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Solar Project Pricing Index

May, 2012




www.DGEnergyPartners.com
Disclaimer

•   The provision of a report by DG Energy Partners (DGEP) does not obviate the need for potential investors to make further
    appropriate inquiries as to the accuracy of the information included there in, or to undertake an analysis of its own,
•   This report is not intended to be a complete and exhaustive analysis of the subject issues and therefore will not consider some
    factors that are important to a potential investor’s decision making, and
•   DGEP and its employees cannot accept liability for loss suffered in consequence of reliance on the report. Nothing in DGEP’s
    report should be taken as a promise or guarantee as to the occurrence of any future events.
DGEP Project Pricing Index

Purpose

•   The Project Pricing Index represents the respective turnkey costs ($/Watt) to develop PV
    projects in various regions across the United States.
•   This DGEP offering is intended to provide guidance on current project pricing. It is based on
    both internal financial modeling as well as actual market data.
•   The Project Pricing Index should be used as a preliminary guide to assist in establishing
    expectations for baseline turnkey prices for a given region or incentive.
•   Each state places a different level of importance on the implementation of renewable energy
    sources. The result is a contrast in the amount and breadth of PV solar incentives at the state
    and local level.
General Assumptions
Assumptions

The DGEP Project Pricing Index does not account for any unique conditions associated with a
particular project unless otherwise noted in the footnotes. The following are assumed in
development of the project pricing matrices:

 Assumption           Description
 Capacity             Pricing is based on a one megawatt (1 MW, DC) capacity project.
 SREC Pricing         All SREC prices are based on current market levels for 3 year contracts.
 PPA                  PPA prices are based on market information and retail power prices and escalate at
                      2.5% per year.
 FIT Pricing          FITs are reflected in the PPA price (along the y-axis) where applicable. Specific FIT
                      incentives are noted in the footnotes.
 Unlevered            Projects are modeled on an all equity basis; (60% sponsor/40% tax equity).
 No Soft Costs        Project prices do not include various soft costs associated with building a project.
 Operating Expenses   $30/kW, 2.5% escalator; includes O&M, insurance and accounting costs.
Timing and Tax Assumptions
Assumptions

The DGEP Project Pricing Index does not account for any unique conditions associated with a
particular project unless otherwise noted in the footnotes. The following are assumed in
development of the project pricing matrices:


 Assumption                     Description
 Construction Start Date        June 1, 2012
 Placed in Service Date (PIS)   September 1, 2012
 ITC                            Realized 90 days from PIS, December 2012
 Depreciation                   Bonus MACRS assumed, realized 180 days from PIS, March 2013
 State and Local Taxes          No Income, sales or property taxes are assumed in this analysis
Solar Radiation Levels
Solar Radiation levels impact system output and the economic viability of the project. To reflect this,
states have been grouped into 4 matrices according to solar radiation levels.

          1. Solar Radiation: Low                  2. Solar Radiation: Medium
             Output: 1200 kWh/kW Installed             Output: 1300 kWh/kW Installed




          3. Solar Radiation: High                 4. Solar Radiation: Very High
             Output: 1400 kWh/kW Installed               Output: 1500 kWh/kW Installed
Retail Power Prices
     SOLAR RADIATION: LOW                  SOLAR RADIATION: MEDIUM                   SOLAR RADIATION: HIGH            SOLAR RADIATION: VERY HIGH
     State          Retail Power Price        State         Retail Power Price        State      Retail Power Price      State       Retail Power Price
  Connecticut*             $0.16             Alabama               $0.10             Florida            $0.10          California*          $0.14
    Delaware              $0.11             Arkansas              $0.07              Hawaii*           $0.26            Colorado           $0.09
     Indiana*             $0.08              Georgia              $0.09               Idaho            $0.07             Texas             $0.09
    Kentucky              $0.08               Illinois            $0.09              Kansas            $0.08           Wyoming             $0.07
    Maryland              $0.12               Iowa                $0.08             Nebraska           $0.08            Arizona            $0.09
 Massachusetts            $0.15             Louisiana             $0.08             Oklahoma           $0.07            Nevada             $0.10
     Michigan             $0.10               Maine               $0.12           South Dakota         $0.08          New Mexico           $0.09
 New Hampshire            $0.14            Minnesota              $0.08               Utah             $0.07
   New Jersey             $0.14             Mississippi           $0.09
    New York              $0.16              Missouri             $0.07
       Ohio               $0.10             Montana               $0.09
     Oregon               $0.08          North Carolina           $0.08
  Pennsylvania            $0.10           North Dakota            $0.07
  Rhode Island*           $0.13           South Carolina          $0.09
    Vermont               $0.13            Tennessee              $0.10
   Washington             $0.07              Virginia             $0.08
  West Virginia           $0.08
    Wisconsin             $0.10


*Represents states with Feed-in Tariffs, which are not based on local retail power prices.
EPC Pricing Grid                                                                                                                        How to Use this Tool


Step 1: Choose a matrix based on State where project is located.

                                                                           Incentives
                        $0.00                $0.05               $0.10                  $0.15         $0.20            $0.25                $0.30
             $0.03                                                                                                                     $1.58 -   $1.78
             $0.04                                                                                                 $1.54   -   $1.74   $1.77 -   $1.97
             $0.05                                                                                 $1.55 - $1.75   $1.72   -   $1.92   $1.95 -   $2.15
             $0.06
             $0.07
                         Step 2: Use the retail price guide                       $1.50 -$1.70
                                                                                  $1.69- $1.89
                                                                                                   $1.73 -$1.93
                                                                                                   $1.92 -$2.12
                                                                                                                      Step 3: Select an SREC price
                                                                                                                   $1.91
                                                                                                                   $2.09
                                                                                                                           -
                                                                                                                           -
                                                                                                                               $2.11
                                                                                                                               $2.29
                                                                                                                                       $2.13 -
                                                                                                                                       $2.32 -
                                                                                                                                                 $2.33
                                                                                                                                                 $2.52
             $0.08
             $0.09       to determine the PPA-$1.85 that a
                                   $1.61- $1.81
                                                 $1.65
                                                          price
                                                 $1.83 - $2.03
                                                                                  $1.87- $2.07
                                                                                  $2.06 - $2.26
                                                                                                   $2.10 -$2.30
                                                                                                   $2.28 - $2.48      based on current market
                                                                                                                   $2.28
                                                                                                                   $2.46
                                                                                                                           -
                                                                                                                           -
                                                                                                                               $2.48
                                                                                                                               $2.66
                                                                                                                                       $2.50 -
                                                                                                                                       $2.69 -
                                                                                                                                                 $2.70
                                                                                                                                                 $2.89
             $0.10   $1.56- $1.76  $1.79- $1.99  $2.02 -$2.22                     $2.24 - $2.44    $2.47 - $2.67   $2.64   -   $2.84   $2.87 -   $3.07
             $0.11       customer is $2.17
                     $1.75 - $1.95 $1.97 - willing to$2.40
                                                 $2.20 - accept.                  $2.43 -$2.63     $2.65 - $2.85      conditions and local incentives.
                                                                                                                   $2.82   -   $3.02   $3.05 -   $3.25
             $0.12   $1.93   -   $2.13   $2.16   -   $2.36   $2.38   -   $2.58    $2.61 - $2.81    $2.83 - $3.03   $3.01   -   $3.21   $3.23 -   $3.43
             $0.13   $1.93   -   $2.13   $2.34   -   $2.54   $2.56   -   $2.76    $2.79 - $2.99    $3.02 - $3.22   $3.20   -   $3.40   $3.42 -   $3.62
             $0.14   $1.93   -   $2.13   $2.53   -   $2.73   $2.75   -   $2.95    $2.97 - $3.17    $3.20 - $3.40   $3.55   -   $3.75   $3.66 -   $3.86
             $0.15   $1.93   -   $2.13   $2.71   -   $2.91   $2.93   -   $3.13    $3.16 - $3.36    $3.38 - $3.58   $3.73   -   $3.93   $3.84-    $4.00
 PPA Price




                     $1.98   -   $2.18   $2.89   -   $3.09   $3.12   -   $3.32    $3.34 - $3.54
             $0.16
             $0.17   $2.12   -   $2.32   $3.08   -   $3.28   $3.30   -   $3.50    $3.53 - $3.73
                                                                                                  $3.76-- $3.96
                                                                                                   $3.57 $3.77
                                                                                                   $3.76 $3.96
                                                                                                                   $3.91   -   $4.00

             $0.18   $2.26   -   $2.46   $3.26   -   $3.46   $3.49   -   $3.69    $3.71 - $3.91    $3.94 - $4.00
             $0.19   $2.39   -   $2.59   $3.44   -   $3.64   $3.67   -   $3.87    $3.90 - $4.00
             $0.20   $2.51   -   $2.71   $3.63   -   $3.83   $3.85   -   $4.00
             $0.21   $2.65   -   $2.85   $3.81   -   $4.00
             $0.22   $2.78   -   $2.98
             $0.23
             $0.24
                     $2.92
                     $3.06
                             -
                             -
                                 $3.12
                                 $3.26
                                            Step 4: Use the matrix to
             $0.25
             $0.26
                     $3.20
                     $3.34
                             -
                             -
                                 $3.40
                                 $3.54      determine the turnkey price range at
             $0.27
             $0.28   $3.50   -   $3.70      which your project can be financed.
             $0.29   $3.50   -   $3.70
             $0.30   $3.50   -   $3.70
             $0.31   $3.50   -   $3.70
             $0.32   $3.50   -   $3.70
             $0.33   $3.50   -   $3.70
             $0.34   $3.50   -   $3.70
EPC Pricing Grid                                                                                                                                          Solar Radiation: Low


                                                                                                                                               Incentives
                                                                                                $0.00                $0.05             $0.10                $0.15          $0.20             $0.25                $0.30
                                                                                     $0.03                                                                                                                   $1.58 -   $1.78
                                                                                     $0.04                                                                                               $1.54   -   $1.74   $1.77 -   $1.97
                                                                                     $0.05                                                                             $1.55   - $1.75   $1.72   -   $1.92   $1.95 -   $2.15
                                                                                     $0.06                                                            $1.50 -$1.70     $1.73    -$1.93   $1.91   -   $2.11   $2.13 -   $2.33
                                                                                     $0.07                                                            $1.69- $1.89     $1.92    -$2.12   $2.09   -   $2.29   $2.32 -   $2.52
                                                                                     $0.08                                         $1.65    -$1.85    $1.87- $2.07     $2.10    -$2.30   $2.28   -   $2.48   $2.50 -   $2.70
                                                                                     $0.09                       $1.61-    $1.81   $1.83   - $2.03    $2.06 - $2.26    $2.28   - $2.48   $2.46   -   $2.66   $2.69 -   $2.89
                                                                                     $0.10   $1.56-      $1.76   $1.79-    $1.99   $2.02    -$2.22    $2.24 - $2.44    $2.47   - $2.67   $2.64   -   $2.84   $2.87 -   $3.07
                                                                                     $0.11   $1.75 -     $1.95   $1.97 -   $2.17   $2.20    -$2.40    $2.43 -$2.63     $2.65   - $2.85   $2.82   -   $3.02   $3.05 -   $3.25
                                                                                     $0.12   $1.93 -     $2.13   $2.16 -   $2.36   $2.38   - $2.58    $2.61 - $2.81    $2.83   - $3.03   $3.01   -   $3.21   $3.23 -   $3.43
                                                                                     $0.13   $1.93 -     $2.13   $2.34 -   $2.54   $2.56   - $2.76    $2.79 - $2.99    $3.02   - $3.22   $3.20   -   $3.40   $3.42 -   $3.62
      State     kWh/kW   Incentive            Price           Unit                   $0.14   $1.93 -     $2.13   $2.53 -   $2.73   $2.75   - $2.95    $2.97 - $3.17    $3.20   - $3.40   $3.55   -   $3.75   $3.66 -   $3.86
Connecticut       1176     ZREC              $0.35 (1)        kWh                    $0.15   $1.93 -     $2.13   $2.71 -   $2.91   $2.93   - $3.13    $3.16 - $3.36    $3.38   - $3.58   $3.73   -   $3.93   $3.84-    $4.00
                                                                         PPA Price




Connecticut       1176     LREC              $0.20 (1)        kWh                    $0.16   $1.98 -     $2.18   $2.89 -   $3.09   $3.12   - $3.32    $3.34 - $3.54    $3.57   - $3.77   $3.91   -   $4.00
Delaware          1240       -                   -                                   $0.17   $2.12 -     $2.32   $3.08 -   $3.28   $3.30   - $3.50    $3.53 - $3.73    $3.76   - $3.96
Indiana           1189      FIT           $.20 - $0.26 (2)    kWh
                                                                                     $0.18   $2.26 -     $2.46   $3.26 -   $3.46   $3.49   - $3.69    $3.71 - $3.91    $3.94   - $4.00
Kentucky          1190       -                   -
                                                                                     $0.19   $2.39 -     $2.59   $3.44 -   $3.64   $3.67   - $3.87    $3.90 - $4.00
Maryland          1228     SREC               $0.20           kWh
Massachusetts     1233     SREC               $0.20           kWh                    $0.20   $2.51 -     $2.71   $3.63 -   $3.83   $3.85   - $4.00
Michigan          1130       -                   -                                   $0.21   $2.65 -     $2.85   $3.81 -   $4.00
New Hampshire     1236       -                   -                                   $0.22   $2.78 -     $2.98
New Jersey        1217     SREC               $0.14           kWh                    $0.23   $2.92 -     $3.12
New York          1154 Rebate / PBI (3)        ***                                   $0.24   $3.06 -     $3.26
Ohio              1127     SREC               $0.19           kWh                    $0.25   $3.20 -     $3.40
Oregon            1131       -                   -                                   $0.26   $3.34 -     $3.54
Pennsylvania      1132     SREC               $0.04           kWh
                                                                                     $0.27
Rhode Island      1248      FIT         $.2895 - $.3335 (4)   kWh
Vermont           1167       -                   -
                                                                                     $0.28   $3.50   -   $3.70
Washington        1045       -                   -                                   $0.29   $3.50   -   $3.70
West Virginia     1130       -                   -                                   $0.30   $3.50   -   $3.70
Wisconsin         1214       -                   -                                   $0.31   $3.50   -   $3.70
                                                                                     $0.32   $3.50   -   $3.70
                                                                                     $0.33   $3.50   -   $3.70
                                                                                     $0.34   $3.50   -   $3.70



                                                                     **Assumptions: 1 MW, DC capacity - 3 yr SREC pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Basis - No Soft Costs - 20 yr FIT
                                                                     (CT & RI), no escalation and 15 yr FIT (IN), no escalation.
EPC Pricing Grid                                                                                                                         Solar Radiation: Medium


                                                                                                                                           SREC Price
                                                                                                                                           Incentives
                                                                                         $0.00                $0.05               $0.10                 $0.15           $0.20             $0.25                   $0.30
                                                                              $0.03
                                                                              $0.04
                                                                              $0.05                                                                                                                       $2.19    -   $2.39
                                                                              $0.06                                                                                                   $2.15   -   $2.35   $2.39    -   $2.59
                                                                              $0.07                                                                                 $2.10    -$2.30   $2.35   -   $2.55   $2.59    -   $2.79
                                                                              $0.08                                                               $2.06    -$2.26   $2.30    -$2.50   $2.55   -   $2.75   $2.79    -   $2.99
                                                                              $0.09                                           $3.06   - $3.26     $2.26   - $2.46   $2.50   - $2.70   $2.75   -   $2.95   $2.99    -   $3.19
                                                                              $0.10                                           $3.25    - $3.45    $2.46   - $2.66   $2.70   - $2.90   $2.94   -   $3.14   $3.19    -   $3.39
                                                                              $0.11                       $2.16   -   $2.36   $3.45     -$3.65    $2.65    -$2.85   $2.90   - $3.10   $3.14   -   $3.34   $3.39    -   $3.59
                                                                              $0.12   $2.11   -   $2.31   $2.36   -   $2.56   $2.61   - $2.81     $2.85   - $3.05   $3.10   - $3.30   $3.34   -   $3.54   $3.59    -   $3.79
                                                                              $0.13   $2.31   -   $2.51   $2.55   -   $2.75   $2.81   - $3.01     $3.05   - $3.25   $3.30   - $3.50   $3.54   -   $3.74   $3.79    -   $3.99
       State     kWh/kW   Incentive (4)     Price       Unit                  $0.14   $2.51   -   $2.71   $2.76   -   $2.96   $3.01   - $3.21     $3.25   - $3.45   $3.50   - $3.70   $3.74   -   $3.94   $3.99    -   $4.00
Alabama            1278       TVA         Ret + $0.12   kWh                   $0.15   $2.72   -   $2.92   $2.95   -   $3.15   $3.20   - $3.40     $3.45   - $3.65   $3.70   - $3.90   $3.94   -   $4.00
                                                                  PPA Price




Arkansas           1314        -               -                              $0.16   $2.91   -   $3.11   $3.16   -   $3.36   $3.41   - $3.61     $3.65   - $3.85   $3.90   - $4.00
Georgia            1314       TVA         Ret + $0.12   kWh                   $0.17   $2.91   -   $3.11   $3.35   -   $3.55   $3.61   - $3.81     $3.85   - $4.00
Illinois           1227        -               -                              $0.18   $2.91   -   $3.11   $3.56   -   $3.76   $3.81   - $4.00
Iowa               1296        -               -                              $0.19   $2.91   -   $3.11   $3.75   -   $3.95
Louisiana          1285        -               -
                                  (5)
                                                                              $0.20   $3.11   -   $3.31   $3.95   -   $4.00
Maine              1235     SREC            $0.10       kWh
Minnesota          1250        -               -
                                                                              $0.21   $3.31   -   $3.51
Mississippi        1282      TVA          Ret + $0.12   kWh                   $0.22   $3.51   -   $3.71
Missouri           1295        -               -                              $0.23   $3.51   -   $3.71
Montana            1317        -               -                              $0.24
North Carolina     1303      TVA          Ret + $0.12   kWh                   $0.25
North Dakota       1316        -               -                              $0.26
South Carolina     1321        -               -                              $0.27
Tennessee          1242      TVA          Ret + $0.12   kWh                   $0.28
Virginia           1278      TVA          Ret + $0.12   kWh
                                                                              $0.29
                                                                              $0.30
                                                                              $0.31
                                                                              $0.32
                                                                              $0.33
                                                                              $0.34




                                                               **Assumptions: 1 MW, DC capacity - 3 yr SREC pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Basis - No Soft Costs
EPC Pricing Grid                                                                                                                                   Solar Radiation: High


                                                                                                                                         Incentives
                                                                                          $0.00              $0.05               $0.10                $0.15            $0.20             $0.25                   $0.30
                                                                               $0.03
                                                                               $0.04                                                                                                                     $2.17    -   $2.37
                                                                               $0.05                                                                                                 $2.12   -   $2.32   $2.38    -   $2.58
                                                                               $0.06                                                                               $2.07    -$2.27   $2.33   -   $2.53   $2.60    -   $2.80
                                                                               $0.07                                                            $2.02    -$2.22    $2.28    -$2.48   $2.55   -   $2.75   $2.81    -   $3.01
                                                                               $0.08                                                            $2.23    -$2.43    $2.50    -$2.70   $2.76   -   $2.96   $3.03    -   $3.23
                                                                               $0.09                                         $2.19   - $2.39    $2.45   - $2.65    $2.71   - $2.91   $2.97   -   $3.17   $3.24    -   $3.44
                                                                               $0.10                     $2.13   -   $2.33   $2.40    -$2.60    $2.66   - $2.86    $2.93   - $3.13   $3.19   -   $3.39   $3.45    -   $3.65
                                                                               $0.11   $2.09 -   $2.29   $2.34   -   $2.54   $2.61    -$2.81    $2.87    -$3.07    $3.14   - $3.34   $3.40   -   $3.60   $3.67    -   $3.87
                                                                               $0.12   $2.29 -   $2.49   $2.56   -   $2.76   $2.82   - $3.02    $3.08   - $3.28    $3.35   - $3.55   $3.62   -   $3.82   $3.88    -   $4.00
                                                                               $0.13   $2.51 -   $2.71   $2.77   -   $2.97   $3.04   - $3.24    $3.30   - $3.50    $3.57   - $3.77   $3.83   -   $4.00
   State       kWh/kW   Incentive        Price          Unit                   $0.14   $2.73 -   $2.93   $2.99   -   $3.19   $3.25   - $3.45    $3.52   - $3.72    $3.78   - $3.98
  Florida       1331        -                                                  $0.15   $2.94 -   $3.14   $3.20   -   $3.40   $3.47   - $3.67    $3.73   - $3.93
                                                                   PPA Price




  Hawaii        1377       FIT      $.197 - $.218 (6)   kWh                    $0.16   $3.15 -   $3.35   $3.42   -   $3.62   $3.68   - $3.88    $3.95   - $4.00
   Idaho        1353        -                                                  $0.17   $3.37 -   $3.57   $3.63   -   $3.83   $3.90   - $4.00
   Kansas       1438        -                                                  $0.18   $3.58 -   $3.78   $3.85   -   $4.00
 Nebraska       1397        -
                                                                               $0.19   $3.58 -   $3.78
 Oklahoma       1383        -
                                                                               $0.20   $3.58-    $3.78
South Dakota    1363        -
   Utah         1485        -
                                                                               $0.21   $3.58-    $3.78
                                                                               $0.22   $3.58-    $3.78
                                                                               $0.23
                                                                               $0.24
                                                                               $0.25
                                                                               $0.26
                                                                               $0.27
                                                                               $0.28
                                                                               $0.29
                                                                               $0.30
                                                                               $0.31
                                                                               $0.32
                                                                               $0.33
                                                                               $0.34




                                                               **Assumptions: 1 MW, DC capacity - 3 yr SREC pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Basis - No Soft Costs
EPC Pricing Grid                                                                                                                        Solar Radiation: Very High


                                                                                                                                         Incentives
                                                                                      $0.00                $0.05               $0.10                  $0.15           $0.20             $0.25                   $0.30
                                                                           $0.03                                           $2.20   -   $2.40                                                            $2.19    -   $2.39
                                                                           $0.04                                           $2.40   -   $2.60                                        $2.13   -   $2.33   $2.43    -   $2.63
                                                                           $0.05                                           $2.60   -   $2.80                      $2.08   - $2.28   $2.37   -   $2.57   $2.66    -   $2.86
                                                                           $0.06                                           $2.80   -   $3.00    $2.03    -$2.23   $2.32    -$2.52   $2.61   -   $2.81   $2.90    -   $3.10
                                                                           $0.07                                                                $2.27    -$2.47   $2.56    -$2.76   $2.85   -   $3.05   $3.14    -   $3.34
                                                                           $0.08                                           $2.21    -$2.41      $2.50    -$2.70   $2.80    -$3.00   $3.09   -   $3.29   $3.38    -   $3.58
                                                                           $0.09                       $1.88   -   $2.08   $2.45   - $2.65      $2.74   - $2.94   $3.03   - $3.23   $3.32   -   $3.52   $3.62    -   $3.82
                                                                           $0.10   $2.10   -   $2.30   $2.12   -   $2.32   $2.69    -$2.89      $2.98   - $3.18   $3.27   - $3.47   $3.56   -   $3.76   $3.85    -   $4.05
                                                                           $0.11   $2.34   -   $2.54   $2.35   -   $2.55   $2.92    -$3.12      $3.21    -$3.41   $3.51   - $3.71   $3.80   -   $4.00
                                                                           $0.12   $2.57   -   $2.77   $2.86   -   $3.06   $3.16   - $3.36      $3.45   - $3.65   $3.74   - $3.94
                                                                           $0.13   $2.81   -   $3.01   $3.10   -   $3.30   $3.39   - $3.59      $3.69   - $3.89   $3.98   - $4.18
  State       kWh/kW   Incentive        Price       Unit                   $0.14   $2.81   -   $3.01   $3.34   -   $3.54   $3.63   - $3.83      $3.93   - $4.13
 California    1429      FIT (7)      $.15 - $.17   kWh                    $0.15   $2.81   -   $3.01   $3.58   -   $3.78   $3.87   - $4.07
                                                               PPA Price




 California    1429       PBI           $0.04       kWh                    $0.16   $2.81   -   $3.01   $3.82   -   $4.02
 Colorado      1450             (8)     $0.10
                        SREC                        kWh                    $0.17   $2.81   -   $3.01
   Texas       1463        -                                               $0.18
 Wyoming       1449         -
                                                                           $0.19
  Arizona      1637         -
                                                                           $0.20
  Nevada       1545         -
                                                                           $0.21
New Mexico     1631         -
                                                                           $0.22
                                                                           $0.23
                                                                           $0.24
                                                                           $0.25
                                                                           $0.26
                                                                           $0.27
                                                                           $0.28
                                                                           $0.29
                                                                           $0.30
                                                                           $0.31
                                                                           $0.32
                                                                           $0.33
                                                                           $0.34




                                                           **Assumptions: 1 MW, DC capacity - 20 yr REC (CO), 5 yr PBI (CA), 3 yr SREC for all other pricing - 20 yr PPA, 3% Escalator - No State Tax -
                                                           Unlevered Project - No Soft Costs
Footnotes
        State                 Incentive              Description
 (1)
       Connecticut            ZREC & LREC:           United Illuminating (UI) and Connecticut Light and Power (CL&P) offer 15-year REC contracts.
                                                       ZREC: Capacity of 100-1000 kW, DC: $0.35 / kWh
                                                       LREC: Capacity up to 2000 kW, DC: $0.20 / kWh
                                                     DGEP Pricing Index assumes a 15-year flat REC, and a PPA of $0.10 / kWh for years 16-20.
 (2)
       Indiana               Feed-in Tariff:         NIPSCO offers a 15-year FIT of $0.26 / kWh for projects between 10-2000 kW, DC.
                                                     Indianapolis P&L offers the following 15-year FIT program:
                                                        Capacity of 20-100 kW, DC: $0.24 / kWh
                                                        Capacity of 101-10,000 kW, DC: $0.20 / kWh
                                                     DGEP Pricing Index assumes a 15-year flat FIT, and a PPA of $0.10 / kWh for years
                                                     16-20, and a land lease expense of $.02-$.04 / kWh.
 (3)
       New York                   PBI:               NYSERDA PON 2156 & 2484 (max. of 50% of installed cost)
                                                       15% upfront, paid when equipment procured/transported to project site
                                                       15% upfront, paid when project is interconnected to grid and can provide performance data
                                                       70% paid based on performance of system
 (4)
       Rhode Island          Feed-in Tariff:         National Grid FIT:
                                                       Capacity of 10-150 kW, DC: $0.3335 / kWh
                                                       Capacity of 151-500 kW, DC: $0.316 / kWh
                                                       Capacity of 501-5000 kW, DC: $0.2895 / kWh, awarded via a bid process, not to exceed $.02895
 (5)
       Various         Tennessee Valley Authority    TVA pays $0.12/kWh above the retail base power rate.
                      Generation Partners Program:   The maximum system capacity allowed in this program is 50 kW, DC.
 (6)
       Maine                     SREC:               Pricing Index based on 20-year SREC contract with no escalation (Maine PUC).
 (7)
       Hawaii                Feed-in Tariff:         HECO, MECO, HELCO FIT:
                                                       Capacity of <20 kW, DC: $0.218 / kWh (Tier 1)
                                                       Capacity of 21-500 kW, DC: $0.189 / kWh (Tier 2)
                                                       Capacity of 501-5000 kW, DC: $0.197 / kWh (Tier 3)
 (8)
       California         State Feed-in Tariff:      CPUC offers 10, 15 or 20-year FITs and is based on CPUC market price referent.
                                                     Recent contracts have been in the $0.10-$0.12 / kWh range.
                        Palo Alto Feed-in Tariff:    The City offers the following FIT programs:
                                                       20-year contract: $0.14003 / kWh
                                                       15-year contract: $0.13216 / kWh
                                                       10-year contract: $0.12360 / kWh
                                  PBI:               CPUC offers upfront rebates based on expected performance. Currently, the PBI payments
                                                     are $0.044 / kWh, and will ultimately drop to $0.025 / kWh.
 (9)
       Colorado                  SREC:               Xcel Energy has offered a REC program for PV projects. It is currently on hold, but
                                                     is expected to resume shortly. REC pricing is expected to be for two rounds of 8MW, DC at $.10/kWh and $.09/kWh.
                                                     Xcel has awareded a round of RECs at $.11/kWh in April 2012.
Solar Project Exchange
The Project Pricing Index is a free information tool provided by DG Energy Partners
as a compliment to the Solar Project Exchange service.

DGEP works with EPC firms to connect projects with financing partners. For PPA
providers, the service acts as a pipeline of quality projects specific to their
investment criteria.

Additional services include deal structuring, financial modeling, project
development, foreign investment and market research.
Advisory | Brokerage | Research




Contact DG Energy Partners for pricing of a specific project
   and for full access to the DGEP Project Pricing Tool.


               www.DGEnergyPartners.com
               info@dgenergypartners.com
                     (646) 416 6252

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DGEP Project Pricing Index

  • 1. Solar Project Pricing Index May, 2012 www.DGEnergyPartners.com
  • 2. Disclaimer • The provision of a report by DG Energy Partners (DGEP) does not obviate the need for potential investors to make further appropriate inquiries as to the accuracy of the information included there in, or to undertake an analysis of its own, • This report is not intended to be a complete and exhaustive analysis of the subject issues and therefore will not consider some factors that are important to a potential investor’s decision making, and • DGEP and its employees cannot accept liability for loss suffered in consequence of reliance on the report. Nothing in DGEP’s report should be taken as a promise or guarantee as to the occurrence of any future events.
  • 3. DGEP Project Pricing Index Purpose • The Project Pricing Index represents the respective turnkey costs ($/Watt) to develop PV projects in various regions across the United States. • This DGEP offering is intended to provide guidance on current project pricing. It is based on both internal financial modeling as well as actual market data. • The Project Pricing Index should be used as a preliminary guide to assist in establishing expectations for baseline turnkey prices for a given region or incentive. • Each state places a different level of importance on the implementation of renewable energy sources. The result is a contrast in the amount and breadth of PV solar incentives at the state and local level.
  • 4. General Assumptions Assumptions The DGEP Project Pricing Index does not account for any unique conditions associated with a particular project unless otherwise noted in the footnotes. The following are assumed in development of the project pricing matrices: Assumption Description Capacity Pricing is based on a one megawatt (1 MW, DC) capacity project. SREC Pricing All SREC prices are based on current market levels for 3 year contracts. PPA PPA prices are based on market information and retail power prices and escalate at 2.5% per year. FIT Pricing FITs are reflected in the PPA price (along the y-axis) where applicable. Specific FIT incentives are noted in the footnotes. Unlevered Projects are modeled on an all equity basis; (60% sponsor/40% tax equity). No Soft Costs Project prices do not include various soft costs associated with building a project. Operating Expenses $30/kW, 2.5% escalator; includes O&M, insurance and accounting costs.
  • 5. Timing and Tax Assumptions Assumptions The DGEP Project Pricing Index does not account for any unique conditions associated with a particular project unless otherwise noted in the footnotes. The following are assumed in development of the project pricing matrices: Assumption Description Construction Start Date June 1, 2012 Placed in Service Date (PIS) September 1, 2012 ITC Realized 90 days from PIS, December 2012 Depreciation Bonus MACRS assumed, realized 180 days from PIS, March 2013 State and Local Taxes No Income, sales or property taxes are assumed in this analysis
  • 6. Solar Radiation Levels Solar Radiation levels impact system output and the economic viability of the project. To reflect this, states have been grouped into 4 matrices according to solar radiation levels. 1. Solar Radiation: Low 2. Solar Radiation: Medium Output: 1200 kWh/kW Installed Output: 1300 kWh/kW Installed 3. Solar Radiation: High 4. Solar Radiation: Very High Output: 1400 kWh/kW Installed Output: 1500 kWh/kW Installed
  • 7. Retail Power Prices SOLAR RADIATION: LOW SOLAR RADIATION: MEDIUM SOLAR RADIATION: HIGH SOLAR RADIATION: VERY HIGH State Retail Power Price State Retail Power Price State Retail Power Price State Retail Power Price Connecticut* $0.16 Alabama $0.10 Florida $0.10 California* $0.14 Delaware $0.11 Arkansas $0.07 Hawaii* $0.26 Colorado $0.09 Indiana* $0.08 Georgia $0.09 Idaho $0.07 Texas $0.09 Kentucky $0.08 Illinois $0.09 Kansas $0.08 Wyoming $0.07 Maryland $0.12 Iowa $0.08 Nebraska $0.08 Arizona $0.09 Massachusetts $0.15 Louisiana $0.08 Oklahoma $0.07 Nevada $0.10 Michigan $0.10 Maine $0.12 South Dakota $0.08 New Mexico $0.09 New Hampshire $0.14 Minnesota $0.08 Utah $0.07 New Jersey $0.14 Mississippi $0.09 New York $0.16 Missouri $0.07 Ohio $0.10 Montana $0.09 Oregon $0.08 North Carolina $0.08 Pennsylvania $0.10 North Dakota $0.07 Rhode Island* $0.13 South Carolina $0.09 Vermont $0.13 Tennessee $0.10 Washington $0.07 Virginia $0.08 West Virginia $0.08 Wisconsin $0.10 *Represents states with Feed-in Tariffs, which are not based on local retail power prices.
  • 8. EPC Pricing Grid How to Use this Tool Step 1: Choose a matrix based on State where project is located. Incentives $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.03 $1.58 - $1.78 $0.04 $1.54 - $1.74 $1.77 - $1.97 $0.05 $1.55 - $1.75 $1.72 - $1.92 $1.95 - $2.15 $0.06 $0.07 Step 2: Use the retail price guide $1.50 -$1.70 $1.69- $1.89 $1.73 -$1.93 $1.92 -$2.12 Step 3: Select an SREC price $1.91 $2.09 - - $2.11 $2.29 $2.13 - $2.32 - $2.33 $2.52 $0.08 $0.09 to determine the PPA-$1.85 that a $1.61- $1.81 $1.65 price $1.83 - $2.03 $1.87- $2.07 $2.06 - $2.26 $2.10 -$2.30 $2.28 - $2.48 based on current market $2.28 $2.46 - - $2.48 $2.66 $2.50 - $2.69 - $2.70 $2.89 $0.10 $1.56- $1.76 $1.79- $1.99 $2.02 -$2.22 $2.24 - $2.44 $2.47 - $2.67 $2.64 - $2.84 $2.87 - $3.07 $0.11 customer is $2.17 $1.75 - $1.95 $1.97 - willing to$2.40 $2.20 - accept. $2.43 -$2.63 $2.65 - $2.85 conditions and local incentives. $2.82 - $3.02 $3.05 - $3.25 $0.12 $1.93 - $2.13 $2.16 - $2.36 $2.38 - $2.58 $2.61 - $2.81 $2.83 - $3.03 $3.01 - $3.21 $3.23 - $3.43 $0.13 $1.93 - $2.13 $2.34 - $2.54 $2.56 - $2.76 $2.79 - $2.99 $3.02 - $3.22 $3.20 - $3.40 $3.42 - $3.62 $0.14 $1.93 - $2.13 $2.53 - $2.73 $2.75 - $2.95 $2.97 - $3.17 $3.20 - $3.40 $3.55 - $3.75 $3.66 - $3.86 $0.15 $1.93 - $2.13 $2.71 - $2.91 $2.93 - $3.13 $3.16 - $3.36 $3.38 - $3.58 $3.73 - $3.93 $3.84- $4.00 PPA Price $1.98 - $2.18 $2.89 - $3.09 $3.12 - $3.32 $3.34 - $3.54 $0.16 $0.17 $2.12 - $2.32 $3.08 - $3.28 $3.30 - $3.50 $3.53 - $3.73 $3.76-- $3.96 $3.57 $3.77 $3.76 $3.96 $3.91 - $4.00 $0.18 $2.26 - $2.46 $3.26 - $3.46 $3.49 - $3.69 $3.71 - $3.91 $3.94 - $4.00 $0.19 $2.39 - $2.59 $3.44 - $3.64 $3.67 - $3.87 $3.90 - $4.00 $0.20 $2.51 - $2.71 $3.63 - $3.83 $3.85 - $4.00 $0.21 $2.65 - $2.85 $3.81 - $4.00 $0.22 $2.78 - $2.98 $0.23 $0.24 $2.92 $3.06 - - $3.12 $3.26 Step 4: Use the matrix to $0.25 $0.26 $3.20 $3.34 - - $3.40 $3.54 determine the turnkey price range at $0.27 $0.28 $3.50 - $3.70 which your project can be financed. $0.29 $3.50 - $3.70 $0.30 $3.50 - $3.70 $0.31 $3.50 - $3.70 $0.32 $3.50 - $3.70 $0.33 $3.50 - $3.70 $0.34 $3.50 - $3.70
  • 9. EPC Pricing Grid Solar Radiation: Low Incentives $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.03 $1.58 - $1.78 $0.04 $1.54 - $1.74 $1.77 - $1.97 $0.05 $1.55 - $1.75 $1.72 - $1.92 $1.95 - $2.15 $0.06 $1.50 -$1.70 $1.73 -$1.93 $1.91 - $2.11 $2.13 - $2.33 $0.07 $1.69- $1.89 $1.92 -$2.12 $2.09 - $2.29 $2.32 - $2.52 $0.08 $1.65 -$1.85 $1.87- $2.07 $2.10 -$2.30 $2.28 - $2.48 $2.50 - $2.70 $0.09 $1.61- $1.81 $1.83 - $2.03 $2.06 - $2.26 $2.28 - $2.48 $2.46 - $2.66 $2.69 - $2.89 $0.10 $1.56- $1.76 $1.79- $1.99 $2.02 -$2.22 $2.24 - $2.44 $2.47 - $2.67 $2.64 - $2.84 $2.87 - $3.07 $0.11 $1.75 - $1.95 $1.97 - $2.17 $2.20 -$2.40 $2.43 -$2.63 $2.65 - $2.85 $2.82 - $3.02 $3.05 - $3.25 $0.12 $1.93 - $2.13 $2.16 - $2.36 $2.38 - $2.58 $2.61 - $2.81 $2.83 - $3.03 $3.01 - $3.21 $3.23 - $3.43 $0.13 $1.93 - $2.13 $2.34 - $2.54 $2.56 - $2.76 $2.79 - $2.99 $3.02 - $3.22 $3.20 - $3.40 $3.42 - $3.62 State kWh/kW Incentive Price Unit $0.14 $1.93 - $2.13 $2.53 - $2.73 $2.75 - $2.95 $2.97 - $3.17 $3.20 - $3.40 $3.55 - $3.75 $3.66 - $3.86 Connecticut 1176 ZREC $0.35 (1) kWh $0.15 $1.93 - $2.13 $2.71 - $2.91 $2.93 - $3.13 $3.16 - $3.36 $3.38 - $3.58 $3.73 - $3.93 $3.84- $4.00 PPA Price Connecticut 1176 LREC $0.20 (1) kWh $0.16 $1.98 - $2.18 $2.89 - $3.09 $3.12 - $3.32 $3.34 - $3.54 $3.57 - $3.77 $3.91 - $4.00 Delaware 1240 - - $0.17 $2.12 - $2.32 $3.08 - $3.28 $3.30 - $3.50 $3.53 - $3.73 $3.76 - $3.96 Indiana 1189 FIT $.20 - $0.26 (2) kWh $0.18 $2.26 - $2.46 $3.26 - $3.46 $3.49 - $3.69 $3.71 - $3.91 $3.94 - $4.00 Kentucky 1190 - - $0.19 $2.39 - $2.59 $3.44 - $3.64 $3.67 - $3.87 $3.90 - $4.00 Maryland 1228 SREC $0.20 kWh Massachusetts 1233 SREC $0.20 kWh $0.20 $2.51 - $2.71 $3.63 - $3.83 $3.85 - $4.00 Michigan 1130 - - $0.21 $2.65 - $2.85 $3.81 - $4.00 New Hampshire 1236 - - $0.22 $2.78 - $2.98 New Jersey 1217 SREC $0.14 kWh $0.23 $2.92 - $3.12 New York 1154 Rebate / PBI (3) *** $0.24 $3.06 - $3.26 Ohio 1127 SREC $0.19 kWh $0.25 $3.20 - $3.40 Oregon 1131 - - $0.26 $3.34 - $3.54 Pennsylvania 1132 SREC $0.04 kWh $0.27 Rhode Island 1248 FIT $.2895 - $.3335 (4) kWh Vermont 1167 - - $0.28 $3.50 - $3.70 Washington 1045 - - $0.29 $3.50 - $3.70 West Virginia 1130 - - $0.30 $3.50 - $3.70 Wisconsin 1214 - - $0.31 $3.50 - $3.70 $0.32 $3.50 - $3.70 $0.33 $3.50 - $3.70 $0.34 $3.50 - $3.70 **Assumptions: 1 MW, DC capacity - 3 yr SREC pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Basis - No Soft Costs - 20 yr FIT (CT & RI), no escalation and 15 yr FIT (IN), no escalation.
  • 10. EPC Pricing Grid Solar Radiation: Medium SREC Price Incentives $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.03 $0.04 $0.05 $2.19 - $2.39 $0.06 $2.15 - $2.35 $2.39 - $2.59 $0.07 $2.10 -$2.30 $2.35 - $2.55 $2.59 - $2.79 $0.08 $2.06 -$2.26 $2.30 -$2.50 $2.55 - $2.75 $2.79 - $2.99 $0.09 $3.06 - $3.26 $2.26 - $2.46 $2.50 - $2.70 $2.75 - $2.95 $2.99 - $3.19 $0.10 $3.25 - $3.45 $2.46 - $2.66 $2.70 - $2.90 $2.94 - $3.14 $3.19 - $3.39 $0.11 $2.16 - $2.36 $3.45 -$3.65 $2.65 -$2.85 $2.90 - $3.10 $3.14 - $3.34 $3.39 - $3.59 $0.12 $2.11 - $2.31 $2.36 - $2.56 $2.61 - $2.81 $2.85 - $3.05 $3.10 - $3.30 $3.34 - $3.54 $3.59 - $3.79 $0.13 $2.31 - $2.51 $2.55 - $2.75 $2.81 - $3.01 $3.05 - $3.25 $3.30 - $3.50 $3.54 - $3.74 $3.79 - $3.99 State kWh/kW Incentive (4) Price Unit $0.14 $2.51 - $2.71 $2.76 - $2.96 $3.01 - $3.21 $3.25 - $3.45 $3.50 - $3.70 $3.74 - $3.94 $3.99 - $4.00 Alabama 1278 TVA Ret + $0.12 kWh $0.15 $2.72 - $2.92 $2.95 - $3.15 $3.20 - $3.40 $3.45 - $3.65 $3.70 - $3.90 $3.94 - $4.00 PPA Price Arkansas 1314 - - $0.16 $2.91 - $3.11 $3.16 - $3.36 $3.41 - $3.61 $3.65 - $3.85 $3.90 - $4.00 Georgia 1314 TVA Ret + $0.12 kWh $0.17 $2.91 - $3.11 $3.35 - $3.55 $3.61 - $3.81 $3.85 - $4.00 Illinois 1227 - - $0.18 $2.91 - $3.11 $3.56 - $3.76 $3.81 - $4.00 Iowa 1296 - - $0.19 $2.91 - $3.11 $3.75 - $3.95 Louisiana 1285 - - (5) $0.20 $3.11 - $3.31 $3.95 - $4.00 Maine 1235 SREC $0.10 kWh Minnesota 1250 - - $0.21 $3.31 - $3.51 Mississippi 1282 TVA Ret + $0.12 kWh $0.22 $3.51 - $3.71 Missouri 1295 - - $0.23 $3.51 - $3.71 Montana 1317 - - $0.24 North Carolina 1303 TVA Ret + $0.12 kWh $0.25 North Dakota 1316 - - $0.26 South Carolina 1321 - - $0.27 Tennessee 1242 TVA Ret + $0.12 kWh $0.28 Virginia 1278 TVA Ret + $0.12 kWh $0.29 $0.30 $0.31 $0.32 $0.33 $0.34 **Assumptions: 1 MW, DC capacity - 3 yr SREC pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Basis - No Soft Costs
  • 11. EPC Pricing Grid Solar Radiation: High Incentives $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.03 $0.04 $2.17 - $2.37 $0.05 $2.12 - $2.32 $2.38 - $2.58 $0.06 $2.07 -$2.27 $2.33 - $2.53 $2.60 - $2.80 $0.07 $2.02 -$2.22 $2.28 -$2.48 $2.55 - $2.75 $2.81 - $3.01 $0.08 $2.23 -$2.43 $2.50 -$2.70 $2.76 - $2.96 $3.03 - $3.23 $0.09 $2.19 - $2.39 $2.45 - $2.65 $2.71 - $2.91 $2.97 - $3.17 $3.24 - $3.44 $0.10 $2.13 - $2.33 $2.40 -$2.60 $2.66 - $2.86 $2.93 - $3.13 $3.19 - $3.39 $3.45 - $3.65 $0.11 $2.09 - $2.29 $2.34 - $2.54 $2.61 -$2.81 $2.87 -$3.07 $3.14 - $3.34 $3.40 - $3.60 $3.67 - $3.87 $0.12 $2.29 - $2.49 $2.56 - $2.76 $2.82 - $3.02 $3.08 - $3.28 $3.35 - $3.55 $3.62 - $3.82 $3.88 - $4.00 $0.13 $2.51 - $2.71 $2.77 - $2.97 $3.04 - $3.24 $3.30 - $3.50 $3.57 - $3.77 $3.83 - $4.00 State kWh/kW Incentive Price Unit $0.14 $2.73 - $2.93 $2.99 - $3.19 $3.25 - $3.45 $3.52 - $3.72 $3.78 - $3.98 Florida 1331 - $0.15 $2.94 - $3.14 $3.20 - $3.40 $3.47 - $3.67 $3.73 - $3.93 PPA Price Hawaii 1377 FIT $.197 - $.218 (6) kWh $0.16 $3.15 - $3.35 $3.42 - $3.62 $3.68 - $3.88 $3.95 - $4.00 Idaho 1353 - $0.17 $3.37 - $3.57 $3.63 - $3.83 $3.90 - $4.00 Kansas 1438 - $0.18 $3.58 - $3.78 $3.85 - $4.00 Nebraska 1397 - $0.19 $3.58 - $3.78 Oklahoma 1383 - $0.20 $3.58- $3.78 South Dakota 1363 - Utah 1485 - $0.21 $3.58- $3.78 $0.22 $3.58- $3.78 $0.23 $0.24 $0.25 $0.26 $0.27 $0.28 $0.29 $0.30 $0.31 $0.32 $0.33 $0.34 **Assumptions: 1 MW, DC capacity - 3 yr SREC pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Basis - No Soft Costs
  • 12. EPC Pricing Grid Solar Radiation: Very High Incentives $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.03 $2.20 - $2.40 $2.19 - $2.39 $0.04 $2.40 - $2.60 $2.13 - $2.33 $2.43 - $2.63 $0.05 $2.60 - $2.80 $2.08 - $2.28 $2.37 - $2.57 $2.66 - $2.86 $0.06 $2.80 - $3.00 $2.03 -$2.23 $2.32 -$2.52 $2.61 - $2.81 $2.90 - $3.10 $0.07 $2.27 -$2.47 $2.56 -$2.76 $2.85 - $3.05 $3.14 - $3.34 $0.08 $2.21 -$2.41 $2.50 -$2.70 $2.80 -$3.00 $3.09 - $3.29 $3.38 - $3.58 $0.09 $1.88 - $2.08 $2.45 - $2.65 $2.74 - $2.94 $3.03 - $3.23 $3.32 - $3.52 $3.62 - $3.82 $0.10 $2.10 - $2.30 $2.12 - $2.32 $2.69 -$2.89 $2.98 - $3.18 $3.27 - $3.47 $3.56 - $3.76 $3.85 - $4.05 $0.11 $2.34 - $2.54 $2.35 - $2.55 $2.92 -$3.12 $3.21 -$3.41 $3.51 - $3.71 $3.80 - $4.00 $0.12 $2.57 - $2.77 $2.86 - $3.06 $3.16 - $3.36 $3.45 - $3.65 $3.74 - $3.94 $0.13 $2.81 - $3.01 $3.10 - $3.30 $3.39 - $3.59 $3.69 - $3.89 $3.98 - $4.18 State kWh/kW Incentive Price Unit $0.14 $2.81 - $3.01 $3.34 - $3.54 $3.63 - $3.83 $3.93 - $4.13 California 1429 FIT (7) $.15 - $.17 kWh $0.15 $2.81 - $3.01 $3.58 - $3.78 $3.87 - $4.07 PPA Price California 1429 PBI $0.04 kWh $0.16 $2.81 - $3.01 $3.82 - $4.02 Colorado 1450 (8) $0.10 SREC kWh $0.17 $2.81 - $3.01 Texas 1463 - $0.18 Wyoming 1449 - $0.19 Arizona 1637 - $0.20 Nevada 1545 - $0.21 New Mexico 1631 - $0.22 $0.23 $0.24 $0.25 $0.26 $0.27 $0.28 $0.29 $0.30 $0.31 $0.32 $0.33 $0.34 **Assumptions: 1 MW, DC capacity - 20 yr REC (CO), 5 yr PBI (CA), 3 yr SREC for all other pricing - 20 yr PPA, 3% Escalator - No State Tax - Unlevered Project - No Soft Costs
  • 13. Footnotes State Incentive Description (1) Connecticut ZREC & LREC: United Illuminating (UI) and Connecticut Light and Power (CL&P) offer 15-year REC contracts. ZREC: Capacity of 100-1000 kW, DC: $0.35 / kWh LREC: Capacity up to 2000 kW, DC: $0.20 / kWh DGEP Pricing Index assumes a 15-year flat REC, and a PPA of $0.10 / kWh for years 16-20. (2) Indiana Feed-in Tariff: NIPSCO offers a 15-year FIT of $0.26 / kWh for projects between 10-2000 kW, DC. Indianapolis P&L offers the following 15-year FIT program: Capacity of 20-100 kW, DC: $0.24 / kWh Capacity of 101-10,000 kW, DC: $0.20 / kWh DGEP Pricing Index assumes a 15-year flat FIT, and a PPA of $0.10 / kWh for years 16-20, and a land lease expense of $.02-$.04 / kWh. (3) New York PBI: NYSERDA PON 2156 & 2484 (max. of 50% of installed cost) 15% upfront, paid when equipment procured/transported to project site 15% upfront, paid when project is interconnected to grid and can provide performance data 70% paid based on performance of system (4) Rhode Island Feed-in Tariff: National Grid FIT: Capacity of 10-150 kW, DC: $0.3335 / kWh Capacity of 151-500 kW, DC: $0.316 / kWh Capacity of 501-5000 kW, DC: $0.2895 / kWh, awarded via a bid process, not to exceed $.02895 (5) Various Tennessee Valley Authority TVA pays $0.12/kWh above the retail base power rate. Generation Partners Program: The maximum system capacity allowed in this program is 50 kW, DC. (6) Maine SREC: Pricing Index based on 20-year SREC contract with no escalation (Maine PUC). (7) Hawaii Feed-in Tariff: HECO, MECO, HELCO FIT: Capacity of <20 kW, DC: $0.218 / kWh (Tier 1) Capacity of 21-500 kW, DC: $0.189 / kWh (Tier 2) Capacity of 501-5000 kW, DC: $0.197 / kWh (Tier 3) (8) California State Feed-in Tariff: CPUC offers 10, 15 or 20-year FITs and is based on CPUC market price referent. Recent contracts have been in the $0.10-$0.12 / kWh range. Palo Alto Feed-in Tariff: The City offers the following FIT programs: 20-year contract: $0.14003 / kWh 15-year contract: $0.13216 / kWh 10-year contract: $0.12360 / kWh PBI: CPUC offers upfront rebates based on expected performance. Currently, the PBI payments are $0.044 / kWh, and will ultimately drop to $0.025 / kWh. (9) Colorado SREC: Xcel Energy has offered a REC program for PV projects. It is currently on hold, but is expected to resume shortly. REC pricing is expected to be for two rounds of 8MW, DC at $.10/kWh and $.09/kWh. Xcel has awareded a round of RECs at $.11/kWh in April 2012.
  • 14. Solar Project Exchange The Project Pricing Index is a free information tool provided by DG Energy Partners as a compliment to the Solar Project Exchange service. DGEP works with EPC firms to connect projects with financing partners. For PPA providers, the service acts as a pipeline of quality projects specific to their investment criteria. Additional services include deal structuring, financial modeling, project development, foreign investment and market research.
  • 15. Advisory | Brokerage | Research Contact DG Energy Partners for pricing of a specific project and for full access to the DGEP Project Pricing Tool. www.DGEnergyPartners.com info@dgenergypartners.com (646) 416 6252