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Turn on the Sun! |
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Please get professional advise! We are not accountants and do not offer advise on your financial decisions. Any figures used in this web-site are for illustrative purposes only. There are many variables, (rebates, tax laws etc), that often change and this web-site may not reflect these changes. Please seek professional assistance on the tax and other financial implications of an actual system. |
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Financial model We have worked up an Excel spreadsheet that brings together many of the variables involved in a typical commercial PV system, (please contact us and we will be pleased to meet with you to discuss the spreadsheet used in this model). From this illustrative financial model of a 72kW solar PV system. one can examine various financial indicators of the payback period. We have graphed to results showing Annual Cash Flow and Cumulative Cash position. |
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Variables and assumptions made in model |
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e2 solar |
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Turn on the Sun! |
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Phone: 410-626-1022 |
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Initial manual variable entries are made in red. |
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Initial Electrical Rate |
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18 |
c/kWh |
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Utility Inflation rate |
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4.5% |
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Peak System PV Capacity |
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72.0 |
kW |
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Total cost of system |
$9.0 |
/W |
$648,000 |
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Sales tax on hardware |
5% |
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$32,400 |
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MD State Rebate |
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-$5,000 |
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Cost after Rebate |
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$675,400 |
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MD State Tax Credit |
0% |
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$0 |
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Federal Tax Credit |
30% |
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$202,620 |
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Income Tax on State Tax Credit |
28% |
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$0 |
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Total Tax credits |
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$202,620 |
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Tax savings from depreciation |
28% |
$574,090 |
$160,745 |
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Net Cost of System |
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$312,035 |
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Commercial loan amount |
25.0% |
of system cost |
$168,850 |
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Loan Period, Rate & monthly |
15 |
7.3% |
$18,833 |
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Value of 15 year REC contract |
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$206,955 |
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Average Power generation |
252.00 |
kWh/day |
7,665 |
kWh/month |
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Energy savings |
$45.36 |
/day |
$1,380 |
/month |
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Maintenance |
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$1,000 |
/yr |
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Inverter replacement escrow |
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$2,200 |
/yr |