(B) pepco energy solutions overview document email
Solar Energy Choices Magazine3
1. Solar Energy Choices
www.powerchoicesavings.com
Solar Energy Today:
Raj Dwivedi’s Blog Delivering on the Promise
For Power Choice Savings
Mercury Solar Systems, Inc.
Commercial Solar Division
Raj Dwivedi
410-992-2646 office; 301-892-0207 mobile
rdwivedi@mercurysolarsystems.com
2. Mercury Solar Systems
• Headquarters in Port Chester, NY
• Multiple offices in NY, CT, NJ, PA,
MA, MD (200 employees)
• Over 2000 installations on the
East Coast!
• 3 lines of business
• Average over 20 years
experience in solar engineering,
professional services, finance, customer
service & general contracting services
• Company growth is organic and through
strategic acquisition
• Single source for design, procurement,
installation and service
• Solar electric (leveraging industry
leading products)
• Experience with local utilities, building
permits & other agencies
• Financially strong with over 870% growth in
past 3 years!
• Inc. 500 top 10 in 2010; top 14 in 2011
• Over 2000 installations and $100 million in revenues
3. Mercury Lines of Business
Diverse Global Partnerships Diverse and efficient supply chain
provides smart risk mitigation strategy
and provides added assurance that
that the supply chain is not affected
by market disruptions due to tariffs,
new technologies, new entrants or
the bargaining power of any one
supplier.
Mercury Solar Systems procures more
solar PV panels and operates on a
scale unique to most other US solar
PV integrators with Solar PV revenues
of close to $100 million in 2010.
Access to Capital
Mercury Solar Systems enjoys access to capital
from Oppenheimer Funds and others because
of the company’s strong financial performance
and zero financial liabilities. Customers have
more options with Mercury than most other PV
integrators because Mercury services and
commits to operate and maintain 3rd party
installed systems. Mercury Solar Systems is
chosen as the financial partner and PV
integrator because of their commitment,
experience and quality in building solar PV
power plants to last 25 yrs maintaining
warranty.
4. Value of Working with Mercury Solar Systems
• Access to Capital
• Management Team
• Growth & Risk Mitigation Plan
• Horizon Scan For Industry Sector
• Company’s Exit Strategy
• Turnkey Design/Build Firm
• Provide Host Customer with Best Solution for their needs
• Financially Strong and Growing Business
• Work with Strong Partners
– PSE&G
– SunPower
– SunEdison
• Develop Financing options after Design of Solution
• Customer’s get a quality solution!
5. Standard Methodology for Installations
Operations
& Site Analysis
Maintenance
Construction Design &
& Installation Engineering
Procurement Permitting
6. Notable Corporate Customers
Commercial:
• BP Solar O&M Contract (BP Solar exited industry)
• PSE&G, Newark, NJ 1.1MW
• Pepsi, Valhalla, NY-50kW
• Talbot County, Maryland 550kW
• Oakdale High School, Frederick, MD 500kW
• Estee Lauder, Long Island, NY -100kW
• Benerofe Properties, Purchase, NY - 200kW
• Daymon Worldwide, Stamford CT - 353kW
• International Rollforms, Deptford, NJ - 383 kW
• World Class Flowers, Egg Harbor Twp, 600kW
• Over 35mW so far installed by Mercury Solar Systems thru 2012
Residential:
• Over 1200 solar systems installed
Municipalities:
• Awarded 12 projects in NJ,NY & MD
7. Solar PV Carports & Electric Vehicle
Let Raj Dwivedi with Mercury Solar
Systems help attract new business Charging Stations Make for Good
to your commercial space with solar
powered parking ports. 33 available Investment Attracting New Customers and
parking spaces will generate around Brand Enhancement to parking space!
73,088 kWh which has a SREC
value in MD of $18,250 at today’s
SRECTrade value of $250/SREC or
1,000 kWh.
Get multiple benefits by installing PV
solar carports to shade vehicles,
maximize available land use without
disturbing fields, avoid roof
upgrades, provide smart EV
charging stations in your lot space.
This not only improves the value of
your space, but brings new
awareness to EV drivers of your
commercially owned space. Level 2
smart charge systems from
providers such as Semaconnect
provide commercial building owners
with intelligent charger systems
which can fully charge EV batteries
in 4 hours and bill the metered
usage directly to a credit card using
their intelligent RFID system which
functions much like the EZ Pass
system. A 15 minute trip to the store
extends the range on the EV by 15
to 20 miles and EV drivers seek out
EV charging sites.
The EV smart metered charging
station is a profitable solution for
commercial shopping sites where
having a Solar PV array as the
source of the power benefits the
property owners in measurable ways
that are extremely profitable and
cash flow positive from day one.
Commercial building owners can
easily convert their parking spaces
into revenue generating
opportunities encouraging EV
drivers to seek out their facilities.
Contact Raj Dwivedi at
301-892-0207, 410-992-2646 or
rdwivedi@mercurysolarsolutions.com
8. Thomas Edison in 1931 said, “I’d
put my money on the sun and
solar energy. What a source of
power! I hope we don’t have to
wait until oil and coal run out
before we tackle that.”
Solar PV Technology is
Economical & Smart!
Oakdale High School below lowered
their cost of electricity by 50%
9. Financial Solutions Purchase
Executive Summary - Capital Purchase
Sample
System Performance Summary
11%
System Information:
System Total Size (KW): 98.84 Production Compared to Year 1 Usage: Usage
Panel Type and Quantity: 353 (G) Std Efficiency, 280W, 77"x39.1" Usage for 1 Year: 1,000,000 kWh
Inverter Type and Quantity: 2 (G) Central/String Inverter Est. 1 Year Electricity Production: 114,000 kWh
Panel Tilt: 5 Percentage of Production to Usage: 11% Solar
Azimuth: 200 Avoided Cost ($/KWh): $0.135
Roof Coverage of Solar: 9,006 sq. ft.
Generation
89%
Net Cost Information: Your Solar System:
Project Cost: $427,977 Total Power Production: 2,685,378 kWh
LESS: 30% Federal ITC: ($128,393) 25 Year Average Rate per kWhr with Solar: $0.046
LESS: Maryland Rebate: ($49,420) Upside of SRECs at $250: $268,358 Mercury Commercial Information:
Net Cost Before Depreciation: $250,164 January 2011 - Present Installed: 150 Systems
vs. The Utility Company Over 25 Years: January 2011 - Present Installations: $70,000,000 Revenue
LESS: Tax Impact of Total Dep.: ($145,512) 25 Year Average Rate of Remaining with Utility: $0.276 January 2011 - Present mW Installed: 15 mW
Tax on Rebate: $19,768 25 Year Cost Without Going Solar: ($731,741) 2011 Sales to Date: $80,000,000 Revenue
Net Cost After Incentives: $124,420 2010 Sales: $101,466,207 Revenue
2010 mW Sold: 26.597 mW
Est. SREC Revenue (Year 1): $28,500 Annual Environmental Impacts: Largest System Installed in 2011: 3.6mW
Est. Electricity Savings (Year 1): $15,390 Cans of Soda Recycled: 216,908
1st Year Earnings/Savings: $43,890 Trees Planted: 1,904
Waste Recycled vs. Landfilled: 34,281 lbs.
Simple Pre Tax Payback: 34 Months CO2 Offset: 81,852 lbs.
Gasoline not Burned: 3,261 gal.
Depreciation Schedule Cash on Cash with Bonus Depreciation
Cash Flow Payback: 59 Months
Total Project Investment $427,977
NPV: $152,255
Adjusted Basis $363,781 Annual Rate of Return: 15%
50% Depreciation $181,890 Cumulative Cash for 25 Years: $449,866
Cumulative Cash Lifetime
MACR Schedule 50% Bonus Depreciation Tax Impact at 40% $500,000
$400,000
yr 1 60.02% $218,341 $87,336
$300,000
yr 2 16.00% $58,205 $23,282
$200,000
yr 3 9.60% $34,923 $13,969 $100,000
yr 4 5.75% $20,917 $8,367 $0
yr 5 5.75% $20,917 $8,367 ($100,000)
yr 6 2.88% $10,477 $4,191 ($200,000)
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
Totals $363,781 $145,512
Notes:Electricity rates are assumed to increase and average of 5.5% per annum Useful Economic Life of a system is assumed to be 25 years
System degradation is assumed at an average of .5% per annum The Federal Investment Tax Credit is 30% of the system cost
SRECs are assumed at $250 for Year 1, then follows the ACP for Years 2-15 Assumed tax rate is 40%
10. Financial Solutions Loan
Executive Summary - Loan Option
Sample 99kW System
System Performance Summary
11%
System Information:
System Total Size (KW ): 98.84 Production Compared to Year 1 Usage: Usage
Panel Type and Quantity: 353 (G) Std Efficiency, 280W, 77"x39.1" Usage for 1 Year: 1,000,000 kWh
Inverter Type and Quantity: 2 (G) Central/String Inverter Est. 1 Year Electricity Production: 114,000 kWh
Panel Tilt: 5 Percentage of Production to Usage: 11% Solar
Azimuth: 200 Avoided Cost ($/KWh): $0.135
Roof Coverage of Solar: 9,006 sq. ft.
Generation
89%
Net Cost Information: Your Solar System:
Amount to Finance: $427,977 Total Power Production: 2,685,378 kWh
LESS: 30% Federal ITC: ($128,393) 25 Year Average Rate per kW hr with Solar: $0.068
LESS: Maryland Rebate: ($49,420) Upside of SRECs at $250: $268,358 Mercury Commercial Information:
Net Cost Before Depreciation: $250,164 January 2011 - Present Installed: 150 Systems
vs. The Utility Company Over 25 Years: January 2011 - Present Installations: $70,000,000 Revenue
LESS: Tax Impact of Total Dep.: ($145,512) 25 Year Average Rate of Remaining with Utility: $0.276 January 2011 - Present mW Installed: 15 mW
Tax on Rebate: $19,768 25 Year Cost W ithout Going Solar: ($731,741) 2011 Sales to Date: $80,000,000 Revenue
Net Cost After Incentives: $124,420 2010 Sales: $101,466,207 Revenue
2010 mW Sold: 26.597 mW
Est. SREC Revenue (Year 1): $28,500 Annual Environmental Impacts: Largest System Installed in 2011: 3.6mW
Est. Electricity Savings (Year 1): $15,390 Cans of Soda Recycled: 216,908
1st Year Earnings/Savings: $43,890 Trees Planted: 1,904
W aste Recycled vs. Landfilled: 34,281 lbs.
CO2 Offset: 81,852 lbs.
Gasoline not Burned: 3,261 gal.
Depreciation Schedule Cash on Cash with Bonus Depreciation
Cash Flow Payback: Not Applicable
Total Project Investment $427,977
NPV: $179,524
Adjusted Basis $363,781 Annual Rate of Return: No Outlay
50% Depreciation $181,890 Cumulative Cash for 25 Years: $415,086
Cumulative Cash Lifetime
MACR Schedule 50% Bonus Depreciation Tax Impact at 40% $500,000
yr 1 60.02% $218,341 $87,336 $400,000
yr 2 16.00% $58,205 $23,282 $300,000
yr 3 9.60% $34,923 $13,969 $200,000
yr 4 5.75% $20,917 $8,367 $100,000
yr 5 5.75% $20,917 $8,367 $0
yr 6 2.88% $10,477 $4,191 ($100,000)
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
Totals $363,781 $145,512
Notes:Electricity rates are assumed to increase and average of 5.5% per annum Useful Economic Life of a system is assumed to be 25 years
System degradation is assumed at an average of .5% per annum The Federal Investment Tax Credit is 30% of the system cost
SRECs are assumed at $250 for Year 1, then follows the ACP for Years 2-15 Assumed tax rate is 40%
11. Financial Solutions Lease
Executive Summary - Lease Option
Sample 99kW System
System Performance Summary
System Information: Purchase Information: Financial Information:
System Total Size (KW): 98.84 Annual Lease Cost: ($54,000) Lease Option Post Tax:
Panel Type and Quantity: 353 (G) Std Efficiency, 280W, 77"x39.1" Cash Flow Payback: Instant Payback
Inverter Type and Quantity: 2 (G) Central/String Inverter Est. Electricity Savings (Year 1): $15,390 Annual Rate of Return: No Outlay
Panel Tilt: 5 Est. SREC Revenue (Year 1): $28,500 Net Present Value (NPV): $32,081
Azimuth: 200 SRECs Generated (Year 1): 114 Cumulative 25 Year Cash: $198,928
Roof Coverage of Solar: 9,006 sq. ft.
Annual Cashflow: -$10,110
11%
Annual Environmental Impacts: Production Compared to Year 1 Usage:
Cans of Soda Recycled: 216,908 Usage in KWh for 1 Year: 1,000,000 Usage
Trees Planted: 1,904 Est. 1 Year Electricity Production (KWh): 114,000
Waste Recycled vs. Landfilled: 34,281 lbs. Percentage of Production to Usage: 11% Solar
CO2 Offset: 81,852 lbs. Avoided Cost ($/KWh): $0.135 Generation
Gasoline not Burned: 3,261 gal.
89%
Your Solar System:
$300,000
Cumulative Cash Lifetime
Total Power Production: 2,685,378 kWh
25 Year Average Rate per kWhr with Solar: 0.233 $200,000
Upside of SRECs at $250: $268,358 $100,000
$0
vs. The Utility Company Over 25 Years:
$0.276 ($100,000)
25 Year Average Rate of Remaining with Utility:
25 Year Cost Without Going Solar: ($731,741) ($200,000)
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
Notes: Electricity rates are assumed to increase and average of 5.5% per annum Useful Economic Life of a system is assumed to be 25 years
System degradation is assumed at an average of .5% per annum The Federal Investment Tax Credit is 30% of the system cost
SRECs are assumed at $250 for Year 1, then follows the ACP for Years 2-15 Assumed tax rate is 40%
PV Carports Provide 4 Valuable Functions
1. Protect and shade vehicles
2. Make better use of land (leave
fields open for play)
3. Avoid roof repair or structural
upgrade costs
4. Provide convenient EV charging
points
12. Financial Solutions Power Purchase Agreement
Executive Summary - PPA Option
Sample 99kW System
System Performance Summary
11%
System Information: Production Compared to Year 1 Usage:
System Total Size (KW ): 98.84 Usage for 1 Year: ########### Usage
Panel Type and Quantity: 353 (G) Std Efficiency, 280W, 77"x39.1" Est. 1 Year Electricity Production: 114,000 kWh
Inverter Type and Quantity: 2 (G) Central/String Inverter Percentage of Production to Usage: 11%
Panel Tilt: 5 Avoided Cost ($/KW h): $0.135
Solar
Azimuth: 200 Generation
89%
Year 1 Financial Information: Mercury Commercial Information:
Annual Environmental Impacts: January 2011 - Present Installed: 150 Systems
Est. PPA Payment (Year 1): $10,659 Cans of Soda Recycled: 216,908 January 2011 - Present Installations: $70,000,000 Revenue
Est. Electricity Savings (Year 1): $15,390 Trees Planted: 1,904 January 2011 - Present mW Installed: 15 mW
Annual Cashflow (Year 1): $4,731 W aste Recycled vs. Landfilled: 34,281 lbs. 2011 Sales to Date: $80,000,000 Revenue
CO2 Offset: 81,852 lbs. 2010 Sales: $101,466,207 Revenue
Net Present Value: $80,241 Gasoline not Burned: 3,261 gal. 2010 mW Sold: 26.597 mW
Cumulative Cash Lifetime of the System (25 Years): $205,873 Largest System Installed in 2011: 3.6mW
Cumulative Cash Lifetime Electricity Savings vs. PPA Cost Lifetime
$250,000 $50,000
$45,000
$200,000 $40,000
$35,000
$150,000 $30,000
$25,000
$100,000 $20,000
$15,000
$50,000 $10,000
$5,000
$0 $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 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
Notes: Electricity rates are assumed to increase and average of 5.5% per annum Useful Economic Life of a system is assumed to be 25 years
System degradation is assumed at an average of .5% per annum The Federal Investment Tax Credit is 30% of the system cost
SRECs are assumed at $250 for Year 1, then follows the ACP for Years 2-15 Assumed tax rate is 40%
13. Every site is unique and
requires custom design,
engineering and
configuration testing of
structure, soil, wind, roof
material or ground soil
and operational
considerations of the
host site.
Engineering and building
solar PV solutions is all
we do, and we’re
documented to be better
than just about anyone
else on the east coast.
Customers like Solomon
Schlechter School in
White Plains, Oakdale
High School in Maryland,
Riverdale School and
many others are proud of
their choices in choosing
Mercury Solar Systems
and provide references.
14. 550 kW System installed in Talbot
County, Maryland to offset the energy
consumption of the community
center and Ice Rink facility. Energy
costs were cut by nearly 50% with this
ground mount solar project funded by
Nautilus Solar on behalf of Maryland.
15. Maryland Electricity Rate in $/kWh from 1985-2009
4.1% increase proposed in 2012
$0.14
$.1341/kWh 2009
$0.12
$0.10
5.5% Annual
$0.08 Growth Rate
$0.06 rate in $/kWh
$0.04
$.0634/kWh
$0.02
$0.00
1985 1990 1995 2000 2005
source: US Energy Information Administration www.eia.gov; MD Public Service Commission
DOE Report - USA
• Global energy consumption projections to grow 54% by 2025
• Buildings contribute 48% of carbon emissions vs. 28% for autos (DOE)
• U.S. represents 5% of the world’s population; consumes 26% of world energy
Maryland Area:
• Escalating prices for electricity remain constant (up more than 50% since 2002)
– Natural gas, coal, and heating oil more volatile- Electric rates steadily rise
• Rising costs of energy are hurting consumers and businesses at every economic level
• We import approximately 25% of our energy from outside our state
• Average usage billed in kWh/month is 1,000 residential, 10,000 commercial and 50,000
industrial
• Average per-kWh cost in cents in MD is 13 residential, 12.3 commercial, and 10.3 industrial
• Electric Supply (or Generation) accounts for 70% of electricity cost for residential customers,
76% for commercial and 84% for industrial.
• Distribution costs account for 27% for residential, 21% commercial and 15% for industrial.
16. Environmental Impact
From sample 99kW System
Annual Reduction in Harmful Reduction is Equivalent to:
Carbon Dioxide Emissions:
Planting
200,000lbs 2,396
Trees
Avoid
driving
with
10,506
Gallons of
Raj Dwivedi
Commercial Solar Developer Gas
410-992-2646 Office
301-892-0207 Mobile
301-474-2994 Fax
165 Research Road Recycling
Greenbelt, MD 20770
2,460,318
www.mercurysolarsystems.com
Blog Site: www.powerchoicesavings.com Cans