Problem $5$

Use the spreadsheet from Problem $4$ as a template to create the cash flow spreadsheet for this problem. Consider the PV system described in Problem $1.$ Assume a derate factor of $0\mathrm{.}75,$ insolation of $5\mathrm{.}32(kW\frac{h}{m^2}\frac{?}{d}),$ and system degradation of $0\mathrm{.}5\frac{\%}{y}r.$

a$.$ In what year do you first see a positive cash flow?

b$.$ What is the present value of the cash flow in year $14?$

c$.$ What NPV do you get when you set the discount rate to be the same as the IRR?

d$.$ Eliminate the down payment and see what happens to the IRR. Then try paying for the whole system with cash. Again, compare IRR and comment.

e$.$ Find the NPV and IRR for a $4-$kW system in an area with $5\mathrm{.}5kW\frac{h}{m^2}\frac{?}{d}$ insolation, using a derate factor of $0\mathrm{.}72.$ Keep everything else the same.

Problem $1$

Given a residential house needing $3\mathrm{.}87kW{W}_{DC}PV$ system that delivers $5000kW\frac{h}{y}r.$ Suppose the system cost is the $2010$ residential average of $$\frac{5\mathrm{.}71}{W_{DC}}($without incentives$).$ If the system is paid for with a $4\mathrm{.}7\%,30-$year loan.

a$.$ What would be its cost of electricity?

b$.$ If the SUNSHOT goal of $$\frac{1\mathrm{.}5}{W}$ is achieved, what would the cost be$?$

c$.$ If the homeowner received a $32\%$ Federal tax credit for the loan, and $($s$)$he is in the $25\%$ MTB$,$ what is the cost of PV electricity in the first year?