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Annual Electricity Production and Financial Value
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InputsYear
Tax/Insurance
Electricity Value
Cash Flow NPV
Cumulative Cashflow
Cumulative NPV
kWh Tons AbatedGrid % CleanComment
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Starting Cost $ 30,789 Quote for BCG + 10% Discount for co-op0($30,789)($30,789)
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Tax Credit $ 9,237 1 $ 30.79 $ 1,638 $10,844 $10,115 ($19,945)($20,674) 13,009 Tax credit comes back in year 1.
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Initial Cost Outflow $ 21,552 2 $ 30.79 $ 1,670 $1,640 $1,427 ($18,306)($19,247) 12,944
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3 $ 30.79 $ 1,703 $1,673 $1,358 ($16,633)($17,889) 12,879
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System size9.9kW. This is the DC size of the system, tied to a 10kW inverter. Models suggest no clipping at this ratio in Indiana.4 $ 30.79 $ 1,737 $1,706 $1,292 ($14,927)($16,597) 12,813 7.820%
Skipping Carbon abatement first three years to pay back energy debt
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Assumed Capacity Factor15.0%This was 15% for IN (per PVWatts.nrel.gov, rounded down)5 $ 30.79 $ 1,772 $1,741 $1,230 ($13,186)($15,367) 12,748 7.325%
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Annual Hours87606 $ 30.79 $ 1,807 $1,776 $1,170 ($11,410)($14,197) 12,683 6.730%
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Initial Annual Output 13,009 kWh7 $ 30.79 $ 1,842 $1,812 $1,113 ($9,598)($13,084) 12,618 6.235%
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Electricity Variable Rate (NEM) $ 0.126 Assumes net metering agreement8 $ 30.79 $ 1,879 $1,848 $1,060 ($7,750)($12,024) 12,553 5.740%
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Panel Degradation0.5%9 $ 30.79 $ 1,916 $1,885 $1,008 ($5,866)($11,016) 12,488 5.245%
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10 $ 30.79 $ 1,953 $1,923 $959 ($3,943)($10,057) 12,423 4.750%
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Property Tax Impact0Assessed value of solar panels is exempt from property taxes in Indiana11 $ 30.79 $ 1,992 $1,961 $913 ($1,982)($9,144) 12,358 4.255%
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Insurance Impact0.10%% of system value (rough guess)12 $ 30.79 $ 2,031 $2,000 $868 $18 ($8,276) 12,293 3.760%
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Inflation of electricity prices2.5%13 $ 30.79 $ 2,070 $2,040 $826 $2,058 ($7,450) 12,228 3.365%
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Cost of Capital7.2%
This is my assumed opportunity cost of investing elsewhere (9% less taxes). If you get financing, the interest rate on the loan could go here.
14 $ 30.79 $ 2,111 $2,080 $786 $4,138 ($6,664) 12,163 2.870%
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15 $ 30.79 $ 2,152 $2,121 $748 $6,259 ($5,916) 12,098 2.375%
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Financial Results16 $ 30.79 $ 2,194 $2,163 $711 $8,422 ($5,205) 12,033 1.880%
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Total NPV $ 1,772 17 $ 30.79 $ 2,237 $2,206 $677 $10,628 ($4,528) 11,968 1.485%
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Nominal cash flows $ 43,555 18 $ 30.79 $ 2,280 $2,249 $644 $12,878 ($3,885) 11,903 0.990%
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IRR7.9%19 $ 30.79 $ 2,324 $2,294 $612 $15,172 ($3,273) 11,838 0.495%
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Payback 11.01 Years20 $ 30.79 $ 2,370 $2,339 $582 $17,510 ($2,690) 11,773 0.0100%
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21 $ 30.79 $ 2,415 $2,385 $554 $19,895 ($2,137) 11,708 0.0100%
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Carbon Calculations22 $ 30.79 $ 2,462 $2,431 $527 $22,326 ($1,610) 11,643 0.0100%
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Grid Carbon intensity (kgs/kwh) 0.759 https://www.eia.gov/electricity/state/indiana/23 $ 30.79 $ 2,509 $2,479 $501 $24,805 ($1,109) 11,578 0.0100%
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Solar Energy Debt3years24 $ 30.79 $ 2,558 $2,527 $476 $27,331 ($633) 11,513 0.0100%
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Intensity Decline Rate5%assuming glide to clean grid in 20 years25 $ 30.79 $ 2,607 $2,576 $453 $29,907 ($180) 11,448 0.0100%
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26 $ 30.79 $ 2,657 $2,626 $431 $32,534 $251 11,383 0.0100%
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Tons abated64.527 $ 30.79 $ 2,708 $2,677 $410 $35,210 $661 11,317 0.0100%
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Social cost of carbon$51 Federal cost is $51, but recent study suggests $185 is more appropriate. https://www.rff.org/news/press-releases/social-cost-of-carbon-more-than-triple-the-current-federal-estimate-new-study-finds/28 $ 30.79 $ 2,759 $2,729 $389 $37,939 $1,050 11,252 0.0100%
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Social Value$3,289 Not including NOX, SOX, etc.29 $ 30.79 $ 2,812 $2,781 $370 $40,720 $1,420 11,187 0.0100%
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Abatement Cost $ (1,772)This is just the negative NPV of the system. Varies depending on cost of capital.30 $ 30.79 $ 2,866 $2,835 $352 $43,555 $1,772 11,122 0.0100%
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Abatement cost /ton $ (27.48)If this is negative, we're saving money AND carbon
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Abatement Cost inc. tax credit $ 7,464
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Abatement cost /ton inc tax credit
 $ 115.74
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