Yale Property Example

Transcription

1 Yale Property Example Prepared For PAMA MANAGEMENT (909) This Is An Example Only!! We took data from one month to create an example of monthly and yearly usage. Until we have access to yearly and monthly data on each meter or green button data can we determine actual usage to create accurate size system. We thank you for the opportunity to earn your business. Prepared By Marc Conti (909) /2/2016

2 Table Of Contents 1. Project Summary 1 2. Project Details 2.1 PV System Details Rebates and Incentives Utility Rates Current Electric Bill New Electric Bill 5 3. Cash Flow Analysis 3.1 Cash Purchase 6 4. Detailed Cash Flow Analysis 4.1 Cash Purchase 7

3 1. Project Summary Payment Options Cash Purchase Upfront Payment $200,000 Total Payments $200,000 1 Rebates and Incentives $152,000 Net Payments $48, Year NPV $1,795, Year Electricity Savings $1,875, Year IRR 37.51% 30-Year LCOE PV $0.008 Payback Period 1.8 Years Combined Solar PV Rating Power Rating: 120,000 W DC Power Rating: 103,451 W AC-CEC Cumulative Energy Costs By Payment Option $1,500,000 Cumulative Energy Cost $1,000,000 $500,000 $0 0 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Avoided Utility Cost Cash Purchase 1. Incentive values are estimated and do not include tax eᝠects. Tax deductions savings, if any, are estimated using the following income tax rates: State - 8%, Federal - 38%. Page 1

4 2.1 PV System Details General Information Facility: Yale Property Address: 4900 Santa Anita Avenue, Solar PV Equipment Description Solar Panels: (375) SolarWorld SW 320 XL mono Inverters: (6) SolarEdge Technologies SE20K Solar PV System Rating Power Rating: 120,000 W DC Power Rating: 103,451 W AC-CEC Energy Consumption Mix Annual Energy Use: 211,190 kwh Solar PV Equipment Typical Lifespan Solar Panels: Greater than 30 Years. Inverters: 25 Years Solar Power System Cost And Incentives Solar Power System Cost: $200,000 Federal Tax Credit: -$60,000 Section 179 Depreciation: -$76,000 State (CA) MACRS Depreciation: -$16,000 Net Solar Power System Cost: $48,000 Utility: (60) kwh (0%) Solar: 211,250 kwh (100%) 40,000 Monthly Energy Consumption vs Production 30,000 Energy (kwh) 20,000 10, /16 2/16 2/16 3/16 3/16 4/16 4/16 5/16 5/16 6/16 6/16 7/16 7/16 8/16 8/16 9/16 9/16 10/16 10/16 11/16 11/16 12/16 12/16 1/16 Consumption (kwh) Solar Production (kwh) Page 2

5 2.2 Rebates and Incentives This section summarizes all incentives available for this project. The actual rebate and incentive amounts for 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 of 30% of the total PV system cost. Unlike tax deductions, this tax credit can be used to directly oᝠset your tax liability dollar for dollar. If your tax credit exceeds your tax liability you can roll the credit into future tax periods for 20 years. System Cost x 30% = Federal Tax Credit $200,000 x 30% = $60,000 Federal Section 179 Depreciation All businesses that purchase, ᝠnance, and/or lease less than $2,000,000 in new or used business equipment during the tax year should qualify for the Section 179 Deduction. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or ᝠnanced during the tax year. Most tangible goods including "oᝠ-the-shelf" software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction. The deduction begins to phase out if more than $2,000,000 of equipment is purchased - in fact, the deduction decreases on a dollar for dollar scale after that, making Section 179 a deduction speciᝠcally for small and medium-sized businesses. Year Federal Tax Deduction 1 $200,000 Totals: $200,000 State (CA) Modiᝠed Accelerated Cost-Recovery System (MACRS) Under the Modiᝠed Cost Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property over which the property may be depreciated. Year State Tax Deduction 1 $40,000 2 $64,000 3 $38,400 4 $23,040 5 $23,040 6 $11,520 Totals: $200,000 Page 3

6 2.3 Utility Rates The table below shows the rates associate with your current utility rate schedule (GS-1-TOU).Your estimated electric bills after solar are shown on the following page. Fixed Charges Energy Charges Type GS-1-TOU Type GS-1-TOU W Daily $0.9 W Mid Peak $ S Daily $0.9 W Oᝠ Peak $ N/A - S On Peak $ N/A - S Mid Peak $ N/A - S Oᝠ Peak $ Current Electric Bill The table below shows your annual electricity costs based on the most current utility rates and your previous 12 months of electrical usage. Rate Schedule: SCE - GS-1-TOU Time Periods Energy Use (kwh) Charges Bill Range & Season On Peak Mid Peak Oᝠ Peak Fixed Energy Total 01/16/16-02/16/16 W - 16,000 1,700 $28 $2,434 $2,462 02/16/16-03/16/16 W - 16,000 1,700 $26 $2,434 $2,460 03/16/16-04/16/16 W - 16,000 1,700 $28 $2,434 $2,462 04/16/16-05/16/16 W - 16,000 1,700 $27 $2,434 $2,461 05/16/16-06/16/16 W/S 5,566 21,566 7,266 $28 $5,151 $5,179 06/16/16-07/16/16 S 5,566 5,566 5,566 $27 $2,716 $2,743 07/16/16-08/16/16 S 5,566 5,566 5,566 $28 $2,716 $2,744 08/16/16-09/16/16 S 5,566 5,566 5,566 $28 $2,716 $2,744 09/16/15-10/16/15 S/W 5,566 14,566 6,366 $27 $4,065 $4,092 10/16/15-11/16/15 W - 9, $28 $1,349 $1,377 11/16/15-12/16/15 W - 9, $27 $1,349 $1,376 12/16/15-01/16/16 W - 9, $28 $1,349 $1,377 Totals: 27, ,830 39,530 $330 $31,149 $31,479 Page 4

7 2.5 New Electric Bill Rate Schedule: SCE - GS-1-TOU Time Periods Energy Use (kwh) Charges Bill Range & Season On Peak Mid Peak Oᝠ Peak Fixed Energy Total 01/16/16-02/16/16 W - 5,991 (2,659) $28 $483 $511 02/16/16-03/16/16 W - 6,707 (2,460) $26 $608 $635 03/16/16-04/16/16 W - 2,252 (4,488) $28 ($271) ($243) 04/16/16-05/16/16 W - 3,686 (6,252) $27 ($302) ($275) 05/16/16-06/16/16 W/S 1,758 11,465 1,200 $28 $2,155 $2,183 06/16/16-07/16/16 S (2,561) (893) (688) $27 ($728) ($701) 07/16/16-08/16/16 S (2,229) (803) (2,055) $28 ($837) ($809) 08/16/16-09/16/16 S (2,275) (837) (570) $28 ($648) ($620) 09/16/15-10/16/15 S/W 2,083 6,572 1,299 $27 $1,550 $1,577 10/16/15-11/16/15 W - (409) (4,880) $28 ($690) ($662) 11/16/15-12/16/15 W - (202) (2,930) $27 ($408) ($381) 12/16/15-01/16/16 W - (2,732) (3,150) $28 ($787) ($759) Totals: (3,224) 30,797 (27,633) $330 $124 $454 Max Annual Electricity Savings: $31,025 Page 5

8 3.1 Cash Purchase Inputs and Key Financial Metrics Upfront Payment: $200,000 Electricity Escalation Rate: 5% 30-Year NPV: $1,795, Year IRR: 35.63% State Income Tax Rate: 8% Solar Panel Degradation Rate: 0.5% Payback Period: 1.8 Years 20-Year IRR: 37.41% Federal Income Tax Rate: 38% Discount Rate: 0% 30-Year ROI: % 30-Year IRR: 37.51% Years Project Costs O&M / Equipment Replacement Electric Bill Savings State Tax Eᝠect Federal Tax Eᝠect Cash Flow Cumulative Cash Flow Upfront ($200,000) ($200,000) ($200,000) $31,025 $3,200 $136,000 $170,225 ($29,775) $32,413 $5,120 - $37,533 $7, $33,863 $3,072 - $36,935 $44, $35,376 $1,843 - $37,219 $81, $36,956 $1,843 - $38,800 $120, $38,606 $922 - $39,528 $160, $40, $40,329 $200, $42, $42,127 $242, $44, $44,004 $286, $45, $45,964 $332, $48, $48,009 $380, $50, $50,144 $430, $52, $52,373 $483, $54, $54,699 $537, $57, $57,127 $595, ($600) $59, $59,061 $654, ($618) $62, $61,687 $715, ($637) $65, $64,428 $780, ($656) $67, $67,289 $847, ($675) $70, $70,275 $917, ($696) $74, $73,390 $991, ($716) $77, $76,642 $1,067, ($738) $80, $80,034 $1,147, ($760) $84, $83,574 $1,231, ($783) $88, $87,268 $1,318, ($21,806) $91, $70,122 $1,388, ($831) $95, $95,142 $1,483, ($855) $100, $99,337 $1,583, ($881) $104, $103,713 $1,686, ($908) $109, $108,278 $1,795,256 Totals ($200,000) ($32,159) $1,875,415 $16,000 $136,000 $1,795,256 - Page 6

9 4.1 Cash Purchase Inputs and Key Financial Metrics Upfront Payment: $200,000 Electricity Escalation Rate: 5% 30-Year NPV: $1,795, Year IRR: 35.63% State Income Tax Rate: 8% Solar Panel Degradation Rate: 0.5% Payback Period: 1.8 Years 20-Year IRR: 37.41% Federal Income Tax Rate: 38% Discount Rate: 0% 30-Year ROI: % 30-Year IRR: 37.51% Years Upfront Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Cash Project Costs ($200,000) O&M / Equipment Replacement Electric Bill Savings - $31,025 $32,413 $33,863 $35,376 $36,956 $38,606 $40,329 Total Cash (Payments) / Income ($200,000) $31,025 $32,413 $33,863 $35,376 $36,956 $38,606 $40,329 State Taxes Income Decrease (State (CA) MACRS Depreciation) - $40,000 $64,000 $38,400 $23,040 $23,040 $11,520 - Taxable Income (Increase) / Decrease - $40,000 $64,000 $38,400 $23,040 $23,040 $11,520 - Total State Tax (Increase) / Decrease - $3,200 $5,120 $3,072 $1,843 $1,843 $922 - Federal Taxes Income Decrease (Section 179 Depreciation) - $200, Taxable Income (Increase) / Decrease - $200, Federal Tax (Increase) / Decrease - $76, Tax Credit (Federal Tax Credit) - $60, Total Federal Tax (Increase) / Decrease - $136, Total Cash Flow ($200,000) $170,225 $37,533 $36,935 $37,219 $38,800 $39,528 $40,329 Cumulative Cash Flow ($200,000) ($29,775) $7,758 $44,692 $81,912 $120,712 $160,240 $200,568 Page 7

10 4.1 Cash Purchase Inputs and Key Financial Metrics Upfront Payment: $200,000 Electricity Escalation Rate: 5% 30-Year NPV: $1,795, Year IRR: 35.63% State Income Tax Rate: 8% Solar Panel Degradation Rate: 0.5% Payback Period: 1.8 Years 20-Year IRR: 37.41% Federal Income Tax Rate: 38% Discount Rate: 0% 30-Year ROI: % 30-Year IRR: 37.51% Years Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Cash Project Costs O&M / Equipment Replacement Electric Bill Savings $42,127 $44,004 $45,964 $48,009 $50,144 $52,373 $54,699 $57,127 Total Cash (Payments) / Income $42,127 $44,004 $45,964 $48,009 $50,144 $52,373 $54,699 $57,127 State Taxes Income Decrease (State (CA) MACRS Depreciation) Taxable Income (Increase) / Decrease Total State Tax (Increase) / Decrease Federal Taxes Income Decrease (Section 179 Depreciation) Taxable Income (Increase) / Decrease Federal Tax (Increase) / Decrease Tax Credit (Federal Tax Credit) Total Federal Tax (Increase) / Decrease Total Cash Flow $42,127 $44,004 $45,964 $48,009 $50,144 $52,373 $54,699 $57,127 Cumulative Cash Flow $242,695 $286,699 $332,663 $380,672 $430,816 $483,189 $537,889 $595,015 Page 8

11 4.1 Cash Purchase Inputs and Key Financial Metrics Upfront Payment: $200,000 Electricity Escalation Rate: 5% 30-Year NPV: $1,795, Year IRR: 35.63% State Income Tax Rate: 8% Solar Panel Degradation Rate: 0.5% Payback Period: 1.8 Years 20-Year IRR: 37.41% Federal Income Tax Rate: 38% Discount Rate: 0% 30-Year ROI: % 30-Year IRR: 37.51% Years Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Cash Project Costs O&M / Equipment Replacement ($600) ($618) ($637) ($656) ($675) ($696) ($716) ($738) Electric Bill Savings $59,661 $62,305 $65,065 $67,945 $70,950 $74,086 $77,358 $80,772 Total Cash (Payments) / Income $59,061 $61,687 $64,428 $67,289 $70,275 $73,390 $76,642 $80,034 State Taxes Income Decrease (State (CA) MACRS Depreciation) Taxable Income (Increase) / Decrease Total State Tax (Increase) / Decrease Federal Taxes Income Decrease (Section 179 Depreciation) Taxable Income (Increase) / Decrease Federal Tax (Increase) / Decrease Tax Credit (Federal Tax Credit) Total Federal Tax (Increase) / Decrease Total Cash Flow $59,061 $61,687 $64,428 $67,289 $70,275 $73,390 $76,642 $80,034 Cumulative Cash Flow $654,076 $715,763 $780,192 $847,481 $917,756 $991,146 $1,067,788 $1,147,822 Page 9

12 4.1 Cash Purchase Inputs and Key Financial Metrics Upfront Payment: $200,000 Electricity Escalation Rate: 5% 30-Year NPV: $1,795, Year IRR: 35.63% State Income Tax Rate: 8% Solar Panel Degradation Rate: 0.5% Payback Period: 1.8 Years 20-Year IRR: 37.41% Federal Income Tax Rate: 38% Discount Rate: 0% 30-Year ROI: % 30-Year IRR: 37.51% Years Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Totals Cash Project Costs ($200,000) O&M / Equipment Replacement ($760) ($783) ($21,806) ($831) ($855) ($881) ($908) ($32,159) Electric Bill Savings $84,334 $88,051 $91,928 $95,973 $100,192 $104,594 $109,185 $1,875,415 Total Cash (Payments) / Income $83,574 $87,268 $70,122 $95,142 $99,337 $103,713 $108,278 $1,643,256 State Taxes Income Decrease (State (CA) MACRS Depreciation) $200,000 Taxable Income (Increase) / Decrease $200,000 Total State Tax (Increase) / Decrease $16,000 Federal Taxes Income Decrease (Section 179 Depreciation) $200,000 Taxable Income (Increase) / Decrease $200,000 Federal Tax (Increase) / Decrease $76,000 Tax Credit (Federal Tax Credit) $60,000 Total Federal Tax (Increase) / Decrease $136,000 Total Cash Flow $83,574 $87,268 $70,122 $95,142 $99,337 $103,713 $108,278 $1,795,256 Cumulative Cash Flow $1,231,396 $1,318,664 $1,388,786 $1,483,928 $1,583,265 $1,686,978 $1,795,256 - Page 10