656471407.xlsx 1.

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Welcome to Your ECM Calculator

Simple Levelised Cost of Electricity (LCOE) for Solar Photovoltaic (PV) Power

Last Modified by User: 9-Apr-2023

For the most recent version of this ECM, and links to other useful analysis tools, please click here to go to
http://www.appropedia.org/Category:Queens_Green_IT_ECMs
This template last modified on: 29-Jan-2012

This spreadsheet consists of six sheets, or tabs, including this Home sheet. The Intro sheet provides an
overview of the ECM and an example. On the Input sheet, enter the best estimates for your business in the
orange cells (and change default purple cells if required). A summary of your costs and benefits based on
the values entered in the Input sheet are provided on the Executive Summary sheet. The detailed economic
and environmental analyses behind the executive summary results appear on the Savings Projection sheet,
which shows financial and environmental metrics. Assumptions underlying the calculations and explanations
of the defaults (such as electricity costs and emissions) are found on the Assumptions & Sources sheet, and
may need to be adjusted for your organization. The ECM calculator has been designed primarily for
electronic use, but can be printed if necessary. Printing defaults have been setup such that all pages will fit
on standard Letter or A4 paper and will rotate (landscape vs. portrait) automatically as necessary.

Headings green
Input Cells orange
Legend
Default Values purple
Summary Charts blue

Disclaimer:

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656471407.xlsx 1.Home

This analysis is conducted based on carefully considered assumptions and calculations in anticipation of use
by an audience with the widest possible selection of applications. As such, various assumptions may not be
applicable to your particular organization, and you are encouraged to read them carefully. To use this tool
effectively, detailed instructions are included on the Introduction tab.

In this ECM, we calculate straightforward financial and environmental benefits. Depending on the ECM, your
organization may enjoy additional financial benefits not included here such as those from government
rebates and incentives, and those arising from lower operating costs, such as reduced waste or water usage.
This ECM may also relate to your organization’s corporate social responsibility initiatives. Again, depending
on the ECM, this increased goodwill may result from donations of your used equipment to not-for-profit
organizations, the reduction of toxic materials, and so on. We encourage you to consider these additional
benefits when making the case for your proposed ECMs.

The information provided here is for informational purposes only. By no means is any information presented herein
intended to substitute for the advice which may be provided to you by a professional. We make no warranties of any
kind, express or implied, about the completeness, accuracy, or reliability of the data or calculations. For this reason,
Queen's University and/or participants of the "Green IT" Project cannot be held responsible for any mistakes or
deficiencies in the data or calculations.

Please click here to view the complete list of Assumptions.

Continue with your analysis by proceeding to the Instructions.

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656471407.xlsx 2.Introduction

ECM032 - Solar PV LCOE Please review disclaimer on the home tab

Solar Photovoltaic Levelised Cost of Electricity

A useful tool in comparing the true total cost to generating electricity from different sources, the levelised cost of electricity (LCOE) totals all of the costs to gen
maintenance and operating expenses, fuel, etc. -- and determines the lowest cost a unit of energy can be sold for while ensuring that source remains financially
unit of energy", such as $CAD/kWh, EUR/MWh, etc.

A comprehensive paper has been written exploring the theory behind the LCOE as it relates to electricity generated through PV technologies. For a link to this c
Sources page by clicking here.

In this analysis, you are prompted to enter some specific information about the solar photovoltaic (PV) installation you are investigating including the size of the
potential generating capacity, and your expectations on warranty/replacement/maintenance costs associated with your system. Given the significant capital ac
you are also prompted for the specifications of your financing for this project. Your interest rate is used in calculations of different loan periods to recommend
system.

Example
Variable
System Specifications
Rated size of solar PV system (kW)
Average Annual Sun hours per day (based on location)
Capacity Factor (based on location - default is Kingston, ON)
Inverter replacement period (years)
PV System Warranty
Solar PV system degradation rate per year

This simplified table of input values represents a 'sample' PV

installation. The size, performance, and details of your system may
be quite different so be sure to carry our your own analysis later.
Last modified by user:
This case 04/09/2023
is meant to serve simply as an illustration of the analysis. Page 3 of
656471407.xlsx 2.Introduction

Associated Costs
This simplified table of input values represents a 'sample' PV
installation. The size, performance, and details of your system may Cost per Watt of System installed ($)
be quite different so be sure to carry our your own analysis later. Total installed cost
This case is meant to serve simply as an illustration of the analysis.
Insurance (default is 1% of installed cost)
Inverter cost (default is 9% of installed cost)
Other Annual Operation Cost
Other Annual Maintenance Cost

Financing
Annual discount rate for present-value calculations
Interest rate for loan
Down payment (initial capitol)
Custom loan term

Based on these inputs, calculations for LCOE are completed for the user-specified loan term (13 years), as well as the default loan terms of 5, 10, 15, 20, 25, 30,
then plotted, and the 40 year term emerges as the best LCOE.

Also calculated is the total present value cost of the project, including the initial capital and operating expenses for a 40 year period. The 40-year option again e

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656471407.xlsx 2.Introduction

This total PV cost data is presented in chart-form as well, where the premium for each loan term is presented.

Loan term (Years) --> 13 5 10 15 20

Total project cost over 40 years (current
dollars): $ 17,877 $ 18,082 $ 17,951 $ 17,828 $ 17,713
Percentage premium over lowest-cost
scenario 3% 4% 4% 3% 2%

All three calculations support the 40-year loan term as the lowest LCOE option. The premiums demanded by the other terms are also laid out clearly su

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 656471407.xlsx 2.Introduction

0 9/4/2023

of Electricity

OE) totals all of the costs to generate electricity by that method -- initial capital,
g that source remains financially self-sustaining. This value is reported as "cost per

technologies. For a link to this complete report, please visit the Assumptions and

stigating including the size of the system, some data related to an estimate of your
. Given the significant capital accompanying many of these large-scale projects,
nt loan periods to recommend a loan term to provide the lowest LCOE for your

Variable Value
System Specifications
2
on location) 5
lt is Kingston, ON) 0.208
10
30
0.5%

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 656471407.xlsx 2.Introduction

Associated Costs
6.5
$ 13,000.00
$ 130.00
t) $ 1,170.00
$ -
$ -

Financing
culations 3%
2%
$ 2,600.00
13

n terms of 5, 10, 15, 20, 25, 30, 35 and 40 years. The LCOE of these nine options is

riod. The 40-year option again emerges as the lowest total PV cost option.

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 656471407.xlsx 2.Introduction

25 30 35 40
$ 17,604 $ 17,502 $ 17,407 $ 17,319

2% 1% 1% 0%

erms are also laid out clearly such that an informed decision can be made.

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656471407.xlsx 3.Inputs

ECM032 - Solar PV LCOE Please review disclaimer on the Home tab This template last modified on:

Inputs
Input Cells orange
Legend Default Values purple

Assumptions &
Variable
Sources
System Specifications
Rated size of solar system (kW)
Average Annual Sun hours per day (based on location)
assump_2
Capacity Factor (based on location - default is Kingston, ON) - Calculated automatically
assump_3 Inverter replacement period (years)
assump_4 PV System Warranty
assump_5 Solar PV system degradation rate per year
assump_6 Energy Output (Rated) kWh per year - Calculated automatically

Associated Costs
Cost per Watt of System installed ($/W)
assump_7
Total installed cost
Insurance (default is 1% of installed cost) - See Assumptions & References for input
assump_8
Inverter cost (default is 9% of installed cost) - See Assumptions & References for input
Other Annual Operation Cost
Other Annual Maintenance Cost

Financing
assump_9 Annual discount rate for present-value calculations
assump_10 Interest rate for loan
Down payment (initial capital)
assump_11 Custom loan term (years)

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 656471407.xlsx 3.Inputs

This template last modified on: 9/4/2023

orange
purple

Symbol/
Value
Calculation

A 2
B 5
C=B/24 0.208
D 10
E 30
F 0.5%
G=C*365*24*A 3650

H 6.5
I=H*A*1000 $ 13,000.00
J=0.01*I $ 130.00
K=0.09*I $ 1,170.00
L $ -
M $ -

N 3.0%
O 2.4%
Q $ 2,600.00
R 13

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656471407.xlsx 4.Executive Summary

ECM032 - Solar PV LCOE Please review disclaimer on the Home tab.

Executive Summary
The interest paid on money financed for the PV project is the most significant variable in determining the project's LCOE. In this project, a custom term of 13 years was selecte
compared with the default loan terms calculated at 5-year increments from 5 to 40 year loans.

Your Custom Loan Term:

Legend Default 5-year increment terms:
Lowest LCOE Case

Loan term (Years) --> 13 5 10 15 20

LCOE ($CAD/KWh): $ 0.220 $ 0.222 $ 0.221 $ 0.219 $ 0.218

Loan term (Years) --> 13 5 10 15 20

Total project cost over 40 years (current dollars): $ 17,877 $ 18,082 $ 17,951 $ 17,828 $ 17,713
Percentage premium over lowest-cost scenario 3% 4% 4% 3% 2%

20000
ears (PV

18000
16000
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656471407.xlsx 4.Executive Summary

20000
Years Custom loan term cost

Total project cost over 40 years (PV

18000 5 $ 17,876.56
16000 10 $ 17,876.56
15 $ 17,876.56
14000 20 $ 17,876.56
25 $ 17,876.56
12000
30 $ 17,876.56
dollars)

10000 35 $ 17,876.56
40 $ 17,876.56
8000
6000
4000
2000
0
5
Loan term (years)

Therefore, the LCOE of your PV installation is $0.22 based on a 13 year loan on $10,400. The LCOE could be reduced to $0.213 by modifying the term of your loan to 40 years,
your PV system.

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 656471407.xlsx 4.Executive Summary

This template last modified on: 9/4/2023

a custom term of 13 years was selected. The LCOE for this custom term is

25 30 35 40
$ 0.216 $ 0.215 $ 0.214 $ 0.213

25 30 35 40
$ 17,604 $ 17,502 $ 17,407 $ 17,319
2% 1% 1% 0%

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 656471407.xlsx 4.Executive Summary

10
15
20
25
30
35
40
Row 32

ying the term of your loan to 40 years, resulting in the lowest possible LCOE for

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656471407.xlsx 5.Projected Savings

ECM032 - Solar PV LCOE

Custom Loan Term (13

Loan term (Years): 5-Year Term 10-Year Term 15-Year Term 20-Year Term 25-Year Term
years)

Annual loan payment

(principal and interest):
$ 932.07 $ 2,209.37 $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
LCOE ($CAD/KWh): $ 0.220 $ 0.222 $ 0.221 $ 0.219 $ 0.218 $ 0.216

Total project cost over 40

years (current dollars):
$ 24,596.94 $ 23,526.86 $ 24,188.22 $ 24,874.36 $ 25,585.12 $ 26,320.23
Percentage premium
over lowest-cost scenario 105% 100% 103% 106% 109% 112%
Total project cost over 40
years (PV):
Percentage premium $ 17,876.56 $ 18,082.28 $ 17,951.36 $ 17,828.21 $ 17,712.56 $ 17,604.09
over lowest-cost PV 103% 104% 104% 103% 102% 102%
scenario

Assumptions & References Assump_12

Finance Cost
Year Custom Loan Term (13
5-Year Term 10-Year Term 15-Year Term 20-Year Term 25-Year Term
years)
0 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00
1 $ 932.07 $ 2,209.37 $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
2 $ 932.07 $ 2,209.37 $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
3 $ 932.07 $ 2,209.37 $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
4 $ 932.07 $ 2,209.37 $ 1,170.82 $ 826.29 $ 655.26 $ 553.61

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656471407.xlsx 5.Projected Savings

5 $ 932.07 $ 2,209.37 $ 1,170.82 $ 826.29 $ 655.26 $ 553.61

6 $ 932.07 $ - $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
7 $ 932.07 $ - $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
8 $ 932.07 $ - $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
9 $ 932.07 $ - $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
10 $ 932.07 $ - $ 1,170.82 $ 826.29 $ 655.26 $ 553.61
11 $ 932.07 $ - $ - $ 826.29 $ 655.26 $ 553.61
12 $ 932.07 $ - $ - $ 826.29 $ 655.26 $ 553.61
13 $ 932.07 $ - $ - $ 826.29 $ 655.26 $ 553.61
14 $ - $ - $ - $ 826.29 $ 655.26 $ 553.61
15 $ - $ - $ - $ 826.29 $ 655.26 $ 553.61
16 $ - $ - $ - $ - $ 655.26 $ 553.61
17 $ - $ - $ - $ - $ 655.26 $ 553.61
18 $ - $ - $ - $ - $ 655.26 $ 553.61
19 $ - $ - $ - $ - $ 655.26 $ 553.61
20 $ - $ - $ - $ - $ 655.26 $ 553.61
21 $ - $ - $ - $ - $ - $ 553.61
22 $ - $ - $ - $ - $ - $ 553.61
23 $ - $ - $ - $ - $ - $ 553.61
24 $ - $ - $ - $ - $ - $ 553.61
25 $ - $ - $ - $ - $ - $ 553.61
26 $ - $ - $ - $ - $ - $ -
27 $ - $ - $ - $ - $ - $ -
28 $ - $ - $ - $ - $ - $ -
29 $ - $ - $ - $ - $ - $ -
30 $ - $ - $ - $ - $ - $ -
31 $ - $ - $ - $ - $ - $ -
32 $ - $ - $ - $ - $ - $ -
33 $ - $ - $ - $ - $ - $ -
34 $ - $ - $ - $ - $ - $ -
35 $ - $ - $ - $ - $ - $ -
36 $ - $ - $ - $ - $ - $ -
37 $ - $ - $ - $ - $ - $ -
38 $ - $ - $ - $ - $ - $ -

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656471407.xlsx 5.Projected Savings

39 $ - $ - $ - $ - $ - $ -
40 $ - $ - $ - $ - $ - $ -

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656471407.xlsx 5.Projected Savings

Projected Savings

30-Year Term 35-Year Term 40-Year Term

$ 486.65 $ 439.49 $ 404.71

$ 0.215 $ 0.214 $ 0.213

$ 27,079.40 $ 27,862.25 $ 28,668.35

115% 118% 122%

$ 17,502.50 $ 17,407.49 $ 17,318.76

101% 101% 100%

LCOE Calculation -- Custom Loan Term

Annual Total A
Annual
Maintenance Custom Loan
30-Year Term 35-Year Term 40-Year Term Cost Operating Cost 5-Year Term 10-Year Term
Term (13 years)
$ 2,600.00 $ 2,600.00 $ 2,600.00 $ - $ - $ 2,600.00 $ 2,600.00 $ 2,600.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 2,339.37 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 2,339.37 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 2,339.37 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 2,339.37 $ 1,300.82

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656471407.xlsx 5.Projected Savings

$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 2,339.37 $ 1,300.82

$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 1,300.82
$ 486.65 $ 439.49 $ 404.71 $ 1,170.00 $ 130.00 $ 2,232.07 $ 1,300.00 $ 2,470.82
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 1,062.07 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ 1,170.00 $ 130.00 $ 1,300.00 $ 1,300.00 $ 1,300.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ 486.65 $ 439.49 $ 404.71 $ 1,170.00 $ 130.00 $ 1,300.00 $ 1,300.00 $ 1,300.00
$ - $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ 439.49 $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ - $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ - $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00
$ - $ - $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00

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656471407.xlsx 5.Projected Savings

$ - $ - $ 404.71 $ - $ 130.00 $ 130.00 $ 130.00 $ 130.00

$ - $ - $ 404.71 $ 1,170.00 $ 130.00 $ 1,300.00 $ 1,300.00 $ 1,300.00

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 656471407.xlsx 5.Projected Savings

Projected Savings

ulation -- Custom Loan Term of 13 years

Total Annual Cost

Custom Loan
15-Year Term 20-Year Term 25-Year Term 30-Year Term 35-Year Term 40-Year Term 5-Year Term
Term (13 years)
$ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 1,031.14 $ 2,271.24
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 1,001.11 $ 2,205.08
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 971.95 $ 2,140.86
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 943.64 $ 2,078.50

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656471407.xlsx 5.Projected Savings

$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 916.15 $ 2,017.96

$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 889.47 $ 108.87
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 863.56 $ 105.70
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 838.41 $ 102.62
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 813.99 $ 99.63
$ 2,126.29 $ 1,955.26 $ 1,853.61 $ 1,786.65 $ 1,739.49 $ 1,704.71 $ 1,660.87 $ 967.32
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 767.26 $ 93.91
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 744.92 $ 91.18
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 723.22 $ 88.52
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 85.95 $ 85.95
$ 956.29 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 83.44 $ 83.44
$ 130.00 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 81.01 $ 81.01
$ 130.00 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 78.65 $ 78.65
$ 130.00 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 76.36 $ 76.36
$ 130.00 $ 785.26 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 74.14 $ 74.14
$ 1,300.00 $ 1,955.26 $ 1,853.61 $ 1,786.65 $ 1,739.49 $ 1,704.71 $ 719.78 $ 719.78
$ 130.00 $ 130.00 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 69.88 $ 69.88
$ 130.00 $ 130.00 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 67.85 $ 67.85
$ 130.00 $ 130.00 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 65.87 $ 65.87
$ 130.00 $ 130.00 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 63.95 $ 63.95
$ 130.00 $ 130.00 $ 683.61 $ 616.65 $ 569.49 $ 534.71 $ 62.09 $ 62.09
$ 130.00 $ 130.00 $ 130.00 $ 616.65 $ 569.49 $ 534.71 $ 60.28 $ 60.28
$ 130.00 $ 130.00 $ 130.00 $ 616.65 $ 569.49 $ 534.71 $ 58.52 $ 58.52
$ 130.00 $ 130.00 $ 130.00 $ 616.65 $ 569.49 $ 534.71 $ 56.82 $ 56.82
$ 130.00 $ 130.00 $ 130.00 $ 616.65 $ 569.49 $ 534.71 $ 55.17 $ 55.17
$ 1,300.00 $ 1,300.00 $ 1,300.00 $ 1,786.65 $ 1,739.49 $ 1,704.71 $ 535.58 $ 535.58
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 569.49 $ 534.71 $ 52.00 $ 52.00
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 569.49 $ 534.71 $ 50.48 $ 50.48
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 569.49 $ 534.71 $ 49.01 $ 49.01
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 569.49 $ 534.71 $ 47.59 $ 47.59
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 569.49 $ 534.71 $ 46.20 $ 46.20
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 534.71 $ 44.85 $ 44.85
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 534.71 $ 43.55 $ 43.55
$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 534.71 $ 42.28 $ 42.28

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656471407.xlsx 5.Projected Savings

$ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 130.00 $ 534.71 $ 41.05 $ 41.05

$ 1,300.00 $ 1,300.00 $ 1,300.00 $ 1,300.00 $ 1,300.00 $ 1,704.71 $ 398.52 $ 398.52

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656471407.xlsx 5.Projected Savings

This template last modified on: 9/4/2023

Annual Present Value Cost

Annual Energy
10-Year Term 15-Year Term 20-Year Term 25-Year Term 30-Year Term 35-Year Term 40-Year Term Output (KWh)

$ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 $ 2,600.00 3650

$ 1,262.93 $ 928.44 $ 762.38 $ 663.70 $ 598.69 $ 552.91 $ 519.13 3632
$ 1,226.15 $ 901.40 $ 740.18 $ 644.37 $ 581.25 $ 536.80 $ 504.01 3614
$ 1,190.44 $ 875.14 $ 718.62 $ 625.60 $ 564.32 $ 521.17 $ 489.33 3596
$ 1,155.76 $ 849.65 $ 697.69 $ 607.38 $ 547.88 $ 505.99 $ 475.08 3578

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656471407.xlsx 5.Projected Savings

$ 1,122.10 $ 824.90 $ 677.37 $ 589.69 $ 531.92 $ 491.25 $ 461.24 3560

$ 1,089.42 $ 800.88 $ 657.64 $ 572.51 $ 516.43 $ 476.94 $ 447.81 3542
$ 1,057.69 $ 777.55 $ 638.48 $ 555.84 $ 501.39 $ 463.05 $ 434.77 3524
$ 1,026.88 $ 754.90 $ 619.89 $ 539.65 $ 486.79 $ 449.56 $ 422.10 3507
$ 996.97 $ 732.92 $ 601.83 $ 523.93 $ 472.61 $ 436.47 $ 409.81 3489
$ 1,838.52 $ 1,582.16 $ 1,454.89 $ 1,379.26 $ 1,329.43 $ 1,294.35 $ 1,268.46 3472
$ 93.91 $ 690.84 $ 567.29 $ 493.85 $ 445.48 $ 411.41 $ 386.28 3454
$ 91.18 $ 670.72 $ 550.76 $ 479.47 $ 432.50 $ 399.43 $ 375.03 3437
$ 88.52 $ 651.19 $ 534.72 $ 465.50 $ 419.91 $ 387.80 $ 364.11 3420
$ 85.95 $ 632.22 $ 519.15 $ 451.95 $ 407.68 $ 376.50 $ 353.51 3403
$ 83.44 $ 613.81 $ 504.03 $ 438.78 $ 395.80 $ 365.54 $ 343.21 3386
$ 81.01 $ 81.01 $ 489.35 $ 426.00 $ 384.27 $ 354.89 $ 333.21 3369
$ 78.65 $ 78.65 $ 475.09 $ 413.59 $ 373.08 $ 344.55 $ 323.51 3352
$ 76.36 $ 76.36 $ 461.26 $ 401.55 $ 362.22 $ 334.52 $ 314.09 3335
$ 74.14 $ 74.14 $ 447.82 $ 389.85 $ 351.67 $ 324.77 $ 304.94 3318
$ 719.78 $ 719.78 $ 1,082.58 $ 1,026.30 $ 989.22 $ 963.12 $ 943.86 3302
$ 69.88 $ 69.88 $ 69.88 $ 367.47 $ 331.48 $ 306.13 $ 287.43 3285
$ 67.85 $ 67.85 $ 67.85 $ 356.77 $ 321.82 $ 297.21 $ 279.06 3269
$ 65.87 $ 65.87 $ 65.87 $ 346.38 $ 312.45 $ 288.56 $ 270.93 3253
$ 63.95 $ 63.95 $ 63.95 $ 336.29 $ 303.35 $ 280.15 $ 263.04 3236
$ 62.09 $ 62.09 $ 62.09 $ 326.50 $ 294.51 $ 271.99 $ 255.38 3220
$ 60.28 $ 60.28 $ 60.28 $ 60.28 $ 285.94 $ 264.07 $ 247.94 3204
$ 58.52 $ 58.52 $ 58.52 $ 58.52 $ 277.61 $ 256.38 $ 240.72 3188
$ 56.82 $ 56.82 $ 56.82 $ 56.82 $ 269.52 $ 248.91 $ 233.71 3172
$ 55.17 $ 55.17 $ 55.17 $ 55.17 $ 261.67 $ 241.66 $ 226.90 3156
$ 535.58 $ 535.58 $ 535.58 $ 535.58 $ 736.07 $ 716.65 $ 702.32 3140
$ 52.00 $ 52.00 $ 52.00 $ 52.00 $ 52.00 $ 227.79 $ 213.88 3125
$ 50.48 $ 50.48 $ 50.48 $ 50.48 $ 50.48 $ 221.16 $ 207.65 3109
$ 49.01 $ 49.01 $ 49.01 $ 49.01 $ 49.01 $ 214.71 $ 201.60 3094
$ 47.59 $ 47.59 $ 47.59 $ 47.59 $ 47.59 $ 208.46 $ 195.73 3078
$ 46.20 $ 46.20 $ 46.20 $ 46.20 $ 46.20 $ 202.39 $ 190.03 3063
$ 44.85 $ 44.85 $ 44.85 $ 44.85 $ 44.85 $ 44.85 $ 184.49 3047
$ 43.55 $ 43.55 $ 43.55 $ 43.55 $ 43.55 $ 43.55 $ 179.12 3032
$ 42.28 $ 42.28 $ 42.28 $ 42.28 $ 42.28 $ 42.28 $ 173.90 3017

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656471407.xlsx 5.Projected Savings

$ 41.05 $ 41.05 $ 41.05 $ 41.05 $ 41.05 $ 41.05 $ 168.84 3002

$ 398.52 $ 398.52 $ 398.52 $ 398.52 $ 398.52 $ 398.52 $ 522.59 2987

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656471407.xlsx 5.Projected Savings

assump_1

"NPV" Energy

3650
3526
3406
3290
3179

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656471407.xlsx 5.Projected Savings

3071
2966
2865
2768
2674
2583
2495
2411
2329
2250
2173
2099
2028
1959
1892
1828
1766
1706
1648
1592
1538
1486
1435
1386
1339
1294
1250
1207
1166
1127
1088
1051
1016
981

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656471407.xlsx 5.Projected Savings

948
916

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656471407.xlsx 6. Assumptions & Sources

ECM032 - Solar PV LCOE Please review disclaimer on the home tab Last modified at source:

Assumptions & References

Note that portions of this workbook may be password protected to prevent accidental edits. If you do need to modify the document, use the password "greenit"

Note Amount Description

This calculator is based on a simple LCOE Calculation, the theory of which is found in the following paper: K. Branker, M. J.M. Pathak
J. M. Pearce, “A Review of Solar Photovoltaic Levelized Cost of Electricity”, Renewable & Sustainable Energy Reviews 15, pp.4470-
4482 (2011).

Open-access link: http://hdl.handle.net/1974/6879

DOI: http://dx.doi.org/10.1016/j.rser.2011.07.104
Please consult the paper for the assumptions within.
A more comprehensive method can be considered using the Solar Advisor Model (SAM) from NREL;
https://www.nrel.gov/analysis/sam/

The average number of 'sun hours' your location receives annually is used to calculate the energy output of the rated solar PV
system. This value can be determined from one of the following sources;

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656471407.xlsx 6. Assumptions & Sources

The average number of 'sun hours' your location receives annually is used to calculate the energy output of the rated solar PV
system. This value can be determined from one of the following sources;

(1) For Canadian installations use http://solarrooftops.ca/sun-hour-facts.php, and

(2) for American installations use http://www.solarpanelsplus.com/solar-insolation-levels/.
2
Note that data from these and similar sources is typically expressed as kWh/m2/day, which translates to the amount of energy
striking panels at your location on the earth per day. It is also important to note that 'sun hours' do not equal 'sunlight hours'; solar
panels will continue to generate electricity on a cloudy day for example, but the generated quantity is much lower than a sunny day.
The value of 'sun hours' accounts for these values.

The inverter replacement period is considered the performance or replacement warranty. As a 'worst-case' scenario, the cost of the
invertor is applied as a maintenance cost in this calculator at the end of it's warrantied life; that is every 10 years. Note that invertor
3 10 warranties are improving, with some manufacturers offering as long as 25 year warranties
(http://www.renewableenergyworld.com/rea/news/article/2011/06/enphase-energy-launches-third-gen-microinverters-with-25-
year-warranty). When considering these invertors with longer terms, be sure to account for the increased cost accompanying them.

The PV system warranty is considered the PV "life" for the purpose of the LCOE Calculation. This value is not used in calculation, but
4 30
the user should be mindful when estimating long-term performance.

There is an expected degredation of efficiency in PV systems in to normal operation. This value is typically between 0.2%/year and
5 0.5%
1%/ year.

6 This is the rated annual energy output without degradation.

The 'total installed cost' includes all the costs required to design, buy and install the system, before considering financing. The 'cost
7 per watt' is simply the total installed cost divided by the rated system size. Some quotations may give both values, one or the other.
Both are valid metrics that can be used to compare two quotes or systems.

The insurance cost is based on market research with a default value of 1% is included. This value should be updated based on the
8 1%
details of your particular installation.

The inverter cost is based on market research with a defauly value of 9% included. This value should be verified for your particular
9 9% installation. Invertor cost is relatively consistent but different features may be required based on your installation (i.e. climate-
appropriate provisions).

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656471407.xlsx 6. Assumptions & Sources

The inverter cost is based on market research with a defauly value of 9% included. This value should be verified for your particular
9 9% installation. Invertor cost is relatively consistent but different features may be required based on your installation (i.e. climate-
appropriate provisions).

The concept of discount rate puts a value on time preference on money, which varies by circumstance, location, and the time period
10
considered. Values used in the literature range from 0 to 10 %.

The annual loan payment considers the loan term, interest rate, principal amount and down payment as specified. The excel formul
11
PMT() is used assuming constant interest rate and constant payment amounts over the loan term.

Calculations are completed over a 40-year term, so the only two stipulations on loan term duration are: (1) the loan term specified
12 13
must be a whole-number of years that is (2) less than 40 years. The user may specify any value within these limitations.

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 656471407.xlsx 6. Assumptions & Sources

Last modified at source: 9/4/2023

cument, use the password "greenit".

ng paper: K. Branker, M. J.M. Pathak,

ble Energy Reviews 15, pp.4470-

EL;

y output of the rated solar PV

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 656471407.xlsx 6. Assumptions & Sources

y output of the rated solar PV

lates to the amount of energy

do not equal 'sunlight hours'; solar
tity is much lower than a sunny day.

worst-case' scenario, the cost of the

s every 10 years. Note that invertor

hird-gen-microinverters-with-25-
ncreased cost accompanying them.

value is not used in calculation, but

typically between 0.2%/year and

ore considering financing. The 'cost

give both values, one or the other.

should be updated based on the

uld be verified for your particular

your installation (i.e. climate-

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 656471407.xlsx 6. Assumptions & Sources

uld be verified for your particular

your installation (i.e. climate-

tance, location, and the time period

ment as specified. The excel formula

m.

on are: (1) the loan term specified

ithin these limitations.

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