LTPP Solar PV Pricing Pro Forma Tool

Prepared by:

Energy and Environmental Economics, Inc.

101 Montgomery Street, Suite 1600
San Francisco, CA 94104
phone: 415-391-5100
June 2, 2010

Contents:
Dashboard
Inputs
LCOE ProForma

Dashboard with Input/Output fields

Default inputs tables
Annual cash flows for selected technology and location

Color Scheme:
User Inputs
User Interaction
Calculations
Outputs
Input/Output Block

Forma Tool

LTPP Solar Pricing Pro Forma

Single Project Selection

Chosen Installation Outputs

Choose size and technology:

Chosen installation output:

Levelized Cost ($/kWh)

$0.2498

Choose Location:
DSCR

System Cost & Performance

1.44

Financing Assumptions

System Size (DC) (MW)

System Cost ($/watt DC)
Annual DC Capacity Factor
System lifetime (Years)
Degradation Factor (%/yr)
O&M Costs ($/kW)
O&M Cost Escalator (%/yr)
Inverter replacement cost ($/W)
Inverter replacement time (Years)

Inputs
1
$5.000
18.3%
25
1.00%
$20.0
2.0%
$0.250
10

Insurance Expense ($/kW)

Insurance Escalator (%/yr)

$20.0
2.0%

Override
Percent Financed with Equity
After-Tax WACC
Debt Interest Rate
Cost of Equity
Target minimum DSCR
Debt Period in Years
Federal Tax Rate
State Tax Rate
Tax Credit Rate
MACRS Term
Escalator

Solve For All Sizes and Locations

All Installation Outputs

Click to solve for all sizes and locations:

Solar DG:
Levelized Cost ($/kWh)
Mojave Desert (Daggett)

Inputs
60%
8.25%
7.50%
10.79%
1.40
20
35%
9%
30%

Override

5
0%

0.5 - 2 MW 0.5 - 2 MW
Rooftop /
Ground /
Fixed Tilt
Tracker
$0.2483
$0.1852

2 - 5 MW 5-20 MW
Ground / Ground /
Fixed-Tilt Fixed-Tilt
$0.1748 $0.1678

South Coast (Riverside)

Central Valley (Fresno)
North Coast (Oakland)

$0.2683
$0.2788
$0.2904

$0.2085
$0.2127
$0.2294

$0.1916
$0.1979
$0.2132

$0.1840
$0.1900
$0.2048

$0.3000

$0.30
$0.2500

$0.25
$0.2000

LCOE ($/kWh)

$0.20
$0.15

$0.1500

$0.10

$0.1000

$0.05

North Coast (Oakland)

Central Valley (Fresno)

$0.0500

South Coast (Riverside)

$0.00
0.5 - 2
MW
Rooftop /
Fixed Tilt

0.5 - 2
MW
Ground /
Tracker

Mojave Desert (Daggett)

2 - 5 MW
Ground /
Fixed-Tilt

5-20 MW
Ground /
Fixed-Tilt

$0.0000
0.5 - 2
MW
Rooftop /
Fixed Tilt

0.5 - 2
MW
Ground /
Tracker

2 - 5 MW
Ground /
Fixed-Tilt

5-20 MW
Utility
Utility
Ground /
Scale /
Scale /
Fixed-Tilt Crystalline Thin-Film
/ Tracker / Fixed-Tilt

Size Menu

Location Menu

0.5 - 2 MW Rooftop / Fixed Tilt

1
0.5 - 2 MW Rooftop / Fixed Tilt
0.5 - 2 MW Ground / Tracker
2 - 5 MW Ground / Fixed-Tilt
5-20 MW Ground / Fixed-Tilt
Utility Scale - Crystalline Tracker
Utility Scale - Thin Film

Utility-Scale Solar:
$/kWh
Mojave Desert

Utility Scale / Utility Scale /

Crystalline /
Thin-Film /
Tracker
Fixed-Tilt
$0.1482
$0.1366

Mojave Desert (Daggett)

1
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)

Central Valley

$0.1612

$0.1548

Mojave Desert (Daggett)

South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)

Utility
Scale /
Thin-Film
/ Fixed-Tilt

Cost and Performance Inputs

Sizes
0.5 - 2 MW Rooftop / Fixed Tilt

0.5 - 2 MW Ground / Tracker

2 - 5 MW Ground / Fixed-Tilt

5-20 MW Ground / Fixed-Tilt

Utility Scale - Crystalline Tracker

Utility Scale - Thin Film

Location
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)

Mojave Desert (Daggett)

South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)
Mojave Desert (Daggett)
Central Valley (Fresno)
Mojave Desert (Daggett)
Central Valley (Fresno)

System
System
Size (DC)
Cost
(MW)
($/watt DC)
1
$5.00
1
$5.00
1
$5.00
1
$5.00
1
$4.75
1
$4.75
1
$4.75
1
$4.75
5
$3.90
5
$3.90
5
$3.90
5
$3.90
20
$3.70
20
$3.70
20
$3.70
20
$3.70
150
$4.00
150
$4.00
150
$3.40
150
$3.40

Financing
Sizes
0.5 - 2 MW Rooftop / Fixed Tilt

0.5 - 2 MW Ground / Tracker

2 - 5 MW Ground / Fixed-Tilt

5-20 MW Ground / Fixed-Tilt

Location
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)

Mojave Desert (Daggett)

South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)
Mojave Desert (Daggett)
South Coast (Riverside)
Central Valley (Fresno)
North Coast (Oakland)

Percent
Financed
with Equity
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%

After-Tax
WACC
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%

Utility Scale - Crystalline Tracker

Utility Scale - Thin Film

Mojave Desert (Daggett)

Central Valley (Fresno)
Mojave Desert (Daggett)
Central Valley (Fresno)

60%
60%
60%
60%

8.25%
8.25%
8.25%
8.25%

Annual DC
Capacity
Factor
18.3%
16.9%
16.3%
15.6%
23.5%
20.9%
20.5%
19.0%
21.3%
19.5%
18.8%
17.5%
21.3%
19.5%
18.8%
17.5%
23.2%
21.3%
21.3%
18.8%

System
lifetime
(Years)
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

Debt
Interest
Rate
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%

Cost of
Equity
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%
10.79%

Inverter
Degradatio
O&M Cost
Inverter replacemen Insurance
n Factor O&M Costs Escalator replacemen
t time
Expense
(%/yr)
($/kW)
(%/yr)
t cost ($/W) (Years)
($/kW)
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
0.75%
$25.0
2.0%
$0.250
10
$20.0
0.75%
$25.0
2.0%
$0.250
10
$20.0
0.75%
$25.0
2.0%
$0.250
10
$20.0
0.75%
$25.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
1.00%
$20.0
2.0%
$0.250
10
$20.0
0.75%
$44.0
0.0%
$0.000
0
$0.0
0.75%
$44.0
0.0%
$0.000
0
$0.0
1.00%
$32.0
0.0%
$0.000
0
$0.0
1.00%
$32.0
0.0%
$0.000
0
$0.0

Target
minimum Debt Period Federal
DSCR
in Years
Tax Rate
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%
1.40
20
35%

State Tax
Rate
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%
8.84%

Tax Credit
Rate
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%

MACRS
Term
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

7.50%
7.50%
7.50%
7.50%

10.79%
10.79%
10.79%
10.79%

1.40
1.40
1.40
1.40

20
20
20
20

35%
35%
35%
35%

8.84%
8.84%
8.84%
8.84%

30%
30%
30%
30%

5
5
5
5

Insurance
Escalator
(%/yr)
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
0.0%
0.0%
0.0%
0.0%

Escalator
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%

0%
0%
0%
0%

LCOE ProForma: 0.5 - 2 MW Rooftop / Fixed Tilt Mojave Desert (Daggett)

(in actual dollars)

System Design
System Cost ($/watt DC)
System Size (DC) (MW)
Initial debt service reserve funding
Total System Cost

$5.00
1.0
$196,184
$5,196,184

$20.00
2.00%
$0.25
$250,000
$25,000
10
$20.00
2.00%

Year

Financing
% Financed w/ equity
% Financed w/ debt
Debt Interest rate
Debt period in years
Cost of Equity
WACC
Interest Rate on DSRF
Escalator

60%
40%
7.5%
20
10.79%
8.25%
3.8%
0%

Levelized Cost of Generation ($/kWh)

$0.2498

NPV

$0.0

Annual Cash Flow

Cost of Generation ($/MWh)

Operating Revenue
Total Revenue

Interest Expense
Loan Repayment Expense (Principal)
Debt Service Reserve
Interest earned on DSRF
Net Finance Costs
State tax refund/(paid)
Federal tax refund (paid)
Taxes Saved/(Paid)
Equity Investment

$0
($1,000,000)
($2,000,000)
($3,000,000)

$3,117,711
$2,078,474

($4,000,000)
Year

10

11

12

13

14

15

16

1,587

1,571

1,556

1,540

1,525

1,509

1,494

1,479

1,465

1,450

1,435

1,421

1,407

1,393

1,379

($20,400)
($25,000)
($20,400)
($65,800)

Operating Profit

$1,000,000

1,603
$249.7615
$400,431
$400,431

O&M Costs
Inverter Replacement Cost
Insurance Costs
Total Costs

$2,000,000

Equity Amount
Debt Amount

Energy Production (MWh)

$249.7615
$396,426
$396,426
($20,808)
($24,063)
($20,808)
($65,679)

$249.7615
$392,462
$392,462
($21,224)
($23,125)
($21,224)
($65,573)

$249.7615
$388,537
$388,537
($21,649)
($22,188)
($21,649)
($65,485)

$249.7615
$384,652
$384,652
($22,082)
($21,250)
($22,082)
($65,413)

$249.7615
$380,806
$380,806
($22,523)
($20,313)
($22,523)
($65,359)

$249.7615
$376,997
$376,997
($22,974)
($19,375)
($22,974)
($65,322)

$249.7615
$373,227
$373,227
($23,433)
($18,438)
($23,433)
($65,304)

$249.7615
$369,495
$369,495
($23,902)
($17,500)
($23,902)
($65,304)

$249.7615
$365,800
$365,800
($24,380)
($16,563)
($24,380)
($65,322)

$249.7615
$362,142
$362,142
($24,867)
($25,000)
($24,867)
($74,735)

$249.7615
$358,521
$358,521
($25,365)
($24,063)
($25,365)
($74,792)

$249.7615
$354,936
$354,936
($25,872)
($23,125)
($25,872)
($74,869)

$249.7615
$351,386
$351,386
($26,390)
($22,188)
($26,390)
($74,967)

$249.7615
$347,872
$347,872

$249.7615
$344,394
$344,394

($26,917)
($21,250)
($26,917)
($75,085)

($27,456)
($20,313)
($27,456)
($75,224)

$334,631

$330,748

$326,889

$323,053

$319,239

$315,447

$311,675

$307,924

$304,191

$300,478

$287,407

$283,729

$280,066

$276,420

$272,788

$269,170

($155,886)
($47,997)
$0
$7,357
($196,525)

($152,286)
($51,596)
$0
$7,357
($196,525)

($148,416)
($55,466)
$0
$7,357
($196,525)

($144,256)
($59,626)
$0
$7,357
($196,525)

($139,784)
($64,098)
$0
$7,357
($196,525)

($134,977)
($68,905)
$0
$7,357
($196,525)

($129,809)
($74,073)
$0
$7,357
($196,525)

($124,253)
($79,629)
$0
$7,357
($196,525)

($118,281)
($85,601)
$0
$7,357
($196,525)

($111,861)
($92,021)
$0
$7,357
($196,525)

($104,960)
($98,922)
$0
$7,357
($196,525)

($97,541)
($106,342)
$0
$7,357
($196,525)

($89,565)
($114,317)
$0
$7,357
($196,525)

($80,991)
($122,891)
$0
$7,357
($196,525)

($71,774)
($132,108)
$0
$7,357
($196,525)

($61,866)
($142,016)
$0
$7,357
($196,525)

$71,949
$1,766,038
$1,837,986

$125,014
$367,209
$492,222

$68,437
$196,607
$265,043

$34,462
$94,144
$128,607

$34,404
$93,934
$128,339

$8,855
$16,841
$25,697

($16,727)
($60,373)
($77,101)

($16,887)
($60,949)
($77,836)

($17,085)
($61,664)
($78,749)

($17,324)
($62,527)
($79,851)

($16,779)
($60,559)
($77,338)

($17,109)
($61,752)
($78,862)

($17,491)
($63,129)
($80,619)

($17,926)
($64,701)
($82,627)

($18,420)
($66,483)
($84,903)

($18,976)
($68,490)
($87,466)

$1,976,092

$626,445

$395,407

$255,134

$251,052

$144,618

$38,049

$33,563

$28,918

$24,101

$13,544

$8,342

$2,922

($2,732)

($8,640)

($14,821)

($3,117,711)

After-Tax Equity Cash Flow

($3,117,711)

Taxes

California
Taxable operating income
Depreciation schedule (assumes LLP entity)
Depreciation Basis
$5,000,000
Depreciation
Interest
Taxable income
Tax refund/(paid)
8.84%
Federal
Taxable operating income
Depreciation schedule
Depreciation basis
Depreciation
Interest
State taxes rebate/(paid)
Taxable income
Tax refund/(paid)
Investment tax credit
Total tax refund/(paid)

$341,987
20.00%
$1,000,000

$338,105
32.00%

$334,246
19.20%

$330,410
11.52%

$326,596
11.52%

$322,803
5.76%

$319,032
0.00%
$0

$315,281
0.00%
$0

10

$311,548
0.00%
$0

11

$307,835
0.00%

12

$294,764
0.00%

$0

$0

13

$291,086
0.00%
$0

14

$287,423
0.00%
$0

15

$283,777
0.00%
$0

16

$280,145
0.00%

$276,527
0.00%

$1,600,000

$960,000

$576,000

$576,000

$288,000

($155,886)
($813,898)
$71,949

($152,286)
($1,414,181)
$125,014

($148,416)
($774,170)
$68,437

($144,256)
($389,847)
$34,462

($139,784)
($389,188)
$34,404

($134,977)
($100,173)
$8,855

($129,809)
$189,223
($16,727)

($124,253)
$191,027
($16,887)

($118,281)
$193,267
($17,085)

($111,861)
$195,974
($17,324)

($104,960)
$189,804
($16,779)

($97,541)
$193,545
($17,109)

($89,565)
$197,858
($17,491)

($80,991)
$202,785
($17,926)

($71,774)
$208,370
($18,420)

$0

($61,866)
$214,660
($18,976)

$0

$341,987
20.00%

$338,105
32.00%

$334,246
19.20%

$330,410
11.52%

$326,596
11.52%

$322,803
5.76%

$319,032
0.00%

$315,281
0.00%

$311,548
0.00%

$307,835
0.00%

$294,764
0.00%

$291,086
0.00%

$287,423
0.00%

$283,777
0.00%

$280,145
0.00%

$276,527
0.00%

$850,000
($155,886)
$71,949
($591,949)
$207,182
$1,558,855
$1,837,986

$1,360,000
($152,286)
$125,014
($1,049,167)
$367,209

$816,000
($148,416)
$68,437
($561,734)
$196,607

$489,600
($144,256)
$34,462
($268,984)
$94,144

$489,600
($139,784)
$34,404
($268,384)
$93,934

$244,800
($134,977)
$8,855
($48,118)
$16,841

$0
($129,809)
($16,727)
$172,496
($60,373)

$0
($124,253)
($16,887)
$174,140
($60,949)

$0
($118,281)
($17,085)
$176,182
($61,664)

$0
($111,861)
($17,324)
$178,650
($62,527)

$0
($104,960)
($16,779)
$173,026
($60,559)

$0
($97,541)
($17,109)
$176,436
($61,752)

$0
($89,565)
($17,491)
$180,368
($63,129)

$0
($80,991)
($17,926)
$184,859
($64,701)

$0
($71,774)
($18,420)
$189,950
($66,483)

$0
($61,866)
($18,976)
$195,684
($68,490)

$492,222

$265,043

$128,607

$128,339

$25,697

($77,101)

($77,836)

($78,749)

($79,851)

($77,338)

($78,862)

($80,619)

($82,627)

($84,903)

($87,466)

1
-$262,325
$107,347
$1,893,799
$2,001,146
1,738,821

2
-$262,204
$160,058
$493,692
$653,750
391,546

3
-$262,098
$103,130
$321,826
$424,956
162,858

4
-$262,010
$68,809
$218,111
$286,920
24,910

5
-$261,938
$68,408
$216,662
$285,069
23,131

6
-$261,884
$42,519
$138,341
$180,860
(81,024)

7
-$261,848
$16,599
$59,911
$76,511
(185,337)

8
-$261,829
$16,107
$58,133
$74,239
(187,590)

9
-$261,829
$15,579
$56,227
$71,806
(190,023)

10
-$261,847
$15,013
$54,185
$69,198
(192,650)

11
-$271,260
$15,235
$54,986
$70,221
(201,039)

12
-$271,317
$14,584
$52,637
$67,221
(204,096)

13
-$271,394
$13,886
$50,117
$64,003
(207,392)

14
-$271,492
$13,136
$47,413
$60,549
(210,943)

15
-$271,610
$12,332
$44,510
$56,842
(214,768)

16
-$271,749
$11,468
$41,393
$52,861
(218,888)

$4,250,000

35.00%

Levelization of Cost
Expense and Debt Cost
State Tax benefits
Fed Tax benefits
State tax benefits
Subtotal Cost

0
(3,117,711)

(3,117,711)
10.79%
(1,892,029)
12,785
147.9937
249.7615
$249.7615

Discount Rate
NPV of EBIT
Present value of output (kWh)
Level subtotal cost ($/kWh)
Level Cost Grossed for Taxes
Cost in year 1 $
Debt Schedule
Debt Term Flag
Beginning Balance
Debt Service
Interest

Principal
Ending Balance

$2,078,474

Inverter Replacement Fund

Beginning Balance
Initial Funding
Withdrawal
Final Operations Year Withdrawal
Ending Balance
Interest Rate
Net Cash Flow

DSCR
Cash Flow Available for Debt Service (CFADS)
Debt Service Coverage Ratio (DSCR)
Average of DSCRs
CFADS / DS
Target DSCR

MACRS Schedule

Output

Cash Flow ($)

18.3%
1,603
1.00%
25

Other
O&M Costs ($/kW)
O&M Costs Escalator (%/yr)
Inverter replacement cost ($/W)
10yr inverter replacement cost
Annual inverter amount to reserve
Inverter replacement time (in Years)
Insurance Expense ($/kW)
Insurance Escalator (%/yr)

Check: CFADS yields sufficient coverage

Sum of Debt Service
Target DSCR
Total CFADS required
CFADS over debt term
Net

35.00%
8.84%
40.75%
30%
15%
5

$3,000,000

Performance Inputs
DC Capacity Factor
Annual Output for Year 1 (MWh)
Degradation Factor
System lifetime (in Years) = PPA Term

Debt Service Fund

Beginning Balance
Initial Funding
Withdrawal
Ending Balance
Interest Rate
Earned Interest

Tax Assumptions
Federal Tax Rate
State Tax Rate
Effective Tax Rate
Investment Tax Credit Rate
Basis Reduction (50% of ITC)
MACRS Term

1
1
$2,078,474
$203,882
$155,886

2
1
$2,030,477
$203,882
$152,286

3
1
$1,978,881
$203,882
$148,416

4
1
$1,923,415
$203,882
$144,256

5
1
$1,863,789
$203,882
$139,784

6
1
$1,799,691
$203,882
$134,977

7
1
$1,730,786
$203,882
$129,809

8
1
$1,656,713
$203,882
$124,253

9
1
$1,577,084
$203,882
$118,281

10
1
$1,491,484
$203,882
$111,861

11
1
$1,399,463
$203,882
$104,960

12
1
$1,300,541
$203,882
$97,541

13
1
$1,194,199
$203,882
$89,565

14
1
$1,079,882
$203,882
$80,991

15
1
$956,991
$203,882
$71,774

16
1
$824,883
$203,882
$61,866

$47,997
$2,030,477

$51,596
$1,978,881

$55,466
$1,923,415

$59,626
$1,863,789

$64,098
$1,799,691

$68,905
$1,730,786

$74,073
$1,656,713

$79,629
$1,577,084

$85,601
$1,491,484

$92,021
$1,399,463

$98,922
$1,300,541

$106,342
$1,194,199

$114,317
$1,079,882

$122,891
$956,991

$132,108
$824,883

$142,016
$682,867

2
$25,000
$25,000
$50,000

3
$50,000
$25,000
$75,000

4
$75,000
$25,000
$100,000

5
$100,000
$25,000
$125,000

6
$125,000
$25,000
$150,000

7
$150,000
$25,000
$175,000

8
$175,000
$25,000
$200,000

9
$200,000
$25,000
$225,000

12
$25,000
$25,000
$50,000

13
$50,000
$25,000
$75,000

14
$75,000
$25,000
$100,000

15
$100,000
$25,000
$125,000

16
$125,000
$25,000
$150,000

1
$0
$0
$0
3.75%
$0

$0
$25,000
$25,000

10
$225,000
$25,000
(250,000)
$0

11
$0
$25,000
$25,000

($25,000)

($24,063)

($23,125)

($22,188)

($21,250)

($20,313)

($19,375)

($18,438)

($17,500)

($16,563)

($25,000)

($24,063)

($23,125)

($22,188)

($21,250)

($20,313)

1
$334,631
1.64

2
$330,748
1.62

3
$326,889
1.60

4
$323,053
1.58

5
$319,239
1.57

6
$315,447
1.55

7
$311,675
1.53

8
$307,924
1.51

9
$304,191
1.49

10
$300,478
1.47

11
$287,407
1.41

12
$283,729
1.39

13
$280,066
1.37

14
$276,420
1.36

15
$272,788
1.34

16
$269,170
1.32

1
$196,184
$0
$0
$196,184

2
$196,184
$0
$0
$196,184

3
$196,184
$0
$0
$196,184

4
$196,184
$0
$0
$196,184

5
$196,184
$0
$0
$196,184

6
$196,184
$0
$0
$196,184

7
$196,184
$0
$0
$196,184

8
$196,184
$0
$0
$196,184

9
$196,184
$0
$0
$196,184

10
$196,184
$0
$0
$196,184

11
$196,184
$0
$0
$196,184

12
$196,184
$0
$0
$196,184

13
$196,184
$0
$0
$196,184

14
$196,184
$0
$0
$196,184

15
$196,184
$0
$0
$196,184

16
$196,184
$0
$0
$196,184

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

$7,357

1.44
1.44
1.40
0
$196,184
$0
$196,184
3.75%
$0

$4,077,641
1.40
$5,708,697
$5,884,605
$175,908
Term
0

10

11

12

13

14

15

CONFIDENTIAL

16

LCOE ProForma: 0.5 - 2 MW Rooftop / Fixed Tilt Mojave Desert (Daggett)

(in actual dollars)

System Design
System Cost ($/watt DC)
System Size (DC) (MW)
Initial debt service reserve funding
Total System Cost

Performance Inputs
DC Capacity Factor
Annual Output for Year 1 (MWh)
Degradation Factor
System lifetime (in Years) = PPA Term
Other
O&M Costs ($/kW)
O&M Costs Escalator (%/yr)
Inverter replacement cost ($/W)
10yr inverter replacement cost
Annual inverter amount to reserve
Inverter replacement time (in Years)
Insurance Expense ($/kW)
Insurance Escalator (%/yr)

Year
Energy Production (MWh)
Cost of Generation ($/MWh)
Operating Revenue
Total Revenue
O&M Costs
Inverter Replacement Cost
Insurance Costs
Total Costs
Operating Profit

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

1,365

1,351

1,338

1,325

1,311

1,298

1,285

1,272

1,260

$249.7615
$340,950
$340,950
($28,005)
($19,375)
($28,005)
($75,385)

$249.7615
$337,540
$337,540
($28,565)
($18,438)
($28,565)
($75,567)

$249.7615
$334,165
$334,165
($29,136)
($17,500)
($29,136)
($75,772)

$249.7615
$330,823
$330,823

$249.7615
$320,997
$320,997

$249.7615
$317,787
$317,787

$249.7615
$314,610
$314,610

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

($30,313)
($25,000)
($30,313)
($85,627)

($30,920)
($24,063)
($30,920)
($85,902)

($31,538)
($23,125)
($31,538)
($86,201)

($32,169)
($22,188)
($32,169)
($86,525)

($32,812)
$103,750
($32,812)
$38,126

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$241,888

$238,338

$234,796

$231,262

$352,735

$0

$0

$0

$0

$0

$0

$0

$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

($31,182)
($112,544)
($143,726)

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$209,010

$0

$0

$0

$0

$0

$0

$0

$0

$265,565

$261,973

$258,392

$254,823

($39,765)
($164,117)
$0
$7,357
($196,525)

($27,456)
($176,426)
$0
$7,357
($196,525)

($14,224)
($189,658)
$196,184
$7,357
($341)

($19,599)
($70,738)
($90,337)

($20,294)
($73,245)
($93,538)

($21,065)
($76,030)
($97,095)

($21,919)
($79,113)
($101,032)

After-Tax Equity Cash Flow

($21,297)

($28,091)

($35,228)

$153,450

Taxes

17

State tax refund/(paid)

Federal tax refund (paid)
Taxes Saved/(Paid)

$249.7615
$324,240
$324,240

($29,719)
($16,563)
($29,719)
($76,000)

($51,215)
($152,667)
$0
$7,357
($196,525)

Interest Expense
Loan Repayment Expense (Principal)
Debt Service Reserve
Interest earned on DSRF
Net Finance Costs

$249.7615
$327,515
$327,515

33

($21,383)
($77,177)
($98,560)

($21,069)
($76,044)
($97,113)

($20,756)
($74,914)
($95,670)

($20,444)
($73,787)
($94,230)

Equity Investment

18

California
Taxable operating income
$272,922
Depreciation schedule (assumes LLP entity)
0.00%
Depreciation Basis
Depreciation
$0
Interest
($51,215)
Taxable income
$221,707
Tax refund/(paid)
($19,599)
Federal
Taxable operating income
Depreciation schedule
Depreciation basis
Depreciation
Interest
State taxes rebate/(paid)
Taxable income
Tax refund/(paid)
Investment tax credit
Total tax refund/(paid)

19

$269,330
0.00%
$0

20

$265,749
0.00%
$0

$143,328

21

$262,180
0.00%

22

$241,888
0.00%

$0

$141,225

23

$238,338
0.00%

$0

$139,126

24

$234,796
0.00%

$0

$137,032

25

$231,262
0.00%

$0

26

28

29

30

31

32

33

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0

$0

$0

$0

$0

$0

$0

$0

$0

($39,765)
$229,565
($20,294)

($27,456)
$238,293
($21,065)

($14,224)
$247,955
($21,919)

$0
$241,888
($21,383)

$0
$238,338
($21,069)

$0
$234,796
($20,756)

$0
$231,262
($20,444)

$0

$0
$352,735
($31,182)

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$272,922
0.00%

$269,330
0.00%

$265,749
0.00%

$262,180
0.00%

$241,888
0.00%

$238,338
0.00%

$234,796
0.00%

$231,262
0.00%

$352,735
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
($51,215)
($19,599)
$202,108
($70,738)

$0
($39,765)
($20,294)
$209,271
($73,245)

$0
($27,456)
($21,065)
$217,228
($76,030)

$0
($14,224)
($21,919)
$226,036
($79,113)

$0
$0
($21,383)
$220,505
($77,177)

$0
$0
($21,069)
$217,269
($76,044)

$0
$0
($20,756)
$214,040
($74,914)

$0
$0
($20,444)
$210,819
($73,787)

$0
$0
($31,182)
$321,554
($112,544)

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

($90,337)

($93,538)

($97,095)

($101,032)

($98,560)

($97,113)

($95,670)

($94,230)

($143,726)

17
-$271,910
$10,541
$38,046
$48,587
(223,323)

18
-$272,092
$9,545
$34,451
$43,996
(228,097)

19
-$272,298
$8,475
$30,589
$39,064
(233,234)

20
-$76,341
$7,326
$26,440
$33,765
(42,576)

21
-$85,627
$7,569
$27,320
$34,889
(50,737)

22
-$85,902
$7,594
$27,408
$35,002
(50,900)

23
-$86,201
$7,620
$27,503
$35,123
(51,078)

24
-$86,525
$7,649
$27,607
$35,255
(51,270)

25
$38,126
-$3,370
-$12,164
-$15,535
22,591

26

Debt Schedule
Debt Term Flag
Beginning Balance
Debt Service
Interest

17
1
$682,867
$203,882
$51,215

18
1
$530,201
$203,882
$39,765

19
1
$366,084
$203,882
$27,456

20
1
$189,658
$203,882
$14,224

21
0

22
0

23
0

24
0

25
0

26
0

Principal
Ending Balance

$152,667
$530,201

$164,117
$366,084

$176,426
$189,658

$189,658
($0)

Inverter Replacement Fund

Beginning Balance
Initial Funding
Withdrawal
Final Operations Year Withdrawal
Ending Balance
Interest Rate
Net Cash Flow

17
$150,000
$25,000
$175,000

18
$175,000
$25,000
$200,000

19
$200,000
$25,000
$225,000

20
$225,000
$25,000
(250,000)
$0

($19,375)

($18,438)

($17,500)

($16,563)

($25,000)

($24,063)

DSCR
Cash Flow Available for Debt Service (CFADS)
Debt Service Coverage Ratio (DSCR)
Average of DSCRs
CFADS / DS
Target DSCR

17
$265,565
1.30

18
$261,973
1.28

19
$258,392
1.27

20
$254,823
1.25

21

22

Debt Service Fund

Beginning Balance
Initial Funding
Withdrawal
Ending Balance
Interest Rate
Earned Interest

17
$196,184
$0
$0
$196,184

18
$196,184
$0
$0
$196,184

19
$196,184
$0
$0
$196,184

20
$196,184
$0
($196,184)
$0

21

$7,357

$7,357

$7,357

Levelization of Cost
Expense and Debt Cost
State Tax benefits
Fed Tax benefits
State tax benefits
Subtotal Cost

27

$352,735
0.00%

$0

$0
27

$0
$0
$0
$0
0

$0
28

$0
$0
$0
$0
0

$0
29

$0
$0
$0
$0
0

$0
30

$0
$0
$0
$0
0

$0
31

$0
$0
$0
$0
0

$0
32

$0
$0
$0
$0
0

$0
33

$0
$0
$0
$0
0

$0
$0
$0
$0
0

Discount Rate
NPV of EBIT
Present value of output (kWh)
Level subtotal cost ($/kWh)
Level Cost Grossed for Taxes
Cost in year 1 $

$7,357

27
0

28
0

29
0

30
0

31
0

32
0

33
0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

21
$0
$25,000
$25,000

22
$25,000
$25,000
$50,000

$0
0.00

23
$50,000
$25,000
$75,000

24
$75,000
$25,000
$100,000

25
$100,000
$25,000
(125,000)
$0

($23,125)

($22,188)

$103,750

23

24

25

$0
0.00

22

$0
0.00

23

$0
0.00

24

26

27
$0
$0
$0
$0

26
$0
0.00

25

28
$0
$0
$0
$0

27
$0
0.00

26

29
$0
$0
$0
$0

28
$0
0.00

27

30
$0
$0
$0
$0

29
$0
0.00

28

31
$0
$0
$0
$0

30
$0
0.00

29

32
$0
$0
$0
$0

31
$0
0.00

30

33
$0
$0
$0
$0

32
$0
0.00

31

$0
$0
$0
$0
33

$0
0.00

32

$0
0.00

33

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Check: CFADS yields sufficient coverage

Sum of Debt Service
Target DSCR
Total CFADS required
CFADS over debt term
Net
MACRS Schedule

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

CONFIDENTIAL

33

LCOE ProForma: 0.5 - 2 MW Rooftop / Fixed Tilt Mojave Desert (Daggett)

(in actual dollars)

System Design
System Cost ($/watt DC)
System Size (DC) (MW)
Initial debt service reserve funding
Total System Cost

Performance Inputs
DC Capacity Factor
Annual Output for Year 1 (MWh)
Degradation Factor
System lifetime (in Years) = PPA Term
Other
O&M Costs ($/kW)
O&M Costs Escalator (%/yr)
Inverter replacement cost ($/W)
10yr inverter replacement cost
Annual inverter amount to reserve
Inverter replacement time (in Years)
Insurance Expense ($/kW)
Insurance Escalator (%/yr)

Year
Energy Production (MWh)
Cost of Generation ($/MWh)
Operating Revenue
Total Revenue

34

35

36

37

38

39

40

Levelized

Energy Production (MWh)

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

$0.0000
$0
$0

Cost of Generation ($/kWh)

Operating Revenue
Total Revenue

O&M Costs
Inverter Replacement Cost
Insurance Costs
Total Costs

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

O&M Costs
Inverter Replacement Costs
Insurance Costs
Total Costs

Operating Profit

$0

$0

$0

$0

$0

$0

$0

Operating Profit

Interest Expense
Loan Repayment Expense (Principal)
Debt Service Reserve
Interest earned on DSRF
Net Finance Costs

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

Interest Expense
Loan Repayment Expense (Principal)
Debt Service Reserve
Interest earned on DSRF
Net Finance Costs

State tax refund/(paid)

Federal tax refund (paid)
Taxes Saved/(Paid)

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

State tax refund/(paid)

Federal tax refund (paid)
Taxes Saved/(Paid)

$0

$0

$0

$0

$0

$0

$0

After-Tax Equity Cash Flow

Equity Investment

Equity Investment

After-Tax Equity Cash Flow

Taxes

34

California
Taxable operating income
Depreciation schedule (assumes LLP entity)
Depreciation Basis
Depreciation
Interest
Taxable income
Tax refund/(paid)
Federal
Taxable operating income
Depreciation schedule
Depreciation basis
Depreciation
Interest
State taxes rebate/(paid)
Taxable income
Tax refund/(paid)
Investment tax credit
Total tax refund/(paid)
Levelization of Cost
Expense and Debt Cost
State Tax benefits
Fed Tax benefits
State tax benefits
Subtotal Cost

35

36

37

38

39

40

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0

$0

$0

$0

$0

$0

$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
0.00%

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
34

$0
35

$0
$0
$0
$0
0

$0
36

$0
$0
$0
$0
0

$0
37

$0
$0
$0
$0
0

$0
38

$0
$0
$0
$0
0

$0
39

$0
$0
$0
$0
0

$0
40

$0
$0
$0
$0
0

$0
$0
$0
$0
0

Discount Rate
NPV of EBIT
Present value of output (kWh)
Level subtotal cost ($/kWh)
Level Cost Grossed for Taxes
Cost in year 1 $
Debt Schedule
Debt Term Flag
Beginning Balance
Debt Service
Interest

34
0

Principal
Ending Balance

Inverter Replacement Fund

Beginning Balance
Initial Funding
Withdrawal
Final Operations Year Withdrawal
Ending Balance
Interest Rate
Net Cash Flow

34

DSCR
Cash Flow Available for Debt Service (CFADS)
Debt Service Coverage Ratio (DSCR)
Average of DSCRs
CFADS / DS
Target DSCR

34

Debt Service Fund

Beginning Balance
Initial Funding
Withdrawal
Ending Balance
Interest Rate
Earned Interest

34

35
0

36
0

37
0

38
0

39
0

40
0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

($0)
$0
$0

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

$0
($0)

35
$0
$0
$0

36
$0
$0
$0

$0

$0
35

$0
0.00

37
$0
$0
$0
$0

36
$0
0.00

35

38
$0
$0
$0
$0

37
$0
0.00

36

39
$0
$0
$0

37

40
$0
$0
$0

$0
39

$0
0.00

38

$0
#REF!

$0
$0
$0

$0
38

$0
0.00

($0)
$0
$0

$0
40

$0
0.00

39

$0
0.00

40

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0

$0

$0

$0

$0

$0

$0

Check: CFADS yields sufficient coverage

Sum of Debt Service
Target DSCR
Total CFADS required
CFADS over debt term
Net
MACRS Schedule

34

35

36

37

38

39

40

CONFIDENTIAL