Commercial Sample Proposal

Prepared ForSample

(704) 491-7850 [email protected]

This proposal describes costs and

benets of a solar photo voltaic

(PV) generating system for your

commercial property. This is an

initial estimate based upon

information gathered from your

utility bills, views of your property

from Google Earth. The nal solar

PV system size, design and

nancial numbers are pending (1)

Physical Site Survey and

Engineering (2) Financing

Application (if applicable) and (3)

Agreement with your Utility

concerning post-solar rate

structure and grid interconnection

terms. Renu Energy Licensing

Information - NC General

Contractor License: 76615 - NC

Electrical License: 20334u - SC

Prepared ByJe땚䋚rey Aliotta (980) 322-4232 [email protected]

3/21/2016

Sample

Table Of Contents

1. Project Summary 1

2. Project Details

2.1 PV System Details 2

2.2 Rebates and Incentives 3

2.3 Utility Rates 4

2.4 Current Electric Bill 4

2.5 New Electric Bill 5

3. Cash Flow Analysis

3.1 Commercial Loan (~20% Down) 6

3.2 Cash 7

1. Project Summary

Payment Options Commercial Loan (~20% Down) Cash

Down Payment $50,000 $230,000

Monthly Payment $1,167 -

Interest Rate 4.79% 0%

Term 20 Years 1 Years

Rebates and Incentives $144,325 $144,325

30-Year Electricity Savings $453,100 $453,100

30-Year ROI 510.28% 154.46%

Payback Period 0.6 Years 9.00 Years

1

Combined Solar PV RatingPower Rating: 100,000 W DCPower Rating: 84,550 W AC-CEC

Cumulative Energy Costs By Payment Option

Avoided Utility Cost Commercial Loan (~20% Down) Cash

0 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30

$0

$200,000

$400,000

Cum

ulative Energy Cost

Page 1

1. Incentive values are estimated and do not include tax e땚䋚ects. Tax deductions savings, if any, are estimated using the following income taxrates: State - 4%, Federal - 35%.

Prepared By: Je땚䋚rey Aliotta

P: (980) 322-4232, E: [email protected]

2.1 PV System DetailsGeneral InformationFacility: SampleAddress: 2900 Gri惃ꎏth Street, 28203

Solar PV Equipment DescriptionSolar Panels: Standard ModulesInverters: Standard Inverter

Solar PV Equipment Typical LifespanSolar Panels: Greater than 30 Years.Inverters: 25 Years

Solar Power System Cost And IncentivesSolar Power System Cost: $230,000Federal Tax Credit: -$69,000Federal Depreciation: -$68,425State (NC) Deprecation: -$6,900Net Solar Power System Cost: $85,675

Solar PV System RatingPower Rating: 100,000 W DCPower Rating: 84,550 W AC-CEC

Energy Consumption MixAnnual Energy Use: 235,459 kWh

Utility: 106,318 kWh (45%)

Solar: 129,141 kWh (55%)

Monthly Energy Consumption vs Production

Consumption (kWh) Solar Production (kWh)

1/25

2/25

2/25

3/25

3/25

4/25

4/25

5/25

5/25

6/25

6/25

7/25

7/25

8/25

8/25

9/25

9/25

10/25

10/25

11/25

11/25

12/25

12/25

1/25

0

10,000

20,000

30,000

40,000

Energy (kWh)

Page 2Prepared By: Je땚䋚rey Aliotta


2.2 Rebates and IncentivesThis section summarizes all incentives available for this project. The actual rebate and incentive amountsfor 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 of30% of the total PV system cost. Unlike tax deductions, this tax credit can be used to directly o땚䋚set your taxliability dollar for dollar. If your tax credit exceeds your tax liability you can roll the credit into future taxperiods for 20 years.

System Cost x 30% = Federal Tax Credit

$230,000 x 30% = $69,000

Federal Modied Accelerated Cost-Recovery System (MACRS)Under the federal Modied Cost Recovery System (MACRS), businesses may recover investments in certainproperty through depreciation deductions. The MACRS establishes a set of class lives for various types ofproperty over which the property may be depreciated. For PV systems, the taxable basis of the equipmentmust be reduced by 50% of any federal tax credits associated with the system.

Year Federal Tax Deduction

1 $39,100

2 $62,560

3 $37,536

4 $22,522

5 $22,522

6 $11,261

Totals: $195,500

State (NC) North Carolina Deprecation ScheduleAccording to the North Carolina 2015 Cost Index and Depreciation Schedules(http://www.dor.state.nc.us/publications/cost_archive/15archive/2015_costindex.pdf). Solar Photovoltaicequipment has a specied life of 18 years. The annual deprecation schedule is as follows: 6%, 5%, 4%, 4%,5%, 2%, 0 %, 4%, 3%, 6%, 6 %, 8%, 8 %, 7%, 7 %.

Year State Tax Deduction

1 $13,800

2 $11,500

3 $9,200

4 $9,200

5 $11,500

6 $4,600

7 $0

8 $9,200

9 $6,900

10 $13,800

11 $13,800

12 $18,400

13 $18,400



2.3 Utility RatesThe table below shows the rates associate with your current utility rate schedule (LGS - 100 BillingDemand).Your estimated electric bills after solar are shown on the following page.

Fixed Charges Energy Charges Demand Charges

TypeLGS - 100 Billing

DemandType

LGS - 100 Billing

DemandType

LGS - 100 Billing

Demand

A Monthly $23.91 A Tier 1 < 3000 $0.11479 A Tier 2 > 30 $3.81

N/A - A Tier 2 < 12500 $0.07037 N/A -

N/A - A Tier 3 < 18500 $0.06602 N/A -

N/A - A Tier 4 < 152500 $0.05818 N/A -

N/A - A Tier 5 > 152500 $0.05722 N/A -

2.4 Current Electric BillThe table below shows your annual electricity costs based on the most current utility rates and yourprevious 12 months of electrical usage.

Rate Schedule: DUKE - LGS - 100 Billing Demand

Time Periods Energy Use (kWh) Max Demand (kW) Charges

Bill Range & Season TotalNC

MaxFixed Energy Demand Total

01/25/16 - 02/25/16 A 14,459 52 $25 $1,211 $89 $1,325

02/25/16 - 03/25/16 A 15,000 55 $25 $1,249 $101 $1,375

03/25/15 - 04/25/15 A 15,500 65 $25 $1,284 $141 $1,450

04/25/15 - 05/25/15 A 17,500 65 $25 $1,424 $141 $1,590

05/25/15 - 06/25/15 A 19,000 100 $25 $1,524 $283 $1,832

06/25/15 - 07/25/15 A 25,000 100 $25 $1,894 $283 $2,202

07/25/15 - 08/25/15 A 28,000 100 $25 $2,079 $283 $2,387

08/25/15 - 09/25/15 A 30,000 100 $25 $2,203 $283 $2,511

09/25/15 - 10/25/15 A 25,000 100 $25 $1,894 $283 $2,202

10/25/15 - 11/25/15 A 15,500 75 $25 $1,284 $182 $1,491

11/25/15 - 12/25/15 A 15,500 75 $25 $1,284 $182 $1,491

12/25/15 - 01/25/16 A 15,000 55 $25 $1,249 $101 $1,375

Totals: 235,459 $304 $18,577 $2,350 $21,231



2.5 New Electric BillRate Schedule: DUKE - LGS - 100 Billing Demand

Time Periods Energy Use (kWh) Max Demand (kW) Charges

Bill Range & Season TotalNC

MaxFixed Energy Demand Total

01/25/16 - 02/25/16 A 5,408 52 $25 $545 $89 $659

02/25/16 - 03/25/16 A 4,572 55 $25 $482 $101 $609

03/25/15 - 04/25/15 A 2,745 65 $25 $334 $141 $501

04/25/15 - 05/25/15 A 4,275 65 $25 $460 $141 $627

05/25/15 - 06/25/15 A 4,143 100 $25 $450 $283 $758

06/25/15 - 07/25/15 A 11,592 100 $25 $1,006 $283 $1,314

07/25/15 - 08/25/15 A 15,667 100 $25 $1,295 $283 $1,603

08/25/15 - 09/25/15 A 18,667 100 $25 $1,504 $283 $1,812

09/25/15 - 10/25/15 A 14,796 100 $25 $1,234 $283 $1,542

10/25/15 - 11/25/15 A 7,342 75 $25 $689 $182 $896

11/25/15 - 12/25/15 A 9,007 75 $25 $813 $182 $1,020

12/25/15 - 01/25/16 A 8,104 55 $25 $746 $101 $872

Totals: 106,318 $304 $9,558 $2,350 $12,212

Max Annual Electricity Savings: $9,019



3.1 Commercial Loan (~20% Down)Inputs and Key Financial MetricsDown Payment: $50,000 Term: 20 Years Electricity Escalation Rate: 4% 30-Year ROI: 510.28%

Monthly Payment: $1,167 State Income Tax Rate: 4% Solar Panel Degradation Rate: 0.6% 30-Year Electricity Savings: $453,100

Interest Rate: 4.79% Federal Income Tax Rate: 35% Payback Period: 0.6 Years

YearsFinancingPayments

O&M / EquipmentReplacement

Electric BillSavings

State TaxE땚䋚ect

FederalTax E땚䋚ect

CashFlow

CumulativeCash Flow

Upfront ($50,000) - - - - ($50,000) ($50,000)

1 ($14,006) ($300) $9,019 $552 $82,685 $77,950 $27,950

2 ($14,006) ($306) $9,323 $460 $21,896 $17,368 $45,318

3 ($14,006) ($312) $9,638 $368 $13,138 $8,826 $54,144

4 ($14,006) ($318) $9,962 $368 $7,883 $3,889 $58,033

5 ($14,006) ($325) $10,298 $460 $7,883 $4,310 $62,342

6 ($14,006) ($331) $10,644 $184 $3,941 $432 $62,774

7 ($14,006) ($338) $11,001 - - ($3,343) $59,432

8 ($14,006) ($345) $11,370 $368 - ($2,612) $56,819

9 ($14,006) ($351) $11,751 $276 - ($2,331) $54,489

10 ($14,006) ($359) $12,144 $552 - ($1,669) $52,820

11 ($14,006) ($366) $12,549 $552 - ($1,270) $51,550

12 ($14,006) ($373) $12,968 $736 - ($675) $50,875

13 ($14,006) ($380) $13,400 $736 - ($250) $50,625

14 ($14,006) ($388) $13,846 $644 - $96 $50,721

15 ($14,006) ($396) $14,306 $644 - $548 $51,270

16 ($14,006) ($404) $14,781 - - $371 $51,641

17 ($14,006) ($412) $15,271 - - $853 $52,494

18 ($14,006) ($420) $15,776 - - $1,350 $53,844

19 ($14,006) ($428) $16,297 - - $1,863 $55,707

20 ($14,006) ($437) $16,835 - - $2,393 $58,100

21 - ($446) $17,390 - - $16,944 $75,044

22 - ($455) $17,962 - - $17,508 $92,552

23 - ($464) $18,553 - - $18,089 $110,641

24 - ($473) $19,161 - - $18,688 $129,330

25 - ($483) $19,789 - - $19,307 $148,636

26 - ($492) $20,437 - - $19,944 $168,580

27 - ($502) $21,104 - - $20,602 $189,182

28 - ($512) $21,792 - - $21,280 $210,462

29 - ($522) $22,501 - - $21,979 $232,442

30 - ($533) $23,233 - - $22,700 $255,142

Totals ($330,113) ($12,170) $453,100 $6,900 $137,425 $255,142 -



3.2 CashInputs and Key Financial MetricsDown Payment: $230,000 Term: 1 Years Electricity Escalation Rate: 4% 30-Year ROI: 154.46%

Monthly Payment: - State Income Tax Rate: 4% Solar Panel Degradation Rate: 0.6% 30-Year Electricity Savings: $453,100

Interest Rate: 0% Federal Income Tax Rate: 35% Payback Period: 9.00 Years

YearsFinancingPayments

O&M / EquipmentReplacement

Electric BillSavings

State TaxE땚䋚ect

FederalTax E땚䋚ect

CashFlow

CumulativeCash Flow

Upfront ($230,000) - - - - ($230,000) ($230,000)

1 - ($300) $9,019 $552 $82,685 $91,956 ($138,044)

2 - ($306) $9,323 $460 $21,896 $31,373 ($106,671)

3 - ($312) $9,638 $368 $13,138 $22,831 ($83,839)

4 - ($318) $9,962 $368 $7,883 $17,895 ($65,945)

5 - ($325) $10,298 $460 $7,883 $18,315 ($47,629)

6 - ($331) $10,644 $184 $3,941 $14,438 ($33,192)

7 - ($338) $11,001 - - $10,663 ($22,528)

8 - ($345) $11,370 $368 - $11,393 ($11,135)

9 - ($351) $11,751 $276 - $11,675 $540

10 - ($359) $12,144 $552 - $12,337 $12,877

11 - ($366) $12,549 $552 - $12,735 $25,612

12 - ($373) $12,968 $736 - $13,331 $38,943

13 - ($380) $13,400 $736 - $13,755 $52,699

14 - ($388) $13,846 $644 - $14,102 $66,800

15 - ($396) $14,306 $644 - $14,554 $81,354

16 - ($404) $14,781 - - $14,377 $95,731

17 - ($412) $15,271 - - $14,859 $110,590

18 - ($420) $15,776 - - $15,356 $125,946

19 - ($428) $16,297 - - $15,869 $141,815

20 - ($437) $16,835 - - $16,398 $158,213

21 - ($446) $17,390 - - $16,944 $175,158

22 - ($455) $17,962 - - $17,508 $192,665

23 - ($464) $18,553 - - $18,089 $210,754

24 - ($473) $19,161 - - $18,688 $229,443

25 - ($483) $19,789 - - $19,307 $248,749

26 - ($492) $20,437 - - $19,944 $268,694

27 - ($502) $21,104 - - $20,602 $289,296

28 - ($512) $21,792 - - $21,280 $310,576

29 - ($522) $22,501 - - $21,979 $332,555

30 - ($533) $23,233 - - $22,700 $355,255

Totals ($230,000) ($12,170) $453,100 $6,900 $137,425 $355,255 -



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Commercial Sample Proposal