4Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]
2.5 New Electric BillRate Schedule: DUKE - LGS - 100 Billing Demand
Time Periods Energy Use (kWh) Max Demand (kW) Charges
Bill Range & Season TotalNC
MaxFixed Energy Demand Total
01/25/16 - 02/25/16 A 5,408 52 $25 $545 $89 $659
02/25/16 - 03/25/16 A 4,572 55 $25 $482 $101 $609
03/25/15 - 04/25/15 A 2,745 65 $25 $334 $141 $501
04/25/15 - 05/25/15 A 4,275 65 $25 $460 $141 $627
05/25/15 - 06/25/15 A 4,143 100 $25 $450 $283 $758
06/25/15 - 07/25/15 A 11,592 100 $25 $1,006 $283 $1,314
07/25/15 - 08/25/15 A 15,667 100 $25 $1,295 $283 $1,603
08/25/15 - 09/25/15 A 18,667 100 $25 $1,504 $283 $1,812
09/25/15 - 10/25/15 A 14,796 100 $25 $1,234 $283 $1,542
10/25/15 - 11/25/15 A 7,342 75 $25 $689 $182 $896
11/25/15 - 12/25/15 A 9,007 75 $25 $813 $182 $1,020
12/25/15 - 01/25/16 A 8,104 55 $25 $746 $101 $872
Totals: 106,318 $304 $9,558 $2,350 $12,212
Max Annual Electricity Savings: $9,019
Page 5Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]
3.1 Commercial Loan (~20% Down)Inputs and Key Financial MetricsDown Payment: $50,000 Term: 20 Years Electricity Escalation Rate: 4% 30-Year ROI: 510.28%
Monthly Payment: $1,167 State Income Tax Rate: 4% Solar Panel Degradation Rate: 0.6% 30-Year Electricity Savings: $453,100
Interest Rate: 4.79% Federal Income Tax Rate: 35% Payback Period: 0.6 Years
YearsFinancingPayments
O&M / EquipmentReplacement
Electric BillSavings
State TaxE땚䋚ect
FederalTax E땚䋚ect
CashFlow
CumulativeCash Flow
Upfront ($50,000) - - - - ($50,000) ($50,000)
1 ($14,006) ($300) $9,019 $552 $82,685 $77,950 $27,950
2 ($14,006) ($306) $9,323 $460 $21,896 $17,368 $45,318
3 ($14,006) ($312) $9,638 $368 $13,138 $8,826 $54,144
4 ($14,006) ($318) $9,962 $368 $7,883 $3,889 $58,033
5 ($14,006) ($325) $10,298 $460 $7,883 $4,310 $62,342
6 ($14,006) ($331) $10,644 $184 $3,941 $432 $62,774
7 ($14,006) ($338) $11,001 - - ($3,343) $59,432
8 ($14,006) ($345) $11,370 $368 - ($2,612) $56,819
9 ($14,006) ($351) $11,751 $276 - ($2,331) $54,489
10 ($14,006) ($359) $12,144 $552 - ($1,669) $52,820
11 ($14,006) ($366) $12,549 $552 - ($1,270) $51,550
12 ($14,006) ($373) $12,968 $736 - ($675) $50,875
13 ($14,006) ($380) $13,400 $736 - ($250) $50,625
14 ($14,006) ($388) $13,846 $644 - $96 $50,721
15 ($14,006) ($396) $14,306 $644 - $548 $51,270
16 ($14,006) ($404) $14,781 - - $371 $51,641
17 ($14,006) ($412) $15,271 - - $853 $52,494
18 ($14,006) ($420) $15,776 - - $1,350 $53,844
19 ($14,006) ($428) $16,297 - - $1,863 $55,707
20 ($14,006) ($437) $16,835 - - $2,393 $58,100
21 - ($446) $17,390 - - $16,944 $75,044
22 - ($455) $17,962 - - $17,508 $92,552
23 - ($464) $18,553 - - $18,089 $110,641
24 - ($473) $19,161 - - $18,688 $129,330
25 - ($483) $19,789 - - $19,307 $148,636
26 - ($492) $20,437 - - $19,944 $168,580
27 - ($502) $21,104 - - $20,602 $189,182
28 - ($512) $21,792 - - $21,280 $210,462
29 - ($522) $22,501 - - $21,979 $232,442
30 - ($533) $23,233 - - $22,700 $255,142
Totals ($330,113) ($12,170) $453,100 $6,900 $137,425 $255,142 -
Page 6Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]
3.2 CashInputs and Key Financial MetricsDown Payment: $230,000 Term: 1 Years Electricity Escalation Rate: 4% 30-Year ROI: 154.46%
Monthly Payment: - State Income Tax Rate: 4% Solar Panel Degradation Rate: 0.6% 30-Year Electricity Savings: $453,100
Interest Rate: 0% Federal Income Tax Rate: 35% Payback Period: 9.00 Years
YearsFinancingPayments
O&M / EquipmentReplacement
Electric BillSavings
State TaxE땚䋚ect
FederalTax E땚䋚ect
CashFlow
CumulativeCash Flow
Upfront ($230,000) - - - - ($230,000) ($230,000)
1 - ($300) $9,019 $552 $82,685 $91,956 ($138,044)
2 - ($306) $9,323 $460 $21,896 $31,373 ($106,671)
3 - ($312) $9,638 $368 $13,138 $22,831 ($83,839)
4 - ($318) $9,962 $368 $7,883 $17,895 ($65,945)
5 - ($325) $10,298 $460 $7,883 $18,315 ($47,629)
6 - ($331) $10,644 $184 $3,941 $14,438 ($33,192)
7 - ($338) $11,001 - - $10,663 ($22,528)
8 - ($345) $11,370 $368 - $11,393 ($11,135)
9 - ($351) $11,751 $276 - $11,675 $540
10 - ($359) $12,144 $552 - $12,337 $12,877
11 - ($366) $12,549 $552 - $12,735 $25,612
12 - ($373) $12,968 $736 - $13,331 $38,943
13 - ($380) $13,400 $736 - $13,755 $52,699
14 - ($388) $13,846 $644 - $14,102 $66,800
15 - ($396) $14,306 $644 - $14,554 $81,354
16 - ($404) $14,781 - - $14,377 $95,731
17 - ($412) $15,271 - - $14,859 $110,590
18 - ($420) $15,776 - - $15,356 $125,946
19 - ($428) $16,297 - - $15,869 $141,815
20 - ($437) $16,835 - - $16,398 $158,213
21 - ($446) $17,390 - - $16,944 $175,158
22 - ($455) $17,962 - - $17,508 $192,665
23 - ($464) $18,553 - - $18,089 $210,754
24 - ($473) $19,161 - - $18,688 $229,443
25 - ($483) $19,789 - - $19,307 $248,749
26 - ($492) $20,437 - - $19,944 $268,694
27 - ($502) $21,104 - - $20,602 $289,296
28 - ($512) $21,792 - - $21,280 $310,576
29 - ($522) $22,501 - - $21,979 $332,555
30 - ($533) $23,233 - - $22,700 $355,255
Totals ($230,000) ($12,170) $453,100 $6,900 $137,425 $355,255 -
Page 7Prepared By: Je땚䋚rey Aliotta
P: (980) 322-4232, E: [email protected]