Evaluation Template 3.26.xlsx - Texas Solar Power Company

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Alternative Investment Analysis 11 Considering other uses for the money needed for a solar installation is important and often enlightening. Below, you will see the value of your solar array cost ($8,199) after 25 years if you chose to invest in a financial asset instead of solar. If you install a solar array and then invest your energy savings in financial assets over the next 25 years, you will have the below amounts of money. Additionally, you will have reduced your total risk by getting the large portion of your return from energy savings, instead of a financial asset. Certificate of Deposit $19,808 Certificate of Deposit $51,426 RISK Corporate Bonds $31,140 Solar Array Cost z Corporate Bonds $66,424 $8,199 Stocks $48,956 Stocks $86,960 Notes 11 Approximate expected returns for different financial assetsbased on historical returns. Return assumptions are on page nine. = $10,000 = $5,000 2010 © SunMath, LLC · Printed on 100% Recycled Paper Unauthorized reproduction of any information in this report is strictly prohibited. All analysis is based on historical data. SunMath, LLC cannot be held liable for analysis inaccuracies. 6 of 9
Property Value Increase Solar panels add value to structures by reducing monthly carrying costs (reducing energy costs). Everyone quotes an Appraiser's Journal Article: Evidence of Rational Market Valuations for Home Energy Efficiency that says: "the selling price of homes increases by $20.73 for every $1 decrease in annual fuel bills". Rather than multiplying your expected annual energy savings times 20.73, we have supplied you with a real‐world example of how much more a Home without Solar Panels Home with Solar Panels The Smith family has decided to buy a house. They believe they can afford to spend $1,800 a month. After deducting all fixed and variable costs, the Smith's know how large a mortgage payment they can afford. Monthly Budget $1,800 Monthly Budget $1,800 ‐ Cable, HOA, Security, Etc. ‐$300 ‐ Cable, HOA, Security, Etc. ‐$300 Average Monthly Energy Costs $157 Average Monthly Energy Costs $83 12 = Available for Mortgage Payment $1,343 = Available for Mortgage Payment $1,417 The Smith's are willing to spend $13,875 more for a house with your size solar array. If the Smith's have $1,343 a month, they can afford to spend $250,156 on a house. If the Smith's have $1,417 a month, they can afford to spend $264,031 on a house. The Average Monthly Energy Costs above have been estimated based on your current energy consumption, as well as the size array the contractor has proposed for you. Therefore, the home value increase calculated above is how much more your house should be worth. If you have a more or less valuable house, it will not affect the property value difference, i.e. If you own a $100,000 or $1,000,000 house, the value of your house should still increase by $13,875. Notes 12 The mortgage for both houses is assumed to be a 30 year fixed mortgage at today's prevailing rates (4.50%) 2010 © SunMath, LLC · Printed on 100% Recycled Paper Unauthorized reproduction of any information in this report is strictly prohibited. All analysis is based on historical data. SunMath, LLC cannot be held liable for analysis inaccuracies. 7 of 9
Page 1 and 2: Independent Solar Financial Evaluat
Page 3 and 4: Investment Statistics Net Out‐of
Page 5: Annual Cash Flow Summary (Years 1
Page 9: Inputs & Assumptions System Specs T

Evaluation Template 3.26.xlsx - Texas Solar Power Company

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