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<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Holt says: <FONT color=#000000 size=3
face="Times New Roman">Can't put my hands on the equation for determining cost
per kWh of a system</FONT></FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Holt,</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Are you looking to calculate Cost or Value of the system? Both
calculations are important.</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>The simple $/kWh COST </FONT></SPAN><SPAN
class=906522620-06032010><FONT color=#0000ff size=2 face=Arial>for a residential
PV System is calculated as follows:</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Lifetime $/kWh Cost = (Purchase $ after incentives +
Finance Charge $ + Lifetime O&M $) / Lifetime kWh
Generated</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Example: A system that has a capital cost of $20,000 including
finance charges generates 150,000 kWh over its 25 year life. The O&M costs
over the same period total $5,000, for a Total Cost of $25,000. The Lifetime
Cost of the electricity generated = $25,000/150,000 kWh =
$0.1667/kWh.</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>The Net $/kWh VALUE for a PV System includes some
other factors, which will vary on a system-by-system basis. The driving element
here is the $/kWh of the Offset Utility Energy. This is, after all, the
comparative value of the energy in the first place. I also believe that
the net-change in value of the property is valid to consider.
</FONT></SPAN><SPAN class=906522620-06032010><FONT color=#0000ff size=2
face=Arial>I don't like all the BS mumbo jumbo about NPVs and wild-ass
guesstimates about the cost of money at arbitrary points in the future and
whether or not the inflation rates of electric rates will be higher or
lower than $ deflation rates in a given time period and only if the customer
turns 65 during the life of the system and due to divorce in Year 11 the
customer's effective tax rate changes and...... </FONT></SPAN><SPAN
class=906522620-06032010><FONT color=#0000ff size=2 face=Arial>Screw that. My
crystal ball ain't that good. It is what it is. </FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Calculate the VALUE of the PV System in $/kWh as
follows:</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Net $/kWh Value = ((Offset Utility Energy $ + Net
Change Property Value $) - Total Cost) / Lifetime kWh
Generated</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Example: A system generates 150,000 kWh over its 25 year life.
The Offset Utility Energy $ is $27,000 and the Net Change in Property Value is
$10,000. The system has a Total Cost of $25,000. </FONT></SPAN><SPAN
class=906522620-06032010><FONT color=#0000ff size=2 face=Arial>The Net Value of
the electricity generated = (($27,000 + $10,000) - $25,000) = $12,000.
The </FONT></SPAN><SPAN class=906522620-06032010><FONT color=#0000ff size=2
face=Arial>The Net $/kWh Value = $12,000 / 150,000 kWh =
$0.08/kWh.</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Two of the biggest underlying factors are the assumed
Service Life of the System in Years and the O&M costs during that period.
Like I said, my crystal ball ain't that good. I can share
that </FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010> </SPAN><SPAN
class=906522620-06032010><FONT color=#0000ff size=2
face=Arial></FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Hope this is helpful,</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial>Matt Lafferty</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=906522620-06032010><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV></BODY></HTML>