Key Assumptions:
PV System Size - 3.0 kW DC, Top of Pole Mounted, Seasonally Adjustable
15 - 200 Watt PV Panels (15 x 200 = 3,000 Watts DC) - 3KW DC
Usable System lifespan of 40 years
Cost of System Per kW (dc) $10,000 x 3= $30,000 Initial Upfront Cost
30% Federal Tax Credit .30 x $30,000 = $9,000
System Cost After Federal Incentive= $30,000 - $9,000 = $21,000
Electricity rate year one ($/kWh) $0.11
Estimated electricity price inflation rate (%/yr) 10.00%
Expected output degradation (%/year) 0.50%
Annual Production Per Kilowatt-DC= 1366.66 kWhrs AC
Total Production Per Year: 4100 kWhours
100% Shade Free Solar Window (completely open exposure to the sun year round)
4.6 Sun-Hours per Day on Average (Indiana)
PV Economics:
Years to cost recovery - 20.0 years
Return On Investment (ROI) Assuming:
> 4100 kWh AC Production / Year
> 10% Energy Inflation
> $.11/kwh cost year #1
> $21,000 Initial Investment after 30% Federal Incentive
> Inverter Replacement is not figured in Calculation ( Can assume typically $3300 at year 20)
> 40 year usable lifespan
For line #1 in the calculation below:
Electric rate 0.11 kwh x 4,100 Solar Production/year= $451
$21,000 Initial investment after incentives - $451 in solar production in year #1= -20549.0
Year Kwh ($) kWhrs/year Savings($)/YR 10% Inflation Initial Investment ($) Net Value ($)
1 0.11 4100 451 1.1........................... $21,000 .............. -20549.0
2 0.12 .............496.1 ....................................................................... -20052.9
3 0.13 ............545.71...................................................................... -19507.19
4 0.14 ...........600.28....................................................................... -18906.90
5 0.16 ...........660.30....................................................................... -18246.59
6 0.17 ...........726.34....................................................................... -17520.25
7 0.19 ...........798.97....................................................................... -16721.28
8 0.21 ...........878.87....................................................................... -15842.41
9 0.23 ...........966.75....................................................................... -14875.65
10 0.25 ...........1063.43...................................................................... -13812.22
11 0.28 ...........1169.77...................................................................... -12642.44
12 0.31 ...........1286.75...................................................................... -11355.68
13 0.34 ...........1415.43...................................................................... -9940.25
14 0.37 ...........1556.97...................................................................... -8383.28
15 0.41 ...........1712.67...................................................................... -6670.61
16 0.45 ...........1883.93...................................................................... -4786.67
17 0.50 ...........2072.33...................................................................... -2714.33
18 0.55 ...........2279.56...................................................................... -434.77
19 0.61 ...........2507.52...................................................................... 2072.74
20 0.67 ...........2758.27...................................................................... 4831.02
21 0.74 ...........3034.10...................................................................... 7865.12
22 0.81 ...........3337.51...................................................................... 11202.63
23 0.89 ...........3671.26..................................................................... 14873.90
24 0.98 ...........4038.39..................................................................... 18912.29
25 1.08 ............4442.22..................................................................... 23354.52
26 1.19 ............4886.45..................................................................... 28240.97
27 1.31 ............5375.09..................................................................... 33616.07
28 1.44 ............5912.60..................................................................... 39528.68
29 1.58 ............6503.86..................................................................... 46032.54
30 1.74 ............7154.25..................................................................... 53186.80
31 1.91 ......... ..7869.68..................................................................... 61056.48
32 2.11 ............8656.64..................................................................... 69713.13
33 2.32 ............9522.31..................................................................... 79235.44
34 2.55 ............10474.54................................................................... 89709.99
35 2.81 ............11521.99................................................................... 101231.99
36 3.09 ............12674.19.................................................................. 113906.18
37 3.40 ............13941.61.................................................................. 127847.80
38 3.74 ............15335.78.................................................................. 143183.58
39 4.11 ............16869.35.................................................................. 160052.94
40 4.52 ............18556.29.................................................................. 178609.24
41 4.97 ............20411.92.................................................................. 199021.16
