NPV Calculation for one branch
Input values
System cost
System size
Total system cost
Efficiency rating
Salvage value
Salvage value
14
15
16
-105000
18%
15% of systems cost
15750
Tax credit
30.00%
Depreciation per
year
Tax rate
Tax credit rate
-21000
38%
30%
Rate increase
NPV Analysis for 15 years
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
7000 Per KW
15 KW
-0.50%
KWH production KW by solar
23652.00
23533.74
23416.07
23298.99
23182.50
23066.58
22951.25
22836.49
22722.31
22608.70
22495.66
22383.18
22271.26
2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54
22159.91
22049.11
21938.86
2.53
2.52
2.50
Systems cost
(105000.00)
17
18
19
20
21
22
23
24
25
26
27
28
29
30
21829.17
21720.02
21611.42
21503.36
21395.85
21288.87
21182.42
21076.51
20971.13
20866.27
20761.94
20658.13
20554.84
20452.07
2.49
2.48
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33
KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate
15.00
0.18
8760.00
23652.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41
Possible scenarios- there may be changes in the various costs -mosty increases which may
Input
Base case- as givenMinimum
Most Likely
Electricity Price Growth Rate[1]
3% (given)
7%
Maintenance Cost Growth 2%
Rate[2]
(given)
3.50%
Additional
Maintenance, Year 15
$400/kW (given)
$550/kW
Inverter Replacement,
Year 17
$250/kW (given)
$400/kW
Insurance Cost (as %
of system cost)
0.30% (given)
0.65%
Insurance Cost Growth
Rate
2% (given)
5%
Calculation of the salvage value
System cost
-105000
Hurdle rate
No fo years
of
depreciation
Depreciation p
Salvage value
Book value at
NPV
NPV
NPV
NPV
5
-21000
15750
0
Tax credit on
salvage
value
3%
9765
yrs
yrs
yrs
yrs
-89250
-17850
KW
2%
Grid
Total
Electricit electric
y charges savings
30
12
15
17
-5985
After tax
salvage
value
In KWH
for
for
for
for
2%
Insurance
Maint costs Total Maintcost
SIP rebate
22081.41
0.17
0.18
0.18
0.19
0.19
0.20
0.20
0.21
0.22
0.22
0.23
0.24
0.24
4020.84
4120.76
4223.16
4328.10
4435.66
4545.88
4658.85
4774.62
4893.27
5014.87
5139.49
5267.20
5398.09
(15.00)
(15.30)
(15.61)
(15.92)
(16.24)
(16.56)
(16.89)
(17.23)
(17.57)
(17.93)
(18.28)
(18.65)
(19.02)
(225.00)
(229.50)
(234.09)
(238.77)
(243.55)
(248.42)
(253.39)
(258.45)
(263.62)
(268.90)
(274.27)
(279.76)
(285.35)
(315.00)
(321.30)
(327.73)
(334.28)
(340.97)
(347.79)
(354.74)
(361.84)
(369.07)
(376.45)
(383.98)
(391.66)
(399.50)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.25
0.26
0.26
5532.24
5669.71
5810.61
(19.40)
(19.79)
(20.19)
(291.06)
(6296.88)
(302.82)
(407.49)
(415.64)
(423.95)
0.00
0.00
0.00
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
5955.00
6102.98
6254.64
6410.07
6569.36
6732.61
6899.91
7071.37
7247.10
7427.19
7611.75
7800.91
7994.76
8193.43
365*24
KWH
Per KW
ing * design factor
y increases which may affect the NPV
(20.59)
(21.00)
(21.42)
(21.85)
(22.29)
(22.73)
(23.19)
(23.65)
(24.13)
(24.61)
(25.10)
(25.60)
(26.12)
(26.64)
(4058.88)
(315.05)
(321.36)
(327.78)
(334.34)
(341.02)
(347.85)
(354.80)
(361.90)
(369.14)
(376.52)
(384.05)
(391.73)
(399.57)
(432.43)
(441.08)
(449.90)
(458.90)
(468.07)
(477.43)
(486.98)
(496.72)
(506.66)
(516.79)
(527.13)
(537.67)
(548.42)
(559.39)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Maximum
9%
5%
$700/kW
$550/kW
1.00%
8%
3.53%
30394.85
2944.48
6265.61
8578.14
Depreciation
Total cash flowTax rate
Net income(Cash flow
(82918.59) 31500.00
(51418.59) (51418.59)
(17850.00)
(14369.16) (5460.28)
(8908.88)
8941.12
(17850.00)
(14280.04) (5426.42)
(8853.63)
8996.37
(17850.00)
(14188.66) (5391.69)
(8796.97)
9053.03
(17850.00)
(14094.95) (5356.08)
(8738.87)
9111.13
(17850.00)
(13998.86) (5319.57)
(8679.29)
9170.71
3949.68
1500.88
2448.80
2448.80
4050.72
1539.27
2511.45
2511.45
4154.33
1578.65
2575.69
2575.69
4260.57
1619.02
2641.56
2641.56
4369.52
1660.42
2709.10
2709.10
4481.23
1702.87
2778.36
2778.36
4595.78
1746.40
2849.38
2849.38
4713.24
1791.03
2922.21
2922.21
4833.69
(1042.81)
5083.84
1836.80
(396.27)
1931.86
2996.89
(646.54)
3151.98
2996.89
(646.54)
3151.98
1463.69
5346.85
5483.39
5623.39
5766.95
5914.15
6065.08
6219.85
6378.54
6541.26
6708.11
6879.19
7054.61
7234.47
556.20
2031.80
2083.69
2136.89
2191.44
2247.38
2304.73
2363.54
2423.85
2485.68
2549.08
2614.09
2680.75
2749.10
907.49
3315.05
3399.70
3486.50
3575.51
3666.77
3760.35
3856.31
3954.70
4055.58
4159.03
4265.10
4373.86
4485.37
907.49
3315.05
3399.70
3486.50
3575.51
3666.77
3760.35
3856.31
3954.70
4055.58
4159.03
4265.10
4373.86
4485.37
Input values
System cost
System size
Total system cost
Efficiency rating
Salvage value
Salvage value
14
15
16
17
18
-105000
18%
15% of systems cost
15750
Tax credit
30.00%
Depreciation per
year
Tax rate
Tax credit rate
-21000
38%
30%
Rate increase
NPV Analysis for 15 years
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
7000 Per KW
15 KW
-0.50%
KWH production KW by solar
23652.00
23533.74
23416.07
23298.99
23182.50
23066.58
22951.25
22836.49
22722.31
22608.70
22495.66
22383.18
22271.26
2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54
22159.91
22049.11
21938.86
21829.17
21720.02
2.53
2.52
2.50
2.49
2.48
Systems cost
(105000.00)
9765.00
19
20
21
22
23
24
25
26
27
28
29
30
21611.42
21503.36
21395.85
21288.87
21182.42
21076.51
20971.13
20866.27
20761.94
20658.13
20554.84
20452.07
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33
KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate
15.00
0.18
8760.00
23652.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41
Possible scenarios- there may be changes in the various costs -mosty increases which may
Calculation of the salvage value
System cost
-105000
Hurdle rate
No fo years
of
depreciation
Depreciation p
Salvage value
Book value at
NPV
NPV
NPV
NPV
Tax credit on
salvage
value
4020.84
4280.79
4557.54
4852.19
5165.88
5499.85
5855.42
6233.97
6637.00
7066.08
7522.90
8009.26
8527.06
0.41
0.44
0.47
0.50
0.54
9078.33
9665.24
10290.10
10955.36
11663.62
yrs
yrs
yrs
yrs
KW
5%
0.17
0.18
0.19
0.21
0.22
0.24
0.26
0.27
0.29
0.31
0.33
0.36
0.38
30
12
15
17
9765
In KWH
Grid
Total
Electricit electric
y charges savings
for
for
for
for
-5985
After tax
salvage
value
7%
5
-21000
15750
0
5%
Insurance
Maint costs Total Maintcost
(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)
SIP rebate
22081.41
(225.00)
(236.25)
(248.06)
(260.47)
(273.49)
(287.16)
(301.52)
(316.60)
(332.43)
(349.05)
(366.50)
(384.83)
(404.07)
(682.50)
(716.63)
(752.46)
(790.08)
(829.58)
(871.06)
(914.62)
(960.35)
(1008.36)
(1058.78)
(1111.72)
(1167.31)
(1225.67)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(28.28)
(424.27)
(29.70) (10945.48)
(31.18)
(467.76)
(32.74) (8741.15)
(34.38)
(515.70)
(1286.96)
(1351.30)
(1418.87)
(1489.81)
(1564.30)
0.00
0.00
0.00
0.00
0.00
0.57
0.61
0.66
0.70
0.75
0.81
0.86
0.92
0.99
1.06
1.13
1.21
12417.67
13220.48
14075.18
14985.14
15953.93
16985.35
18083.45
19252.55
20497.23
21822.37
23233.19
24735.21
365*24
KWH
Per KW
ing * design factor
y increases which may affect the NPV
(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)
(541.49)
(568.56)
(596.99)
(626.84)
(658.18)
(691.09)
(725.65)
(761.93)
(800.03)
(840.03)
(882.03)
(926.13)
(1642.52)
(1724.64)
(1810.88)
(1901.42)
(1996.49)
(2096.31)
(2201.13)
(2311.19)
(2426.75)
(2548.08)
(2675.49)
(2809.26)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.53%
74357.58
16469.91
21034.66
24274.51
Depreciation
Total cash flowTax rate
Net income(Cash flow
(82918.59) 31500.00
(51418.59) (51418.59)
(21000.00)
(17886.66) (6796.93) (11089.73)
9910.27
(21000.00)
(17672.09) (6715.39) (10956.69)
10043.31
(21000.00)
(17442.98) (6628.33) (10814.65)
10185.35
(21000.00)
(17198.36) (6535.38) (10662.98)
10337.02
(21000.00)
(7172.19) (2725.43)
(4446.76)
16553.24
4341.63
1649.82
2691.81
2691.81
4639.28
1762.93
2876.35
2876.35
4957.03
1883.67
3073.36
3073.36
5296.21
2012.56
3283.65
3283.65
5658.25
2150.13
3508.11
3508.11
6044.68
2296.98
3747.70
3747.70
6457.12
2453.71
4003.42
4003.42
6897.32
2620.98
4276.34
4276.34
7367.10
(2631.54)
8403.47
724.40
9583.61
2799.50
(999.99)
3193.32
275.27
3641.77
4567.60
(1631.56)
5210.15
449.13
5941.84
4567.60
(1631.56)
5210.15
449.13
5941.84
10233.67
10927.27
11667.31
12456.88
13299.26
14197.94
15156.68
16179.43
17270.45
18434.26
19675.67
20999.82
3888.79
4152.36
4433.58
4733.61
5053.72
5395.22
5759.54
6148.18
6562.77
7005.02
7476.76
7979.93
6344.87
6774.91
7233.73
7723.27
8245.54
8802.73
9397.14
10031.25
10707.68
11429.24
12198.92
13019.89
6344.87
6774.91
7233.73
7723.27
8245.54
8802.73
9397.14
10031.25
10707.68
11429.24
12198.92
13019.89
Input values
System cost
System size
Total system cost
Efficiency rating
Salvage value
Salvage value
14
15
16
17
18
-105000
18%
15% of systems cost
15750
Tax credit
30.00%
Depreciation per
year
Tax rate
Tax credit rate
-21000
38%
30%
Rate increase
NPV Analysis for 15 years
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
7000 Per KW
15 KW
-0.50%
KWH production KW by solar
23652.00
23533.74
23416.07
23298.99
23182.50
23066.58
22951.25
22836.49
22722.31
22608.70
22495.66
22383.18
22271.26
2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54
22159.91
22049.11
21938.86
21829.17
21720.02
2.53
2.52
2.50
2.49
2.48
Systems cost
(105000.00)
9765.00
19
20
21
22
23
24
25
26
27
28
29
30
21611.42
21503.36
21395.85
21288.87
21182.42
21076.51
20971.13
20866.27
20761.94
20658.13
20554.84
20452.07
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33
KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate
15.00
0.18
8760.00
23652.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41
Possible scenarios- there may be changes in the various costs -mosty increases which may
Input
Base case- as givenMinimum
Most Likely
Electricity Price Growth Rate[1]
3% (given)
7%
Maintenance Cost Growth 2%
Rate[2]
(given)
3.50%
Additional
Maintenance, Year 15
$400/kW (given)
$550/kW
Inverter Replacement,
Year 17
$250/kW (given)
$400/kW
Insurance Cost (as %
of system cost)
0.30% (given)
0.65%
Insurance Cost Growth
Rate
2% (given)
5%
Calculation of the salvage value
System cost
-105000
Hurdle rate
No fo years
of
depreciation
Depreciation p
Salvage value
Book value at
NPV
NPV
NPV
NPV
Tax credit on
salvage
value
30
12
15
17
yrs
yrs
yrs
yrs
9765
In KWH
KW
5%
Grid
Total
Electricit electric
y charges savings
for
for
for
for
-5985
After tax
salvage
value
9%
5
-21000
15750
0
8%
Insurance
Maint costs Total Maintcost
SIP rebate
22081.41
0.17
0.19
0.20
0.22
0.24
0.26
0.29
0.31
0.34
0.37
0.40
0.44
0.48
4020.84
4360.80
4729.51
5129.39
5563.08
6033.44
6543.56
7096.82
7696.86
8347.63
9053.42
9818.88
10649.07
(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)
(225.00)
(236.25)
(248.06)
(260.47)
(273.49)
(287.16)
(301.52)
(316.60)
(332.43)
(349.05)
(366.50)
(384.83)
(404.07)
(1050.00)
(1134.00)
(1224.72)
(1322.70)
(1428.51)
(1542.79)
(1666.22)
(1799.52)
(1943.48)
(2098.95)
(2266.87)
(2448.22)
(2644.08)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.52
0.57
0.62
0.67
0.74
11549.45
12525.96
13585.03
14733.64
15979.37
(28.28)
(424.27)
(29.70) (10945.48)
(31.18)
(467.76)
(32.74) (8741.15)
(34.38)
(515.70)
(2855.60)
(3084.05)
(3330.78)
(3597.24)
(3885.02)
0.00
0.00
0.00
0.00
0.00
0.80
0.87
0.95
1.04
1.13
1.23
1.34
1.47
1.60
1.74
1.90
2.07
17330.42
18795.71
20384.89
22108.43
23977.70
26005.01
28203.74
30588.36
33174.61
35979.52
39021.59
42320.87
365*24
KWH
Per KW
ing * design factor
y increases which may affect the NPV
(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)
(541.49)
(568.56)
(596.99)
(626.84)
(658.18)
(691.09)
(725.65)
(761.93)
(800.03)
(840.03)
(882.03)
(926.13)
(4195.82)
(4531.49)
(4894.01)
(5285.53)
(5708.37)
(6165.04)
(6658.24)
(7190.90)
(7766.17)
(8387.46)
(9058.46)
(9783.14)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Maximum
9%
5%
$700/kW
$550/kW
1.00%
8%
3.53%
94236.60
16092.08
21694.59
26001.05
Depreciation
Total cash flowTax rate
Net income(Cash flow
(82918.59) 31500.00
(51418.59) (51418.59)
(21000.00)
(18254.16) (6936.58) (11317.58)
9682.42
(21000.00)
(18009.45) (6843.59) (11165.86)
9834.14
(21000.00)
(17743.27) (6742.44) (11000.83)
9999.17
(21000.00)
(17453.78) (6632.43) (10821.34)
10178.66
(21000.00)
(7373.92) (2802.09)
(4571.83)
16428.17
4203.48
1597.32
2606.16
2606.16
4575.82
1738.81
2837.01
2837.01
4980.71
1892.67
3088.04
3088.04
5420.95
2059.96
3360.99
3360.99
5899.62
2241.86
3657.77
3657.77
6420.05
2439.62
3980.43
3980.43
6985.84
2654.62
4331.22
4331.22
7600.93
2888.35
4712.57
4712.57
8269.57
(1503.58)
9786.49
2395.25
11578.65
3142.44
(571.36)
3718.87
910.20
4399.89
5127.14
(932.22)
6067.62
1485.06
7178.76
5127.14
(932.22)
6067.62
1485.06
7178.76
12593.11
13695.66
14893.89
16196.07
17611.15
19148.88
20819.85
22635.54
24608.41
26752.03
29081.10
31611.60
4785.38
5204.35
5659.68
6154.50
6692.24
7276.58
7911.54
8601.50
9351.20
10165.77
11050.82
12012.41
7807.73
8491.31
9234.21
10041.56
10918.91
11872.31
12908.31
14034.03
15257.22
16586.26
18030.28
19599.19
7807.73
8491.31
9234.21
10041.56
10918.91
11872.31
12908.31
14034.03
15257.22
16586.26
18030.28
19599.19
NPV
Base case- as
given-Minimum
NPV-30 yrs
3% (given)
Maintenance Cost Growth Rate[2] NPV-12 yrs
2% (given)
Input
Electricity Price Growth Rate[1]
Additional Maintenance, Year
15
NPV- 15 yrs
$400/kW (given)
Inverter Replacement, Year 17
NPV-17 yrs
$250/kW (given)
Insurance Cost (as % of
system cost)
0.30% (given)
Insurance Cost Growth Rate
2% (given)
NPV
Most Likely
NPV
Maximum
NPV
30394.85
7%
74357.58
9%
2944.48
5%
16469.91
5%
6265.61
$700/kW
21034.66
$700/kW
8578.14
$550/kW
24274.51
$550/kW
0.65%
1.00%
5%
8%
94236.60
16092.08
21694.59
26001.05
Input values
System cost
System size
Total system cost
Efficiency rating
Salvage value
Salvage value
14
15
16
17
18
-315000
18%
15% of systems cost
47250
Tax credit
30.00%
Depreciation per
year
Tax rate
Tax credit rate
-63000
38%
30%
Rate increase
NPV Analysis for 15 years
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
7000 Per KW
15 KW
-0.50%
KWH production KW by solar
70956.00
70601.22
70248.21
69896.97
69547.49
69199.75
68853.75
68509.48
68166.94
67826.10
67486.97
67149.54
66813.79
2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54
66479.72
66147.32
65816.58
65487.50
65160.06
2.53
2.52
2.50
2.49
2.48
Systems cost
(315000.00)
19
20
21
22
23
24
25
26
27
28
29
30
64834.26
64510.09
64187.54
63866.60
63547.27
63229.53
62913.39
62598.82
62285.83
61974.40
61664.52
61356.20
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33
KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate
29295.00
15.00
0.18
8760.00
23652.00
70956.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41
Possible scenarios- there may be changes in the various costs -mosty increases which may
Input
Base case- as givenMinimum
Most Likely
Electricity Price Growth Rate[1]
3% (given)
7%
Maintenance Cost Growth 2%
Rate[2]
(given)
3.50%
Additional
Maintenance, Year 15
$400/kW (given)
$550/kW
Inverter Replacement,
Year 17
$250/kW (given)
$400/kW
Insurance Cost (as %
of system cost)
0.30% (given)
0.65%
Insurance Cost Growth
Rate
2% (given)
5%
Calculation of the salvage value
System cost
-315000
Hurdle rate
No fo years
of
depreciation
Depreciation p
Salvage value
Book value at
5
-63000
47250
0
NPV
NPV
NPV
NPV
Tax credit on
salvage
value
-17955
After tax
salvage
value
yrs
yrs
yrs
yrs
KW
2%
Grid
Total
Electricit electric
y charges savings
30
12
15
17
29295
In KWH
3%
for
for
for
for
2%
Insurance
Maint costs Total Maintcost
SIP rebate
66244.23
0.17
0.18
0.18
0.19
0.19
0.20
0.20
0.21
0.22
0.22
0.23
0.24
0.24
12062.52
12362.27
12669.48
12984.31
13306.97
13637.65
13976.55
14323.86
14679.81
15044.61
15418.46
15801.61
16194.28
(15.00)
(15.30)
(15.61)
(15.92)
(16.24)
(16.56)
(16.89)
(17.23)
(17.57)
(17.93)
(18.28)
(18.65)
(19.02)
(675.00)
(688.50)
(702.27)
(716.32)
(730.64)
(745.25)
(760.16)
(775.36)
(790.87)
(806.69)
(822.82)
(839.28)
(856.06)
(945.00)
(963.90)
(983.18)
(1002.84)
(1022.90)
(1043.36)
(1064.22)
(1085.51)
(1107.22)
(1129.36)
(1151.95)
(1174.99)
(1198.49)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.25
0.26
0.26
0.27
0.28
16596.71
17009.14
17431.82
17865.00
18308.94
(19.40)
(873.18)
(19.79) (18890.65)
(20.19)
(908.46)
(20.59) (12176.63)
(21.00)
(945.16)
(1222.46)
(1246.91)
(1271.85)
(1297.28)
(1323.23)
0.00
0.00
0.00
0.00
0.00
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
18763.92
19230.20
19708.07
20197.82
20699.73
21214.12
21741.29
22281.56
22835.26
23402.72
23984.28
24580.28
365*24
KWH
Per KW
ing * design factor
y increases which may affect the NPV
(21.42)
(21.85)
(22.29)
(22.73)
(23.19)
(23.65)
(24.13)
(24.61)
(25.10)
(25.60)
(26.12)
(26.64)
(964.07)
(983.35)
(1003.01)
(1023.07)
(1043.54)
(1064.41)
(1085.70)
(1107.41)
(1129.56)
(1152.15)
(1175.19)
(1198.70)
(1349.69)
(1376.69)
(1404.22)
(1432.30)
(1460.95)
(1490.17)
(1519.97)
(1550.37)
(1581.38)
(1613.01)
(1645.27)
(1678.17)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Maximum
9%
5%
$700/kW
$550/kW
1.00%
8%
3.53%
113799.35
25033.23
34996.63
41934.21
Depreciation
Total cash flowTax rate
Net income(Cash flow
(248755.77) 94500.00 (154255.77) (154255.77)
(63000.00)
(52557.48) (19971.84) (32585.64)
30414.36
(63000.00)
(52290.13) (19870.25) (32419.88)
30580.12
(63000.00)
(52015.97) (19766.07) (32249.90)
30750.10
(63000.00)
(51734.84) (19659.24) (32075.60)
30924.40
(63000.00)
(51446.57) (19549.70) (31896.87)
31103.13
11849.04
4502.64
7346.40
7346.40
12152.16
4617.82
7534.34
7534.34
12462.99
4735.94
7727.06
7727.06
12781.72
4857.05
7924.67
7924.67
13108.56
4981.25
8127.30
8127.30
13443.69
5108.60
8335.09
8335.09
13787.35
5239.19
8548.15
8548.15
14139.73
5373.10
8766.63
8766.63
14501.07
(3128.42)
15251.51
4391.08
16040.55
5510.41
(1188.80)
5795.57
1668.61
6095.41
8990.66
(1939.62)
9455.94
2722.47
9945.14
8990.66
(1939.62)
9455.94
2722.47
9945.14
16450.16
16870.17
17300.84
17742.44
18195.25
18659.55
19135.63
19623.78
20124.32
20637.56
21163.82
50998.42
6251.06
6410.66
6574.32
6742.13
6914.19
7090.63
7271.54
7457.04
7647.24
7842.27
8042.25
19379.40
10199.10
10459.50
10726.52
11000.31
11281.05
11568.92
11864.09
12166.75
12477.08
12795.29
13121.57
31619.02
10199.10
10459.50
10726.52
11000.31
11281.05
11568.92
11864.09
12166.75
12477.08
12795.29
13121.57
31619.02
Input values
System cost
System size
Total system cost
Efficiency rating
Salvage value
Salvage value
14
15
16
17
18
-315000
18%
15% of systems cost
47250
Tax credit
30.00%
Depreciation per
year
Tax rate
Tax credit rate
-63000
38%
30%
Rate increase
NPV Analysis for 15 years
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
7000 Per KW
15 KW
-0.50%
KWH production KW by solar
70956.00
70601.22
70248.21
69896.97
69547.49
69199.75
68853.75
68509.48
68166.94
67826.10
67486.97
67149.54
66813.79
2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54
66479.72
66147.32
65816.58
65487.50
65160.06
2.53
2.52
2.50
2.49
2.48
Systems cost
(315000.00)
29295.00
19
20
21
22
23
24
25
26
27
28
29
30
64834.26
64510.09
64187.54
63866.60
63547.27
63229.53
62913.39
62598.82
62285.83
61974.40
61664.52
61356.20
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33
KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate
15.00
0.18
8760.00
23652.00
70956.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41
Possible scenarios- there may be changes in the various costs -mosty increases which may
Input
Base case- as givenMinimum
Most Likely
Electricity Price Growth Rate[1]
3% (given)
7%
Maintenance Cost Growth 2%
Rate[2]
(given)
3.50%
Additional
Maintenance, Year 15
$400/kW (given)
$550/kW
Inverter Replacement,
Year 17
$250/kW (given)
$400/kW
Insurance Cost (as %
of system cost)
0.30% (given)
0.65%
Insurance Cost Growth
Rate
2% (given)
5%
Calculation of the salvage value
System cost
-315000
Hurdle rate
No fo years
of
depreciation
Depreciation p
Salvage value
Book value at
5
-63000
47250
0
NPV
NPV
NPV
NPV
Tax credit on
salvage
value
-17955
After tax
salvage
value
yrs
yrs
yrs
yrs
KW
5%
Grid
Total
Electricit electric
y charges savings
30
12
15
17
29295
In KWH
7%
for
for
for
for
5%
Insurance
Maint costs Total Maintcost
SIP rebate
66244.23
0.17
0.18
0.19
0.21
0.22
0.24
0.26
0.27
0.29
0.31
0.33
0.36
0.38
12062.52
12842.36
13672.62
14556.56
15497.64
16499.56
17566.26
18701.91
19910.99
21198.24
22568.70
24027.77
25581.17
(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)
(675.00)
(708.75)
(744.19)
(781.40)
(820.47)
(861.49)
(904.56)
(949.79)
(997.28)
(1047.15)
(1099.50)
(1154.48)
(1212.20)
(2047.50)
(2149.88)
(2257.37)
(2370.24)
(2488.75)
(2613.19)
(2743.85)
(2881.04)
(3025.09)
(3176.34)
(3335.16)
(3501.92)
(3677.02)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.41
0.44
0.47
0.50
0.54
27234.99
28995.73
30870.31
32866.07
34990.86
(28.28) (1272.81)
(29.70) (32836.45)
(31.18) (1403.28)
(32.74) (26223.44)
(34.38) (1547.11)
(3860.87)
(4053.91)
(4256.61)
(4469.44)
(4692.91)
0.00
0.00
0.00
0.00
0.00
0.57
0.61
0.66
0.70
0.75
0.81
0.86
0.92
0.99
1.06
1.13
1.21
37253.02
39661.43
42225.54
44955.42
47861.79
50956.05
54250.36
57757.65
61491.68
65467.12
69699.57
74205.64
365*24
KWH
Per KW
ing * design factor
y increases which may affect the NPV
(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)
(1624.47)
(1705.69)
(1790.98)
(1880.52)
(1974.55)
(2073.28)
(2176.94)
(2285.79)
(2400.08)
(2520.08)
(2646.09)
(2778.39)
(4927.55)
(5173.93)
(5432.63)
(5704.26)
(5989.47)
(6288.94)
(6603.39)
(6933.56)
(7280.24)
(7644.25)
(8026.46)
(8427.79)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Maximum
9%
5%
$700/kW
$550/kW
1.00%
8%
3.53%
223072.73
49409.74
63103.98
72823.53
Depreciation
Total cash flowTax rate
Net income(Cash flow
(248755.77) 94500.00 (154255.77) (154255.77)
(63000.00)
(53659.98) (20390.79) (33269.19)
29730.81
(63000.00)
(53016.26) (20146.18) (32870.08)
30129.92
(63000.00)
(52328.94) (19885.00) (32443.94)
30556.06
(63000.00)
(51595.08) (19606.13) (31988.95)
31011.05
(63000.00)
(21516.58) (8176.30) (13340.28)
49659.72
13024.88
4949.46
8075.43
8075.43
13917.85
5288.78
8629.06
8629.06
14871.08
5651.01
9220.07
9220.07
15888.62
6037.68
9850.94
9850.94
16974.75
6450.40
10524.34
10524.34
18134.04
6890.93
11243.10
11243.10
19371.37
7361.12
12010.25
12010.25
20691.95
7862.94
12829.01
12829.01
22101.31
(7894.63)
25210.42
2173.19
28750.84
8398.50
(2999.96)
9579.96
825.81
10925.32
13702.81
(4894.67)
15630.46
1347.38
17825.52
13702.81
(4894.67)
15630.46
1347.38
17825.52
30701.00
32781.81
35001.94
37370.64
39897.77
42593.83
45470.03
48538.30
51811.36
55302.78
59027.02
62999.47
11666.38
12457.09
13300.74
14200.84
15161.15
16185.66
17278.61
18444.55
19688.32
21015.06
22430.27
23939.80
19034.62
20324.72
21701.20
23169.80
24736.62
26408.18
28191.42
30093.74
32123.04
34287.73
36596.75
39059.67
19034.62
20324.72
21701.20
23169.80
24736.62
26408.18
28191.42
30093.74
32123.04
34287.73
36596.75
39059.67
Input values
System cost
System size
Total system cost
Efficiency rating
Salvage value
Salvage value
14
15
16
17
18
-315000
18%
15% of systems cost
47250
Tax credit
30.00%
Depreciation per
year
Tax rate
Tax credit rate
-63000
38%
30%
Rate increase
NPV Analysis for 15 years
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
7000 Per KW
15 KW
-0.50%
KWH production KW by solar
70956.00
70601.22
70248.21
69896.97
69547.49
69199.75
68853.75
68509.48
68166.94
67826.10
67486.97
67149.54
66813.79
2.70
2.69
2.67
2.66
2.65
2.63
2.62
2.61
2.59
2.58
2.57
2.56
2.54
66479.72
66147.32
65816.58
65487.50
65160.06
2.53
2.52
2.50
2.49
2.48
Systems cost
(315000.00)
29295.00
19
20
21
22
23
24
25
26
27
28
29
30
64834.26
64510.09
64187.54
63866.60
63547.27
63229.53
62913.39
62598.82
62285.83
61974.40
61664.52
61356.20
2.47
2.45
2.44
2.43
2.42
2.41
2.39
2.38
2.37
2.36
2.35
2.33
KW production cost
System size* efficiency rate* time
System size
efficiency rate
Time
Energy Production cost
Calculation of SIP rebate
Amoount of SIP rebate
SIP rebate
System rating
Design factor
Amount of SIP
rebate
Total SIP rebate
15.00
0.18
8760.00
23652.00
70956.00
1950.00
System rating * design factor
12.582
0.9
1950
1.95
22081.41
Possible scenarios- there may be changes in the various costs -mosty increases which may
Input
Base case- as givenMinimum
Most Likely
Electricity Price Growth Rate[1]
3% (given)
7%
Maintenance Cost Growth 2%
Rate[2]
(given)
3.50%
Additional
Maintenance, Year 15
$400/kW (given)
$550/kW
Inverter Replacement,
Year 17
$250/kW (given)
$400/kW
Insurance Cost (as %
of system cost)
0.30% (given)
0.65%
Insurance Cost Growth
Rate
2% (given)
5%
Calculation of the salvage value
System cost
-315000
Hurdle rate
No fo years
of
depreciation
Depreciation p
Salvage value
Book value at
5
-63000
47250
0
NPV
NPV
NPV
NPV
Tax credit on
salvage
value
-17955
After tax
salvage
value
yrs
yrs
yrs
yrs
KW
5%
Grid
Total
Electricit electric
y charges savings
30
12
15
17
29295
In KWH
9%
for
for
for
for
8%
Insurance
Maint costs Total Maintcost
SIP rebate
66244.23
0.17
0.19
0.20
0.22
0.24
0.26
0.29
0.31
0.34
0.37
0.40
0.44
0.48
12062.52
13082.41
14188.52
15388.16
16689.23
18100.31
19630.69
21290.46
23090.57
25042.88
27160.25
29456.65
31947.21
(15.00)
(15.75)
(16.54)
(17.36)
(18.23)
(19.14)
(20.10)
(21.11)
(22.16)
(23.27)
(24.43)
(25.66)
(26.94)
(675.00)
(708.75)
(744.19)
(781.40)
(820.47)
(861.49)
(904.56)
(949.79)
(997.28)
(1047.15)
(1099.50)
(1154.48)
(1212.20)
(3150.00)
(3402.00)
(3674.16)
(3968.09)
(4285.54)
(4628.38)
(4998.65)
(5398.55)
(5830.43)
(6296.86)
(6800.61)
(7344.66)
(7932.24)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.52
0.57
0.62
0.67
0.74
34648.35
37577.87
40755.08
44200.92
47938.11
(28.28) (1272.81)
(29.70) (32836.45)
(31.18) (1403.28)
(32.74) (26223.44)
(34.38) (1547.11)
(8566.81)
(9252.16)
(9992.33)
(10791.72)
(11655.06)
0.00
0.00
0.00
0.00
0.00
0.80
0.87
0.95
1.04
1.13
1.23
1.34
1.47
1.60
1.74
1.90
2.07
51991.27
56387.14
61154.67
66325.30
71933.10
78015.04
84611.22
91765.09
99523.83
107938.57
117064.78
126962.61
365*24
KWH
Per KW
ing * design factor
y increases which may affect the NPV
(36.10)
(37.90)
(39.80)
(41.79)
(43.88)
(46.07)
(48.38)
(50.80)
(53.34)
(56.00)
(58.80)
(61.74)
(1624.47)
(1705.69)
(1790.98)
(1880.52)
(1974.55)
(2073.28)
(2176.94)
(2285.79)
(2400.08)
(2520.08)
(2646.09)
(2778.39)
(12587.46)
(13594.46)
(14682.02)
(15856.58)
(17125.10)
(18495.11)
(19974.72)
(21572.70)
(23298.51)
(25162.39)
(27175.39)
(29349.42)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Maximum
9%
5%
$700/kW
$550/kW
1.00%
8%
3.53%
282709.80
48276.24
65083.78
78003.16
Depreciation
Total cash flowTax rate
Net income(Cash flow
(248755.77) 94500.00 (154255.77) (154255.77)
(63000.00)
(54762.48) (20809.74) (33952.74)
29047.26
(63000.00)
(54028.34) (20530.77) (33497.57)
29502.43
(63000.00)
(53229.82) (20227.33) (33002.49)
29997.51
(63000.00)
(52361.33) (19897.30) (32464.02)
30535.98
(63000.00)
(22121.77) (8406.27) (13715.50)
49284.50
12610.43
4791.96
7818.47
7818.47
13727.47
5216.44
8511.03
8511.03
14942.12
5678.01
9264.12
9264.12
16262.86
6179.89
10082.97
10082.97
17698.87
6725.57
10973.30
10973.30
19260.14
7318.85
11941.28
11941.28
20957.51
7963.85
12993.66
12993.66
22802.78
8665.05
14137.72
14137.72
24808.72
(4510.74)
29359.47
7185.76
34735.94
9427.31
(1714.08)
11156.60
2730.59
13199.66
15381.41
(2796.66)
18202.87
4455.17
21536.28
15381.41
(2796.66)
18202.87
4455.17
21536.28
37779.34
41086.99
44681.68
48588.20
52833.45
57446.65
62459.55
67906.61
73825.24
80256.10
87243.31
94834.80
14356.15
15613.06
16979.04
18463.51
20076.71
21829.73
23734.63
25804.51
28053.59
30497.32
33152.46
36037.22
23423.19
25473.93
27702.64
30124.68
32756.74
35616.93
38724.92
42102.10
45771.65
49758.78
54090.85
58797.58
23423.19
25473.93
27702.64
30124.68
32756.74
35616.93
38724.92
42102.10
45771.65
49758.78
54090.85
58797.58
NPV
Base case- as
given-Minimum
NPV-30 yrs
3% (given)
Maintenance Cost Growth Rate[2] NPV-12 yrs
2% (given)
Input
Electricity Price Growth Rate[1]
Additional Maintenance, Year
15
NPV- 15 yrs
$400/kW (given)
Inverter Replacement, Year 17
NPV-17 yrs
$250/kW (given)
Insurance Cost (as % of
system cost)
0.30% (given)
Insurance Cost Growth Rate
2% (given)
NPV
Most Likely
NPV
Maximum
NPV
113799.35
7%
223072.73
9%
25033.23
5%
49409.74
5%
34996.63
$700/kW
63103.98
$700/kW
41934.21
$550/kW
72823.53
$550/kW
0.65%
1.00%
5%
8%
282709.80
48276.24
65083.78
78003.16
