1 ABOUT US
Dave Reis
CEO
Heather Jacks
Commercial Solar Manager
Kevin Logue
EPC Sales Manager
OUR HISTORY
CVE, founded in 1997, is a
nationwide utility-scale engineering,
procurement and construction
renewable energy service provider
and contractor behind some of
North America’s largest, most
complex energy projects.
OUR MISSION
We’re on a mission to be the world’s
premier engineering, construction, and
project management organization by
achieving extraordinary results for our
customers, building satisfying careers for
our people, and earning a fair return on
the value we deliver.
2 PROJECT SUMMARY
Payment Options Cash Purchase
IRR - Term 19.3%
LCOE PV Generation $0.077 /kWh
Net Present Value $670,178
Payback Period 4.0 Years
Total Payments $585,076
Total Incentives $407,993
Net Payments $177,083
Electric Bill Savings - Term $1,817,532
Upfront Payment $585,076
CUMULATIVE ENERGY COSTS BY PAYMENT OPTION
COMBINED SOLAR PV RATING
Power Rating: 50,600 W-DC
Power Rating: 44,076 W-AC-CEC
COMBINED ESS RATINGS
Energy Capacity: 250.0 kWh
Power Rating: 125.0 kW
Year 0 Year 4 Year 8 Year 12 Year 16 Year 20 Year 24 Year 28 $0
$500,000
$1,000,000
$1,500,000
$2,000,000
Cumulative Energy Costs
Avoided Utility Cost
Cash Purchase
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
3 PROJECT DETAILS3.1 Meter #1
3.1.1 PV SYSTEM DETAILS
GENERAL INFORMATION
Facility: Meter #1
Address: 683 Fremont St Salinas CA 93905
SOLAR PV EQUIPMENT DESCRIPTION
Solar Panels: (92) ZNShine Solar ZXM7-EH144 (550W)
Inverters: (1) Chint CPS SCA50KTL-DO/US-480 (Sept17)
SOLAR PV EQUIPMENT TYPICAL LIFESPAN
Solar Panels: Greater than 30 Years
Inverters: 15 Years
Solar PV System Cost and Incentives
Solar PV System Cost $429,051
Federal ITC -$171,620
State (CA) MACRS Depreciation -$34,324
Federal - MACRS Bonus Depreciation -$102,972
Net Solar PV System Cost $120,134
SOLAR PV SYSTEM RATING
Power Rating: 50,600 W-DC
Power Rating: 44,076 W-AC-CEC
ENERGY CONSUMPTION MIX
Annual Energy Use: 856,400 kWh
Utility 770,065 kWh (89.92%)
Solar PV 86,335 kWh (10.08%)
MONTHLY ENERGY USE VS SOLAR GENERATION
1/01 - 2/012/01 - 3/013/01 - 4/014/01 - 5/015/01 - 6/016/01 - 7/017/01 - 8/018/01 - 9/019/01 - 10/0110/01 - 11/0111/01 - 12/0112/01 - 1/01 0 20,000
40,000
60,000
80,000
Energy (kWh)
Energy Use (kWh)
Solar Generation (kWh)
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
3.1.2 ENERGY STORAGE SYSTEM (ESS) DETAILS
GENERAL INFORMATION
Facility: Meter #1
Address: Salinas CA 93905
ESS EQUIPMENT DESCRIPTION
Battery Banks: 125kw/250kWh Energy Storage System
Inverters: 125kw/250kWh Energy Storage System
ESS EQUIPMENT TYPICAL LIFESPAN
Battery Banks: 15 Years
Inverters: 15 Years
ESS Cost and Incentives
ESS Cost $156,025
State (CA) MACRS Depreciation (ESS) -$12,482
Federal Tax Credit (ESS) -$46,808
Federal - MACRS Bonus Depreciation -$39,786
Net ESS Cost $56,949
ESS SYSTEM RATINGS
Energy Capacity: 250.0 kWh
Power Rating: 125.0 kW
ENERGY STORAGE ANNUAL UTILIZATION
0 - 20% 20 - 40% 40 - 60% 60 - 80%80 - 100%
Max Utilization Rate
0 50
100
150
200
Days Per Year
Energy Output and Demand Savings From Solar PV and Energy Storage Date Range ESS Energy Discharge
(kWh)
Solar PV Generation
(kWh)
ESS Energy as % of PV
Energy
Total Demand
Savings
1/1/2023 - 2/1/2023 1,036 4,058 25.53% $1,485
2/1/2023 - 3/1/2023 1,551 4,734 32.76% $1,306
3/1/2023 - 4/1/2023 3,025 7,436 40.68% $1,449
4/1/2023 - 5/1/2023 3,241 8,575 37.80% $1,426
5/1/2023 - 6/1/2023 3,163 9,807 32.25% $2,420
6/1/2023 - 7/1/2023 5,775 10,017 57.65% $6,569
7/1/2023 - 8/1/2023 5,790 9,954 58.17% $3,431
8/1/2023 - 9/1/2023 5,960 8,690 68.58% $4,117
9/1/2023 - 10/1/2023 6,031 8,080 74.64% $6,606
10/1/2023 - 11/1/2023 889 6,659 13.35% $1,847
11/1/2023 - 12/1/2023 1,945 4,627 42.04% $1,394
12/1/2023 - 1/1/2024 1,506 3,698 40.72% $1,518
Total 39,912 86,335 46.23% $33,567
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
3.1.3 REBATES & INCENTIVES
This section summarizes all incentives available for this project. The actual rebate and incentive amounts for this project are shown in each example.
Investment Tax Credit (ITC) ‐ 30% (with Adders)
The Inflation Reduction Act (IRA) of 2022 establishes and extends the federal Investment Tax Credit (ITC) for solar photovoltaic (PV) systems at a rate of 30% of the total PV system cost. The 30% ITC was extended for 10 years, through 2032. Unlike tax deductions, this tax credit can be used to directly offset your tax liability dollar for dollar.
The IRA extended the carryback period to 3 years, and the carryforward period to 22 years, in cases where the tax credit exceeds a customer’s tax liability in the ‘placed-in-service’ year. For PV projects greater than 1 MW AC in size, the IRA established prevailing wage and apprenticeship requirements in order to qualify for the full 30% “increased rate”, rather than a “base rate” which would only qualify for a 6% ITC. Projects with an output of less than 1 megawatt qualify for the “increased rate” irrespective of if prevailing wage or apprenticeship requirements are met. In addition to the 30% ITC, the IRA establishes three different types of ITC “Adders”, which provide additional tax credits of up to 10% each, for projects that meet specified requirements. (1) Energy Community, projects sited in an “energy community”, which includes brownfield sites, census tracts where a coal mine closed after 1999 or a coal-fired power plant was retired after 2009, or areas where 25% of local tax revenues are related to the extraction, processing or storage of coal, oil, or natural gas at any time beginning in 2010. (2) Low-income, projects located in a qualified “low- income community”, which is defined as a census tract with a poverty rate of at least 20%, as well as a census tract where the median family income (MFI) is 80% or less of statewide MFI, or on “Indian land”, which is defined as land located within the boundaries of an Indian reservation or lands held by a tribe. (3) Domestic Content, for projects that meet specified domestic content requirements which will be set by Treasury, including 100% steel/iron for manufactured products with a 40% requirement through 2024 followed by 45% in 2025, 50% in 2026, and 55% in 2027 and beyond. Manufactured content is further explained: the products which are components of a qualified facility upon completion will be deemed to have been produced in the United States if the adjusted percentage of the total costs of all such manufactured products of the facility are attributable to manufactured products which are mined, produced, or manufactured in the United States.
Total Incentive Value: $171,620
State (CA) Modified Accelerated Cost‐Recovery System (MACRS) Under the Modified 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.
Total Incentive Value: $34,324
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
Federal MACRS, Bonus Depreciation ‐ 60% (2024 Place in Service) Under the federal Modified Cost Recovery System (MACRS), businesses may recover investments in solar PV property through depreciation deductions over a 5-year established lifespan. For PV systems, the taxable basis of the equipment must be reduced by 50% of any federal tax credits associated with the system. The Tax Cuts and Jobs Act of 2017 included provisions that modified bonus depreciation under Code Section 168(k). PV projects that were placed in service after September 27, 2017 and before January 1, 2023 were eligible for 100% bonus depreciation, allowing eligible entities to deduct the entire allowable tax basis of the system in the first year of operation. Projects placed in service in 2024 qualify for 60% bonus depreciation, which means in the first year of service, companies can elect to depreciate 60% of the basis while the remaining 40% is depreciated under the normal MACRS schedule.
Total Incentive Value: $102,972
State (CA) Modified Accelerated Cost‐Recovery System (MACRS) (ESS) Under the Modified 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.
Total Incentive Value: $12,482
Investment Tax Credit (ITC) ‐ 30% (ESS)
The Inflation Reduction Act (IRA) of 2022 established a federal Investment Tax Credit (ITC) for energy storage system (ESS) projects at a rate of 30% of the total ESS system cost. The IRA explicitly stated that the 30% ESS ITC was applicable for standalone ESS projects, and also ESS projects paired with a solar PV system. The ESS ITC was established for 10 years, through 2032. Unlike tax deductions, this tax credit can be used to directly offset your tax liability dollar for dollar. The IRA allows a carryback period of 3 years, and the carryforward period of 22 years, in cases where the tax credit exceeds a customer’s tax liability in the ‘placed-in-service’ year. For ESS projects greater than 1 MW AC in size, the IRA established prevailing wage and apprenticeship requirements in order to qualify for the full 30% “increased rate”, rather than a “base rate” which would only qualify for a 6% ITC. Projects with an output of less than 1 megawatt qualify for the “increased rate” irrespective of if prevailing wage or apprenticeship requirements are met.
Total Incentive Value: $46,808
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
Federal MACRS, Bonus Depreciation ‐ 60% (2024 Place in Service) (ESS) Under the federal Modified Cost Recovery System (MACRS), businesses may recover investments in Energy Storage System (ESS) property through depreciation deductions over a 5-year established lifespan. For ESS systems, the taxable basis of the equipment must be reduced by 50% of any federal tax credits associated with the system. The Tax Cuts and Jobs Act of 2017 included provisions that modified bonus depreciation under Code Section 168(k). ESS projects that were placed in service after September 27, 2017 and before January 1, 2023 were eligible for 100% bonus depreciation, allowing eligible entities to deduct the entire allowable tax basis of the system in the first year of operation. Projects placed in service in 2024 qualify for 60% bonus depreciation, which means in the first year of service, companies can elect to depreciate 60% of the basis while the remaining 40% is depreciated under the normal MACRS schedule.
Total Incentive Value: $39,786
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
3.1.4 UTILITY RATES
The table below shows the rates associated with your current utility rate schedule (B-19). Your estimated electric bills after solar are shown on the following page.
Customer Charges Energy Charges Demand Charges
Season Charge
Type
Rate
Type B-19 Season Charge Type Rate
Type B-19 Season Charge
Type
Rate
Type B-19
W1 Flat Rate per day $57.48 W1 On Peak Import $0.21119 W1 Flat Rate Import $37.85 W2 Flat Rate per day $57.48 W1 Off-Peak Import $0.15683 W2 Flat Rate Import $37.85 S Flat Rate per day $57.48 W1 Critical Peak Import $0.90 S Flat Rate Import $37.85 W2 On Peak Import $0.21119 W1 On Peak Import $3.02
W2 Off-Peak Import $0.15683 W2 On Peak Import $3.02
W2 Super Off-Peak Import $0.0839 S On Peak Import $51.60 W2 Critical Peak Import $0.90 S Part-Peak Import $11.24 S On Peak Import $0.24331
S Part-Peak Import $0.19274
S Off-Peak Import $0.15697
S Critical Peak Import $0.90
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
3.1.5 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: PG&E-NEM3 - B-19
Time Periods Energy Use (kWh) Max Demand (kW) Charges
Bill Ranges & Seasons On Peak Part-Peak Off-Peak Super Off-Peak Critical Peak NC / Max On Peak Part-Peak Other NBC Energy Demand Total 1/1/2023 - 2/1/2023 W1 17,543 - 56,400 - 0 246 225 - $1,782 $2,162 $10,388 $9,991 $24,323 2/1/2023 - 3/1/2023 W1 15,817 - 50,961 - 0 207 200 - $1,609 $1,953 $9,380 $8,439 $21,381 3/1/2023 - 4/1/2023 W2 17,771 - 35,200 21,849 0 204 186 - $1,782 $2,188 $8,919 $8,283 $21,172 4/1/2023 - 5/1/2023 W2 16,640 - 34,000 20,517 0 207 194 - $1,724 $2,081 $8,487 $8,421 $20,713 5/1/2023 - 6/1/2023 W2 18,207 - 35,797 22,532 0 233 208 - $1,782 $2,238 $9,112 $9,447 $22,579 6/1/2023 - 7/1/2023 S 18,423 13,516 46,334 - 727 309 261 271 $1,724 $2,289 $12,726 $26,101 $42,840 7/1/2023 - 8/1/2023 S 10,170 8,828 33,470 - 1,813 137 127 129 $1,782 $1,534 $9,527 $12,165 $25,009 8/1/2023 - 9/1/2023 S 12,596 9,794 34,100 - 950 169 158 165 $1,782 $1,652 $9,508 $15,127 $28,069 9/1/2023 - 10/1/2023 S 18,017 13,753 45,000 - 799 297 251 288 $1,724 $2,245 $12,572 $25,374 $41,916 10/1/2023 - 11/1/2023 W1 18,534 - 60,200 - 0 264 253 - $1,782 $2,302 $11,053 $10,756 $25,894 11/1/2023 - 12/1/2023 W1 17,441 - 56,000 - 0 213 207 - $1,724 $2,147 $10,318 $8,687 $22,877 12/1/2023 - 1/1/2024 W1 17,173 - 55,526 - 0 231 197 - $1,782 $2,126 $10,209 $9,338 $23,455 Total 198,332 45,891 542,988 64,898 4,289 - - - $20,980 $24,916 $122,201 $152,130 $320,226 Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
3.1.6 NEW ELECTRIC BILL
ANNUAL ELECTRICITY SAVINGS: $48,997
RATE SCHEDULE: PG&E-NEM3 - B-19
Time Periods Energy Use (kWh) Max Demand (kW) Charges
Bill Ranges & Seasons On Peak Part-Peak Off-Peak Super Off-Peak Critical Peak NC / Max On Peak Part-Peak Other NBC Energy Demand Total 1/1/2023 - 2/1/2023 W1 17,337 - 52,945 - 0 211 172 - $1,782 $2,055 $9,910 $8,506 $22,252 2/1/2023 - 3/1/2023 W1 15,269 - 47,371 - 0 176 156 - $1,609 $1,832 $8,822 $7,133 $19,396 3/1/2023 - 4/1/2023 W2 14,637 - 33,986 19,924 0 169 145 - $1,782 $2,004 $8,089 $6,835 $18,709 4/1/2023 - 5/1/2023 W2 13,193 - 32,076 18,559 0 173 148 - $1,724 $1,866 $7,507 $6,995 $18,093 5/1/2023 - 6/1/2023 W2 14,021 - 33,983 19,940 0 174 146 - $1,782 $1,987 $7,977 $7,027 $18,772 6/1/2023 - 7/1/2023 S 10,762 11,124 48,661 - 653 246 177 228 $1,724 $2,063 $10,926 $19,532 $34,245 7/1/2023 - 8/1/2023 S 3,766 8,256 33,907 - 622 114 73 114 $1,782 $1,343 $7,048 $8,734 $18,907 8/1/2023 - 9/1/2023 S 5,692 9,612 35,299 - 437 136 101 133 $1,782 $1,480 $7,692 $11,009 $21,963 9/1/2023 - 10/1/2023 S 11,399 11,514 48,335 - 557 229 175 225 $1,724 $2,083 $10,998 $18,769 $33,574 10/1/2023 - 11/1/2023 W1 18,348 - 54,068 - 0 220 193 - $1,782 $2,117 $10,237 $8,910 $23,046 11/1/2023 - 12/1/2023 W1 17,070 - 52,491 - 0 180 159 - $1,724 $2,034 $9,803 $7,293 $20,855 12/1/2023 - 1/1/2024 W1 16,601 - 52,979 - 0 194 158 - $1,782 $2,035 $9,780 $7,820 $21,417 Total 158,095 40,506 526,101 58,423 2,269 - - - $20,980 $22,899 $108,788 $118,562 $271,229 Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
4 CASH FLOW ANALYSIS
4.1 Cash Purchase
Assumptions and Key Financial Metrics
IRR - Term 19.3% Net Present Value $670,178 Payback Period 4.0 Years ROI 280.4% PV Degradation Rate 0.80% Discount Rate 5.0% Energy Cost Escalation Rate 3.0% Federal Income Tax Rate 30.0% State Income Tax Rate 8.0% Total Project Costs $585,076
Years Project Costs Electric Bill Savings State Tax Effect Federal Tax Effect Total Cash Flow Cumulative Cash Flow Upfront -$585,076 - - - -$585,076 -$585,076
1 - $48,997 $9,361 $315,504 $373,862 -$211,214
2 - $49,309 $14,978 $18,273 $82,560 -$128,654
3 - $49,596 $8,987 $10,964 $69,546 -$59,108
4 - $49,855 $5,392 $6,578 $61,826 $2,718
5 - $50,086 $5,392 $6,578 $62,056 $64,774
6 - $50,285 $2,696 $3,289 $56,271 $121,044
7 - $50,452 - - $50,452 $171,496
8 - $50,583 - - $50,583 $222,079
9 - $50,676 - - $50,676 $272,755
10 - $50,730 - - $50,730 $323,485
11 - $50,741 - - $50,741 $374,227
12 - $50,708 - - $50,708 $424,934
13 - $50,626 - - $50,626 $475,561
14 - $50,494 - - $50,494 $526,055
15 - $50,309 - - $50,309 $576,364
16 - $70,434 - - $70,434 $646,798
17 - $70,743 - - $70,743 $717,541
18 - $71,007 - - $71,007 $788,548
19 - $71,224 - - $71,224 $859,773
20 - $71,390 - - $71,390 $931,162
21 - $71,501 - - $71,501 $1,002,664
22 - $71,555 - - $71,555 $1,074,219
23 - $71,548 - - $71,548 $1,145,767
24 - $71,476 - - $71,476 $1,217,244
25 - $71,336 - - $71,336 $1,288,579
26 - $71,122 - - $71,122 $1,359,701
27 - $70,832 - - $70,832 $1,430,533
28 - $70,460 - - $70,460 $1,500,993
29 - $70,002 - - $70,002 $1,570,995
30 - $69,453 - - $69,453 $1,640,448
Totals: -$585,076 $1,817,532 $46,806 $361,187 $1,640,448 - Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
5 DETAILED CASH FLOW ANALYSIS
5.1 Cash Purchase
Assumptions and Key Financial Metrics
IRR - Term 19.3% Net Present Value $670,178 Payback Period 4.0 Years ROI 280.4% PV Degradation Rate 0.80% Discount Rate 5.0% Energy Cost Escalation Rate 3.0% Federal Income Tax Rate 30.0% State Income Tax Rate 8.0% Total Project Costs $585,076
Years Upfront 1 2 3 4 5 6 7 8 9
Cash
Project Costs -$585,076 - - - - - - - - -
Electric Bill Savings - $48,997 $49,309 $49,596 $49,855 $50,086 $50,285 $50,452 $50,583 $50,676 Cash Total -$585,076 $48,997 $49,309 $49,596 $49,855 $50,086 $50,285 $50,452 $50,583 $50,676 State Taxes
Income Decrease (State (CA) MACRS Depreciation (ESS)) - $31,205 $49,928 $29,957 $17,974 $17,974 $8,987 - - - Income Decrease (State (CA) MACRS Depreciation) - $85,810 $137,296 $82,378 $49,427 $49,427 $24,713 - - - Change in Taxable Income - $117,015 $187,224 $112,335 $67,401 $67,401 $33,700 - - - State Tax Liability - - - - - - - - - -
Change in State Tax Liability - $9,361 $14,978 $8,987 $5,392 $5,392 $2,696 - - - Federal Taxes
Income Decrease (Federal - MACRS Bonus Depreciation) - $323,586 $60,910 $36,546 $21,928 $21,928 $10,964 - - - Change in Taxable Income - $323,586 $60,910 $36,546 $21,928 $21,928 $10,964 - - - Federal Tax Liability - $97,076 $18,273 $10,964 $6,578 $6,578 $3,289 - - - Federal ITC - $171,620 - - - - - - - -
Federal Tax Credit (ESS) - $46,808 - - - - - - - -
Change in Federal Tax Liability - $315,504 $18,273 $10,964 $6,578 $6,578 $3,289 - - - Total Cash Flow -$585,076 $373,862 $82,560 $69,546 $61,826 $62,056 $56,271 $50,452 $50,583 $50,676 Cumulative Cash Flow -$585,076 -$211,214 -$128,654 -$59,108 $2,718 $64,774 $121,044 $171,496 $222,079 $272,755 Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
5 DETAILED CASH FLOW ANALYSIS
5.1 Cash Purchase
Assumptions and Key Financial Metrics
IRR - Term 19.3% Net Present Value $670,178 Payback Period 4.0 Years ROI 280.4% PV Degradation Rate 0.80% Discount Rate 5.0% Energy Cost Escalation Rate 3.0% Federal Income Tax Rate 30.0% State Income Tax Rate 8.0% Total Project Costs $585,076
Years 10 11 12 13 14 15 16 17 18 19
Cash
Project Costs - - - - - - - - - -
Electric Bill Savings $50,730 $50,741 $50,708 $50,626 $50,494 $50,309 $70,434 $70,743 $71,007 $71,224 Cash Total $50,730 $50,741 $50,708 $50,626 $50,494 $50,309 $70,434 $70,743 $71,007 $71,224 State Taxes
Income Decrease (State (CA) MACRS Depreciation (ESS)) - - - - - - - - - - Income Decrease (State (CA) MACRS Depreciation) - - - - - - - - - - Change in Taxable Income - - - - - - - - - -
State Tax Liability - - - - - - - - - -
Change in State Tax Liability - - - - - - - - - -
Federal Taxes
Income Decrease (Federal - MACRS Bonus Depreciation) - - - - - - - - - - Change in Taxable Income - - - - - - - - - -
Federal Tax Liability - - - - - - - - - -
Federal ITC - - - - - - - - - -
Federal Tax Credit (ESS) - - - - - - - - - -
Change in Federal Tax Liability - - - - - - - - - -
Total Cash Flow $50,730 $50,741 $50,708 $50,626 $50,494 $50,309 $70,434 $70,743 $71,007 $71,224 Cumulative Cash Flow $323,485 $374,227 $424,934 $475,561 $526,055 $576,364 $646,798 $717,541 $788,548 $859,773 Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
5 DETAILED CASH FLOW ANALYSIS
5.1 Cash Purchase
Assumptions and Key Financial Metrics
IRR - Term 19.3% Net Present Value $670,178 Payback Period 4.0 Years ROI 280.4% PV Degradation Rate 0.80% Discount Rate 5.0% Energy Cost Escalation Rate 3.0% Federal Income Tax Rate 30.0% State Income Tax Rate 8.0% Total Project Costs $585,076
Years 20 21 22 23 24 25 26 27 28
Cash
Project Costs - - - - - - - - -
Electric Bill Savings $71,390 $71,501 $71,555 $71,548 $71,476 $71,336 $71,122 $70,832 $70,460 Cash Total $71,390 $71,501 $71,555 $71,548 $71,476 $71,336 $71,122 $70,832 $70,460 State Taxes
Income Decrease (State (CA) MACRS Depreciation (ESS)) - - - - - - - - - Income Decrease (State (CA) MACRS Depreciation) - - - - - - - - - Change in Taxable Income - - - - - - - - -
State Tax Liability - - - - - - - - -
Change in State Tax Liability - - - - - - - - -
Federal Taxes
Income Decrease (Federal - MACRS Bonus Depreciation) - - - - - - - - - Change in Taxable Income - - - - - - - - -
Federal Tax Liability - - - - - - - - -
Federal ITC - - - - - - - - -
Federal Tax Credit (ESS) - - - - - - - - -
Change in Federal Tax Liability - - - - - - - - -
Total Cash Flow $71,390 $71,501 $71,555 $71,548 $71,476 $71,336 $71,122 $70,832 $70,460 Cumulative Cash Flow $931,162 $1,002,664 $1,074,219 $1,145,767 $1,217,244 $1,288,579 $1,359,701 $1,430,533 $1,500,993 Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
5 DETAILED CASH FLOW ANALYSIS
5.1 Cash Purchase
Assumptions and Key Financial Metrics
IRR - Term 19.3% Net Present Value $670,178 Payback Period 4.0 Years ROI 280.4% PV Degradation Rate 0.80% Discount Rate 5.0% Energy Cost Escalation Rate 3.0% Federal Income Tax Rate 30.0% State Income Tax Rate 8.0% Total Project Costs $585,076
Years 29 30 Totals
Cash
Project Costs - - -$585,076
Electric Bill Savings $70,002 $69,453 $1,817,532
Cash Total $70,002 $69,453 $1,232,456
State Taxes
Income Decrease (State (CA) MACRS Depreciation (ESS)) - - $156,025 Income Decrease (State (CA) MACRS Depreciation) - - $429,051 Change in Taxable Income - - $585,076
State Tax Liability - -
Change in State Tax Liability - - $46,806
Federal Taxes
Income Decrease (Federal - MACRS Bonus Depreciation) - - $475,862 Change in Taxable Income - - $475,862
Federal Tax Liability - - $142,759
Federal ITC - - $171,620
Federal Tax Credit (ESS) - - $46,808
Change in Federal Tax Liability - - $361,187
Total Cash Flow $70,002 $69,453 $1,640,448
Cumulative Cash Flow $1,570,995 $1,640,448 -
Prepared By: Heather Jacks
P: (916) 496-4408, E: [email protected]
6 ENVIRONMENTAL BENEFITS
OVER THE NEXT 20 YEARS, YOUR SYSTEM WILL DO MORE THAN JUST SAVE YOU MONEY.
ACCORDING TO THE EPA'S GREENHOUSE GAS EQUIVALENCIES CALCULATOR (SOURCE), YOUR SOLAR PV SYSTEM WILL HAVE THE IMPACT OF REDUCING:
1,353
tons of CO2 Offset
3,075,397
Miles Driven By Cars
20,289
Trees Planted