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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 $ 20,000 Quote for BCG + 10% Discount for co-op0($20,000)($20,000)
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Tax Credit $ - 1 $ 20.00 $ 1,654 $1,634 $1,525 ($18,366)($18,475) 13,140 Tax credit comes back in year 1.
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Initial Cost Outflow $ 20,000 2 $ 20.00 $ 1,687 $1,667 $1,451 ($16,698)($17,025) 13,074
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3 $ 20.00 $ 1,721 $1,701 $1,381 ($14,998)($15,644) 13,009
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System size10kW. This is the DC size of the system, tied to a 10kW inverter. Models suggest no clipping at this ratio in Indiana.4 $ 20.00 $ 1,755 $1,735 $1,314 ($13,263)($14,331) 12,943 7.920%
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 $ 20.00 $ 1,790 $1,770 $1,250 ($11,493)($13,081) 12,877 7.325%
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Annual Hours87606 $ 20.00 $ 1,825 $1,805 $1,189 ($9,688)($11,891) 12,812 6.830%
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Initial Annual Output 13,140 kWh7 $ 20.00 $ 1,861 $1,841 $1,132 ($7,848)($10,760) 12,746 6.335%
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Electricity Variable Rate (NEM) $ 0.126 Assumes net metering agreement8 $ 20.00 $ 1,898 $1,878 $1,077 ($5,970)($9,683) 12,680 5.840%
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Panel Degradation0.5%9 $ 20.00 $ 1,935 $1,915 $1,024 ($4,055)($8,659) 12,614 5.345%
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10 $ 20.00 $ 1,973 $1,953 $974 ($2,102)($7,684) 12,549 4.850%
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Property Tax Impact0Assessed value of solar panels is exempt from property taxes in Indiana11 $ 20.00 $ 2,012 $1,992 $927 ($110)($6,757) 12,483 4.355%
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Insurance Impact0.10%% of system value (rough guess)12 $ 20.00 $ 2,051 $2,031 $882 $1,921 ($5,875) 12,417 3.860%
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Inflation of electricity prices2.5%13 $ 20.00 $ 2,091 $2,071 $839 $3,993 ($5,036) 12,352 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 $ 20.00 $ 2,132 $2,112 $798 $6,105 ($4,238) 12,286 2.870%
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15 $ 20.00 $ 2,174 $2,154 $759 $8,259 ($3,479) 12,220 2.375%
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Financial Results16 $ 20.00 $ 2,216 $2,196 $722 $10,455 ($2,757) 12,155 1.880%
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Total NPV $ 4,322 17 $ 20.00 $ 2,259 $2,239 $687 $12,694 ($2,071) 12,089 1.485%
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Nominal cash flows $ 46,098 18 $ 20.00 $ 2,303 $2,283 $653 $14,978 ($1,417) 12,023 0.990%
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IRR9.1%19 $ 20.00 $ 2,348 $2,328 $621 $17,306 ($796) 11,957 0.595%
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Payback 11.95 Years20 $ 20.00 $ 2,393 $2,373 $591 $19,679 ($205) 11,892 0.0100%
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21 $ 20.00 $ 2,440 $2,420 $562 $22,099 $357 11,826 0.0100%
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Carbon Calculations22 $ 20.00 $ 2,487 $2,467 $534 $24,566 $891 11,760 0.0100%
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Grid Carbon intensity (kgs/kwh) 0.759 https://www.eia.gov/electricity/state/indiana/23 $ 20.00 $ 2,535 $2,515 $508 $27,080 $1,399 11,695 0.0100%
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Solar Energy Debt3years24 $ 20.00 $ 2,584 $2,564 $483 $29,644 $1,883 11,629 0.0100%
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Intensity Decline Rate5%assuming glide to clean grid in 20 years25 $ 20.00 $ 2,633 $2,613 $460 $32,257 $2,342 11,563 0.0100%
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26 $ 20.00 $ 2,684 $2,664 $437 $34,921 $2,779 11,498 0.0100%
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Tons abated-48286.727 $ 20.00 $ 2,735 $2,715 $415 $37,636 $3,194 11,432 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 $ 20.00 $ 2,787 $2,767 $395 $40,403 $3,589 11,366 0.0100%
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Social Value($2,462,622)Not including NOX, SOX, etc.29 $ 20.00 $ 2,840 $2,820 $376 $43,224 $3,965 11,300 0.0100%
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Abatement Cost $ (4,322)This is just the negative NPV of the system. Varies depending on cost of capital.30 $ 20.00 $ 2,895 $2,875 $357 $46,098 $4,322 11,235 0.0100%
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Abatement cost /ton $ 0.09 If this is negative, we're saving money AND carbon
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Abatement Cost inc. tax credit $ (4,322)
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Abatement cost /ton inc tax credit
 $ 0.09 365,621
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-£48,351.84
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-£0.132
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