2017 nrg energy case study distributed solar-plus ... nrg energy case study distributed...

2017 NRG Energy Case Study

Distributed Solar-Plus-Storage C&I Feasibility Analysis for

California-based University

2017 Economist Energy Case Competition Sponsored by NRG

Massachusetts Institute of Technology (MIT)

Preston Kutney, Chloe Schoen, Ryan Yi

2017 Economist Energy Case Competition Sponsored by NRG MIT

Contents Summary ................................................................................................................................... 3

Project Technicals and Specs ..................................................................................................... 5

Project Methodology and Financial Analysis .............................................................................. 6

Conclusion ................................................................................................................................13

Appendix ...................................................................................................................................16

Figures Figure 1: System Specs ................................................................................................................... 5

Figure 2: System Generation Rules ................................................................................................ 6

Figure 3: Utility Tariff Structure..................................................................................................... 9

Figure 4: Pre- and Post-Development Annual Electric Utility Costs ............................................. 9

Figure 5: Project Capital Cost ....................................................................................................... 10

Figure 6: O&M Costs.................................................................................................................... 10

Figure 7: Financing Assumptions ................................................................................................. 12


Summary

As the cost of solar and battery technologies have plummeted in recent years, the economics are

becoming increasingly favorable for renewable energy projects that reduce peak usage of

conventional utility-sourced electricity. We conducted our analysis on a proposed solar plus

storage distributed peak-offset power system for a 25MW California-based university. Based on

our analysis, the project will achieve an unlevered IRR of 11.59%, and a levered IRR of 26.42%

at a debt-to-equity ratio of 3:1. The project will save $10.2M in annual electricity costs, with a

66% NRG take rate, saving the client 20% of their annual electricity costs.

The project consists of a 30 MW solar panel system, and 8 MW / 48 MWh battery storage

capacity. Additional revenue will be generated from Renewable Energy Credits (RECs), as well

as an assumed distributed energy resource contract to the CA ISO utility (using the Automated

Demand Response pilot program as a yardstick). The operating model is version of a new type of

agreement sometimes referred to as “capacity services”, wherein NRG owns and maintains

panels and batteries to provide peak load reduction to save the university millions of dollars in

usage and demand charges based on a contract PPA with NRG.

Distributed energy project still face many hurdles, but favorable regulatory conditions in

California, combined with the increasingly attractive economics of solar and storage, make the

financial picture for this project compelling despite the complexity.


Background and Objectives

The objective of the project was to build a financial case for a distributed solar plus storage

system to serve a 25MW university in California. The project would provide PV electricity and

discharge the battery system during peak hours to reduce the university’s overall electricity

usage and peak-based demand charges.

The system will be owned, operated and maintained by NRG to deliver electricity to the

university through a PPA. The main driver of revenue will be a take-rate on the cost-savings to

the client. Additional revenue will be earned from State Renewable Energy Credits (SRECs),

with tax benefits in the form of the Investment Tax Credit (which applies in this case due to the

use of solar technology, and a utility services contract (baked into the demand charge savings.)

The following contextual assumptions were used in the analysis:

Location: The university will be located in the Los Angeles metro area.

Real Estate: The university already owns the land required for the project, and will lease it to

NRG for a nominal fee.

Utility: The analysis assumes the utility provider for the area is SoCalEdison, and uses their

commercial utility rates: the Time-Of-Use 8 Primary Voltage Fee Schedule1.

1 https://www.sce.com/NR/rdonlyres/6B523AB1-244D-4A8F-A8FE-19C5E0EFD095/0/090202-Business- Rates-

Summary.pdf


Project Technicals and Specs

The project specs are described in the following figures:

Figure 1: System Specs

PV System

Assume that the university owns the necessary space, both in rooftop and flat-ground, to provide

for the PV system

Assume a 95% DC-AC conversion - an industry standard

Number of Panels 92511

Size of Panel 320 W

System Size DC 29.60 MWp

Surface Area per panel 2 m^2

Summer Monthly Output AC 4499 MWh

Winter Monthly Output AC 3221 MWh

DC-AC Conversion 95% %

Safety Margin 10%

PV System

Storage Specs

Cycle Life 3,000

Capacity 6.00 MWh

DoD 100% %

Round-trip efficiency 89% %

Power Capacity 1.0 MW


Assume for the system operator to always allow that the PV will always provide the

necessary amount of charge to the battery by preventing excessive net consumption (i.e.

the “safety margin”

Storage

Assume the model Eos Aurora 1000, with price per MW of $1,000,000 and a 30-year or

10,000 cycle2.

Project Methodology and Financial Analysis

The following provides our methodology and assumptions.

1. The Energy Model

Figure 2: System Generation Rules

DC PV Solar System: The system consists of 92,511 320W solar panels generating 46,236

MWh per year. The hierarchy of power production and supply is as follows:

2 http://www.eosenergystorage.com/documents/EOS-Website-Presentation_1-5-12.pdf


1) Solar power is used to offset the base load down to a target level of 13.97 MW (from 25

MW).

2) Excess solar power during sunny hours is used to charge the batteries.

3) The batteries are discharged to the university to offset base load to target 13.97 MW (a

44% peak reduction) during non-sunny hours when solar production is low.

4) Some excess solar, after charging batteries to capacity, can be used to further offset the

base load consumption below the target 13.97 MW MW.

5) Any remaining base load is served by the utility, which on average will not exceed 13.97

MW.

The solar production was generated using data from the National Renewable Energy

Laboratory’s PVWatts system.3

Solar Irradiance: Insolation data was retrieved from the National Renewable Energy

Laboratory’s PVWatts system for zip code 90001, Los Angeles. We used two conditions to

model the solar generation, “Winter” and “Summer”, using the highest and lowest average

monthly W/ M2 / Day levels. These two conditions were then assumed to hold for half of the

year each.

Battery System: The battery system consists of 8 batteries with discharge capacity of 8 MW and

storage capacity of 48 MWh. The system was sized based on the discharge capacity (which

controlled over the storage capacity), and using a round trip efficiency of 89% and depth of

discharge of 100%. The required battery storage was the daily sum of the hourly differences

3 http://pvwatts.nrel.gov


between the target 14MW level and the residual base-load-after-PV. The battery specs used are

from the Eos Aurora 1000, with price per MW of $1,000,000 and a 30-year or 10,000 cycle life.4

Consumption Load Curve: The load curve for the university was derived from data obtained

from the Open Energy Initiative database5 for the Los Angeles area. It was created using

residential data and secondary school data, combined and scaled to 25MW at a ratio of 9:1 for

school:residential (based on analysis of available data for the University of Pennsylvania6 7 8).

2. Pre-Development Base Case Financial Analysis

Utility Tariff Structure: The tariff structure employed in our calculations for the base case was

the SoCalEdison Time-Of-Use 8 Primary Voltage fee schedule9, which applies to commercial

customers with demands above 500kW. The pricing schedule is shown below:

4 http://www.eosenergystorage.com/documents/EOS-Website-Presentation_1-5-12.pdf 5 http://en.openei.org/wiki/Main_Page 6 https://www.electricchoice.com/blog/25-of-the-most-energy-efficient-colleges/ 7 https://www.collegehouses.upenn.edu/about 8 https://www.eia.gov/consumption/residential/reports/2009/state_briefs/pdf/pa.pdf. Assumes 2 students per

household. 9 https://www.sce.com/NR/rdonlyres/6B523AB1-244D-4A8F-A8FE-19C5E0EFD095/0/090202-Business- Rates-

Summary.pdf


Figure 3: Utility Tariff Structure

Using the “Winter” and “Summer” solar power generation scenarios, we modeled the two

conditions for a given day, and assumed that each condition would hold for half the year to arrive

at the base condition for the university’s electricity costs.

3. Post-Development Financial Analysis

Using the logic displayed in Figure 2, we built an hourly model for the generation capacity of

solar and discharge capacity of the batteries, all linked to the target baseline of 13.97 MW, below

which we aimed to cap our grid consumption. We did this for the “Summer” and “Winter”

scenarios and then used those grid consumption hourly figures to calculate what the university’s

annual electric utility costs (and savings) would be with our proposed system (See Figure 2).

Figure 4: Pre- and Post-Development Annual Electric Utility Costs


4. Analysis of Engineering, Procurement, and Construction Costs

Project capital unit and overall costs are displayed below in Figure 3.

Figure 5: Project Capital Cost

● PV Cost sourced from NREL as cited in PV Magazine10; EOS Energy Battery Cost11

5. Analysis of Operation and Maintenance Costs

Figure 6: O&M Costs

10 https://pv-magazine-usa.com/2016/09/29/nrel-u-s-utility-scale-solar-costs-fell-below-1-50-per-watt-in-q1 -2016-

with-charts/ 11 http://www.eosenergystorage.com/documents/EOS-Website-Presentation_1-5-12.pdf

Storage Cost $7,680,000

PV Cost $41,444,928

Fees $7,859,988

TOTAL $ 56,984,916.48


O&M costs for PV were taken from a NREL study12 and O&M costs (fixed and variable) for

storage from a California Energy Commission study.13

6. Revenue Build

Based on the cost savings generated for the client, we assume a 66% take-rate for the sponsor, in

this case NRG, which amounts to $6.7M annually. This would still provide $3.4M in annual

savings for the client, representing 20% savings compared to the base case scenario. In addition,

the State Renewable Energy Credits (SRECs) provide additional revenue stream at $0.01664 /

kWh generated in excess solar produced, annually.14

With the extension of the ITC, solar-plus-storage systems now meet the criteria to call for a tax

credit. We calculated 30% of the total project capital cost. Based on NRG’s previous quarters,

we assume that NRG cannot absorb the tax credit in its entirety15 - however for simplification

we assume some of the project financiers are tax equity investors who will lay claim to the tax

credit: we have built this into the waterfall model to offset the project level tax.

12 http://www.nrel.gov/docs/fy11osti/48595.pdf 13http://www.energy.ca.gov/assessments/ab2514_reports/Turlock_Irrigation_District/2014-10-

28_Turlock_Irrigation_District_Energy_Storage_Study.pdf 14https://www.sce.com/wps/portal/home/regulatory/tariff-books/rates-pricing-choices/renewable-energy-

credit 15 NRG 2017 10K


7. Financing

Financing assumptions and results are displayed below:

Figure 7: Financing Assumptions

At the onset, we assume a 24-year project - this is based on the useful life of the PV system and

the cycle life of the battery system. Next is the mix of leverage and equity - since this is raised as

non-recourse debt at the project level, with a long-term contract signed with the university, we

assume that we can lever up at a quite high rate versus traditional corporate level debt raises. The

interest rate is fixed at 4% - this is concluded based on historical borrowing rates of other NRG

solar projects, which hovered around a 2.9% interest rate.16 Furthermore, the repayment tenor for

many previous projects maxed around 18 years - to simplify the financing terms we assume the

tenor as the same duration as the overall project model. The DSCR target allows us to pay

16 NRG 2017 10K

Timing

Start

Operations start date Date 1-Jan-18

Model duration Years 24 Yr(s)

Operations end date Date 31-Dec-41

Revenue

Operational Expenditure

Sources of Funds

Project CapEx USD M p.a. 56.98 100%

Debt USD M p.a. 42.95 75% Equity IRR 26.42%

Equity USD M p.a. 14.04 25%

Tax Credit USD M p.a. 17.10

Debt opening balance

Drawdowns by end of construction USD M 42.95

Interest rate

All-in rate % p.a. 4.00%

2.925

Repayment Terms From To

Tenor Yr(s) 24.00 Yr(s) 1-Jan-18 31-Dec-41

10-18 years

DSCR Target x 2.50x

Debt service reserve account

Initial funding at end of construction USD M -

Target balance (multiple of current period debt service) x 2.00x


principal debt off quicker - this also demonstrates a willingness to sculpt a debt schedule that is

favorable to more conservative IRR results due to delaying equity cash sweeps to the sponsor.

We assume no debt service reserve because the cash flows available for debt repayment will be

marginally high enough to cover any debt repayment.

One of the major financing stories in this space was the Advanced Microgrid Solutions funding

from Macquarie Group at $200M for aggregated battery resources. The logic is that the

aggregated resources provide the spacing of load stress in an area, a real value benefit to the

utility, and the financing is de-risked because it is spread across base of end-user commercial

clients. Our project raises debt at around 1/4th of the Macquarie deal at $43M and this is a

justified because our clients are universities, which are generally credit-worthy institutions due to

the relatively low turnover of funding sources (student tuition and board).

Conclusion

Based on the choice of our assumptions, the relative stability of a client like a university, and the

favorable cost structures and natural resources at hand, this project presents interesting value to

the Sponsor. We built to model to adjust to different levers, including target peak demand

reduction, system size, take-rates, and financing to provide flexibility for the users. Our final

recommendation is to install a 30 MW solar system and 48 MWh of battery storage because it

provides an attractive peak shaving value proposition for the client, and in turn the sponsor,

while taking advantage of policies and aggressive project-level financing.


At this point, there is much interest among the California ISO and the utilities in the region to

begin adopting different regulations in understanding distributed energy storage. Solar is no new

occurrence in the region, but the CAISO (and at a macro-level FERC), are exploring different

ways to incorporate the value streams of battery storage systems. In fact, SC&E, the Californian

utility, rolled out a pilot project that would explore the use of distributed pilot project called the

Preferred Resources Pilot which sought 125 MW Battery and Demand response for load

services.17 A part of this program included the value proposition program, Automated Demand

Response, which rewards commercial clients $300 for every kW shed – which we incorporated

into the model as part of the demand savings.18

At this time of this report, March 8, SC&E has just announced a non-pilot 55 MW Santa

Barbara-based project with similar demands in terms of ancillary services; this is particularly

interesting as it will be auctioned in a bid process, with projects lasting 10+ years.19

Our project’s 8 MW battery system can very realistically provide services such as load dispatch,

peaking, and shifting, and we see that bidding these assets can provide value partnerships with

the utility. We use the pilot numbers as a yardstick for potential revenue for the Sponsor.20 This

model has not necessarily incorporated a “lowest-cost” bid scenario with the utility; but we

assume the pilot to be a good yardstick of the value-added returns for the Sponsor who can

continue partnering with the utility via its operating and maintaining the asset over 24 years, it

17 https://www.greentechmedia.com/articles/read/socal-edisons-grid-edge-experiment-contracts-for-125mw-of-

batteries-and-dem 18 https://www.sce.com/wps/wcm/connect/2fd2c275-5d90-4615-bac9-

983b097da76d/SCE_PreferredResources_english.pdf?MOD=AJPERES 19 https://www.greentechmedia.com/articles/read/socal-edison-needs-to-keep-the-lights-on-with-distributed-energy 20 https://www.greentechmedia.com/articles/read/socal-edison-needs-to-keep-the-lights-on-with distributed-energy


can readily adapt and partner with the ISO to draft contracts that may create value for these

assets in the long-run.

There are two important constraint assumptions that should be noted. One – we assumed in the

analysis that the university owned the land necessary to host the distributed energy resources.

Second – the location of the university is in an area grid that is highly congested and stressed and

thus can provide promising grid stress-relief value.


Appendix

Because the contest rules do not explicitly ban it, we have attached the Excel file that includes all

pertinent information from the energy modeling, tariff structures, capital cost, P&L, financing,

and the project finance waterfall.

We have attached screenshots of the Excel sheet.


Appendix A: Load Curve

Summer

Hour

% of Daily

Total MWh

PV Prod

(MWh)

Demand Load

(MW)

Load

Distribution (%)

Base Consumption

(MWh and MW)

Base after PV

(MW)

Excess PV

(MW)

Base after PV and

Storage (MW)

Charge

Storage PV

(AC)

Battery

Discharge

Required

(MWh) Battery SOC Excess PVTarget kW

Number of Panels 92511 0 0.00% 0.00 3.848 1.1% 3.85 3.85 0.00 3.85 0.00 0.00 31.37 0.00 13.97

Size of Panel 320 W 1 0.00% 0.00 3.797 1.1% 3.80 3.80 0.00 3.80 0.00 0.00 31.37 0.00 13.97

System Size DC 29.60 MWp 2 0.00% 0.00 3.771 1.1% 3.77 3.77 0.00 3.77 0.00 0.00 31.37 0.00 13.97

Surface Area per panel 2 m^2 3 0.00% 0.00 3.884 1.1% 3.88 3.88 0.00 3.88 0.00 0.00 31.37 0.00 13.97

4 0.00% 0.00 4.120 1.2% 4.12 4.12 0.00 4.12 0.00 0.00 31.37 0.00 13.97

Summer Monthly Output AC 4499 MWh 5 0.00% 0.00 10.445 2.9% 10.44 10.44 0.00 10.44 0.00 0.00 31.37 0.00 13.97

Winter Monthly Output AC 3221 MWh 6 0.00% 0.00 15.415 4.3% 15.41 15.41 0.00 13.97 0.00 1.45 29.92 0.00 13.97

7 0.27% 0.41 21.383 6.0% 21.38 20.97 0.00 13.97 0.00 7.00 22.92 0.00 13.97

DC-AC Conversion 95% % 8 3.92% 5.87 22.442 6.3% 22.44 16.57 0.00 13.97 0.00 2.60 20.32 0.00 13.97

Safety Margin 10% 9 8.55% 12.82 23.526 6.6% 23.52 13.97 3.26 13.97 3.26 0.00 23.58 0.00 13.97

10 11.76% 17.63 25.000 7.0% 25.00 13.97 6.60 13.97 6.60 0.00 30.18 0.00 13.97

Demand Charge 11 14.32% 21.48 24.659 6.9% 24.66 13.97 10.79 13.97 10.79 0.00 40.97 0.00 13.97

Monthly Consumption 10653 MWh 12 13.77% 20.65 23.520 6.6% 23.52 13.97 11.10 10.31 11.10 0.00 48.00 3.66 13.97

Current Max Demand 25.00 MW 13 14.42% 21.62 23.196 6.5% 23.20 13.97 12.40 2.81 12.40 0.00 48.00 11.16 13.97

% Reduction Desired 44% % 14 13.41% 20.11 23.239 6.5% 23.24 13.97 10.84 4.21 10.84 0.00 48.00 9.76 13.97

Target Demand 13.97 MW 15 10.94% 16.40 23.208 6.5% 23.21 13.97 7.16 7.52 7.16 0.00 48.00 6.44 13.97

16 6.70% 10.05 20.009 5.6% 20.01 13.97 4.01 10.36 4.01 0.00 48.00 3.61 13.97

Storage Specs 17 1.91% 2.86 20.219 5.7% 20.22 17.35 0.00 13.97 0.00 3.39 44.61 0.00 13.97

Cycle Life 3,000 18 0.03% 0.05 20.454 5.8% 20.45 20.40 0.00 13.97 0.00 6.43 38.18 0.00 13.97

Capacity 6.00 MWh 19 0.00% 0.00 20.781 5.9% 20.78 20.78 0.00 13.97 0.00 6.81 31.37 0.00 13.97

DoD 100% % 20 0.00% 0.00 5.121 1.4% 5.12 5.12 0.00 5.12 0.00 0.00 31.37 0.00 13.97

Round-trip efficiency 89% % 21 0.00% 0.00 4.685 1.3% 4.68 4.68 0.00 4.68 0.00 0.00 31.37 0.00 13.97

Power Capacity 1.0 MW 22 0.00% 0.00 4.342 1.2% 4.34 4.34 0.00 4.34 0.00 0.00 31.37 0.00 13.97

23 0.00% 0.00 4.058 1.1% 4.06 4.06 0.00 4.06 0.00 0.00 31.37 0.00 13.97

Results Daily Total (MWh) 150.0 355.12 100% 355.1 271.3 66.2 209.0 66.2 27.7 34.63

Needed Storage 30.7 MWh Monthly Total (MWh) 4498.6 TRUE 10653.0

Storage from PV 66.2 MWh Annual Total (MWh) 127836.0

Excess Storage Grid 7.2 MWh Winter

Number of Batteries 8.00 Hour

% of Daily

Total MWh

PV Prod

(MWh)

Demand Load

(MW)

Load

Distribution (%)

Base Consumption

(MWh and MW)

Base after PV

(MW)

Excess PV

(MW)

Base after PV and

Storage (MW)

Charge

Storage PV

(AC)

Battery

Discharge

Required

(MWh) Battery SOC Excess PVTarget kW

Total Storage 48.00 MWh 0 0.00% 0.00 3.848 1.1% 3.85 3.85 0.00 3.85 0.00 0.00 37.72 0.00 13.97

Min Batteries Needed for MW 8.00 1 0.00% 0.00 3.797 1.1% 3.80 3.80 0.00 3.80 0.00 0.00 37.72 0.00 13.97

Min Batteries Needed for MWh 6.00 2 0.00% 0.00 3.771 1.1% 3.77 3.77 0.00 3.77 0.00 0.00 37.72 0.00 13.97

Storage Capacity vs Power YES 3 0.00% 0.00 3.884 1.1% 3.88 3.88 0.00 3.88 0.00 0.00 37.72 0.00 13.97

4 0.00% 0.00 4.120 1.2% 4.12 4.12 0.00 4.12 0.00 0.00 37.72 0.00 13.97

Unlevered IRR 11.59% 5 0.00% 0.00 10.445 2.9% 10.44 10.44 0.00 10.44 0.00 0.00 37.72 0.00 13.97

Levered IRR 26.42% 6 0.00% 0.00 15.415 4.3% 15.41 15.41 0.00 13.97 0.00 1.45 36.28 0.00 13.97

Client Savings 20% 7 0.27% 0.29 21.383 6.0% 21.38 21.09 0.00 13.97 0.00 7.12 29.16 0.00 13.97

Take Rate 66% 8 3.92% 4.21 22.442 6.3% 22.44 18.24 0.00 13.97 0.00 4.27 24.89 0.00 13.97

9 8.55% 9.17 23.526 6.6% 23.52 14.35 0.00 13.97 0.00 0.38 24.51 0.00 13.97

10 11.76% 12.62 25.000 7.0% 25.00 13.97 1.59 13.97 1.59 0.00 26.10 0.00 13.97

11 14.32% 15.38 24.659 6.9% 24.66 13.97 4.69 13.97 4.69 0.00 30.79 0.00 13.97

12 13.77% 14.78 23.520 6.6% 23.52 13.97 5.23 13.97 5.23 0.00 36.02 0.00 13.97

13 14.42% 15.48 23.196 6.5% 23.20 13.97 6.26 13.97 6.26 0.00 42.28 0.00 13.97

14 13.41% 14.40 23.239 6.5% 23.24 13.97 5.13 13.97 5.13 0.00 47.41 0.00 13.97

15 10.94% 11.74 23.208 6.5% 23.21 13.97 2.50 12.25 2.50 0.00 48.00 1.72 13.97

16 6.70% 7.19 20.009 5.6% 20.01 13.97 1.16 12.93 1.16 0.00 48.00 1.04 13.97

17 1.91% 2.05 20.219 5.7% 20.22 18.17 0.00 13.97 0.00 4.20 43.80 0.00 13.97

18 0.03% 0.04 20.454 5.8% 20.45 20.42 0.00 13.97 0.00 6.45 37.35 0.00 13.97

19 0.00% 0.00 20.781 5.9% 20.78 20.78 0.00 13.97 0.00 6.81 30.54 0.00 13.97

20 0.00% 0.00 5.121 1.4% 5.12 5.12 0.00 5.12 0.00 0.00 30.54 0.00 13.97

21 0.00% 0.00 4.685 1.3% 4.68 4.68 0.00 4.68 0.00 0.00 30.54 0.00 13.97

22 0.00% 0.00 4.342 1.2% 4.34 4.34 0.00 4.34 0.00 0.00 30.54 0.00 13.97

23 0.00% 0.00 4.058 1.1% 4.06 4.06 0.00 11.24 0.00 0.00 30.54 0.00 13.97

Daily Total (MWh) 107.4 355.12 100% 355.1 274.3 26.6 248.0 26.6 30.7 2.76

Monthly Total (MWh) 3220.7 10653.0 Grid 7.2

Annual Total (MWh) 127836.0

PV System


Appendix B: Load Curve Graph


Appendix C: Load Curve Net PV Graph


Appendix D: Load Curve Net PV + Storage Graph


Appendix E: Base Annual Electricity Cost SoCal Gas Tarriff Structure

Time of Use 8

2~50 kV Weekday Weekend

Hour Demand Load (MW) Type Rate Total Charge Hour Demand Load (MW) Type Rate Total Charge

Total Base Annual Cost 17,460,878.18$ 0 3.848 Off-Peak 0.06483 249.46$ 0 3.848 Off-Peak 0.06483 249.46$

1 3.797 Off-Peak 0.06483 246.13$ 1 3.797 Off-Peak 0.06483 246.13$

Usage Costs 2 3.771 Off-Peak 0.06483 244.45$ 2 3.771 Off-Peak 0.06483 244.45$

Summer (Half year) 3 3.884 Off-Peak 0.06483 251.79$ 3 3.884 Off-Peak 0.06483 251.79$

6-Month Cost: 5,780,041.72$ 4 4.120 Off-Peak 0.06483 267.07$ 4 4.120 Off-Peak 0.06483 267.07$

Winter (Half year) 5 10.445 Off-Peak 0.06483 677.18$ 5 10.445 Off-Peak 0.06483 677.18$


7 21.383 Off-Peak 0.06483 1,386.26$ 7 21.383 Off-Peak 0.06483 1,386.26$

Annual Usage Cost: 11,436,368.63$ 8 22.442 Mid-Peak 0.09096 2,041.29$ 8 22.442 Off-Peak 0.06483 1,454.89$

9 23.526 Mid-Peak 0.09096 2,139.90$ 9 23.526 Off-Peak 0.06483 1,525.17$

Demand Costs 10 25.000 Mid-Peak 0.09096 2,274.00$ 10 25.000 Off-Peak 0.06483 1,620.75$

Summer 4,497,509.54$ 11 24.659 Mid-Peak 0.09096 2,242.97$ 11 24.659 Off-Peak 0.06483 1,598.63$

Winter 1,527,000.00$ 12 23.520 On-Peak 0.11086 2,607.39$ 12 23.520 Off-Peak 0.06483 1,524.78$

13 23.196 On-Peak 0.11086 2,571.56$ 13 23.196 Off-Peak 0.06483 1,503.83$

14 23.239 On-Peak 0.11086 2,576.27$ 14 23.239 Off-Peak 0.06483 1,506.58$

Total 6,024,509.54$ 15 23.208 On-Peak 0.11086 2,572.86$ 15 23.208 Off-Peak 0.06483 1,504.59$

16 20.009 On-Peak 0.11086 2,218.17$ 16 20.009 Off-Peak 0.06483 1,297.17$

Usage Rates 17 20.219 On-Peak 0.11086 2,241.45$ 17 20.219 Off-Peak 0.06483 1,310.78$

Summer Season Rates 18 20.454 Mid-Peak 0.09096 1,860.53$ 18 20.454 Off-Peak 0.06483 1,326.06$

On-Peak 0.11086$ per kWh 19 20.781 Mid-Peak 0.09096 1,890.27$ 19 20.781 Off-Peak 0.06483 1,347.25$

Mid-Peak 0.09096$ 20 5.121 Mid-Peak 0.09096 465.84$ 20 5.121 Off-Peak 0.06483 332.02$

Off-Peak 0.06483$ 21 4.685 Mid-Peak 0.09096 426.12$ 21 4.685 Off-Peak 0.06483 303.71$

22 4.342 Mid-Peak 0.09096 394.92$ 22 4.342 Off-Peak 0.06483 281.47$

Winter Season Rates 23 4.058 Off-Peak 0.06483 263.09$ 23 4.058 Off-Peak 0.06483 263.09$

Mid-Peak 0.09298$ per kWh Total 355.121 33,108.35$ Total 355.121 23,022.49$

Off-Peak 0.06758$

Demand Charge Rates

Facilities Related Demand Charge 10.18$ $/monthly max kW

Time Related Demand* 15.48$ $/monthly max On-peak kW Weekday Weekend

5.24$ $/monthly max Mid-peak kW Hour Demand Load (MW) Type Rate Total Charge Hour Demand Load (MW) Type Rate Total Charge

*Summer only 0 3.848 Off-Peak 0.06758 260.05$ 0 3.848 Off-Peak 0.06758 260.05$

1 3.797 Off-Peak 0.06758 256.57$ 1 3.797 Off-Peak 0.06758 256.57$

2 3.771 Off-Peak 0.06758 254.82$ 2 3.771 Off-Peak 0.06758 254.82$

3 3.884 Off-Peak 0.06758 262.48$ 3 3.884 Off-Peak 0.06758 262.48$

4 4.120 Off-Peak 0.06758 278.40$ 4 4.120 Off-Peak 0.06758 278.40$

5 10.445 Off-Peak 0.06758 705.91$ 5 10.445 Off-Peak 0.06758 705.91$

6 15.415 Off-Peak 0.06758 1,041.74$ 6 15.415 Off-Peak 0.06758 1,041.74$

7 21.383 Off-Peak 0.06758 1,445.06$ 7 21.383 Off-Peak 0.06758 1,445.06$

8 22.442 Mid-Peak 0.09298 2,086.62$ 8 22.442 Off-Peak 0.06758 1,516.60$

9 23.526 Mid-Peak 0.09298 2,187.42$ 9 23.526 Off-Peak 0.06758 1,589.87$

10 25.000 Mid-Peak 0.09298 2,324.50$ 10 25.000 Off-Peak 0.06758 1,689.50$

11 24.659 Mid-Peak 0.09298 2,292.78$ 11 24.659 Off-Peak 0.06758 1,666.44$

12 23.520 Mid-Peak 0.09298 2,186.86$ 12 23.520 Off-Peak 0.06758 1,589.46$

13 23.196 Mid-Peak 0.09298 2,156.81$ 13 23.196 Off-Peak 0.06758 1,567.62$

14 23.239 Mid-Peak 0.09298 2,160.76$ 14 23.239 Off-Peak 0.06758 1,570.49$

15 23.208 Mid-Peak 0.09298 2,157.90$ 15 23.208 Off-Peak 0.06758 1,568.41$

16 20.009 Mid-Peak 0.09298 1,860.42$ 16 20.009 Off-Peak 0.06758 1,352.19$

17 20.219 Mid-Peak 0.09298 1,879.94$ 17 20.219 Off-Peak 0.06758 1,366.38$

18 20.454 Mid-Peak 0.09298 1,901.85$ 18 20.454 Off-Peak 0.06758 1,382.31$

19 20.781 Mid-Peak 0.09298 1,932.25$ 19 20.781 Off-Peak 0.06758 1,404.40$

20 5.121 Mid-Peak 0.09298 476.19$ 20 5.121 Off-Peak 0.06758 346.10$

21 4.685 Off-Peak 0.06758 316.60$ 21 4.685 Off-Peak 0.06758 316.60$

22 4.342 Off-Peak 0.06758 293.41$ 22 4.342 Off-Peak 0.06758 293.41$

23 4.058 Off-Peak 0.06758 274.25$ 23 4.058 Off-Peak 0.06758 274.25$

Total 355.121 30,993.57$ Total 355.121 23,999.07$

SUMMER

WINTER


Appendix F: Savings Annual Electricity Cost SoCal Gas Tarriff Structure

Time of Use 8

2~50 kV Weekday Weekend


Total Net Annual Cost 7,208,754.41$ 0 3.848 Off-Peak 0.06483 249.45$ 0 3.848 Off-Peak 0.06483 249.45$

Total Base Cost 17,460,878.18$ 1 3.796 Off-Peak 0.06483 246.12$ 1 3.796 Off-Peak 0.06483 246.12$

Total Annual Savings 10,252,123.77$ 2 3.770 Off-Peak 0.06483 244.43$ 2 3.770 Off-Peak 0.06483 244.43$

% Savings 58.71% 3 3.884 Off-Peak 0.06483 251.78$ 3 3.884 Off-Peak 0.06483 251.78$

4 4.119 Off-Peak 0.06483 267.05$ 4 4.119 Off-Peak 0.06483 267.05$

Usage Costs 5 10.445 Off-Peak 0.06483 677.14$ 5 10.445 Off-Peak 0.06483 677.14$

Summer (Half year) 6 13.969 Off-Peak 0.06483 905.58$ 6 13.969 Off-Peak 0.06483 905.58$


Winter (Half year) 8 13.969 Mid-Peak 0.09096 1,270.58$ 8 13.969 Off-Peak 0.06483 905.58$

6-Month Cost: 3,847,236.35$ 9 13.969 Mid-Peak 0.09096 1,270.58$ 9 13.969 Off-Peak 0.06483 905.58$

10 13.969 Mid-Peak 0.09096 1,270.58$ 10 13.969 Off-Peak 0.06483 905.58$

Annual Usage Cost: 7,074,793.51$ 11 13.969 Mid-Peak 0.09096 1,270.58$ 11 13.969 Off-Peak 0.06483 905.58$

12 10.307 On-Peak 0.11086 1,142.68$ 12 10.307 Off-Peak 0.06483 668.23$

Demand Costs 13 2.810 On-Peak 0.11086 311.57$ 13 2.810 Off-Peak 0.06483 182.20$

Summer 2,589,764.84$ 14 4.209 On-Peak 0.11086 466.56$ 14 4.209 Off-Peak 0.06483 272.84$

Winter 853,197.61$ 15 7.524 On-Peak 0.11086 834.13$ 15 7.524 Off-Peak 0.06483 487.79$

Incentive Fee ($ / kW) 300 16 10.359 On-Peak 0.11086 1,148.44$ 16 10.359 Off-Peak 0.06483 671.60$

MW Shed 11.03 17 13.969 On-Peak 0.11086 1,548.55$ 17 13.969 Off-Peak 0.06483 905.58$

Incentive Program Deduction 3,309,002$ 18 13.969 Mid-Peak 0.09096 1,270.58$ 18 13.969 Off-Peak 0.06483 905.58$

Total 133,960.89$ 19 13.969 Mid-Peak 0.09096 1,270.58$ 19 13.969 Off-Peak 0.06483 905.58$

20 5.121 Mid-Peak 0.09096 465.82$ 20 5.121 Off-Peak 0.06483 332.00$

Usage Rates 21 4.684 Mid-Peak 0.09096 426.10$ 21 4.684 Off-Peak 0.06483 303.69$

Summer Season Rates 22 4.341 Mid-Peak 0.09096 394.90$ 22 4.341 Off-Peak 0.06483 281.45$

On-Peak 0.11086$ per kWh 23 4.058 Off-Peak 0.06483 263.07$ 23 4.058 Off-Peak 0.06483 263.07$

Mid-Peak 0.09096$ Total 208.994 18,372.40$ Total 208.994 13,549.08$

Off-Peak 0.06483$

Winter Season Rates

Mid-Peak 0.09298$ per kWh

Off-Peak 0.06758$ Weekday Weekend


Demand Charge Rates 0 3.848 Off-Peak 0.06758 260.03$ 0 3.848 Off-Peak 0.06758 260.03$

Facilities Related Demand Charge 10.18$ $/monthly max kW 1 3.796 Off-Peak 0.06758 256.56$ 1 3.796 Off-Peak 0.06758 256.56$

Time Related Demand* 15.48$ $/monthly max On-peak kW 2 3.770 Off-Peak 0.06758 254.80$ 2 3.770 Off-Peak 0.06758 254.80$

5.24$ $/monthly max Mid-peak kW 3 3.884 Off-Peak 0.06758 262.46$ 3 3.884 Off-Peak 0.06758 262.46$

*Summer only 4 4.119 Off-Peak 0.06758 278.38$ 4 4.119 Off-Peak 0.06758 278.38$

5 10.445 Off-Peak 0.06758 705.86$ 5 10.445 Off-Peak 0.06758 705.86$

6 13.969 Off-Peak 0.06758 943.99$ 6 13.969 Off-Peak 0.06758 943.99$

7 13.969 Off-Peak 0.06758 943.99$ 7 13.969 Off-Peak 0.06758 943.99$

8 13.969 Mid-Peak 0.09298 1,298.79$ 8 13.969 Off-Peak 0.06758 943.99$

9 13.969 Mid-Peak 0.09298 1,298.79$ 9 13.969 Off-Peak 0.06758 943.99$

10 13.969 Mid-Peak 0.09298 1,298.79$ 10 13.969 Off-Peak 0.06758 943.99$

11 13.969 Mid-Peak 0.09298 1,298.79$ 11 13.969 Off-Peak 0.06758 943.99$

12 13.969 Mid-Peak 0.09298 1,298.79$ 12 13.969 Off-Peak 0.06758 943.99$

13 13.969 Mid-Peak 0.09298 1,298.79$ 13 13.969 Off-Peak 0.06758 943.99$

14 13.969 Mid-Peak 0.09298 1,298.79$ 14 13.969 Off-Peak 0.06758 943.99$

15 12.248 Mid-Peak 0.09298 1,138.82$ 15 12.248 Off-Peak 0.06758 827.72$

16 12.929 Mid-Peak 0.09298 1,202.10$ 16 12.929 Off-Peak 0.06758 873.71$

17 13.969 Mid-Peak 0.09298 1,298.79$ 17 13.969 Off-Peak 0.06758 943.99$

18 13.969 Mid-Peak 0.09298 1,298.79$ 18 13.969 Off-Peak 0.06758 943.99$

19 13.969 Mid-Peak 0.09298 1,298.79$ 19 13.969 Off-Peak 0.06758 943.99$

20 5.121 Mid-Peak 0.09298 476.16$ 20 5.121 Off-Peak 0.06758 346.08$

21 4.684 Off-Peak 0.06758 316.58$ 21 4.684 Off-Peak 0.06758 316.58$

22 4.341 Off-Peak 0.06758 293.39$ 22 4.341 Off-Peak 0.06758 293.39$

23 11.241 Off-Peak 0.06758 759.67$ 23 11.241 Off-Peak 0.06758 759.67$

Total 248.049 21,080.75$ Total 248.049 16,763.18$

SUMMER

WINTER


Appendix G: Project Cost Assumptions

Storage Cost $7,680,000

PV Cost $41,444,928

Fees $7,859,988

TOTAL $ 56,984,916.48

Pre-Tax Unlevered IRR 11.5892%

Size of PV (MWp) 29.60

Size of Storage (MWh)

48.0

Number of Batteries 8.0

Size of Storage (MW) 8.0

NRG Take-Rate (%) 66.0%

Annual Escalator 2.0%

Annual Client Savings % 20.0%

ADR Program ($/kW) $300.00

ITC 30.0%

Upfront Project Costs

Cost of Storage

Unit Price ($/kWH) $160.00

Unit Price ($/kW) $1,000.00

PV Cost ($/W) $1.40

Legal 1.0%

Interconnection 3.0%

Permitting 1.0%

Land Acquisition 10.0%

Site Prep 1.0%

Ongoing Costs/Expenses

PV O&M ($/Wp) $0.0090

Storage O&M Fixed ($/kW) $10.0

Storage O&M Variable ($/MWh) $0.3

O&M Escalator 2.0%

Insurance (% of Cost of System) 0.60%

Insurance Escalator 2.0%

Administrative $100,000

Acct/Admin Escalator 2.0%

System Specs

Revenue Assumptions


Appendix H: P&L

Savings for Client Upfront Project Costs Ongoing Project Costs Revenue Pre-Tax IRR

Year (Base 2017E)Base Case: Grid "Status Quo" S+S Case: Grid Usage Net PV+Storage

Electricity

Charge Savings

Demand Charge

Savings

Total Annual

SavingsCum. Savings Total Cost O&M

Storage

O&MInsurace + Other Total Tax Shield from Depreciation

Investment

Tax CreditTotal

Annual Electricity Charge Annual Demand Charge Annual Electricity Charge Annual Demand Charge

Sponsor Portion

of Demand

Savings

Client Portion of

Demand Savings

Price ($/kWh) Surplus (MWh) Total SRECTake-Rate

Revenue

Total

Revenue

0 $56,984,916 $56,984,916

1 11,436,369$ 6,024,510$ 7,074,794$ 133,961$ 4,361,575$ 5,890,549$ 6,766,402$ 3,485,722$ 3,485,722$ 3,485,722$ $266,432 $85,256 $348,670 $700,357 2,175,859$ $0.01664 6824 $113,556 $17,095,475 $17,209,031 $6,766,402 $6,879,957 $6,179,600

2 11,665,096$ 6,145,000$ 7,216,289$ 136,640$ 4,448,807$ 6,008,360$ 6,901,730$ 3,555,437$ 3,555,437$ 7,041,159$ $271,760 $86,961 $355,643 $714,364 1,849,480$ $0.01697 6824 $115,827 $115,827 $6,901,730 $7,017,557 $6,303,192

3 11,898,398$ 6,267,900$ 7,360,615$ 139,373$ 4,537,783$ 6,128,527$ 7,039,764$ 3,626,545$ 3,626,545$ 10,667,704$ $277,196 $88,700 $362,756 $728,652 1,572,058$ $0.01731 6824 $118,143 $118,143 $7,039,764 $7,157,908 $6,429,256

4 12,136,366$ 6,393,258$ 7,507,827$ 142,160$ 4,628,538$ 6,251,097$ 7,180,560$ 3,699,076$ 3,699,076$ 14,366,780$ $282,739 $90,474 $370,011 $743,225 1,336,249$ $0.01766 6824 $120,506 $120,506 $7,180,560 $7,301,066 $6,557,841

5 12,379,093$ 6,521,123$ 7,657,984$ 145,004$ 4,721,109$ 6,376,119$ 7,324,171$ 3,773,058$ 3,773,058$ 18,139,838$ $288,394 $92,284 $377,411 $758,089 1,135,812$ $0.01801 6824 $122,916 $122,916 $7,324,171 $7,447,087 $6,688,998

6 12,626,675$ 6,651,545$ 7,811,144$ 147,904$ 4,815,531$ 6,503,642$ 7,470,654$ 3,848,519$ 3,848,519$ 21,988,357$ $294,162 $94,130 $384,959 $773,251 965,440$ $0.01837 6824 $125,375 $125,375 $7,470,654 $7,596,029 $6,822,778

7 12,879,209$ 6,784,576$ 7,967,367$ 150,862$ 4,911,842$ 6,633,715$ 7,620,067$ 3,925,489$ 3,925,489$ 25,913,846$ $300,045 $96,012 $392,659 $788,716 820,624$ $0.01874 6824 $127,882 $127,882 $7,620,067 $7,747,949 $6,959,233

8 13,136,793$ 6,920,268$ 8,126,714$ 153,879$ 5,010,079$ 6,766,389$ 7,772,469$ 4,003,999$ 4,003,999$ 29,917,845$ $306,046 $97,932 $400,512 $804,490 697,530$ $0.01911 6824 $130,440 $130,440 $7,772,469 $7,902,908 $7,098,418

9 13,399,529$ 7,058,673$ 8,289,248$ 156,957$ 5,110,280$ 6,901,717$ 7,927,918$ 4,084,079$ 4,084,079$ 34,001,924$ $312,167 $99,891 $408,522 $820,580 592,901$ $0.01950 6824 $133,049 $133,049 $7,927,918 $8,060,967 $7,240,386

10 13,667,519$ 7,199,847$ 8,455,033$ 160,096$ 5,212,486$ 7,039,751$ 8,086,476$ 4,165,761$ 4,165,761$ 38,167,684$ $318,411 $101,889 $416,692 $836,992 503,966$ $0.01989 6824 $135,710 $135,710 $8,086,476 $8,222,186 $7,385,194

11 13,940,870$ 7,343,844$ 8,624,134$ 163,298$ 5,316,736$ 7,180,546$ 8,248,206$ 4,249,076$ 4,249,076$ 42,416,760$ $324,779 $103,927 $425,026 $853,732 428,371$ $0.02028 6824 $138,424 $138,424 $8,248,206 $8,386,630 $7,532,898

12 14,219,687$ 7,490,720$ 8,796,616$ 166,564$ 5,423,070$ 7,324,157$ 8,413,170$ 4,334,057$ 4,334,057$ 46,750,817$ $331,274 $106,005 $433,527 $870,806 364,115$ $0.02069 6824 $141,192 $141,192 $8,413,170 $8,554,362 $7,683,556

13 14,504,081$ 7,640,535$ 8,972,549$ 169,895$ 5,531,532$ 7,470,640$ 8,581,433$ 4,420,738$ 4,420,738$ 51,171,556$ $337,900 $108,125 $442,197 $888,222 309,498$ $0.02110 6824 $144,016 $144,016 $8,581,433 $8,725,450 $7,837,227

14 14,794,162$ 7,793,345$ 9,152,000$ 173,293$ 5,642,162$ 7,620,053$ 8,753,062$ 4,509,153$ 4,509,153$ 55,680,709$ $344,658 $110,288 $451,041 $905,987 263,073$ $0.02153 6824 $146,896 $146,896 $8,753,062 $8,899,958 $7,993,972

15 15,090,046$ 7,949,212$ 9,335,040$ 176,759$ 5,755,006$ 7,772,454$ 8,928,123$ 4,599,336$ 4,599,336$ 60,280,045$ $351,551 $112,493 $460,062 $924,107 223,612$ $0.02196 6824 $149,834 $149,834 $8,928,123 $9,077,958 $8,153,851

16 15,391,846$ 8,108,197$ 9,521,741$ 180,294$ 5,870,106$ 7,927,903$ 9,106,686$ 4,691,323$ 4,691,323$ 64,971,368$ $358,582 $114,743 $469,263 $942,589 190,070$ $0.02240 6824 $152,831 $152,831 $9,106,686 $9,259,517 $8,316,928

17 15,699,683$ 8,270,361$ 9,712,175$ 183,900$ 5,987,508$ 8,086,461$ 9,288,820$ 4,785,149$ 4,785,149$ 69,756,518$ $365,754 $117,038 $478,649 $961,440 161,560$ $0.02284 6824 $155,888 $155,888 $9,288,820 $9,444,707 $8,483,267

18 16,013,677$ 8,435,768$ 9,906,419$ 187,578$ 6,107,258$ 8,248,190$ 9,474,596$ 4,880,852$ 4,880,852$ 74,637,370$ $373,069 $119,379 $488,222 $980,669 137,326$ $0.02330 6824 $159,005 $159,005 $9,474,596 $9,633,601 $8,652,932

19 16,333,951$ 8,604,483$ 10,104,547$ 191,329$ 6,229,403$ 8,413,154$ 9,664,088$ 4,978,469$ 4,978,469$ 79,615,840$ $380,530 $121,767 $497,986 $1,000,283 116,727$ $0.02377 6824 $162,186 $162,186 $9,664,088 $9,826,273 $8,825,991

20 16,660,630$ 8,776,573$ 10,306,638$ 195,156$ 6,353,991$ 8,581,417$ 9,857,370$ 5,078,039$ 5,078,039$ 84,693,878$ $388,141 $124,202 $507,946 $1,020,288 99,218$ $0.02424 6824 $165,429 $165,429 $9,857,370 $10,022,799 $9,002,511

21 16,993,842$ 8,952,104$ 10,512,771$ 199,059$ 6,481,071$ 8,753,045$ 10,054,517$ 5,179,600$ 5,179,600$ 89,873,478$ $395,903 $126,686 $518,105 $1,040,694 84,335$ $0.02473 6824 $168,738 $168,738 $10,054,517 $10,223,255 $9,182,561

22 17,333,719$ 9,131,146$ 10,723,026$ 203,040$ 6,610,693$ 8,928,106$ 10,255,607$ 5,283,192$ 5,283,192$ 95,156,670$ $403,822 $129,220 $528,467 $1,061,508 71,685$ $0.02522 6824 $172,113 $172,113 $10,255,607 $10,427,720 $9,366,212

23 17,680,393$ 9,313,769$ 10,937,487$ 207,101$ 6,742,906$ 9,106,668$ 10,460,719$ 5,388,855$ 5,388,855$ 100,545,525$ $411,898 $131,804 $539,036 $1,082,738 60,932$ $0.02573 6824 $175,555 $175,555 $10,460,719 $10,636,274 $9,553,536

24 18,034,001$ 9,500,045$ 11,156,237$ 211,243$ 6,877,765$ 9,288,802$ 10,669,934$ 5,496,633$ 5,496,633$ 106,042,158$ $420,136 $134,440 $549,817 $1,104,393 51,792$ $0.02624 6824 $179,066 $179,066 $10,669,934 $10,849,000 $9,744,607

SREC (California)

Credits

Savings for Client Upfront Project Costs Ongoing Project Costs Revenue Pre-Tax IRR

Year (Base 2017E)Base Case: Grid "Status Quo" S+S Case: Grid Usage Net PV+Storage

Electricity

Charge Savings

Demand Charge

Savings

Total Annual

SavingsCum. Savings Total Cost O&M

Storage

O&MInsurace + Other Total Tax Shield from Depreciation

Investment

Tax CreditTotal

Annual Electricity Charge Annual Demand Charge Annual Electricity Charge Annual Demand Charge

Sponsor Portion

of Demand

Savings

Client Portion of

Demand Savings

Price ($/kWh) Surplus (MWh) Total SRECTake-Rate

Revenue

Total

Revenue

0 $56,984,916 $56,984,916

1 11,436,369$ 6,024,510$ 7,074,794$ 133,961$ 4,361,575$ 5,890,549$ 6,766,402$ 3,485,722$ 3,485,722$ 3,485,722$ $266,432 $85,256 $348,670 $700,357 2,175,859$ $0.01664 6824 $113,556 $17,095,475 $17,209,031 $6,766,402 $6,879,957 $6,179,600

2 11,665,096$ 6,145,000$ 7,216,289$ 136,640$ 4,448,807$ 6,008,360$ 6,901,730$ 3,555,437$ 3,555,437$ 7,041,159$ $271,760 $86,961 $355,643 $714,364 1,849,480$ $0.01697 6824 $115,827 $115,827 $6,901,730 $7,017,557 $6,303,192

3 11,898,398$ 6,267,900$ 7,360,615$ 139,373$ 4,537,783$ 6,128,527$ 7,039,764$ 3,626,545$ 3,626,545$ 10,667,704$ $277,196 $88,700 $362,756 $728,652 1,572,058$ $0.01731 6824 $118,143 $118,143 $7,039,764 $7,157,908 $6,429,256

4 12,136,366$ 6,393,258$ 7,507,827$ 142,160$ 4,628,538$ 6,251,097$ 7,180,560$ 3,699,076$ 3,699,076$ 14,366,780$ $282,739 $90,474 $370,011 $743,225 1,336,249$ $0.01766 6824 $120,506 $120,506 $7,180,560 $7,301,066 $6,557,841

5 12,379,093$ 6,521,123$ 7,657,984$ 145,004$ 4,721,109$ 6,376,119$ 7,324,171$ 3,773,058$ 3,773,058$ 18,139,838$ $288,394 $92,284 $377,411 $758,089 1,135,812$ $0.01801 6824 $122,916 $122,916 $7,324,171 $7,447,087 $6,688,998

6 12,626,675$ 6,651,545$ 7,811,144$ 147,904$ 4,815,531$ 6,503,642$ 7,470,654$ 3,848,519$ 3,848,519$ 21,988,357$ $294,162 $94,130 $384,959 $773,251 965,440$ $0.01837 6824 $125,375 $125,375 $7,470,654 $7,596,029 $6,822,778

7 12,879,209$ 6,784,576$ 7,967,367$ 150,862$ 4,911,842$ 6,633,715$ 7,620,067$ 3,925,489$ 3,925,489$ 25,913,846$ $300,045 $96,012 $392,659 $788,716 820,624$ $0.01874 6824 $127,882 $127,882 $7,620,067 $7,747,949 $6,959,233

8 13,136,793$ 6,920,268$ 8,126,714$ 153,879$ 5,010,079$ 6,766,389$ 7,772,469$ 4,003,999$ 4,003,999$ 29,917,845$ $306,046 $97,932 $400,512 $804,490 697,530$ $0.01911 6824 $130,440 $130,440 $7,772,469 $7,902,908 $7,098,418

9 13,399,529$ 7,058,673$ 8,289,248$ 156,957$ 5,110,280$ 6,901,717$ 7,927,918$ 4,084,079$ 4,084,079$ 34,001,924$ $312,167 $99,891 $408,522 $820,580 592,901$ $0.01950 6824 $133,049 $133,049 $7,927,918 $8,060,967 $7,240,386

10 13,667,519$ 7,199,847$ 8,455,033$ 160,096$ 5,212,486$ 7,039,751$ 8,086,476$ 4,165,761$ 4,165,761$ 38,167,684$ $318,411 $101,889 $416,692 $836,992 503,966$ $0.01989 6824 $135,710 $135,710 $8,086,476 $8,222,186 $7,385,194

11 13,940,870$ 7,343,844$ 8,624,134$ 163,298$ 5,316,736$ 7,180,546$ 8,248,206$ 4,249,076$ 4,249,076$ 42,416,760$ $324,779 $103,927 $425,026 $853,732 428,371$ $0.02028 6824 $138,424 $138,424 $8,248,206 $8,386,630 $7,532,898

12 14,219,687$ 7,490,720$ 8,796,616$ 166,564$ 5,423,070$ 7,324,157$ 8,413,170$ 4,334,057$ 4,334,057$ 46,750,817$ $331,274 $106,005 $433,527 $870,806 364,115$ $0.02069 6824 $141,192 $141,192 $8,413,170 $8,554,362 $7,683,556

13 14,504,081$ 7,640,535$ 8,972,549$ 169,895$ 5,531,532$ 7,470,640$ 8,581,433$ 4,420,738$ 4,420,738$ 51,171,556$ $337,900 $108,125 $442,197 $888,222 309,498$ $0.02110 6824 $144,016 $144,016 $8,581,433 $8,725,450 $7,837,227

14 14,794,162$ 7,793,345$ 9,152,000$ 173,293$ 5,642,162$ 7,620,053$ 8,753,062$ 4,509,153$ 4,509,153$ 55,680,709$ $344,658 $110,288 $451,041 $905,987 263,073$ $0.02153 6824 $146,896 $146,896 $8,753,062 $8,899,958 $7,993,972

15 15,090,046$ 7,949,212$ 9,335,040$ 176,759$ 5,755,006$ 7,772,454$ 8,928,123$ 4,599,336$ 4,599,336$ 60,280,045$ $351,551 $112,493 $460,062 $924,107 223,612$ $0.02196 6824 $149,834 $149,834 $8,928,123 $9,077,958 $8,153,851

16 15,391,846$ 8,108,197$ 9,521,741$ 180,294$ 5,870,106$ 7,927,903$ 9,106,686$ 4,691,323$ 4,691,323$ 64,971,368$ $358,582 $114,743 $469,263 $942,589 190,070$ $0.02240 6824 $152,831 $152,831 $9,106,686 $9,259,517 $8,316,928

17 15,699,683$ 8,270,361$ 9,712,175$ 183,900$ 5,987,508$ 8,086,461$ 9,288,820$ 4,785,149$ 4,785,149$ 69,756,518$ $365,754 $117,038 $478,649 $961,440 161,560$ $0.02284 6824 $155,888 $155,888 $9,288,820 $9,444,707 $8,483,267

18 16,013,677$ 8,435,768$ 9,906,419$ 187,578$ 6,107,258$ 8,248,190$ 9,474,596$ 4,880,852$ 4,880,852$ 74,637,370$ $373,069 $119,379 $488,222 $980,669 137,326$ $0.02330 6824 $159,005 $159,005 $9,474,596 $9,633,601 $8,652,932

19 16,333,951$ 8,604,483$ 10,104,547$ 191,329$ 6,229,403$ 8,413,154$ 9,664,088$ 4,978,469$ 4,978,469$ 79,615,840$ $380,530 $121,767 $497,986 $1,000,283 116,727$ $0.02377 6824 $162,186 $162,186 $9,664,088 $9,826,273 $8,825,991

20 16,660,630$ 8,776,573$ 10,306,638$ 195,156$ 6,353,991$ 8,581,417$ 9,857,370$ 5,078,039$ 5,078,039$ 84,693,878$ $388,141 $124,202 $507,946 $1,020,288 99,218$ $0.02424 6824 $165,429 $165,429 $9,857,370 $10,022,799 $9,002,511

21 16,993,842$ 8,952,104$ 10,512,771$ 199,059$ 6,481,071$ 8,753,045$ 10,054,517$ 5,179,600$ 5,179,600$ 89,873,478$ $395,903 $126,686 $518,105 $1,040,694 84,335$ $0.02473 6824 $168,738 $168,738 $10,054,517 $10,223,255 $9,182,561

22 17,333,719$ 9,131,146$ 10,723,026$ 203,040$ 6,610,693$ 8,928,106$ 10,255,607$ 5,283,192$ 5,283,192$ 95,156,670$ $403,822 $129,220 $528,467 $1,061,508 71,685$ $0.02522 6824 $172,113 $172,113 $10,255,607 $10,427,720 $9,366,212

23 17,680,393$ 9,313,769$ 10,937,487$ 207,101$ 6,742,906$ 9,106,668$ 10,460,719$ 5,388,855$ 5,388,855$ 100,545,525$ $411,898 $131,804 $539,036 $1,082,738 60,932$ $0.02573 6824 $175,555 $175,555 $10,460,719 $10,636,274 $9,553,536

24 18,034,001$ 9,500,045$ 11,156,237$ 211,243$ 6,877,765$ 9,288,802$ 10,669,934$ 5,496,633$ 5,496,633$ 106,042,158$ $420,136 $134,440 $549,817 $1,104,393 51,792$ $0.02624 6824 $179,066 $179,066 $10,669,934 $10,849,000 $9,744,607

SREC (California)

Credits


Appendix I: Financing Assumptions

Timing

Start




Revenue


Sources of Funds







Interest rate


2.925



10-18 years

DSCR Target x 2.50x





Appendix J: Waterfall

Period Start 2-Jan-18 1-Jan-19 1-Jan-20 1-Jan-21 1-Jan-22 1-Jan-23 1-Jan-24 1-Jan-25 1-Jan-26 1-Jan-27 1-Jan-28 1-Jan-29 1-Jan-30 1-Jan-31 1-Jan-32 1-Jan-33 1-Jan-34 1-Jan-35 1-Jan-36 1-Jan-37 1-Jan-38 1-Jan-39 1-Jan-40 1-Jan-41

Period End 1-Jan-18 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 31-Dec-28 31-Dec-29 31-Dec-30 31-Dec-31 31-Dec-32 31-Dec-33 31-Dec-34 31-Dec-35 31-Dec-36 31-Dec-37 31-Dec-38 31-Dec-39 31-Dec-40 31-Dec-41

Operating cash flows

Revenue USD M 6.91$ 7.05$ 7.19$ 7.34$ 7.48$ 7.63$ 7.79$ 7.94$ 8.10$ 8.26$ 8.43$ 8.60$ 8.77$ 8.94$ 9.12$ 9.31$ 9.49$ 9.68$ 9.88$ 10.07$ 10.27$ 10.48$ 10.69$ 10.90$

Expenses USD M 0.70$ 0.71$ 0.73$ 0.74$ 0.76$ 0.77$ 0.79$ 0.80$ 0.82$ 0.84$ 0.85$ 0.87$ 0.89$ 0.91$ 0.92$ 0.94$ 0.96$ 0.98$ 1.00$ 1.02$ 1.04$ 1.06$ 1.08$ 1.10$

Working capital adjustments USD M

Total operating cash flows USD M 6.21$ 6.34$ 6.46$ 6.59$ 6.73$ 6.86$ 7.00$ 7.14$ 7.28$ 7.43$ 7.57$ 7.73$ 7.88$ 8.04$ 8.20$ 8.36$ 8.53$ 8.70$ 8.87$ 9.05$ 9.23$ 9.42$ 9.61$ 9.80$

Tax USD M 35% 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$ 2.60$ 2.65$ 2.70$ 2.76$ 2.81$ 2.87$ 2.93$ 2.99$ 3.05$ 3.11$ 3.17$ 3.23$ 3.30$ 3.36$ 3.43$

Net Tax Credit USD M 17.10$ 14.92$ 12.70$ 10.44$ 8.13$ 5.78$ 3.38$ 0.93$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Tax Credit Add USD M 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 0.93$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

CFADS USD M 6.21$ 6.34$ 6.46$ 6.59$ 6.73$ 6.86$ 7.00$ 5.57$ 4.73$ 4.83$ 4.92$ 5.02$ 5.12$ 5.22$ 5.33$ 5.44$ 5.54$ 5.66$ 5.77$ 5.88$ 6.00$ 6.12$ 6.24$ 6.37$

Debt service

Interest USD M 1.72$ 1.69$ 1.65$ 1.62$ 1.58$ 1.53$ 1.48$ 1.43$ 1.40$ 1.38$ 1.36$ 1.33$ 1.30$ 1.27$ 1.24$ 1.21$ 1.17$ 1.12$ 1.08$ 1.03$ 0.98$ 0.92$ 0.86$ 0.79$

Principal USD M 0.77$ 0.85$ 0.93$ 1.02$ 1.12$ 1.21$ 1.32$ 0.80$ 0.50$ 0.55$ 0.61$ 0.68$ 0.75$ 0.82$ 0.89$ 0.97$ 1.05$ 1.14$ 1.23$ 1.32$ 1.42$ 1.53$ 1.64$ 1.75$

Total USD M 0 2.49$ 2.54$ 2.59$ 2.64$ 2.69$ 2.74$ 2.80$ 2.23$ 1.89$ 1.93$ 1.97$ 2.01$ 2.05$ 2.09$ 2.13$ 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$

Cashflow available for DSRA USD M 3.73$ 3.80$ 3.88$ 3.96$ 4.04$ 4.12$ 4.20$ 3.34$ 2.84$ 2.90$ 2.95$ 3.01$ 3.07$ 3.13$ 3.20$ 3.26$ 3.33$ 3.39$ 3.46$ 3.53$ 3.60$ 3.67$ 3.75$ 3.82$

Cashflow available for equity USD M 3.73$ 3.80$ 3.88$ 3.96$ 4.04$ 4.12$ 4.20$ 3.34$ 2.84$ 2.90$ 2.95$ 3.01$ 3.07$ 3.13$ 3.20$ 3.26$ 3.33$ 3.39$ 3.46$ 3.53$ 3.60$ 3.67$ 3.75$ 3.82$

Distributions USD M 3.73$ 3.80$ 3.88$ 3.96$ 4.04$ 4.12$ 4.20$ 3.34$ 2.84$ 2.90$ 2.95$ 3.01$ 3.07$ 3.13$ 3.20$ 3.26$ 3.33$ 3.39$ 3.46$ 3.53$ 3.60$ 3.67$ 3.75$ 3.82$

Net cashflow USD M (14.04)$ 3.73$ 3.80$ 3.88$ 3.96$ 4.04$ 4.12$ 4.20$ 3.34$ 2.84$ 2.90$ 2.95$ 3.01$ 3.07$ 3.13$ 3.20$ 3.26$ 3.33$ 3.39$ 3.46$ 3.53$ 3.60$ 3.67$ 3.75$ 3.82$

Revenue

Total Revenue USD 6,914,229.89$ 7,052,514.49$ 7,193,564.78$ 7,337,436.07$ 7,484,184.79$ 7,633,868.49$ 7,786,545.86$ 7,942,276.78$ 8,101,122.31$ 8,263,144.76$ 8,428,407.65$ 8,596,975.81$ 8,768,915.32$ 8,944,293.63$ 9,123,179.50$ 9,305,643.09$ 9,491,755.95$ 9,681,591.07$ 9,875,222.89$ 10,072,727.35$ 10,274,181.90$ 10,479,665.54$ 10,689,258.85$ 10,903,044.02$

Operating costs

Total operating costs USD 700,357.25$ 714,364.39$ 728,651.68$ 743,224.71$ 758,089.21$ 773,250.99$ 788,716.01$ 804,490.33$ 820,580.14$ 836,991.74$ 853,731.58$ 870,806.21$ 888,222.33$ 905,986.78$ 924,106.52$ 942,588.65$ 961,440.42$ 980,669.23$ 1,000,282.61$ 1,020,288.26$ 1,040,694.03$ 1,061,507.91$ 1,082,738.07$ 1,104,392.83$

Senior debt

Start End

Tenor [1,0] 1-Jan-18 31-Dec-41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Account O/B

Balance b/f USD M 42.95 42.95$ 42.18$ 41.33$ 40.40$ 39.38$ 38.26$ 37.05$ 35.73$ 34.93$ 34.44$ 33.88$ 33.27$ 32.59$ 31.85$ 31.03$ 30.14$ 29.17$ 28.12$ 26.98$ 25.75$ 24.43$ 23.01$ 21.48$ 19.84$

Principal repayment USD M 0.77$ 0.85$ 0.93$ 1.02$ 1.12$ 1.21$ 1.32$ 0.80$ 0.50$ 0.55$ 0.61$ 0.68$ 0.75$ 0.82$ 0.89$ 0.97$ 1.05$ 1.14$ 1.23$ 1.32$ 1.42$ 1.53$ 1.64$ 1.75$

Balance c/f USD M 42.95 42.18$ 41.33$ 40.40$ 39.38$ 38.26$ 37.05$ 35.73$ 34.93$ 34.44$ 33.88$ 33.27$ 32.59$ 31.85$ 31.03$ 30.14$ 29.17$ 28.12$ 26.98$ 25.75$ 24.43$ 23.01$ 21.48$ 19.84$ 18.08$

Debt repaid? [1,0] - - - - - - - - - - - - - - - - - - - - - - - -

Interest % p.a.

All-in rate % p.a. 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

Interest during operations USD M 1.72$ 1.69$ 1.65$ 1.62$ 1.58$ 1.53$ 1.48$ 1.43$ 1.40$ 1.38$ 1.36$ 1.33$ 1.30$ 1.27$ 1.24$ 1.21$ 1.17$ 1.12$ 1.08$ 1.03$ 0.98$ 0.92$ 0.86$ 0.79$

Principal repayment

Sculpted

CFADS (positive only) USD M 6.21$ 6.34$ 6.46$ 6.59$ 6.73$ 6.86$ 7.00$ 5.57$ 4.73$ 4.83$ 4.92$ 5.02$ 5.12$ 5.22$ 5.33$ 5.44$ 5.54$ 5.66$ 5.77$ 5.88$ 6.00$ 6.12$ 6.24$ 6.37$

DSCR Target x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x 2.50x

Debt Service (P+I) USD M 2.49$ 2.54$ 2.59$ 2.64$ 2.69$ 2.74$ 2.80$ 2.23$ 1.89$ 1.93$ 1.97$ 2.01$ 2.05$ 2.09$ 2.13$ 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$

Less: Interest USD M (1.72)$ (1.69)$ (1.65)$ (1.62)$ (1.58)$ (1.53)$ (1.48)$ (1.43)$ (1.40)$ (1.38)$ (1.36)$ (1.33)$ (1.30)$ (1.27)$ (1.24)$ (1.21)$ (1.17)$ (1.12)$ (1.08)$ (1.03)$ (0.98)$ (0.92)$ (0.86)$ (0.79)$

Maximum Principal USD M 0.77$ 0.85$ 0.93$ 1.02$ 1.12$ 1.21$ 1.32$ 0.80$ 0.50$ 0.55$ 0.61$ 0.68$ 0.75$ 0.82$ 0.89$ 0.97$ 1.05$ 1.14$ 1.23$ 1.32$ 1.42$ 1.53$ 1.64$ 1.75$





Revenue USD M 6.91$ 7.05$ 7.19$ 7.34$ 7.48$ 7.63$ 7.79$ 7.94$ 8.10$ 8.26$ 8.43$ 8.60$ 8.77$ 8.94$ 9.12$ 9.31$ 9.49$ 9.68$ 9.88$ 10.07$ 10.27$ 10.48$ 10.69$ 10.90$

Expenses USD M 0.70$ 0.71$ 0.73$ 0.74$ 0.76$ 0.77$ 0.79$ 0.80$ 0.82$ 0.84$ 0.85$ 0.87$ 0.89$ 0.91$ 0.92$ 0.94$ 0.96$ 0.98$ 1.00$ 1.02$ 1.04$ 1.06$ 1.08$ 1.10$



Tax USD M 35% 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$ 2.60$ 2.65$ 2.70$ 2.76$ 2.81$ 2.87$ 2.93$ 2.99$ 3.05$ 3.11$ 3.17$ 3.23$ 3.30$ 3.36$ 3.43$

Net Tax Credit USD M 17.10$ 14.92$ 12.70$ 10.44$ 8.13$ 5.78$ 3.38$ 0.93$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Tax Credit Add USD M 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 0.93$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

CFADS USD M 6.21$ 6.34$ 6.46$ 6.59$ 6.73$ 6.86$ 7.00$ 5.57$ 4.73$ 4.83$ 4.92$ 5.02$ 5.12$ 5.22$ 5.33$ 5.44$ 5.54$ 5.66$ 5.77$ 5.88$ 6.00$ 6.12$ 6.24$ 6.37$

Debt service

Interest USD M 1.72$ 1.69$ 1.65$ 1.62$ 1.58$ 1.53$ 1.48$ 1.43$ 1.40$ 1.38$ 1.36$ 1.33$ 1.30$ 1.27$ 1.24$ 1.21$ 1.17$ 1.12$ 1.08$ 1.03$ 0.98$ 0.92$ 0.86$ 0.79$

Principal USD M 0.77$ 0.85$ 0.93$ 1.02$ 1.12$ 1.21$ 1.32$ 0.80$ 0.50$ 0.55$ 0.61$ 0.68$ 0.75$ 0.82$ 0.89$ 0.97$ 1.05$ 1.14$ 1.23$ 1.32$ 1.42$ 1.53$ 1.64$ 1.75$

Total USD M 0 2.49$ 2.54$ 2.59$ 2.64$ 2.69$ 2.74$ 2.80$ 2.23$ 1.89$ 1.93$ 1.97$ 2.01$ 2.05$ 2.09$ 2.13$ 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$





Revenue


Operating costs

Total operating costs USD 700,357.25$ 714,364.39$ 728,651.68$ 743,224.71$ 758,089.21$ 773,250.99$ 788,716.01$ 804,490.33$ 820,580.14$ 836,991.74$ 853,731.58$ 870,806.21$ 888,222.33$ 905,986.78$ 924,106.52$ 942,588.65$ 961,440.42$ 980,669.23$ 1,000,282.61$ 1,020,288.26$ 1,040,694.03$ 1,061,507.91$ 1,082,738.07$ 1,104,392.83$

Senior debt

Start End

Tenor [1,0] 1-Jan-18 31-Dec-41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Account O/B

Balance b/f USD M 42.95 42.95$ 42.18$ 41.33$ 40.40$ 39.38$ 38.26$ 37.05$ 35.73$ 34.93$ 34.44$ 33.88$ 33.27$ 32.59$ 31.85$ 31.03$ 30.14$ 29.17$ 28.12$ 26.98$ 25.75$ 24.43$ 23.01$ 21.48$ 19.84$


Balance c/f USD M 42.95 42.18$ 41.33$ 40.40$ 39.38$ 38.26$ 37.05$ 35.73$ 34.93$ 34.44$ 33.88$ 33.27$ 32.59$ 31.85$ 31.03$ 30.14$ 29.17$ 28.12$ 26.98$ 25.75$ 24.43$ 23.01$ 21.48$ 19.84$ 18.08$

Debt repaid? [1,0] - - - - - - - - - - - - - - - - - - - - - - - -

Interest % p.a.

All-in rate % p.a. 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%


Principal repayment

Sculpted







Appendix K: Depreciation Schedule

2 9 .6 0 Size of Project (MWp) Cost of Project $ 4 1,4 4 4 ,9 2 8 .0 0

$ 1.4 0 Cost/W

Value to Dep $41,444,928.00 Percentage 15%

Ye a r Va lue to De pre c ia te De pre c ia tion Cum. De p. Ne t Va lue of Asse t Corp. Inc ome Ta x Ra te Ta x Shie ld

1 $41,444,928.00 6,216,739.20$ 6,216,739.20$ 35,228,188.80$ 35% 2,175,858.72$

2 35,228,188.80$ 5,284,228.32$ 11,500,967.52$ 29,943,960.48$ 35% 1,849,479.91$

3 29,943,960.48$ 4,491,594.07$ 15,992,561.59$ 25,452,366.41$ 35% 1,572,057.93$

4 25,452,366.41$ 3,817,854.96$ 19,810,416.55$ 21,634,511.45$ 35% 1,336,249.24$

5 21,634,511.45$ 3,245,176.72$ 23,055,593.27$ 18,389,334.73$ 35% 1,135,811.85$

6 18,389,334.73$ 2,758,400.21$ 25,813,993.48$ 15,630,934.52$ 35% 965,440.07$

7 15,630,934.52$ 2,344,640.18$ 28,158,633.66$ 13,286,294.34$ 35% 820,624.06$

8 13,286,294.34$ 1,992,944.15$ 30,151,577.81$ 11,293,350.19$ 35% 697,530.45$

9 11,293,350.19$ 1,694,002.53$ 31,845,580.34$ 9,599,347.66$ 35% 592,900.89$

10 9,599,347.66$ 1,439,902.15$ 33,285,482.49$ 8,159,445.51$ 35% 503,965.75$

11 8,159,445.51$ 1,223,916.83$ 34,509,399.31$ 6,935,528.69$ 35% 428,370.89$

12 6,935,528.69$ 1,040,329.30$ 35,549,728.62$ 5,895,199.38$ 35% 364,115.26$

13 5,895,199.38$ 884,279.91$ 36,434,008.52$ 5,010,919.48$ 35% 309,497.97$

14 5,010,919.48$ 751,637.92$ 37,185,646.45$ 4,259,281.55$ 35% 263,073.27$

15 4,259,281.55$ 638,892.23$ 37,824,538.68$ 3,620,389.32$ 35% 223,612.28$

16 3,620,389.32$ 543,058.40$ 38,367,597.08$ 3,077,330.92$ 35% 190,070.44$

17 3,077,330.92$ 461,599.64$ 38,829,196.72$ 2,615,731.28$ 35% 161,559.87$

18 2,615,731.28$ 392,359.69$ 39,221,556.41$ 2,223,371.59$ 35% 137,325.89$

19 2,223,371.59$ 333,505.74$ 39,555,062.15$ 1,889,865.85$ 35% 116,727.01$

20 1,889,865.85$ 283,479.88$ 39,838,542.02$ 1,606,385.98$ 35% 99,217.96$

21 1,606,385.98$ 240,957.90$ 40,079,499.92$ 1,365,428.08$ 35% 84,335.26$

22 1,365,428.08$ 204,814.21$ 40,284,314.13$ 1,160,613.87$ 35% 71,684.97$

23 1,160,613.87$ 174,092.08$ 40,458,406.21$ 986,521.79$ 35% 60,932.23$

24 986,521.79$ 147,978.27$ 40,606,384.48$ 838,543.52$ 35% 51,792.39$

De pre c ia tion


Appendix L: Irradiance Data

System Size (MW) 29.6

Month Solar Radiation (kWh/m^2/day) AC Energy (kWh) DC in MW MWh DC / per MW System Size

January 3.93 2,875,734 3027.09 102.27 Summer 161.80

February 4.91 3,247,318 3418.23 115.48

March 5.45 3,975,489 4184.73 141.38 Winter 115.84

April 6.14 4,298,009 4524.22 152.85

May 6.56 4,717,621 4965.92 167.77

June 6.64 4,603,459 4845.75 163.71

July 6.92 4,917,897 5176.73 174.89

August 6.88 4,860,701 5116.53 172.86

September 5.71 3,901,791 4107.15 138.76

October 5.07 3,631,783 3822.93 129.15

November 4.32 3,017,446 3176.26 107.31

December 3.88 2,797,598 2944.84 99.49

49310.36421 1665.890683

Source: http://pvwatts.nrel.gov/pvwatts.php

ZIP: 90001 (Los Angeles)


Appendix I: Financing Assumptions

Timing

Start




Revenue


Sources of Funds







Interest rate


2.925



10-18 years

DSCR Target x 2.50x





Appendix J: Waterfall




Revenue USD M 5.47$ 5.58$ 5.69$ 5.80$ 5.92$ 6.04$ 6.16$ 6.28$ 6.41$ 6.53$ 6.66$ 6.80$ 6.93$ 7.07$ 7.21$ 7.36$ 7.51$ 7.66$ 7.81$ 7.96$ 8.12$ 8.29$ 8.45$ 8.62$

Expenses USD M 0.67$ 0.68$ 0.69$ 0.71$ 0.72$ 0.74$ 0.75$ 0.77$ 0.78$ 0.80$ 0.81$ 0.83$ 0.85$ 0.86$ 0.88$ 0.90$ 0.92$ 0.93$ 0.95$ 0.97$ 0.99$ 1.01$ 1.03$ 1.05$



Tax USD M 35% 1.68$ 1.71$ 1.75$ 1.78$ 1.82$ 1.85$ 1.89$ 1.93$ 1.97$ 2.01$ 2.05$ 2.09$ 2.13$ 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$ 2.60$ 2.65$

Net Tax Credit USD M 15.92$ 14.24$ 12.53$ 10.78$ 9.00$ 7.18$ 5.33$ 3.44$ 1.51$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Tax Credit Add USD M 1.68$ 1.71$ 1.75$ 1.78$ 1.82$ 1.85$ 1.89$ 1.93$ 1.51$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

CFADS USD M 4.80$ 4.90$ 4.99$ 5.09$ 5.20$ 5.30$ 5.41$ 5.51$ 5.16$ 3.73$ 3.80$ 3.88$ 3.96$ 4.04$ 4.12$ 4.20$ 4.28$ 4.37$ 4.46$ 4.54$ 4.64$ 4.73$ 4.82$ 4.92$

Debt service

Interest USD M 1.60$ 1.59$ 1.57$ 1.56$ 1.54$ 1.51$ 1.49$ 1.46$ 1.43$ 1.41$ 1.41$ 1.40$ 1.39$ 1.39$ 1.38$ 1.37$ 1.35$ 1.34$ 1.32$ 1.31$ 1.29$ 1.26$ 1.24$ 1.21$

Principal USD M 0.32$ 0.37$ 0.42$ 0.48$ 0.54$ 0.61$ 0.67$ 0.74$ 0.63$ 0.08$ 0.12$ 0.15$ 0.19$ 0.23$ 0.27$ 0.31$ 0.36$ 0.41$ 0.46$ 0.51$ 0.57$ 0.63$ 0.69$ 0.76$

Total USD M 0 1.92$ 1.96$ 2.00$ 2.04$ 2.08$ 2.12$ 2.16$ 2.21$ 2.06$ 1.49$ 1.52$ 1.55$ 1.58$ 1.61$ 1.65$ 1.68$ 1.71$ 1.75$ 1.78$ 1.82$ 1.85$ 1.89$ 1.93$ 1.97$





Revenue


Operating costs

Total operating costs USD 667,457.00$ 680,806.14$ 694,422.26$ 708,310.71$ 722,476.92$ 736,926.46$ 751,664.99$ 766,698.29$ 782,032.26$ 797,672.90$ 813,626.36$ 829,898.89$ 846,496.86$ 863,426.80$ 880,695.34$ 898,309.24$ 916,275.43$ 934,600.94$ 953,292.96$ 972,358.81$ 991,805.99$ 1,011,642.11$ 1,031,874.95$ 1,052,512.45$

Senior debt

Start End

Tenor [1,0] 1-Jan-18 31-Dec-41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Account O/B

Balance b/f USD M 40.00 40.00$ 39.68$ 39.31$ 38.89$ 38.41$ 37.87$ 37.26$ 36.59$ 35.85$ 35.22$ 35.13$ 35.02$ 34.87$ 34.68$ 34.45$ 34.18$ 33.87$ 33.51$ 33.11$ 32.65$ 32.14$ 31.57$ 30.94$ 30.25$


Balance c/f USD M 40.00 39.68$ 39.31$ 38.89$ 38.41$ 37.87$ 37.26$ 36.59$ 35.85$ 35.22$ 35.13$ 35.02$ 34.87$ 34.68$ 34.45$ 34.18$ 33.87$ 33.51$ 33.11$ 32.65$ 32.14$ 31.57$ 30.94$ 30.25$ 29.49$

Debt repaid? [1,0] - - - - - - - - - - - - - - - - - - - - - - - -

Interest % p.a.

All-in rate % p.a. 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%


Principal repayment

Sculpted










Revenue USD M 5.47$ 5.58$ 5.69$ 5.80$ 5.92$ 6.04$ 6.16$ 6.28$ 6.41$ 6.53$ 6.66$ 6.80$ 6.93$ 7.07$ 7.21$ 7.36$ 7.51$ 7.66$ 7.81$ 7.96$ 8.12$ 8.29$ 8.45$ 8.62$

Expenses USD M 0.67$ 0.68$ 0.69$ 0.71$ 0.72$ 0.74$ 0.75$ 0.77$ 0.78$ 0.80$ 0.81$ 0.83$ 0.85$ 0.86$ 0.88$ 0.90$ 0.92$ 0.93$ 0.95$ 0.97$ 0.99$ 1.01$ 1.03$ 1.05$



Tax USD M 35% 1.68$ 1.71$ 1.75$ 1.78$ 1.82$ 1.85$ 1.89$ 1.93$ 1.97$ 2.01$ 2.05$ 2.09$ 2.13$ 2.17$ 2.22$ 2.26$ 2.31$ 2.35$ 2.40$ 2.45$ 2.50$ 2.55$ 2.60$ 2.65$

Net Tax Credit USD M 15.92$ 14.24$ 12.53$ 10.78$ 9.00$ 7.18$ 5.33$ 3.44$ 1.51$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Tax Credit Add USD M 1.68$ 1.71$ 1.75$ 1.78$ 1.82$ 1.85$ 1.89$ 1.93$ 1.51$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

CFADS USD M 4.80$ 4.90$ 4.99$ 5.09$ 5.20$ 5.30$ 5.41$ 5.51$ 5.16$ 3.73$ 3.80$ 3.88$ 3.96$ 4.04$ 4.12$ 4.20$ 4.28$ 4.37$ 4.46$ 4.54$ 4.64$ 4.73$ 4.82$ 4.92$

Debt service

Interest USD M 1.60$ 1.59$ 1.57$ 1.56$ 1.54$ 1.51$ 1.49$ 1.46$ 1.43$ 1.41$ 1.41$ 1.40$ 1.39$ 1.39$ 1.38$ 1.37$ 1.35$ 1.34$ 1.32$ 1.31$ 1.29$ 1.26$ 1.24$ 1.21$

Principal USD M 0.32$ 0.37$ 0.42$ 0.48$ 0.54$ 0.61$ 0.67$ 0.74$ 0.63$ 0.08$ 0.12$ 0.15$ 0.19$ 0.23$ 0.27$ 0.31$ 0.36$ 0.41$ 0.46$ 0.51$ 0.57$ 0.63$ 0.69$ 0.76$

Total USD M 0 1.92$ 1.96$ 2.00$ 2.04$ 2.08$ 2.12$ 2.16$ 2.21$ 2.06$ 1.49$ 1.52$ 1.55$ 1.58$ 1.61$ 1.65$ 1.68$ 1.71$ 1.75$ 1.78$ 1.82$ 1.85$ 1.89$ 1.93$ 1.97$





Revenue


Operating costs

Total operating costs USD 667,457.00$ 680,806.14$ 694,422.26$ 708,310.71$ 722,476.92$ 736,926.46$ 751,664.99$ 766,698.29$ 782,032.26$ 797,672.90$ 813,626.36$ 829,898.89$ 846,496.86$ 863,426.80$ 880,695.34$ 898,309.24$ 916,275.43$ 934,600.94$ 953,292.96$ 972,358.81$ 991,805.99$ 1,011,642.11$ 1,031,874.95$ 1,052,512.45$

Senior debt

Start End

Tenor [1,0] 1-Jan-18 31-Dec-41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Account O/B

Balance b/f USD M 40.00 40.00$ 39.68$ 39.31$ 38.89$ 38.41$ 37.87$ 37.26$ 36.59$ 35.85$ 35.22$ 35.13$ 35.02$ 34.87$ 34.68$ 34.45$ 34.18$ 33.87$ 33.51$ 33.11$ 32.65$ 32.14$ 31.57$ 30.94$ 30.25$


Balance c/f USD M 40.00 39.68$ 39.31$ 38.89$ 38.41$ 37.87$ 37.26$ 36.59$ 35.85$ 35.22$ 35.13$ 35.02$ 34.87$ 34.68$ 34.45$ 34.18$ 33.87$ 33.51$ 33.11$ 32.65$ 32.14$ 31.57$ 30.94$ 30.25$ 29.49$

Debt repaid? [1,0] - - - - - - - - - - - - - - - - - - - - - - - -

Interest % p.a.

All-in rate % p.a. 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%


Principal repayment

Sculpted







Appendix K: Depreciation Schedule

3 2 .0 0 Size of Project (MWp) Cost of Project $ 4 4 ,8 0 0 ,0 0 0 .0 0

$ 1.4 0 Cost/W

Value to Dep $44,800,000.00 Percentage 15%

Ye a r Va lue to De pre c ia te De pre c ia tion Cum. De p. Ne t Va lue of Asse t Corp. Inc ome Ta x Ra te Ta x Shie ld

1 $44,800,000.00 6,720,000.00$ 6,720,000.00$ 38,080,000.00$ 35% 2,352,000.00$

2 38,080,000.00$ 5,712,000.00$ 12,432,000.00$ 32,368,000.00$ 35% 1,999,200.00$

3 32,368,000.00$ 4,855,200.00$ 17,287,200.00$ 27,512,800.00$ 35% 1,699,320.00$

4 27,512,800.00$ 4,126,920.00$ 21,414,120.00$ 23,385,880.00$ 35% 1,444,422.00$

5 23,385,880.00$ 3,507,882.00$ 24,922,002.00$ 19,877,998.00$ 35% 1,227,758.70$

6 19,877,998.00$ 2,981,699.70$ 27,903,701.70$ 16,896,298.30$ 35% 1,043,594.90$

7 16,896,298.30$ 2,534,444.75$ 30,438,146.45$ 14,361,853.56$ 35% 887,055.66$

8 14,361,853.56$ 2,154,278.03$ 32,592,424.48$ 12,207,575.52$ 35% 753,997.31$

9 12,207,575.52$ 1,831,136.33$ 34,423,560.81$ 10,376,439.19$ 35% 640,897.71$

10 10,376,439.19$ 1,556,465.88$ 35,980,026.69$ 8,819,973.31$ 35% 544,763.06$

11 8,819,973.31$ 1,322,996.00$ 37,303,022.68$ 7,496,977.32$ 35% 463,048.60$

12 7,496,977.32$ 1,124,546.60$ 38,427,569.28$ 6,372,430.72$ 35% 393,591.31$

13 6,372,430.72$ 955,864.61$ 39,383,433.89$ 5,416,566.11$ 35% 334,552.61$

14 5,416,566.11$ 812,484.92$ 40,195,918.81$ 4,604,081.19$ 35% 284,369.72$

15 4,604,081.19$ 690,612.18$ 40,886,530.98$ 3,913,469.02$ 35% 241,714.26$

16 3,913,469.02$ 587,020.35$ 41,473,551.34$ 3,326,448.66$ 35% 205,457.12$

17 3,326,448.66$ 498,967.30$ 41,972,518.64$ 2,827,481.36$ 35% 174,638.55$

18 2,827,481.36$ 424,122.20$ 42,396,640.84$ 2,403,359.16$ 35% 148,442.77$

19 2,403,359.16$ 360,503.87$ 42,757,144.71$ 2,042,855.29$ 35% 126,176.36$

20 2,042,855.29$ 306,428.29$ 43,063,573.01$ 1,736,426.99$ 35% 107,249.90$

21 1,736,426.99$ 260,464.05$ 43,324,037.06$ 1,475,962.94$ 35% 91,162.42$

22 1,475,962.94$ 221,394.44$ 43,545,431.50$ 1,254,568.50$ 35% 77,488.05$

23 1,254,568.50$ 188,185.28$ 43,733,616.77$ 1,066,383.23$ 35% 65,864.85$

24 1,066,383.23$ 159,957.48$ 43,893,574.26$ 906,425.74$ 35% 55,985.12$

De pre c ia tion


Appendix L: Irradiance Data Los Angeles

System Size (MW) 25

Month Solar Radiation (kWh/m^2/day) AC Energy (kWh) DC in MW MWh DC / per MW System Size

January 3.93 2401022.00 2527.39 101.10 Summer 159.96

February 4.91 2711353.00 2854.06 114.16

March 5.45 3319403.00 3494.11 139.76 Winter 114.52

April 6.14 3588749.00 3777.63 151.11

May 6.56 3939081.00 4146.40 165.86

June 6.64 3843766.00 4046.07 161.84

July 6.92 4106343.00 4322.47 172.90

August 6.88 4058588.00 4272.20 170.89

September 5.71 3257849.00 3429.31 137.17

October 5.07 3032370.00 3191.97 127.68

November 4.32 2519351.00 2651.95 106.08

December 3.88 2335772.00 2458.71 98.35

41172.26 1646.8904

Source: http://pvwatts.nrel.gov/pvwatts.php

ZIP: 90001 (Los Angeles)

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