• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
"Advanced Payback
 

"Advanced Payback

on

  • 1,419 views

 

Statistics

Views

Total Views
1,419
Views on SlideShare
1,419
Embed Views
0

Actions

Likes
1
Downloads
77
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    "Advanced Payback "Advanced Payback Document Transcript

    • Andy Black “Advanced Payback & Solar Financial Analyst (408) 428 0808 Financing Solar Projects” andy@ongrid.net Solar Living Institute: September 24, 2007, Long Beach, CA, 8:30am-12noon Contact: Solar Living Institute: www.solarliving.org, 707 744 2017 to register 8:00 Check-in 8:30 Introductions Advanced Solar Financial Analysis Analysis Variables in Greater Depth TOU Case Studies Break, Q & A Choosing Rebates vs. PBIs Financing with Leasing & PPAs Formal Conclusion, Final Q & A Interactive Examples (for those who wish to stay) Using the OnGrid Solar Financial Analysis Tool 12 Noon We must be done by 12:00 (add’l questions outside) Diligence: Heights by great men reached and kept were not obtained by sudden flight, but they, while their companions slept, were toiling upward in the night. - Henry Wadsworth Longfellow
    • Andy Black Solar Financial Analyst “Advanced Payback & (408) 428 0808 Financing Solar Projects” andy@ongrid.net Solar Living Institute: September 24, 2007, Long Beach, CA, 8:30am-12noon Contact: Solar Living Institute: www.solarliving.org, 707 744 2017 to register Abstract: This advanced workshop will go into further depth regarding the financial analysis methods (Internal Rate of Return (IRR), Cash Flow analysis, and Appraisal Resale Value), involving interactive examples and real case studies using the OnGrid Solar Financial Analysis Tool (both residential & non-residential). The session will also include a discussion on financing medium and large commercial, government, and non-profit projects using various lease and PPA structures. The class is designed for the deal makers: the sales staff and their management, and the customers purchasing staff and management, for the purpose of encouraging the flow of good quality deals between informed partners. It is strongly recommended that students have completed or have equivalent knowledge of the “PV 212: Payback: The Financial Case for Solar” class, and that they have strong familiarity with the Full or free Demo version of the “OnGrid Solar Financial Analysis Tool” (license agreement required, visit www.ongrid.net/payback to get the free demo). Good familiarity with the various parts and screens of the OnGrid Tool will greatly enhance the experience and understanding of these complex topics as we work though them on-screen in class. Example scenarios may include residential & non-residential Time-of-Use rate schedules with and without solar, Demand Charges, Changing Rate Schedules, adjustments to Tilt and Orientation of the array, Shading. Students are encouraged to submit case studies in advance for discussion. Students may wish to bring a laptop computer (Mac or PC) to follow along with the interactive scenarios. All students are encouraged to receive a free copy of the demo version of this software tool before the class (license agreement required). Biography: Andy Black is a Solar Financial Analyst & Purchasing Consultant (Broker) and the owner of OnGrid Solar. OnGrid Solar provides financial analysis software to solar installers to help them make the financial case for solar electricity to their customers. Andy has more than ten years of design, consulting, teaching, sales, and research experience in solar. He specializes in demonstrating the financial payback of solar electricity systems. He is a NABCEP certified solar installer. Andy Black is a member of the Board of Directors of the American Solar Energy Society and serves as Chapters Representative. He is also a member of the Board of Directors of the Northern California Solar Energy Association and serves as its Treasurer. Andy’s formal education includes a Bachelor’s in Electrical Engineering from Penn State University, a Master’s in Electrical Engineering from University of Southern California, and a Marketing Certificate at the University of California. His training in solar electricity includes Solar Energy International’s intensive photovoltaic coursework and more than a dozen specialty courses in solar electric and related fields. He presents regularly on the financial analysis of solar electricity to audiences nationwide. Andy is also the groundskeeper and servant for a cat at his home in San Jose, CA. Contact Info: Andy Black, CEO OnGrid Solar 4175 Renaissance Dr #4, San Jose, CA 95134 (408) 428 0808 andy@ongrid.net www.ongrid.net Registration: Solar Living Institute, www.solarliving.org, 707 744 2017
    • FINANCING & ADVANCED FINANCIAL ANALYSIS METHODS Introductions & Thanks FOR PV SYSTEMS Solar Living Institute Andy Black Our hosts: Lindsay Dailey & Jamie Eldrett Solar Financial Consultant Solar Power 2007 & Payback Analysis Software Andy Black, OnGrid Solar Solar Financial Analyst & Marketer Solar Financial Analysis & Sales Software Solar Living Institute Fall 2007 You for coming! Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 2 Quick Survey - Quick Survey - Who’s Here? Here Friday for Regular Payback Class? Your Goals for Today? Existing dealer / installers Learn about payback for general knowledge Owners, not doing sales Want to use payback in selling / grow Salesperson for dealer / installer business Including owners if you do sales New or hopeful dealer / installers Want to learn about / have the OnGrid Solar Government Financial Analysis & Sales Tool Customers / end users Want to increase your knowledge to develop Manufacturers your own tool Others? Other goals? Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 3 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 4 About OnGrid Solar Learn More 12 Years involved with Solar Visit www.ongrid.net 5 Years as solar salesman Upcoming classes & events Articles on Payback Now a Consultant PowerPoint Presentations Solar Financial Analysis The OnGrid Tool (Free Demo) Technical Sales & Marketing Training Solar Today & ASES - discount offer Solar Resource Guide Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 5 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 6 1
    • Agenda System Variables in More Depth Advanced Solar Financial Analysis Demand Charges Analysis Variables in Greater Depth RECs TOU Case Studies Tier 1-5 Inflation Choosing Rebates vs. PBIs Time-of-Use (TOU) Choices & Issues Financing with Leasing & PPAs Commercial Tax Issues Interactive Examples using the OnGrid Tool Questions preferred at points marked: Please focus on Payback Questions? Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 9 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 10 Demand Profile vs. Demand Charges Applies only to Large users Solar Production Commercial and Agricultural On a per kW basis (load, not usage) TYPICAL Size of the wire, power plant for peak usage BUILDING DEMAND DEMAND & PRODUCTION SOLAR PRODUCTION 7am 12noon 5pm Based on highest 15 minute average any time during each HOUR billing month Questions? Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 11 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 12 Reducing Demand Charges - PG&E Reducing Demand Charges - SCE Difficult for solar to offset demand Difficult for solar to offset demand Clouds, spikes in usage not during solar Clouds, spikes in usage not during solar hours, inverters tripping offline hours, inverters tripping offline A10 & E19 have Demand Charges GS-2-B, GS-3-B have high Demand Charges A6 is non-Demand rate GS-2-A, GS-3-A have lower charges Switch from A10 & E19 to eliminate demand Switch to “Option A” rate Add control systems ~$30K+ Add control systems ~$30K+ Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 13 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 14 2
    • Reducing Demand Charges - NJ+ RECs, Green Tags, TRCs Difficult for solar to offset demand RECs = Renewable Energy Credits Clouds, spikes in usage not during solar hours, inverters tripping offline TRC = Tradable Renewable Certificates In future, switch to non-Demand rate? Green Tags = RECs = TRCs = S-RECs Add control systems ~$30K+ What are these? The green value part of a solar kWh Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 15 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 17 What Are RECs? REC Value The green part of a solar, wind or RECs have value to other consumers other renewable kWh Those who can’t get solar directly Electricity (kWh) Utilities who need it to get into compliance with emissions Generating Plant requirements. (kWh) Value ranges from 1¢ to 25¢/kWh Green Tags (kWh) Depends on location, type & term Depends on state mandate for S-RECs Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 18 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 19 CA REC Value NJ REC Value REC sale value can be added to other value REC sale value can be added to other value generated by the system to calculate payback, etc. generated by the system to calculate payback, etc. Not included in any examples here Included in examples at 20¢ for 14 years Likely 1¢ to 5¢/kWh in California - same as Wind Challenges in aggregating from small systems Must give up “Green Attributes” & claims Estimated/calculated RECs used Challenges in aggregating from small systems The best performing systems produce the most The best performing systems produce the most RECs RECs Double counting in sales Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 20 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 21 3
    • California Electric Rates Cents per kilowatt-hour Residential, Small Business, and Electric Rates & Inflation Large Business Sectors 1970 to 2001* 16.00 14.00 Electric Rates increased 6.7% /yr 12.00 Residential 10.00 1970-2001 Compound Average 8.00 1982 Small Business CPI/Inflation was 3.5% since 1981 6.00 4.00 Large Business CPI: Consumer Price Index 2.00 - Inflation can only occur in Tier 3-5 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Residential 2.23 2.31 2.46 2.63 3.37 3.64 3.82 4.23 4.48 4.47 5.86 6.51 7.67 7.12 7.07 7.78 7.94 8.04 8.54 9.45 9.98 10.79 11.08 11.30 11.43 11.61 11.32 11.32 11.32 11.32 11.32 14.40 Small Business 1.71 1.81 1.92 2.09 2.74 2.98 3.28 4.11 4.47 4.46 6.14 6.59 7.43 7.31 7.52 8.06 8.25 8.01 8.24 8.64 8.98 9.59 9.92 9.99 10.36 10.26 9.78 9.78 9.78 9.78 9.78 14.37 Large Business 0.99 1.03 1.13 1.28 1.96 2.29 2.60 3.23 3.67 3.74 5.47 6.18 7.25 6.77 6.68 7.51 7.38 6.95 6.88 7.13 7.28 7.58 7.59 7.33 7.09 7.37 6.93 6.93 6.93 6.93 6.93 11.42 All rate hikes exaggerated for large users Source: Prepared by the CPUC Energy Division. Dataset from Energy Information Administration (EIA), DOE/EIA-0376(95), State Energy Price and Expenditure Report, 1995, Tables 36-38. 1996 through 2000 reflects AB 1890 frozen rates. 2001 rates include 4 cent increase in SCE and PG&E Rates. *Rates only for SCE and PG&E. California Public Utilities Commission Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 22 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 23 asa Tier 5, 36¢ s California Electric Rates asf sf Tier 4, 31¢ Residential, Small Business, and Large Business Sectors 1970 to 2001* f asdf Time of Use Choices & Issues PG&E 2001 f Tier 5, 26¢ Tier 4, 24¢ Several TOU structures: Cents per kilowatt-hour Tier 3, 22¢ 16.00 Tier 3, 17¢ df PG&E & SDG&E: TOU with Tiers asf 14.00 12.00 Residential a Tier 2, 13¢ Tier 2, 13¢ vs. non-TOU with Tiers sdf Tier 1, 11¢ Tier 1, 11¢ 10.00 8.00 1982 Small Business PG&E 2007 SCE: TOU w/o Tiers vs. non-TOU with Tiers 6.00 4.00 Large Business Most other places: TOU vs. non-TOU (no 2.00 - 1970 19711972 1973 1974 1975 19761977 1978 1979 19801981 1982 19831984 1985 1986 1987 19881989 19901991 1992 19931994 19951996 1997 1998 1999 20002001 tiers in either) Residential 2.23 2.31 2.46 2.63 3.37 3.64 3.82 4.23 4.48 4.47 5.86 6.51 7.67 7.12 7.07 7.78 7.94 8.04 8.54 9.45 9.98 10.7911.0811.3011.4311.61 11.3211.3211.32 11.3211.3214.40 Small Business 1.81 1.92 2.09 2.74 2.98 3.28 4.11 4.47 4.46 6.14 6.59 7.43 7.31 7.52 8.06 8.25 8.01 8.24 8.64 8.98 9.59 9.92 9.99 10.3610.269.78 9.78 9.78 9.78 9.78 14.37 1.71 Large Business 1.03 1.13 1.28 1.96 2.29 2.60 3.23 3.67 3.74 5.47 6.18 7.25 6.77 6.68 7.51 7.38 6.95 6.88 7.13 7.28 7.58 7.59 7.33 7.09 7.37 6.93 6.93 6.93 6.93 6.93 11.42 0.99 Source: Prepared by the CPUC Energy Division. Dataset from Energy Information Administration (EIA), DOE/EIA-0376(95), State Energy Price and Expenditure Report, 1995, Tables 36-38. 1996 through 2000 reflects AB 1890 frozen rates. 2001 rates include 4 cent increase in SCE and PG&E Rates. Questions? *Rates only for SCE and PG&E. Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions?24 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 25 Time of Use: PG&E & SDG&E PG&E Rates PG&E E1: Tiered only - no TOU PG&E & SDG&E: Base Rate $0.1143 per kWh + Tier Increments Tier 2 increment over Tier 1 $ 0.01559 per kWh Tiers don’t affect TOU choice/results Tier 3 increment over Tier 1 Tier 4 increment over Tier 1 $ 0.11292 per kWh $ 0.20289 per kWh Tier 5 increment over Tier 1 $ 0.25004 per kWh Choose TOU based only on usage pattern PG&E E6 & E7: TOU + Tiers Tiers are on total usage, TOU is separate Rate = Base Rates + Tier Surcharges PG&E E6 PG&E E7 Summer Peak $ 0.20865 per kWh $ 0.29372 per kWh Summer PartPeak $ 0.11174 per kWh Summer OffPeak $ 0.09418 per kWh $ 0.08664 per kWh Winter Peak $ 0.11472 per kWh Winter PartPeak $ 0.12413 per kWh Winter OffPeak $ 0.10042 per kWh $ 0.08966 per kWh Tier 2 increment over Tier 1 $ 0.01559 per kWh Tier 3 increment over Tier 1 $ 0.11292 per kWh Tier 4 increment over Tier 1 $ 0.20289 per kWh Tier 5 increment over Tier 1 $ 0.25004 per kWh Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 26 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 27 4
    • SCE Time Of Use PG&E Residential Tiered Rates Residential TOU-D-1 & TOU-D-2 35.0¢ Residential Tiered Usage Before Solar Residential Time-of-Use Pricing Periods 30.0¢ Sunday Monday Tuesday Wednesday Thursday Friday Saturday 25.0¢ 26¢/kWh Midnight - 10am Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Cents per kWh surcharge 20.0¢ 10am - 6pm Off-Peak Peak Peak Peak Peak Peak Off-Peak 15.0¢ 6pm - Midnight Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak Off-Peak 10.0¢ 11¢/kWh 5.0¢ base charge 33% of the day is Peak 0.0¢ … when most people are away from home Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Off-Peak rates are Nights, Mornings & Weekends Surcharge currently +25¢/kWh for Tier 5 … when most people are home & using Base is 11¢/kWh Top is 36¢/kWh Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 29 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 30 SCE Rates TOU & Solar SCE D: Tiered only - no TOU Solar can only produce during day SCE TOU-D-1 & TOU-D-2 Time-Of-Use only TOU hours subject to Daylight Savings Time No Tiers, but there is “baseline credit” in TOU-D-1 Noon-6pm clock time on meter = 11am-5pm solar time SCE D (Domestic Tiered) SCE TOU-D-1 (Domestic TOU) SCE TOU-D-2 (Domestic TOU) Baseline Quantity: 309 kWh/mo Baseline Quantity: 309 kWh/mo Baseline Quantity: 309 kWh/mo 10am-6pm on meter = 9am-5pm solar Tier 1: 11.6 ¢/kWh Summer Peak: 36.7 ¢/kWh Summer Peak: 30.2 ¢/kWh Tier 2: 13.7 ¢/kWh Summer Off-Peak: 18.9 ¢/kWh Summer Off-Peak: 16.3 ¢/kWh Solar production peaks during Peak Tier 3: 22.7 ¢/kWh Tier 4: 26.3 ¢/kWh Winter Peak: 21.5 ¢/kWh Winter Peak: 18.5 ¢/kWh Sufficient PV sizing (but less than total usage offset) Tier 5: 30.0 ¢/kWh Winter Off-Peak: 17.8 ¢/kWh Winter Off-Peak: 15.6 ¢/kWh must turn meter backwards on peak. Baseline Credit: 5 ¢/kWh Baseline Credit: 0 ¢/kWh So at some point in PV size, customer only pays “off- Excluding Solar: peak” rates High user almost always saves on TOU - lower average rate TOU is better if “off-peak” is lower than customer’s Low user almost always saves on non-TOU average non-TOU rate Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 31 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 32 Estimating Peak Usage SCE & Solar How Is Energy Used? SCE D (Domestic Tiered) SCE TOU-D-1 (Domestic TOU) SCE TOU-D-2 (Domestic TOU) Baseline Quantity: 309 kWh/mo Tier 1: 11.6 ¢/kWh Baseline Quantity: 309 kWh/mo Summer Peak: 36.7 ¢/kWh Baseline Quantity: 309 kWh/mo Summer Peak: 30.2 ¢/kWh Who’s home during Peak? Tier 2: 13.7 ¢/kWh Summer Off-Peak: 18.9 ¢/kWh Summer Off-Peak: 16.3 ¢/kWh Tier 3: 22.7 ¢/kWh Tier 4: 26.3 ¢/kWh Winter Peak: 21.5 ¢/kWh Winter Peak: 18.5 ¢/kWh What are they doing? Tier 5: 30.0 ¢/kWh Winter Off-Peak: 17.8 ¢/kWh Winter Off-Peak: 15.6 ¢/kWh Air Conditioning Climate? Into the evening? Baseline Credit: 5 ¢/kWh Baseline Credit: 0 ¢/kWh Ability/willingness to shift usage? With ~30% or more Solar Solar Pool Heating? Most customers do better on TOU TOU-D-1 is generally better for Solar Large Base-load usage is good: Better selling & buying, plus Baseline Credit Refrigeration, electronics, servers, hot tub Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 33 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 34 5
    • Getting Perspective Sensitivity In The New Bill Only 6 to 8 hours are peak: 25% - 33% Impact of being off 5-10% in peak Even w/ AC, what’s a reasonable peak %? estimation 40-50%-60% max in homes Examples in OnGrid Tool Much higher in businesses Note: The other 67-75% of the day also needs energy OnGrid is working on a calculator to help estimate TOU peak & off-peak usage Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 35 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 36 Agenda Advanced Solar Financial Analysis System Variables in More Depth TOU Examples TOU Case Studies Choosing Rebates vs. PBIs Financing with Leasing & PPAs Interactive Examples using the OnGrid Tool Break? Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 37 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 39 CSI Incentives: EPBB Rebate Choosing Between EPBB: Expected Performance Based Buydown EPBB Rebates Upfront Rebate to reduce initial system cost & Amount adjusted for Expected Performance: Tilt, Orientation, Shading, Location Performance Based EPBB Calculator: www.csi-epbb.com Incentives (PBIs) Systems under 100kW only (Rebate option) Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 40 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 41 6
    • CSI Incentives: CSI Trigger Tracker EPBB Payments (per Watt) PBI Payments (per kWh) Performance Based Incentive or PBI Step Statewide MW in Step Residential Commercial Government / Non-Profit Residential Commercial Government / Non-Profit 1 50 n/a n/a n/a n/a n/a n/a PBI: Performance Based Incentive 2 3 4 70 100 130 $2.50 $2.20 $1.90 $2.50 $2.20 $1.90 $ $3.25 $2.95 $2.65 $ $0.39 $0.34 $0.26 $0.39 $0.34 $0.26 $0.50 $0.46 $0.37 $ 5 160 $1.55 $1.55 $2.30 $0.22 $0.22 $0.32 Incentive paid over time based on actual 6 7 190 215 $1.10 $0.65 $1.10 $0.65 $1.85 $1.40 $0.15 $0.09 $0.15 $0.09 $0.26 $0.19 performance 8 9 10 250 285 350 $0.35 $0.25 $0.20 $0.35 $0.25 $0.20 $1.10 $0.90 $0.70 $0.05 $0.03 $0.03 $0.05 $0.03 $0.03 $0.15 $0.12 $0.10 Automatically accounts for real loss factors Customer Current MW Unused MW from Total MW Issued Conditional Total MW MW Under Administrator in Class Step Previous Step in Step Reservation Available Review Required for systems over 100kW PGE Residenti a l 2 Step 10.1 0 2.93 13.0 3 Letters (MW) 8.96 4.07 5.81 Non- 4 38.1 0 5.93 44.0 3 13.1 0 30.9 3 11.5 8 Optional for under 100kW (PBI option) SCE Residenti a l Residenti a l Non- 2 10.6 0 0.07 10.6 7 3.16 7.51 1.99 4 40.1 0 0.91 41.0 1 7.31 33.6 9 12.1 0 Residenti a l Residenti a l 2 2.40 0.00 2.40 1.36 1.04 0.92 CCSE Non- 3 6.90 0.04 6.94 6.10 0.84 5.04 Residenti a l Trigger Tracker website: http://www.sgip-ca.com/ Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 42 Fall 2007 - SLI As of 9/11/07 Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 43 CSI PBI: Requirements EPBB & PBI Taxation Must use 2% accurate IDR (Interval Data Recording) Residential meters Probably neither are taxed Up front cost: ~$1,000-$2,500 IRS Sect 136 (Res only) Must subscribe to meter reading & reporting service Monthly fees ~$15/mo Commercial Must supply ISP, phone or cellular connection Both are probably taxed Monthly fees ~$15/mo Rebate taxation affects ITC basis and depreciation Ineligible for 1% metering cost limit Disclaimer: I’m not a CPA or lawyer, and am not providing tax advice. All PBI must have metering regardless of cost Seek qualified professional help Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 44 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 45 Residential PBI Taxation EPBB & PBI Taxation Not clear if exempted under Section 136 Residential Is not a rebate, but is a utility payment for Probably neither are taxed “energy efficiency” IRS Sect 136 (Res only) Needs more investigation Commercial Both are probably taxed Makes a significant difference in choice vs. Rebate taxation affects ITC basis and depreciation rebate Disclaimer: I’m not a CPA or lawyer, and am not providing tax advice. Installers or manufacturers probably won’t accept Seek qualified professional help the PBI payments, and that probably wouldn’t avoid tax anyway, but would hide the 1099 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 46 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 47 7
    • Rebate Tax Interactions Commercial Rebate Taxation If the rebate is non-taxable, the federal If commercial, make rebate taxable* tax credit is on amount after rebate Then tax credit and depreciation are on amount before rebate If rebate is taxable, then federal tax credit Worth more to pay tax on rebate, then get 30% is on amount before rebate credit and depreciation on rebate Depreciation is on tax credit basis, minus 1/2 of the federal tax credit amount I.e. 85% of pre-rebate system cost *SEIA Tax Manual: www.seia.org Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 49 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 50 Tax Credit & Depr. Example Tax Credit & Depr. Example Non-Taxed Rebate Taxed Rebate $150K System Cost $150K System Cost -$50K Rebate -$50K Rebate $100K Net Cost After Rebate +21.5K Rebate Tax ($50K * 43%) -$30K Tax Credit Value (30% of $100K) -$45K Tax Credit Value (30% of $150K) -$36.6K Depr Value (85% of $100K * 43%) -$54.8K Depr Value (85% of $150K * 43%) =$33.4K Net Cost =$21.7 Net Cost 43% = combined federal & state tax rates Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 51 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 52 Tax Credit & Depr. Example PBI Taxation: Commercial Non-Taxed Rebate Taxed Rebate Almost certainly taxable $150K System Cost $150K System Cost Does not provide same benefit as making -$50K Rebate -$50K Rebate rebate taxable (as in previous examples) +21.5K Rebate Tax $100K Net Cost After Rebate Doesn’t affect basis -$30K Tax Credit Value -$45K Tax Credit Value PBIs have lower IRR for San Jose area -$36.6K Depr Value (85K * 43%) -$54.8K Depr Value (127.5K * 43%) customers =$33.4K Net Cost =$21.7 Net Cost Gets better w/ higher production Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 54 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Questions? 55 8
    • Commercial Issues PBI vs. Rebate Cash Flow EPBB & PBI Commercial After-Tax Analysis Year: Cash Flow & Time Value of Money Operating Savings: Avoided electricity Purchases 0 1 3,655 2 3,819 3 3,991 4 4,171 5 4,359 6 4,555 No Performance Based Incentive Included Rebate paid up front Operating Expenses: System Maintenance at 0.25% of gross system cost per year (213) (221) (229) (237) (245) (254) System Capital Cost with Fees, before Rebates (86,097) Lower Capital cost Rebates & Grants Operating profit (loss): 19,089 (67,009) 3,441 3,598 3,763 3,934 4,114 4,301 PBI paid over 5 years EPBB Rebate ~ $19,000 More Capital required up front Commercial After-Tax Analysis Year: More total incentive received, but have to wait for it Operating Savings: Avoided electricity Purchases 0 1 3,655 2 3,819 3 3,991 4 4,171 5 4,359 6 4,555 Performance Based Incentive. Assumed Taxable 5,211 5,185 5,159 5,133 5,108 Risk of lower performance or system problem Operating Expenses: System Maintenance at 0.25% of gross system cost per year (213) (221) (229) (237) (245) (254) (output interruption, failure, etc) System Capital Cost with Fees, before Rebates Rebates & Grants (86,097) Operating profit (loss): (86,097) 8,653 8,784 8,922 9,068 9,221 4,301 Add’l meter & monitoring expense PBI Total ~ $26,000 over 5 years Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 56 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 57 Net Cost at Year 8 Ideal Rates of Return Commercial After-Tax Analysis Operating Savings: Avoided electricity Purchases No Performance Based Incentive Included Year: 0 1 3,655 2 3,819 3 3,991 4 4,171 5 4,359 6 4,555 7 4,760 8 4,974 Residential Examples Sacramento, CA Operating Expenses: System Maintenance at 0.25% of gross system cost per year (213) (221) (229) (237) (245) (254) (262) (272) System Capital Cost with Fees, before Rebates (86,097) Rebates & Grants 19,089 Operating profit (loss): (67,009) 3,441 3,598 3,763 3,934 4,114 4,301 4,497 4,702 Final Net EPBB PBI Value of lost Federal tax deduction of electricity expense Value of lost State tax deduction of electricity expense (1,205) (304) (1,259) (318) (1,317) (333) (1,377) (348) (1,440) (364) (1,505) (380) (1,574) (398) (1,646) (416) kWh Fed Tax Benefit on State deduction loss of electricity expense 106 111 116 122 127 133 139 145 Pre- System Cost w/ Pre- Pre- per System After-Tax Net Annual Profit/Loss for IRR (41,179) 831 10,679 7,498 5,627 5,734 4,385 3,015 3,137 Solar Gross Tax Tax Tax After-Tax Cash Flow, Cumulative (41,179) (40,348) (29,669) (22,171) (16,544) (10,810) (6,426) (3,410) (274) Month AC Size Bill Cost Benefits Annual Annual EPBB Rebate Year 8 Cash Position: -$274 Usage Commercial After-Tax Analysis & Rebate Return Return Year: Operating Savings: 0 1 2 3 4 5 6 7 8 Avoided electricity Purchases Performance Based Incentive. Assumed Taxable 3,655 5,211 3,819 5,185 3,991 5,159 4,171 5,133 4,359 5,108 4,555 4,760 4,974 $100 710 3.0 kW $28K $19K 11.3% 12.4% Operating Expenses: System Maintenance at 0.25% of gross system cost per year (213) (221) (229) (237) (245) (254) (262) (272) System Capital Cost with Fees, before Rebates (86,097) $243 1200 6.0 kW $56K $39K 14.6% 16.0% Rebates & Grants Operating profit (loss): (86,097) 8,653 8,784 8,922 9,068 9,221 4,301 4,497 4,702 Federal & State Tax benefits Value of lost Federal tax deduction of electricity expense Value of lost State tax deduction of electricity expense (3,028) (765) (3,074) (776) (3,123) (789) (3,174) (802) (3,227) (815) (1,505) (380) (1,574) (398) (1,646) (416) $419 1700 9.0 kW $81K $57K 17.2% 18.5% Fed Tax Benefit on State deduction loss of electricity expense 268 272 276 281 285 133 139 145 After-Tax Net Annual Profit/Loss for IRR After-Tax Cash Flow, Cumulative (60,268) (60,268) 10,600 (49,668) 13,751 (35,916) 10,555 (25,362) 8,669 (16,693) 8,760 (7,933) 4,385 (3,548) 3,015 (533) 3,137 2,604 Assumes neither PBI & Rebate are taxable PBI Year 8 Cash Position : +$2,604 Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 58 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 59 Ideal Rates of Return Residential Variables & Assumptions Commercial Examples 28% federal tax bracket and 9.3% state tax bracket Facing south, 22° pitch, simple comp roof, full service SF, CA provider, no complications near San Jose, CA Final Net EPBB PBI kWh Pre- System System Cost w/ After- After- Slightly conservative real system performance (approx 1,630 per Solar AC Gross Tax Tax Tax AC kWh per CEC AC kW), no shading Month Bill Size Cost Benefits & Annual Annual Final Net Cost is total installed system costs-CSI Rebate+$500 Usage Rebate Return Return Permit+$0 TOU meter fee. System maintenance cost is 0.25% $325 2000 10kW $85K $18K 8.7% 7.8% of gross system cost per year, adjusted for inflation Billing starting on PG&E E1-XB, switching to PG&E E7-XB $958 6000 30kW $247K $51K 9.2% 8.2% TOU Net Metering with 28% on-peak $3174 20000 100kW $799K $160K 9.6% 8.5% 5.0% electric inflation. Module degradation 0.5% per year Inverter replacement costing $700/kW occurs in year 15 Assumes both PBI & Rebate are taxable Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 60 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 61 9
    • Ideal Rates of Return Commercial Examples Commercial Variables & Assumptions 35% federal tax bracket and 8.84% state tax bracket Dagget, CA Facing south, 22° tilt rack, simple flat roof, full service provider, Final Net EPBB PBI kWh no complications near San Jose, CA Pre- System System Cost w/ After- After- per Slightly conservative real system performance (approx 1,630 Solar AC Gross Tax Tax Tax Month SFO or 1,995 (Daggett) AC kWh per CEC AC kW), no shading Bill Size Cost Benefits & Annual Annual Usage Rebate Return Return Final Net Cost is total installed system costs-CSI Rebate+$800 $325 2000 10kW $85K $18K 10.3% 9.8% Permit+$0 TOU meter fee. System maintenance cost is 0.25% of gross system cost per year, adjusted for inflation $958 6000 30kW $247K $51K 10.8% 10.3% Billing starting on PG&E A1, switching to PG&E A6 TOU Net $3174 20000 100kW $799K $160K 11.3% 10.7% Metering with 60% on-peak, 25% part-peak energy use 5.0% electric inflation. Module degradation 0.5% per year Assumes both PBI & Rebate are taxable Inverter replacement costing $700/kW occurs in year 15 Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 62 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 64 Ideal Rates of Return Municipal Examples Municipal Variables & Assumptions Sacramento, CA Facing south, 22° tilt rack, simple flat roof, full service kWh provider, no complications near San Jose, CA Pre- System System Final Net EPBB PBI Slightly conservative real system performance (approx 1,690 per Solar AC Gross Cost w/ Annual Annual Month AC kWh per CEC AC kW), no shading Bill Size Cost Rebate Return Return Usage Final Net Cost is total installed system costs-CSI Rebate+$800 $325 2000 10kW $85K $59K 5.7% 5.7% Permit+$0 TOU meter fee. System maintenance cost is 0.25% of gross system cost per year, adjusted for inflation $958 6000 30kW $247K $169K 6.2% 6.1% Billing starting on PG&E A1, switching to PG&E A6 TOU Net $3174 20000 100kW $799K $536K 6.6% 6.5% Metering with 60% on-peak, 25% part-peak energy use 5.0% electric inflation. Module degradation 0.5% per year Inverter replacement costing $700/kW occurs in year 15 Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 65 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 66 Agenda Advanced Solar Financial Analysis System Variables in More Depth TOU Case Studies Financing Non-Residential Choosing Rebates vs. PBIs Solar Projects Financing with Leasing & PPAs Interactive Examples using the OnGrid Tool Break? Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 67 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 68 10
    • Sales Benefits of Financing Financing Options For Solar Offering Financing keeps salesperson in control Leases - Ways of paying for ownership and/or of the sale use over time, having tax and/or cash flow If the customer is out looking for financing, you’ve lost control of the sale. benefits during term, usually with intention of If you offer it, you can continue to control the sale. purchasing or renewing at the end Creates more purchasing options, more chances at PPAs - Power Purchase Agreements - a close Paying for just the energy if/when delivered Gets salesperson closer to decision maker & their real thinking Can use to overcome objections Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 69 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 70 Characteristics “Good” or “Strong” Credit Common to PPAs, & Leases Good end-customer credit helps >5 years in business Lower interest rate environment helps >$50 million revenue Attractive if based on fundamentally Positive trends (increasing revenue & profits) attractive scenario Standard ratios (cash flow, etc) Dun & Bradstreet, etc Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 71 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 72 Leases What is a Lease Several Types Finance contract between 3 parties Finance Lessor, Lessee, Vendor True Looks like either a loan or a rental Operating Ability to transfer ownership benefits Tax Benefits or for Accounting purposes Tax-Exempt Lease Purchase Specified term & payment *Excerpted from Conergy Commercial Financing presentation by Many types of leases Baker Davenport & Tim Pedersen, Rockwell Financial Group Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 73 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 75 11
    • Lease “Flow” Benefits of a Lease Lessor Lease Terms more flexible than a purchase Payments PV System Allows for 100% financing Covering freight, maintenance, fees, … Use of Purchase System Payment Which might not be allowed in a loan Doesn’t tie up capital and/or effectively stretches line of credit Initial “sales” interaction Keeps bank line of credit free Info on leasing resources Lessee Vendor Tax benefits capture by those who can fully use them: AMT, no tax “appetite” Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 76 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 78 Widely Used Lease vs. Loan Bank Loan Leasing Solar Leases similar to other asset leases Interest Rates Floating interest rates Fixed rate with fixed payments Well established market Terms Usually 2-3 years, and often year-to-year Up to 10 years Uses up bank line of credit, thus restricting Frees bank lines and cash for future 80% of companies and gov’t agencies use Opportunity Costs future investments investments leasing, rather than owning, for at least some Upfront Payment Typically 20% to 30% 0% (100% financed) Compensating balances, loan covenants, of their equipment Hidden Costs bank charge s Non e Can't finance shipping, tech support, Some companies only use leasing, rather than Soft Cost Coverage maintenance, etc. All soft costs can be financ e d May not have to be reflected on balance purchasing Financial Reporting Carried on balance sheet as debt she e t Lessor = Owner of system *Conergy Commercial Financing presentation by Baker Davenport & Tim Pedersen, Rockwell Financial Group Lessee = User (“renter”) of system Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 79 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 80 Lease Term Set By: Finance Lease Price of project - larger is better Same as bank loan Credit of customer Fully amortizing or with balloons Structure of the deal Lessee gets tax credit & depreciation Interest is deductible Most commonly utilized for energy projects Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 81 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 82 12
    • Finance Lease Typical Terms True Lease 5 year, $100K Rental contract w/ fixed terms & conditions 7 year, $500K Lower interest rate than finance lease 8 year, $1MM Lessor gets depreciation & tax credits 10 year typical max Lessee expenses monthly payments Limits: Longer = higher risk Lease considered “on balance sheet” Easiest lease to create wrt due diligence Not available to non-profits & gov’t entities Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 83 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 85 True Lease Typical Terms Operating Lease E.g.: $500K, 75kW system Rental contract w/ fixed terms & conditions ~7yrs on “standard” credit Lower interest rate than finance lease ~10yrs on strong credit Lessor gets depreciation & tax credits End of lease: Lessee expenses monthly payments Purchase equipment at greater of FMV or % of original Lease considered “off balance sheet” (10% for 10yr, 20% for 7yr) Paid with operating, not capital funds Extend lease for add’l 12 months at fixed rental rate Repeat indefinitely or sell Not available to non-profits & gov’t entities Lessor typically doesn’t want equipment at the end Can do, but no transfer of tax benefits so less valuable Additional due diligence - less than a PPA, more than Unusual Finance Lease Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 86 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 87 Cash Benefits of Operating Lease Typical Terms True & Operating Leases E.g.: $500K, 75kW system Lessor offers lower monthly cost of solar ~7yrs on “standard” credit system to end user because of enjoyed tax ~10yrs on strong credit benefits End of lease: Purchase equipment at greater of FMV Lessor gets lower taxes Extend lease for add’l 12 months at fixed rental rate Lessee gets lower cost PV system (lower Repeat indefinitely or sell payments) Return equipment to Lessor More difficult, more due diligence than True Lease, Less than PPA Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 88 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 89 13
    • True & Operating Lease Term Typical Lease Terms Typically >= 6 years to get all Lease can’t exceed 80% of life of asset Must have a residual value depreciation benefit Lessor owns, but takes no operating risk Asset transferred to Lessee at greater Hell or high water - Lessee must pay for system of: regardless of performance Incentive on Lessee to maintain system Fair Market Value (FMV)* Property tax, insurance, maintenance is Predetermined price responsibility of lessee *Critical to avoid tax violation May require tax indemnity if tax benefits aren’t transferable to Lessor Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 90 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 91 Returns for Lessors Tax Exempt Lease Purchase ~6%-9% range Primarily for State & Local governments Includes public schools & universities Requires: Longer terms: 10-20 yrs by project size (>20kW) Lessees with good credit Current debt obligation for lessee Limited project risk Non-profits qualify for larger projects (> $1MM) Low transaction costs via standard Must have gov’t sponsor terms and “conforming” projects Special structuring - more “complicated” lease “Tax Exempt” means the lessor doesn’t pay Fed tax on income: Reduces interest ~ 300 basis points Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 92 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 93 Non-Profits w/o Gov’t Sponsors Which Lease Is Right? Can your customer utilize tax benefits and interested in Finance Lease owning system? Non-Profits not eligible for True or Operating Tax exempt Lease Leases Is your customer a government entity? (purchase), PPA Can’t pass tax benefits to lessor Is your customer a non-profit? PPA Instead - Capture via a 3rd party ownership Is your customer restricted in utilizing tax benefits or structure: motivated more by buying electricity rather than solar True Lease system, and your deal size is less than $1MM? PPA Is your customer restricted in utilizing tax benefits or 3rd “For-Profit” party owns or leases (lessee) motivated more by buying electricity rather than solar system, and your deal size is $1MM or greater? PPA the system and sells PPA energy to non-profit Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 95 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 96 14
    • Get Lessor, Lender or Lease Brokers & Agents Broker Involved Up Front David J. Clamage Renewable Energy Financial, LLC They can help present and sell the deal - davidc@saulhill.com include them early on 303-629-8777 x102 Helps and increases sales person’s control Gene Beck EnviroTech Financial, Inc gbeck@etfinancial.com Helps get the right questions asked up front 714-532-2731 www.etfinancial.com Speeds the sale Or determines early that this is a no-go Baker Davenport Davenport Finance Company (works w/ Conergy Dealer Net also) Determine which type is best baker.davenport@davenportfinance.com 804-323-6061 Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 97 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 98 Financing Options For Solar Power Purchase Agreement - PPA Leases - Ways of paying for ownership and/or A Type of Offering or Proposal use over time, having tax and/or cash flow Contract for the sale of energy (kWh) benefits during term, usually with intention of Not sale of a PV system purchasing or renewing at the end A financing alternative to leasing PPAs - Power Purchase Agreements - Recently very popular Paying for just the energy if/when delivered Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 99 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 103 PPA “Flow” Parties to the Transaction PPA Provider ROI PPA / Vendor Investment Cash Financier Agreement between PPA Provider / Vendor Monthly Energy PV System End User of Energy Building Payments Access / kWh Building Owner (might be End User) Maintenance Energy Purchase Payment System Vendor / Installer 3rd Party Investor (might be installer) Permission Building Occupant / System Owner Energy User Vendor/Installer Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 104 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 105 15
    • Party Responsibilities End-User Benefits 3rd Party Investor (might be installer) No up-front costs, down payment or deposit Owns the System required Responsible for maintenance & performance Lower initial energy costs End-User Potentially lower long term energy costs Receives energy from system Future discount purchase of system Makes predetermined payments for energy Reduced PV cost even if no tax appetite if produced Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 106 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 107 Energy Expense Comparison Investor/Owner Benefits Guaranteed stream of income from energy Utility Electric Rate including estimated escalation at 5% sold 15¢ Tax benefits Cost PPA Electric Rate including Per 14¢ kWh contracted escalation at 3% No inflation/escalation risk Keep / sell Green Tags 2007 2017 2027 Year Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 108 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 109 End User Risks Investor/Owner Risks PPA Electric Rate including 15¢ contracted escalation at 3% System Performance Cost Per 14¢ Utility Electric Rates may not rise or stay Maintenance over 15+ years kWh above PPA Contract Rate End-User default Good credit end-users desirable 2007 2017 2027 Year Inverse of Electricity Escalation Lowers cost If rates don’t rise, might cost more Transaction Costs - aggregating towards Might not get Green Tags $40 Million + Additional cost if desired Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 110 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 111 16
    • Complications Complications Cont’d Long contracts - 40-60 pages Power Contract Form: High initial transaction costs Selling kWh? Reduce with standardization At what price? Building access / maintenance costs TOU & Demand saving / costs Who takes remaining utility bill? Repossession / aftermarket value Simpler but vague sales presentation Termination tax issues? - terminal price? May leave lots on table in customer’s benefit Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 113 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 114 Complications Cont’d PPA Typical Terms Guaranteed Savings Contract: $2.5Million+ (>350kW+) Selling promise to reduce bill by $X if 15-20 yr commitment customer continues to user energy in a End of term: specified manner (time/quantity) Renew PPA Complicated but precise Purchase of system Pay termination & have system removed Significant due diligence - Most of all forms of financing Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 115 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 116 PPA Vendors / Providers Comments Offer PPAs to 3rd Parties (looking for partners to bring deals): Solar Power Partners: 20kW-500kW PPAs & Leases are only likely to be viable Sun Run Generation: Residential MMA Renewable Ventures: 500kW+ options if the system is attractive on a stand- Tioga Energy alone basis assuming full commercial tax Conergy under 500kW / Epuron over 500kW Many others available & more coming appetite Allow creative finance where tax status or Uses PPAs on their own projects only: Sun Edison: 500kW+ customer preferences otherwise block a sale Vertically integrated on sales, installation & ownership They don’t save “lost causes” Powerlight / SunPower: 500kW+ Solar Technologies Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 117 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 118 17
    • Money on the Table PPA Partners are Ideal Customers PPAs are selling fast Effectively are “Repeat” customers Appears the customers are getting excellent Just need to find “Host” sites deals - medium+ savings Have $, ready to move Not clear how investors will make out Understand installer’s business & cash needs Lots of risk Who bears it over the long term? Eliminate most of the sales hurdles Will it work? Simply helping Host select best offer Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. Return 119 Fall 2007 - SLI Financing & Advanced Financial Analysis for PV © 2007 OnGrid Solar. All rights reserved. 120 Agenda The OnGrid Solar Financial Analysis Tool Advanced Solar Financial Analysis A Sales & Design Tool Choosing Rebates vs. PBIs Proves the Payback Financing with Leasing & PPAs Produces Proposals OnGrid Tool Overview Produces Sales Paperwork Interactive Examples using the OnGrid Tool Adding CRM & Project Planning Tools & Break? links/interfaces with Lead Generation website Adding Energy Efficiency Audit/Analysis Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 121 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 123 OnGrid Tool Factors In: System Performance Data from shading devices System Costs Incentive Programs Site performance variables CA EPBB, PBI Federal Tax Credit & Depreciation Tilt, Orientation Dust, Mismatch, Wire Inflation PTC & Inverter Efficiency Electric Rates System Performance Estimates kWh Performance Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 124 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 125 18
    • Proves the Payback: OnGrid Tool Outputs Financial Analysis Methods $12,000 $10,000 Annual Savings Before and After Payback Your Logo Here P.S. State incentives will decline at the OnGrid Solar 4175 Renaissance Dr #4 San Jose, CA 95134 Quotation & Contract for a Renewable Energy Power System Contractor's License Number: Cont. Lic. # Contractor's License Type: Cont Lic Type Salesperson: Andy Black Phone: (408) 428-0808 Email: andy@ongrid.net July 4, 2006 Client: Site Address: 117 So Mary Ave, #30 Mr. Sunny Customer and Ms. Happy Buyer Sunnyvale, CA 94087 Simple Payback $8,000 Solar User Inc. Annual Savings AUTHORIZATION TO: RECEIVE (408) 333 3333x333W INFORMATION (408) 111 1111H, (408) 222 2222C, CUSTOMER SUBMITTED TO THE FOLLOWING. Mailing Address: 117 So Mary Ave, #30 Sales Docs Prepared: cust@buyer.com Please check allSunnyvale, CA 94087 that apply: $6,000 OR ACT ON A CUSTOMER'S BEHALF PG&E SoCalGas PROJECT DESCRIPTION and MAJOR COMPONENTS: System Size (kW DC, SDG&E 12.272 kW SCE STC) $4,000 A 10.2 kW PV System, with turn-key installation at customer's site address stated above. System Size (kW AC, CEC) 10.220 kW Pacific Gas and Electric THIS IS A LEGALLY BINDING CONTRACT _ READ IT CAREFULLY Mounting type: Composite roof. Company DISTRIBUTION (Please Print or Type) Billing $2,000 Major System Components: INTERCONNECTION AGREEMENT FOR Customer-Generator Details System Pricing Total Lifecycle Payback I, Sharp Corporation Sunny Customer Mr. ND-208U1 modules. 59 NET ENERGY METERING FOR Installed Systemowner $ Price including Sales Tax & Shipping (before Rebate) Business Customer Center 91,433 3 Varieties of Proposal Module STC rating: 208W NAME TITLE (IF APPLICABLE Estimated Buy-Down Program Rebate at $2.60/W** RESIDENTIAL AND SMALL $ (26,572) $- to be paid to the installer of COMMERCIALMr. Sunny Customer SOLAR OR WIND REFERENCE 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Contract Price(Customer) have the following mailing address $ Net to Customer 64,861 Year Annual Savings Before Payback ELECTRIC GENERATING FACILITIES OF NAME OF CUSTOMER OF RECORD Payback Year (Occurs at 9.7 Years) 3 SMA America SB3800U (240V) inverters. 10 KILOWATTS OR LESS Current Payment ______________________ Acct No. Schedule: Annual Savings After Payback 117 So rating: 3800W each Inverter Mary Ave, #30 Sunnyvale CA 94087 Event do hereby Amount Approximate Date , and (%) appoint MAILING ADDRESS CITY STATE ZIP Initial Deposit (10% or $1,000) $ 1,000 July 17, 2006 DECLARATIONS Upon ordering of materials (49%) $ 44,717 July 31, 2006 Rate of Return analysis California Energy Commission of Upon1516 Ninth materials to the jobsite (40%) $ delivery of St. MS-45 Contract/Quote Standard Components: 36,573 October 23, 2006 NAME OF THIRD PARTY MAILING ADDRESS Racking and mounting components per Uniform Building Code $ - AC and DC disconnects per National Electric Code and Utility $ - Sacramento CA 95814 Wiring, conduit, and overcurrent protection per National Electric Code Mr. Sunny Customer Upon municipal building/electrical inspection* (10%) $ ("Customer-Generator") and Pacific Gas and 9,143 November 6, 2006 CITY STATE ZIP Roofing sealant or flashings as needed Total Sale Price**: $ 91,433 Electric Company, also referred to as “Utility”, referred to collectively as "Parties" and individually as "Party," consistent with, and andorder to effectuate, the provisions of Sections the categories indicated below: to act as my agent in consultant (Agent) for the listed account(s) and in 2827 and 2827.7 of the California Public Utilities Time for Completion: Code and Pacific Gas and Electric Company’s electric rate Schedule E-NET (“E-NET”), enter into this “Interconnection ACCOUNTS INCLUDED IN THIS AUTHORIZATION: Additional Components: The work to be performed by Contractor pursuant to this Agreement shall be commenced Agreement for Net Energy Metering For Residential and Small Commercial Solar or Wind Electric Generating Facilities Cash Flow when financing CSI 2 & 3 Step Applications within ________ days from this date or approximately on: October 23, 2006 of 10 KilowattsMary Ave, #30 1. 117 So or Less” (“Agreement”)1. This Agreement applies to theand shall be substantially completed within 14 days or approximately on: November 6, 2006 Sunnyvale Customer-Generator’s generating facilities Util Acct # identified below with the specified characteristics and generating capacity, and does not allow interconnection or NUMBER SERVICE ADDRESS Monitoring: CITY Construction Commencement Schedule: SERVICE ACCOUNT operation of facilities monitor/display built into inverter Standard different than those described. Accordingly, the Parties agree as follows: be defined as Commencement of work shall 2. X Delivery of material to site, or SERVICE ADDRESS CITY SERVICE ACCOUNT NUMBER ____ __________________________________________________________ 1. DESCRIPTION OF CUSTOMER-GENERATOR’S SOLAR OR WIND ELECTRIC GENERATING Standard Labor: 3. FACILITY (“Facility”) Design system and secure basic building or electrical permit Contractor's failure to substantially commence work without lawful excuse, within twenty 3rd Party Authorization (Architectural, planning commission or other reviews are extra) CITY SERVICE ADDRESS (20) days from the date specified above isACCOUNT NUMBER Contractors License Law. SERVICE a violation of the Increase in Appraisal Valuation Install specified system in good workman like manner Complete and submit utility interconnection documents Additional Contract Provisions: (For more than three accounts, please list additional accounts on a separate sheet and attaceh it to this form) Project Coordinate building, electrical and utility inspections Identification Number: __________________________ 1. All payments are dueoccurs upon building or electrical inspectors permit signoff. Utility 2. *System Completion Net 10 days. 1% interest per month carrying charge. $12,000 INFORMATION, ACTS AND FUNCTIONS AUTHORIZED-This authorization provides authority to the Agent. The Agent must thereafter Additional Work: (Utility Log Number) inspection typically occurs 4 to 14 days after permit signoff. provide specific written instructions/requests (e-mail is acceptable) about the particular account(s) rebate toany information is released orfrom the State 3. **Installer will refund before customer within 3 days of receipt $10,000 Interconnected Equipment: 4. Quoted price includes electric utility fees, but not permit fees action is taken. In certain instances, the requested act or function may result in cost PV you, the customer.5-year warranty required by the California Energy Commission. 5. This to system includes athe Requests for information may be limited to the most recent 12 month period. Interconnection Agreements $8,000 Table 1. - List of generating equipment interconnecting with Pacific Gas and Electric Company’s Distribution ALLOWANCES: Provides spreadsheet of numbers for I (Customer)The followingmy Agent an actprices asbehalfthoseincluded in following specific actswithout an inverter, write in “N/A” System with, or without, specific on my indicated are generators contract price as allowances. authorize items or to inverter. (For to perform the the interconnecting and functions (initial all applicable boxes): Annual Savings The contract price shall be adjusted based upon actual amounts rather than estimated amounts herein: $6,000 in the right none or columns. If an inverter is shared by more than one generator, write “shared” on the same line _X_ three (1) _____________________________________________ > as that generator under the manufacturer column and do not enter used inverter rating. Attach account(s), as specified herein, 1. (2) ________________________________________________________ Request and receive billing records, billing history and all meter usage data (3) ________________________________________________________ 1 the for bill caclulation fo all of my list of additional $4,000 equipment if applicable.) furnished by the Utility . regarding utiltiy services > 2. This quotation price is valid for 14 days from the above date, quoted schedule is valid for 3 days. all that apply): Request and receive copies of correspondence in connection with my account(s) concerning (initial Salesperson Signature: Date: $2,000 Type of Generator Verification of rate, date of rate change, and related information; Inverter Generator Manufacturer for Inverter Rating > a. proof Data entered once (Solar / If > customer decidesRating Servicegoods and services outlined above, this document shall become part of the Agreement for Supply and Installation Wind / b. Contracts and the Agreements; Inverter used with Model the to purchase (watts) 2 of a Renewable Energy Power System which specifies additional terms and boilerplate consumer rights as part of a Home Improvement Contract. $- Hybrid) (watts) Generator c. Previous or proposed issuance of adjustments/credits; or Number Customer Acceptance Signature: Date: 1 3 5 7 9 11 13 15 17 19 21 23 25 1 d. Other previously issued or unresolved/disputed billing adjustments (to be signed when customer decides to purchase) $(2,000) Solar 11,400 W SMA America SB3800U (240V) 10,773 W Years 3. Request investigation of my utility bill(s). 2 $(4,000) - W - W 4. Request special metering, and the right to access interval usage and other metering data onmy account(s). 5. Request rate analysis. Power Purchase Agreements Accuracy & Time Savings $250,000 1 6. Request rate changes. Additional forms are available upon request by telephoning 415-972-5676 or on PG&E’s website at http://www.pge.com/gen). 7. Request and receive verification of balances on my accounts(s) anddiscontinuance notices. $200,000 1 The 2 Utility will provide standard customer information without charge up to two times in a 12 month period per service account. After two requests in a year, I undertstand I may be The inverter rating equals: (the CEC efficiency for each installed inverter) TIMES (the nameplate rating, Resale Value $150,000 responsible for charges that may be incurred to process this request. in kW, of each inverter). The CEC efficiency is obtained on the CEC website at http://www.consumerenergycenter.org/erprebate/eligible_inverters.html as listed on the date the Grant Applications $100,000 application is reviewed. Enter the total of all inverter ratings for multiple inverter installations in the Table Revised 1/11/00 Page 1 of 2 above. Page 1 of 9 $50,000 Form 79-854 Tariffs and Compliance $- Revised November 6, 2003 Years 1 3 5 7 9 11 13 15 17 19 21 23 25 Effective January 1, 2003 Advice 2373-E-B Effective Resale Value (lesser of 20x annual or remaining 25yr savings) 20 times Annual Savings Financing & Advanced Financial Analysis for PV Remaining savings within 25 years Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 126 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 127 Scenario Options Use OnGrid Credibility Pre-programmed w/ PG&E, SCE & With Your Customers SDG&E, NJ, CO, HI, & CT rates >8 years of study of Solar Financial Analysis & Finance Peer Reviewed Papers (>8) Agricultural, Commercial, Residential Published Articles (>10) Apply to Any Situation: Classes Coast to Coast (dozens) at PEC, SLI, SEI, NCSC, dealer Residential, Commercial, Government & events, etc Non-Profit Linked on CSI GoSolarCalifornia website >100 customers in CA Any Rate Structure SEI Graduate, now instructor Any Incentive: Rebate, PBI, REC, Tax M.S. Electrical Engineering Credits & Depreciation Marketing Certificate with emphasis in Finance Any Insolation Location Newspaper, Radio, & TV appearances & interviews Excel-based: Fast, Portable, non-web Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 128 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 129 Results with OnGrid Before the Demo Faster, Easier, More Accurate Selling Wrap-up Formal Presentation Credible Financial Analysis Questions Effective Selling Feedback Forms Faster & Easier Paperwork Completion = More Sales Closed, Less Effort Free Demo Available - License Agreement: www.ongrid.net/payback Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 130 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 131 19
    • Conclusion - Review Conclusion Discussed Demand & TOU variables in more On Grid Solar Electric Systems can: depth Be an attractive financial investment Understood the issues around PBI vs Rebate Demonstrably increase property value Looked at Leases & PPAs to pay for it Hedge against inflation spikes Oh, it’s kinda nice environmentally & socially too… Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 133 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 134 Conclusion Learn More An Attractive & Legal investment… Please see SLI for full day & multi-day classes on other Solar topics OnGrid website: www.ongrid.net Articles Papers PowerPoint presentation PDFs Classes Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 135 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 136 Conclusion Andy Black Solar Financial Analysis Thanks very much for being here today & Sales Software Solar Living Institute: Lindsay Dailey & Jamie Eldrett Solar Power 2007 Contact me with any questions or concerns Please turn in your feedback forms What did you like? (408) 428-0808 What didn’t you like / want changed? andy@ongrid.net Thanks again for coming! Stick around for the interactive session next! www.ongrid.net - Tools, Articles & Papers available Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 137 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 138 20
    • Residential Interactive Example Break? Give me the parameters and we’ll look at the results in Excel model Interactive Examples Usage, system size, price, rebate (for those that wish to stay) Tax bracket, inflation Starting & ending rate schedule % on-peak usage Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 139 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 141 Commercial & Muni Residential Interactive Example Interactive Examples Notice sensitivity to variables: Repeat interactive manipulations for Inflation each Tax bracket Usage & system size Price, rebate, tax credit Rate schedule % on-peak usage Financing & Advanced Financial Analysis for PV Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 142 Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 143 Andy Black Solar Financial Analysis & Sales Software (408) 428-0808 andy@ongrid.net www.ongrid.net - Tools, Articles & Papers available Financing & Advanced Financial Analysis for PV Fall 2007 - SLI © 2007 OnGrid Solar. All rights reserved. 144 21
    • The OnGrid Solar Financial Analysis & Sales Tool Simplify Solar Sales: Andy Black, CEO Solar Financial Consultant Qualify and Close in (408) 428-0808 andy@ongrid.net Less Than a Day! www.ongrid.net Show Your Customers Simplify Your Sales ! Their internal rate of return ! Identify and screen hot leads (solar vs. stock market or interest-based investment) (guides salespeople through the entire sales process) ! Their cash flow for financed systems ! Size PV systems accurately (positive and increasing over time) (time of use, shading, tilt, orientation, incentives and more) ! System’s total lifecycle payback and savings ! Price systems considering all factors (show how much they save over time) (e.g., tile roof, custom mounting, etc.) ! Their increased resale value ! Create proposals, price quotes quickly, onsite (often is more than system cost & increases over time) (one button form generation, documentation, includes CSI) Use customer data to paint them a picture. Example Output*: Cash Flow: Cash Flow: Annual Costs: Solar with Loan vs. No Solar Net Annual Savings When Financed Annual Savings Utility Bill w/o Solar at 5% rate escalation Loan cost, Maintenance, Inverter Net Annual Replacement, & new small electric bill Savings Lifecycle Payback: Resale: Annual Savings Before & After Payback Resale Value Over Time Resale Value Lifetime savings are typically 2-3.5 times system cost Payback Resale Value increases due to increasing annual savings *See website for detailed description and comprehensive list of customizable outputs and displays. 9:00 a.m. 9:30 a.m. 11:00 a.m. 12:00 p.m. 12:30 p.m. 1:00 p.m. 1:30 p.m. Receive Qualify, Site Update Present Bid, Close Turn in Incoming Gather Data, Visit Estimate Contract & the Closed Sales Call Email Print All Docs Docs Sale Sale Estimate (on site) Example Sales Call FREE Demo / Examples: www.ongrid.net/payback ! 2007 OnGrid Solar
    • The OnGrid Solar Financial Analysis & Sales Tool A Time-Saving, Andy Black, CEO Solar Financial Consultant Comprehensive (408) 428-0808 andy@ongrid.net Tool for Solar Sales www.ongrid.net Helps Create & Close More Sales Calculates TOU Value with Shading Proves Payback for the Customer Prepares Rebate & Utility Docs Easily The OnGrid Solar Sales Tool Helps Salespeople: (See www.ongrid.net for comprehensive lists of all details and options) Perform Multiple Solar Financial Identify and Screen Hot Leads, Analyses, option to generate a Develop Accurate Price Quotes, guide them successfully thru Variety Of Proposals including all material, the entire sales process regulatory and job-site factors Fill out Closing Sales Paperwork and Documents (including CSI) with the touch of a button Size PV systems based on customer needs, incentive programs and site data Solar Pathfinder ® Upload shading device data for SunEye ® accurate Time-of-Use value analysis Demonstrate the financial benefits of a solar electric system to your customer with customized calculations. Tailor and brand your printouts. Use them for direct presentations as your sales materials. ! PV System Size & Production ! Financing & Cash Flow ! Current & Future Electric Bills ! Resale Calculations & Graphics ! Cost, Rebate & Tax breakdowns ! Rate of Return Calculations The OnGrid Tool is offered on a subscription basis and is updated frequently with current Rate Schedules, Incentive, Tax and Product information, and periodically with new tool features and benefits. Download the free demo. Then, contact Andy Black at andy@ongrid.net or (408) 428-0808 to start closing more sales. FREE Demo / Examples: www.ongrid.net/payback ! 2007 OnGrid Solar Net Annual Savings