5_D._Energy_Econ_Analysis.pdf

Solar System Life Cycle Cost Analysis

Project Name: ACA Alert Crew Quarters

Customer Type: commercial

System Size (kW): 15

Installed Avg. Cost/W: $4.00

System Cost: $60,000.00

Annual Production (kWh AC): 18810

Current Cost of Electricity (per kWh):

$0.0758

Annual Electricity Inflation Rate:

3.00%

O&M Costs (Annual): $300.00 *Solar Reneable Energy Certificates - SREC

Annual O&M Inflation Rate: 1.00%

Federal Incentives (30% of total cost till 2016):

$18,000.00

State Incentives: 0 AEP's current incentives are set to expire June 30th, 2013 with no set date or assurance that any of these will be continued

Fiscal Year Net Cash Outlay Annual O&M Costs Annual Energy Savings Estimated Electricity Cost/kWh

Annual Energy Production (kWh)

(derates at 0.5% per year for component degradation)

SREC Market Value (For year one we have used the current

SREC market value of $40/REC)

SRECs Generated SREC Value

1 $42,300.00 $300.00 $1,425.80 $0.0758 18810 $40.00 18.81 $752.40

2 0 $303.00 $1,461.23 $0.0781 18715.95 $30.00 18.71595 $561.48

3 0 $306.03 $1,497.54 $0.0804 18622.37025 $22.50 18.62237025 $419.00

4 0 $309.09 $1,534.75 $0.0828 18529.2584 $16.88 18.5292584 $312.68

5 0 $312.18 $1,572.89 $0.0853 18436.61211 $12.66 18.43661211 $233.34

6 0 $315.30 $1,611.98 $0.0879 18344.42905 $9.49 18.34442905 $174.13

7 0 $318.46 $1,652.04 $0.0905 18252.7069 $7.12 18.2527069 $129.94

8 0 $321.64 $1,693.09 $0.0932 18161.44337 $5.34 18.16144337 $96.97

9 0 $324.86 $1,735.16 $0.0960 18070.63615 $4.00 18.07063615 $72.36

10 0 $328.11 $1,778.28 $0.0989 17980.28297 $3.00 17.98028297 $54.00

11 0 $331.39 $1,822.47 $0.1019 17890.38155 $2.25 17.89038155 $40.30

12 0 $334.70 $1,867.76 $0.1049 17800.92965 $0.00 17.80092965 $0.00

13 0 $338.05 $1,914.18 $0.1081 17711.925 $0.00 17.711925 $0.00

14 0 $341.43 $1,961.74 $0.1113 17623.36537 $0.00 17.62336537 $0.00

15 0 $344.84 $2,010.49 $0.1147 17535.24855 $0.00 17.53524855 $0.00

16 0 $348.29 $2,060.45 $0.1181 17447.5723 $0.00 17.4475723 $0.00

17 0 $351.77 $2,111.65 $0.1216 17360.33444 $0.00 17.36033444 $0.00

18 0 $355.29 $2,164.13 $0.1253 17273.53277 $0.00 17.27353277 $0.00

19 0 $358.84 $2,217.91 $0.1290 17187.16511 $0.00 17.18716511 $0.00

20 0 $362.43 $2,273.02 $0.1329 17101.22928 $0.00 17.10122928 $0.00

21 0 $366.06 $2,329.51 $0.1369 17015.72313 $0.00 17.01572313 $0.00

22 0 $369.72 $2,387.40 $0.1410 16930.64452 $0.00 16.93064452 $0.00

23 0 $373.41 $2,446.72 $0.1452 16845.9913 $0.00 16.8459913 $0.00

24 0 $377.15 $2,507.52 $0.1496 16761.76134 $0.00 16.76176134 $0.00

25 0 $380.92 $2,569.84 $0.1541 16677.95253 $0.00 16.67795253 $0.00

TOTALS (Outlay in RED, Savings in

GREEN):

$42,300.00 $8,472.96 $48,607.56 443087.45 443.087446 $2,846.61

TOTAL OUTLAY (est): $50,772.96

TOTAL SAVINGS (est): $51,454.17

Difference/Profit with

Installed Solar System:

$681.21

NOTE: After year 11, which if installed in 2014 would be 2025, the Ohio utilities are required to have at least 25% of their service provided by renewable energy sources. Therefore, the SREC value has been reduced to $0 because there may not be a market value for SREC production.

This Analysis is based on an overall square footage available for solar panels at the Crew Quarters facility.

Solar Panel and Grid Tie Inverter Systems are typically warranted for 25 years; the system will likely continue to be operational beyond that point but warranties will have expired.

Installed cost will likely be around $3.50-$4.00/W

Annual Production assumes installation in Ohio at 30° tilt angle

It should be noted the the SREC Market Value fluctuates with the 'supply' of solar/renewable energy systems throughout the state. Utility mandates have generally influenced this rate and with the fulfillment of these requirements the value of the SREC is likely to go down.