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Energysage_Solar for Businesses

EnergySage.com
EnergySage.com

Presentation about why businesses should consider installing solar panel systems and available financing options, including loans, capital leases, operating leases, and power purchase agreements (PPAs)

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Introduction to Solar Photovoltaics (PV) Vikram Aggarwal Vikram@EnergySage.com 617-396-7243
Agenda 足 About EnergySage 足 Introduc2on to Solar PV 足 Why consider Solar PV? 足 Rebates and Incen2ves 足 Financing Op2ons 足 Example Solar Economics 足 Ques2ons EnergySage. | Confidential Materials 2
About EnergySage 足 Expedia of Solar 足 Online comparison-足shopping for solar photovoltaic (PV) systems 足 Awarded SunShot Award by Department of Energy EnergySage. | Confidential Materials 3
About EnergySage EnergySage. | Confidential Materials 4
Solar Photovoltaic (PV) Systems Source: Department of Energy EnergySage. | Confidential Materials 5
Examples - Commercial EnergySage. | Confidential Materials 6
Why Consider Solar PV? ≒ Lower, predictable energy costs Substan2ally Reduce or Completely Eliminate Your Electric Bill Reduce or eliminate expensive demand charges ≒ Great investment returns and tax bene鍖ts Greater than 25% ROI ≒ Bene鍖ts to corporate brand Customers and business partners appreciate sustainability e鍖orts Good corporate ci2zens and community economic supporters ≒ Support local economy; Drive Job Growth ≒ Reduced carbon footprint EnergySage. | Confidential Materials
Rebates and Incentives ≒ Federal Investment Tax Credit (ITC) 30% of the installed system cost with no cap An actual credit against your tax bill, not just a reduc2on in pre-足tax income Can be used against prior year and future projects (consult tax advisor) ≒ Accelerated depreciaKon tax bene鍖ts Depreciate the cost of the system over 6 years Tax basis for deprecia2on is 85% of the installed system cost ≒ Solar Renewable Energy CerK鍖cates (SRECs) All power generated by your solar PV system creates cer2鍖cates that can be sold to u2li2es Approximately $200 per megawa] of power produced Considered taxable income ≒ Net-足Metering - When you generate more power than you consume, your meter turns backward to provide a credit - Credit is applied at night or when solar power is not being produced EnergySage. | Confidential Materials
Financing Options Type Cash Purchase Debt Financed Purchase Description Cash Out of Pocket Get 30% ITC Depreciation Tax Benefit SREC Income Yes Yes Yes Yes Small down payment Yes Yes Yes None Yes Yes Yes None No No Option None No No No ≒ Buy the system ≒ Recoup 50%+ investment in first year through tax incentives ≒ Borrow to pay for system ≒ Recoup 50%+ investment in first year through tax incentives ≒ Fixed monthly payments for 7 to 12 years Capital Lease ≒ Benefit from tax credits ≒ Generate SREC income ≒ Buy-out system at end of term for minimal cost Operating Lease Power Purchase Agreement ≒ Fixed monthly payments for 7-12 years ≒ Cost lower than current electricity expense ≒ Buy-out system at end of term at FMV ≒ Buy power at rates that are up to 60% lower for a term of 10-20 years ≒ Buy-out system at end of term at FMV (PPA) EnergySage. | Confidential Materials
Financing Options Pros/Cons Option PROS ≒ Own the system ≒ Maximum financial benefits ≒ Fast & easy process ≒ CONS Operating Lease Power Purchase Agreement ≒ Potential volatility of SREC values Minimal cash requirement ≒ Additional debt on balance sheet ≒ Leverage investment for greater ROI ≒ Potential volatility of SREC values No initial cash investment ≒ Smaller financial benefits Tax benefits ≒ ≒ SREC income Share financials with solar provider / leasing company ≒ Capital Lease Significant cash required ≒ Debt Financed Purchase ≒ ≒ Cash Purchase Own the system at end of lease term at minimal cost ≒ Few solar providers offer capital leases ≒ Reduce electric bills by up to 60% ≒ Smaller financial benefit ≒ No initial cash investment ≒ ≒ Option to retain SRECs Share financials with solar provider / leasing company ≒ Few solar providers offer operating leases ≒ Reduce electric bills by up to 60% ≒ Smaller financial benefit ≒ No initial cash investment ≒ ≒ Hedge against rising utility rates Share financials with solar provider / leasing company ≒ Few solar providers offer PPAs EnergySage. | Confidential Materials
Selecting the Right Financing Option for You Suitable Roof or Land for Solar NO Consider Other Technologies YES Availability of Cash or Loans YES YES Purchase with Cash or Loan NO NO Have Su鍖cient Tax AppeKte Have Su鍖cient Tax AppeKte NO OperaKng Lease or PPA YES Capital Lease EnergySage. | Confidential Materials
Example of Solar Options* ≒ Massachusetts company 足 Annual cost = $100,000; $2.5M+ over 20 years with 2.5% inflation 足 Consumes 750,000 kWh per year ($0.13/kWh) ≒ Solution: 600 kW ground-mount system Out of Pocket Costs Year 1 20 Year IRR Payback (in Years) 20 Year Net Financial Bene鍖t Cash Purchase ($1.4M) 25% 4 $2.5M Debt Financed Purchase $600,000 NA Immediate $2.2M Capital Lease (10-足year) $600,000 NA Immediate $2.0M OperaKng Lease (10-足year) NA NA Immediate $1.5M PPA (20-足year) NA NA Immediate $0.6M OpKon *Numbers are direcKonal in nature only EnergySage. | Confidential Materials
Example: Cumulative Cash-Flow* *Rough es2mates only EnergySage can provide speci鍖c cash 鍖ow es2mates for your business EnergySage. | Confidential Materials
Interested in Solar? 足 Create a property pro鍖le at EnergySage.com 足 Receive mul2ple compe22ve quotes from high quality providers 足 EnergySage advisors available to help you 足 Get a great deal on solar! EnergySage. | Confidential Materials
Get Started on EnergySage.com EnergySage. | Confidential Materials 15

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Energysage_Solar for Businesses

  • 1. Introduction to Solar Photovoltaics (PV) Vikram Aggarwal Vikram@EnergySage.com 617-396-7243
  • 2. Agenda 足 About EnergySage 足 Introduc2on to Solar PV 足 Why consider Solar PV? 足 Rebates and Incen2ves 足 Financing Op2ons 足 Example Solar Economics 足 Ques2ons EnergySage. | Confidential Materials 2
  • 3. About EnergySage 足 Expedia of Solar 足 Online comparison-足shopping for solar photovoltaic (PV) systems 足 Awarded SunShot Award by Department of Energy EnergySage. | Confidential Materials 3
  • 5. Solar Photovoltaic (PV) Systems Source: Department of Energy EnergySage. | Confidential Materials 5
  • 6. Examples - Commercial EnergySage. | Confidential Materials 6
  • 7. Why Consider Solar PV? ≒ Lower, predictable energy costs Substan2ally Reduce or Completely Eliminate Your Electric Bill Reduce or eliminate expensive demand charges ≒ Great investment returns and tax bene鍖ts Greater than 25% ROI ≒ Bene鍖ts to corporate brand Customers and business partners appreciate sustainability e鍖orts Good corporate ci2zens and community economic supporters ≒ Support local economy; Drive Job Growth ≒ Reduced carbon footprint EnergySage. | Confidential Materials
  • 8. Rebates and Incentives ≒ Federal Investment Tax Credit (ITC) 30% of the installed system cost with no cap An actual credit against your tax bill, not just a reduc2on in pre-足tax income Can be used against prior year and future projects (consult tax advisor) ≒ Accelerated depreciaKon tax bene鍖ts Depreciate the cost of the system over 6 years Tax basis for deprecia2on is 85% of the installed system cost ≒ Solar Renewable Energy CerK鍖cates (SRECs) All power generated by your solar PV system creates cer2鍖cates that can be sold to u2li2es Approximately $200 per megawa] of power produced Considered taxable income ≒ Net-足Metering - When you generate more power than you consume, your meter turns backward to provide a credit - Credit is applied at night or when solar power is not being produced EnergySage. | Confidential Materials
  • 9. Financing Options Type Cash Purchase Debt Financed Purchase Description Cash Out of Pocket Get 30% ITC Depreciation Tax Benefit SREC Income Yes Yes Yes Yes Small down payment Yes Yes Yes None Yes Yes Yes None No No Option None No No No ≒ Buy the system ≒ Recoup 50%+ investment in first year through tax incentives ≒ Borrow to pay for system ≒ Recoup 50%+ investment in first year through tax incentives ≒ Fixed monthly payments for 7 to 12 years Capital Lease ≒ Benefit from tax credits ≒ Generate SREC income ≒ Buy-out system at end of term for minimal cost Operating Lease Power Purchase Agreement ≒ Fixed monthly payments for 7-12 years ≒ Cost lower than current electricity expense ≒ Buy-out system at end of term at FMV ≒ Buy power at rates that are up to 60% lower for a term of 10-20 years ≒ Buy-out system at end of term at FMV (PPA) EnergySage. | Confidential Materials
  • 10. Financing Options Pros/Cons Option PROS ≒ Own the system ≒ Maximum financial benefits ≒ Fast & easy process ≒ CONS Operating Lease Power Purchase Agreement ≒ Potential volatility of SREC values Minimal cash requirement ≒ Additional debt on balance sheet ≒ Leverage investment for greater ROI ≒ Potential volatility of SREC values No initial cash investment ≒ Smaller financial benefits Tax benefits ≒ ≒ SREC income Share financials with solar provider / leasing company ≒ Capital Lease Significant cash required ≒ Debt Financed Purchase ≒ ≒ Cash Purchase Own the system at end of lease term at minimal cost ≒ Few solar providers offer capital leases ≒ Reduce electric bills by up to 60% ≒ Smaller financial benefit ≒ No initial cash investment ≒ ≒ Option to retain SRECs Share financials with solar provider / leasing company ≒ Few solar providers offer operating leases ≒ Reduce electric bills by up to 60% ≒ Smaller financial benefit ≒ No initial cash investment ≒ ≒ Hedge against rising utility rates Share financials with solar provider / leasing company ≒ Few solar providers offer PPAs EnergySage. | Confidential Materials
  • 11. Selecting the Right Financing Option for You Suitable Roof or Land for Solar NO Consider Other Technologies YES Availability of Cash or Loans YES YES Purchase with Cash or Loan NO NO Have Su鍖cient Tax AppeKte Have Su鍖cient Tax AppeKte NO OperaKng Lease or PPA YES Capital Lease EnergySage. | Confidential Materials
  • 12. Example of Solar Options* ≒ Massachusetts company 足 Annual cost = $100,000; $2.5M+ over 20 years with 2.5% inflation 足 Consumes 750,000 kWh per year ($0.13/kWh) ≒ Solution: 600 kW ground-mount system Out of Pocket Costs Year 1 20 Year IRR Payback (in Years) 20 Year Net Financial Bene鍖t Cash Purchase ($1.4M) 25% 4 $2.5M Debt Financed Purchase $600,000 NA Immediate $2.2M Capital Lease (10-足year) $600,000 NA Immediate $2.0M OperaKng Lease (10-足year) NA NA Immediate $1.5M PPA (20-足year) NA NA Immediate $0.6M OpKon *Numbers are direcKonal in nature only EnergySage. | Confidential Materials
  • 13. Example: Cumulative Cash-Flow* *Rough es2mates only EnergySage can provide speci鍖c cash 鍖ow es2mates for your business EnergySage. | Confidential Materials
  • 14. Interested in Solar? 足 Create a property pro鍖le at EnergySage.com 足 Receive mul2ple compe22ve quotes from high quality providers 足 EnergySage advisors available to help you 足 Get a great deal on solar! EnergySage. | Confidential Materials
  • 15. Get Started on EnergySage.com EnergySage. | Confidential Materials 15