Designer Financial Analysis and Reports 1
Designer Financial Analysis and Reports
Introduction
The SolarEdge Designer application's Financial Analysis features provide installers with the ability to accurately forecast the system
costs and future financial rewards from which customers can expect to benefit after installing SolarEdge PVsystems and products.
After reviewing this section you will be familiar with the way:
The Financial Analysis tab is arranged and its features
The financial information you need to provide to assess costs
To predict the financial rewards customers can expect to receive from their investment.
This guide walks you through the Financial Analysis tab by following the tab's structure and flow.
Financial Analysis Tab Arrangement
The Financial Analysis tab is easily accessed from within the Designer tool by clicking Financial Analysis in the Designer’s
navigation bar. The tab is arranged as a set of cards, with each card treating a different energy or financial aspect of the system.
On opening the tab you see the Financial Parameters card and part of the Energy Consumption card.
Scroll down the tab to see the remaining cards:
Financial Parameters
Energy Consumption
Incentives
System Pricing
Bill of Materials (BOM)
Energy Consumption and Export Rate
Once the financial analysis information is complete you can view several financial reports:
Financial overview
Estimated Bill Savings
Detailed Financial Analysis
Yearly Cash Flow
These reports equip you with informative graphs and charts that show when a customer can expect to reach the break even point on
their investment and how much money is saved monthly and annually by installing SolarEdge PV systems and products.
Application Note - Using the Designer Financial Analysis Features
2 Working in the Financial Analysis tab
Working in the Financial Analysis tab
There is no hard and fast rules about the order in which you enter information into any of the cards that make up the Financial
Analysis tab. However, the more information that you provide, the more complete and accurate will be the financial forecasts that
are presented in the Project Summary. For the purpose of this guide the workflow runs through the cards top to bottom as they
appear in the tab.
Financial Parameters Card
The information that appears in the Financial Parameters card reflects the state of the local financial market and some financial
expectations associated with the SolarEdge PVsystem. For convenience, an explanation of each of the financial parameters appears
in the Financial Parameter Terms section.
To fill out the financial Parameters card
1. From the Currency drop-down menu select the currency to be used to perform financial calculations for the site.
2. For Cash Flow Discount Rate enter the commonly available interest rate that banks and financial institutions are providing their
clients in return for their investments. This interest rate is one of several parameters used to determine whether the long term
savings associated with using the PVinstallation is greater than the client would receive if they had simply deposited the money
in the bank.
3. For Exp. Electircity Price Increase enter a percentage that represents how much you expect the cost of electricity to increase each
year.
4. For Exp. System Production Degradation enter a percentage that represents how much you expect the PVmodule efficiency to
decrease each year.
5. For System Lifetime enter the number of years over which you expect the system perform.
6. For Equipment Lifetime enter the number of years over which you expect system equipment to run before needing to be replaced.
7. For Annual O & M Costs enter the amount you expect to spend yearly on operations and maintenance per kW(DC) installed in the
system.
8. For Equipment Replacement Cost enter the cost per kW of replacing the system equipment once the Equipment Lifetime period
has expired.
9. For National Tax Rate enter the national tax rate applied to exported system production.
10. For Local Tax Rate enter the local tax rate applied to exported system production.
11. For Bill savings are taxed as revenue by select the National Tax and or Local Tax checkboxes if Bill Savings need to be included in
the financial calculations as taxable revenue.
Energy Consumption Card
The information that appears in the Energy Consumption card deals with the amount of energy expected to be used for a set period
in kWh, either annually or monthly. Initially, the value shown for Consumption is the same as that entered in the Project Info page. If
the energy consumption values were not entered as part of the Project Info then the Energy Consumption fields on the Financial
Analysis page appear blank. Changing the consumption value in the Energy Consumption card updates the value listed in the
Project Info page. The designer also supports use of customized interval consumption data which provides a more accurate means of
estimating future consumption than when using a consumption profile.
The Energy Consumption chart represents the expected monthly Energy Consumption over a year, taking into consideration the
estimated consumption and selected consumption profile or the data loaded from an interval consumption data file.
Application Note - Using the Designer Financial Analysis Features
Working in the Financial Analysis tab 3
A list of terms and typical Residential and Commercial consumption profiles is included in the Energy Consumption Terms section.
Estimating Consumption Using a Consumption Profile
To set the energy consumption
1. Enter a value as kWh that represents the expected energy consumption.
2. From the Period drop-down list select whether the consumption value represents Annual or Monthly use.
3. From the Consumption Profile drop-down list select the profile that best represents the customers electricity usage. The options
in the list vary depending on whether the site is defined as being Residential or Commercial on the Project Info page.
Customized Interval Consumption Data
The Designer supports the upload of interval electricity usage data readings for a customer. Customized data provides increased
accuracy for modeling future consumption. Data in the file is used instead of using the customer's annual consumption and a typical
consumption profile.
Data must be provided as a CSV file with the data arranged according to Green Button xml format.
Click the link to view documentation on how to prepare Interval Consumption Data Files.
To To set energy consumption using interval consumption data
Click located next to Consumption Profile.
1.
2. In the system search dialog box, browse for and select the CSV file that contains the customers interval consumption data and
then click Open.
3. Data is loaded and reflected in the Energy Consumption card.
Incentives Card
Incentives are programs offered by cities, states, utilities, and other entities that are designed to encourage the construction and use
of energy saving technologies. The Designer supports the use of up to five incentives per project. Incentives that are available to
subsidize the cost of a solar installation differ widely by country and state, however they generally belong to one of several types:
Fixed Grants, System Cost Based Grants, System Production Based Grants and System Size Based Grants. A list of incentive types
and incentive parameters is provided in the Incentive Terms section.
Incentives that are available for use and that have been chosen for use are displayed in the Incentives card together with a brief
description of each selected incentive.
Once added to the list of incentives an Edit and a Duplicte icon appear next to the incentive.
This section introduces several actions that you can perform on Incentives:
Adding Incentives to the Project
Creating New Incentives
Application Note - Using the Designer Financial Analysis Features
4 Incentives Card
Adding Incentives to the Project
The Designer supports the use of up to five different incentives at a time for each project.
To add an incentive to the project
Click Add Incentive.
1.
2. From the Select Incentive drop-down list browse for and select an incentive.
3. The .selected incentive is added to the bottom of the list of incentives associated with the project.
Creating New Incentives
If an incentive that is available for your locale does not automatically appear in the Select Incentive drop-down list you can create a
new incentive and manually enter the values for the incentive parameters. You perform these operations in the Create New Incentive
window.
Incentives that you create are referred to as user-defined incentives and appear in the Select Incentive list with the suffix (user-
defined) attached to the incentive name.
Each incentive type has its own terms and conditions and as such only the relevant set of parameters appear in the Create New
Incentive dialog box.
The example used here and its description is based on creating a System Cost Based Grant. The parameters required for other
incentive types are listed and described in the Incentive Terms section .
To create a new incentive
1. Click Add Incentive.
2. From the Select Incentive list click Can't find your incentive.
3. In the Create New Incentive window enter the values for the incentive's parameters. A description of each parameter is listed in
the Incentive Terms table.
4. If the country in which the project is located has states, then Incentive State checkbox appears.
a. Check the checkbox to limit use of the incentive as a local incentive to the indicated state.
b. Keep the checkbox clear to make the incentive available for project sites located in any state in the country.
5. Enter a name for the incentive in the Incentive Name field. Incentives must have a unique name.
6. Select an Incentive type from the Incentive Type drop-down list. This example uses System Cost Based Grant.
7. In the Amount Percent field enter the percentage of the system cost that the system owner should receive as a grant.
8. The Taxes checkbox appears if the Incentive State checkbox is not checked. Check the Taxes checkbox if revenue generated from
the incentive must be taxed. Otherwise leave the checkbox unchecked.
Application Note - Using the Designer Financial Analysis Features
Working in the Financial Analysis tab 5
9. If the Incentive State checkbox is checked then a National tax and a Local tax check box appear. Check whichever option is
applicable if revenue generated from the incentive must be taxed. Otherwise leave the checkboxes unchecked.
10. Click DONE.
System Pricing Card
The System Pricing card contains options used for setting the system price. The system price can be calculated in a few ways by
using:
a fixed price
a price based on Wattage
a price based on the Bill of Materials (BOM).
Select the relevant pricing type for your project from the Pricing Type drop-down list and then fill in the accompanying fields.
The system price is a required component for some of the financial analysis calculations.
To set the System Price
1. Select the relevant pricing type for your project from the Pricing Type drop-down list.
For Fixed Price, enter a value for the system in the Price field.
For Price perWatt (DC), enter a price per watt DC in the Price field.
For Price according to BOM, make sure each item in the Bill of Materials card has a value in the Cost field.
2. Other than for Fixed Price, the Designer calculates the price based on the available information and displays the total cost in the
System Pricing card. For more information on System Price options see System Price Terms and Bill of Materials Terms.
The parameters and terms used for System Pricing are listed and described in the System PricingTerms section.
Bill of Materials Card
The Bill of Materials (BOM) card displays an itemized list of the components and materials included in the PV system. The card
displays a table that includes an Items column and a Quantity column. Each row in the BOM lists the name and quantity of each item
included in the PV system. Based on the PVModule Placement and Electrical Design specifications the Designer automatically adds
PV System components to the Bill of Materials. Those components cannot be deleted from the BOM by the user other than by
updating the PVModule Placement and Electrical Design specifications. The Designer does however support adding custom items to
the BOM.
Application Note - Using the Designer Financial Analysis Features
6 Energy Consumption and Export Rate Card
If pricing is based on the BOM then the card shows additional columns for Costs and Total and displays a sub total for Total
Materials Cost at the bottom of the card.
Adding Custom Items to the BOM
To add custom items to the BOM
1. Click Add Custom Item to add a new row to the bottom of the BOM.
2. Enter a description for each custom item in the Items column.
3. Enter a value for the quantity of each item in the Quantity column.
4. If the Cost column is displayed then enter a value for the cost of the item.
Energy Consumption and Export Rate Card
The elements that influence the finances of a PVsystem over time probably more than anything else is the cost of purchasing energy
from the grid and the amount the system owner can charge for selling energy derived from the PV System back to the grid. Utility
Providers charge consumers for using electricity from the grid at one rate, the import rate, and in the case of PV System owners buy
electricity back at another rate, the export rate.
Together these two transactions are described as the Utility Rate Utility rates can have either fixed import rates that charge a single
price for usage or they can be structured to reflect various amounts of usage and periods of usage for which electricity is at lower
and higher demands. These aspects of the Utility Rate are treated respectively as the Charge Structure and the Charge Schedule.
The Energy Consumption and Export Rate card is the place through which you select a Utility Provider and a Utility Rate. You set
parameter values used by Utility Rates and set the Import Rate's, Fixed Rate, Charge Structure and Charge Schedule using the Create
Rate and Edit Rate dialog boxes. For any combination of Utility Provider and Utility Rate you can view these parameters in the Rate
Overview window.
The parameters and terms used for describing rates in general are listed and described in the Energy Consumption and Export Rate
Terms section.
This section describes how to quickly get up and running by using default settings to:
Select a Utility Provider and Utility Rate
Use an Independent Export Rate
For a guide on how to review rates and manually customize Export rates, Import rates and set other rate associated values see the
section Customizing Utility Rates.
Selecting a Utility Provider and Utility Rate
The Utility Provider drop-down list shows all the utility providers that have rates in the site's country and state and that match the
site's currency. The Utility Rate drop-down list shows all the rates that are provided by the selected Utility Provider in the site's
country and state that match the site's currency.
Application Note - Using the Designer Financial Analysis Features
Working in the Financial Analysis tab 7
To select a Utility Provider and Utility Rate
1. Select a Utility Provider from the Utility Provider drop-down list.
2. Select a Utility Rate that matches your needs from the Utility Rate drop-down list.
After a Utility Rate is selected the Edit and Duplicate icons appear next to the Utility Rate.
Using an Independent Export Rate
In some countries and regions the Export rate that the energy utility pays for purchasing PV generated electricity is not tied to the
Utility Rate. Wherever this is the case you can set an export rate that is independent of the export rate associated with the selected
Utility Rate to determine the cost of energy which is purchased by the utility.
After setting an Independant Export Rate, the Export Rate values associated with the selected Utiltiy Rate are disabled in the Rate
Overview page and future Financial Analysis calculations ignore the Export Rate values that are defined by the Utility Rate. .
To use an independent export rate
1. In the Energy Consumption and Export Rate card check the Use independent export rate option.
2. From the adjacent Export Rate drop-down list select an export rate. The list includes export rates that are available to users in the
site country.
Click to open the Export Rate dialog box and modify the export rate details if required.
3.
If a rate is not available click Can't find your export rate to open the Export Rate dialog box and enter values in the fields. The Rate
4.
Name and Sell Price fields are mandatory. The Rate Name can be up to 140 characters long. The Sell Price can range from zero up
to but not exceed the value of the export rate offered by the utility.
Setting an Effective Start Date, Effective End Date and Making the rate available for users of the account and sub accounts is
5.
optional.
Click Save.
6.
To see the value that was automatically set for the Import Rate ("Buy Price") Fixed rate, click Rate Overview to open the Rate
7.
Overview screen. The value appears in the IMPORTRATE ("BUY" PRICE) section.
Application Note - Using the Designer Financial Analysis Features
8 The Summary and Reports Tab
The Summary and Reports Tab
The Summary and Reports tab contains two pages, Project Summary and Project Layout. For the purposes of reviewing the
Financial Reports generated in response to data provided in the Financial Analysis tab we are only interested in the content of the
Project Summary page. The Project Summary page includes many charts and reports however the following reports provide a
summary of the Financial Analysis that was performed.
Financial overview
Estimated Bill Savings
Detailed Financial Analysis
Yearly Cash Flow
To review and print the Financial Analysis reports
1. From the Designer navigation bar click Summary & Reports and then click Project Summary.
2. Scroll down the Project Summary until you reach the Financial Overview report.
To print the reports click located at the top of the Summary and Reports tab.
3.
Financial overview
This card is only visible if the both the Utility Rate and System Pricing information was provided as part of the Financial Analysis. The
Financial Overview report gives a broad view of the financial analysis calculations and presents the
Net Payments
Lifetime Bill Savings (NPV)
System Profit
Internal Return Rate (IRR)
Payback Period
The Payback Period indicates the amount of time required for the cashflow to break even and return the cost of investment. In
this case 2.7 years.
This example includes incentives which reduce the cost of investment by an estimated $84,066.84. If we disregard the incentives,
using the detailed financial analysis as a guide indicates that the Payback Period would occur at some point in Year 6.
Note the Lifetime Bill Savings or NPV of $472,123. That is the value of savings obtained in today's terms.
Estimated Bill Savings
The information presented in the Estimated Bill Savings card is based the customers hourly consumption and selected rate plan from
which the electricity bill is calculated for the year before installing the SolarEdge PV System. The details for each subsequent year
assumes that the customer continues to purchase electricity using the same rate plan.
Application Note - Using the Designer Financial Analysis Features
The Summary and Reports Tab 9
A year selector next to the report title allows you to display Bill Savings data for any given year in the 25 year report.
Using the switch at the top of the page you can choose to display the savings as Average Monthly or Annual amounts.
The Current Monthly/Annual Bill value estimates what the Bill for the period would be without installing the PV system.
Detailed Financial Analysis
The Detailed Financial Analysis chartcan be presented in terms of Cummulative Cash Flow as in the figure below or in terms of
Annual Cash Flow.
In this chart we can see additional data beyond that displayed in the Financial Overview. This includes:
System Price
Maintenance Cost (NPV), that is in todays terms
System Profit (NPV)
Return on Investment (ROI)
Levelized Cost of Energy (LCOE), essentially the cost of producing 1kW of energy.
Application Note - Using the Designer Financial Analysis Features
10 Yearly Cash Flow
Yearly Cash Flow
The Yearly Cash Flow report displays a table detailing the estimated Year on Year cashflow for the 25 year lifetime of the system.
In addition to data that is displayed in different forms in the other reports, this table indicates the estimated Replacement Costs and
when they would occur.
Application Note - Using the Designer Financial Analysis Features
Customizing Utility Rates 11
Customizing Utility Rates
This section describes how to review rates and manually customize Export rates, Import rates and set other rate associated values.
Reviewing Rates
Creating Rates
Setting the Charge Structure
Setting the Charge Schedule
Reviewing Rates
You can review the selected rate's settings and conditions by opening the Rate Overview window. The window is arranged as follows:
Rate Properties pane
Import Rate ("Buy" Price) pane
Charge Structure pane
Charge Schedule pane
The example used in the following sections and its descriptions are based on the Dometstic Time of Use Electric Vehicle Charging
Utility Rate as provided by the Southern California Edison Utility Provider. The parameters and terms used for describing rates in
general are listed and described in the Energy Consumption and Export Rate Terms section.
Rate Overview
Different utility providers provide usage plans that vary widely for both residential and commericial purposes. These plans are
generally variations of some basic types of rates. The Rate Overview section shows the Rate Properties, the Import Rate Charge
Structure and Charge Schedule that together define the way a selected rate calculates the cost of energy hourly, weekly, and
monthly over a year.
Charge Structure
The Charge Structure table indicates how the rate is divided into Periods and Tiers.
The structure shows the rates that are applied to each period and any correction
factor with is applied to the rate. Some examples of rate can be structured include:
Flat, with a constant charge rate.
Tiered , where each tier reflects increasing energy consumption levels. Each tier
having it's own charge rate.
Seasonal where price varies for different seasons of the year.
Time of Use (TOU) where price varies for different hours of the day, as well as
price variation between weekdays and weekends.
The Charge Structure can contain up to nine (9) Periods, where each period can
contain up to nine (9)Tiers.
Application Note - Using the Designer Financial Analysis Features
12 Customizing Utility Rates
Charge Schedule
The Charge Schedule displays charts that
reflect how the various charge structure
periods are applied to different times of day,
parts of the week and different months to best
match how the customer uses energy
throughout the year.
A separate chart is used for applying periods
to Weekdays and Weekends.
Creating a Rate
There a number of strategies that you can use to setup a rate. You may find it convenient to use an existing rate as a template for a
new rate, in which case you can either Duplicate or Edit a rate. If using an existing rate as a base for a new rate does not meet your
needs thenthis section describes how to create a rate from scratch and set the charge parameters. Setting up the Charge Structure
and Charge Schedule is dealt with in separate and dedicated sections.
To create a rate
1. Open the Utility drop-down list and navigate to the bottom of the list.
2. Click or Tap Can't find your rate. The Create Rate page opens.
3. From the Utility Provider drop-down list select a Utility Provider.
4. In the Rate Name field enter a unique name for the rate.
5. From the Energy Charge Units drop-down list select whether energy units are charged per day or per month. The selection sets
the unit value used for each period in the Charge Structure.
6. In the Fixed Charge field enter an amount if the Utility Provider applies a set fee or charge regardless of energy consumption. For
example, a service fee or maintenance fee or any other recurring fee not connected to energy consumption. Otherwise leave as
zero (0).
7. In the Min. Charge field enter an amount if the utility provider applies a charge or fee if during the charge period energy
consumption does not reach a minimum threshold. Otherwise leave as zero (0).
8. In the Effective Start Date field enter a date if the new rate is intended to replace an existing rate. On reaching the set date the old
rate automatically expires and the new rate is automatically activated. You can enter a date manually or click and select a
date.
9. In the Effective End Date field enter a date if the new rate is intended to expire on a specific date. On reaching the set date the
rate will automatically expire. You can enter a date manually or click and select a date.
10. In the Reference URL field you can enter the web address for information on the Utility Provider or Rate. Optional.
11. In the Description field enter a brief description of the rate. Optional.
12. You can continue to set the Charge Structure and Charge Schedule details or save the new rate.
13. To save the new rate scroll to the bottom of the page and click Done . The Utility Provider name and the Utility Rate name appear
in the respective fields on the Energy Cost card.
After saving the rate you can select the rate on the Energy Cost card and then click or tap Edit Rate to continue setting the
14.
Charge Structure and Charge Schedule.
Application Note - Using the Designer Financial Analysis Features
Customizing Utility Rates 13
Setting the Charge Structure
When setting up a new Utility Rate the Charge Structure table appears empty and contains a single period as illustrated in the image.
The Charge Structure can contain up to 9 periods where each period can contain up to 9 usage thresholds. To illustrate the process
lets create a charge structure with 2 periods. The Periods will be divided as described and will not include a correction.
Period 1: A general cover all rate that applies to all off peak hours and divided into 2 tiers.
Period 2: A rate that is divided into 3 tiers. This covers all peak hours. 06:00-09:00 and 17:00-20:00
Period 1
Tier Threshold (kWh) $ Price
Tier 1 20 0.1
Tier 2 no limit 0.15
Period 2
Tier Threshold (kWh) $ Price
Tier 1 10 0.15
Tier 2 20 0.25
Tier 3 no limit 0.3
To set the charge structure
1. In the Import Rate ("Buy" Price) section select the Charge Structure (time of usse, tiered) option.
2. For Period 1 in the Max kwh/month field enter a value, in this case 20, and then place the mouse-pointer in the Rate field. As you
do so, a new row is added to the Period for the next threshold and an infinity symbol appears in the new row's max kWh/month
field.
3. Enter 0.1 in the Rate field for the first threshold, click or Tap in the Rate field for the second Tier and enter 0.15. The Charge
Structure should look like
Click Add Period, a new Period that has a single Tier is added to the Charge Structure table. Before entering any values in the
4.
new tier, we know that this Period needs to be set up with 3 tiers.
Application Note - Using the Designer Financial Analysis Features
14 Customizing Utility Rates
In Period 2. click or tap . An action menu opens. Click Add New Tier. Repeat this twice to add another 2 Tiers.
5.
6. Using the values in the Period 2 table setup above, enter the values into the 3 tiers belonging to Period 2. You should end up with
something like:
Setting the Charge Schedule
Similarly to the Charge Structure, when creating a new rate the initial Charge Schedule only has the first period applied to it, the
Weekdays and Weekends grids are only painted with the color associated with Period 1. Something like this.
The newly set up Charge Structures need to be applied to the Charge Schedule. To do this use the Charge Schedule Paint Brush to
mark the sections of the Schedule grids with the respective Period colors.
Application Note - Using the Designer Financial Analysis Features
Customizing Utility Rates 15
To set the Charge Schedule
1. Initially the Charge Schedule grids are marked entirely as Period 1. Note that above the Weekends Grid the Period 1 Tile is selected.
2. Click or Tap the Period 2 Tile.
3. Move the mouse pointer over the Grids. As you do so the pointer changes form and is displayed as the Charge Schedule Paint
Brush shape. Dragging the mouse pointer over the grid marks the cells with the color associated with the selected Period tile.
4. For this example drag the mouse pointer over the grids to paint them with Period 2 colors to reflect Peak usage hours between
06:00-0900 and 17:00-18:00 hours.
5. After marking the Weekdays and Weekends Grids they should look like this.
6. A real world scenario would have more Periods. Simply mark the Charge Schedule grids with the associated period colors.
7. Click Done to save the settings and close the Create Rate page.
Application Note - Using the Designer Financial Analysis Features
16 Financial Analysis Terms and Descriptions
Financial Analysis Terms and Descriptions
Recurring UI Operations and Symbols
There are a number of UI operations and symbols that recur on various cards throughout the Financial Analysis tab. The table below
lists and describes these operations.
UI Element Name Description
Upload
Duplicate
Edit
Add
Remove
Delete
Calendar
Action Menu
Tool Tip
Click the
appliation. For example this is used to upload a Interval Consumption data for a particular
site.
Click the Duplicate symbol to create a copy of a particular entity such as an Incentive. This
allows you to re-use the pre-existing information as the basis of a new item without having
to manually reenter the information. Note that once duplicated, items must be given a
unique name to be valid. This may be as easy as appending a number to the end of the entity
name.
Click the Edit symbol to open view and modify parameters that are set for a particular entity
such as an Incentive.
Click the
adding a custom item to the Bill of Materials.
Click the Remove symbol to remove an item from a card, such as an superfluous Incentive or
item on a Bill of Materials. Removing an item from a list or entity does not permanently
discard the item from the project.
Click the Delete symbol to remove the entity from the system.
Warning: Deleting an item permanently removes the item from the application. To reuse the
item you must re-enter the specific information from scratch.
A calendar symbol appears next to fields that require a date. Click the calendar symbol to
open a calendar and navigate to and select a date that you want to enter in the field.
Indicates that additional actions can be performed next where the symbol appears. Click or
Tap to open the action menu and select an action.
Cards which contain parameters that require your input have a Tool Tip symbol located next
to the input field. Hover the mouse-pointer over or tap the Tool Tip symbol to view a short
description of the parameter.
Upload
symbol to open a system browse dialog box to select a file and load to the
Add
symbol to append an extra item on a card, such as an additional Incentive or
Financial Parameter terms
Term Description
Currency
Cash Flow Discount Rate
Exp. Electricity Price Increase
Exp. System Production Degradation The annual reduction of system productivity as a result of degradation in the PV
System Lifetime The number of years that the installed system is expected to perform. This
Equipment Lifetime
Sets the currency that is used for calculating all financial related values. If you do
not explicitly set the currency for the site, then the currency is set to the site
country's default currency.
A percentage value that represents the common interest rate in the site's country.
The interest rate that is used to calculate the present value of future cash flow. That
is how much would the cash saved and earned in the future be worth in today's
terms.
Increasing the cashflow discount rate will decrease the net present value (NPV) and
Levelized cost of energy (LCOE).
A percentage value that represents the rate at which electricity prices are expected
to increase annually.
module efficiency.
determines the period over which financial analysis is calculated.
The period over which the equipment is expected to function before requiring
Application Note - Using the Designer Financial Analysis Features
Term Description
replacement.
Annual O & M Costs
Equipment Replacement Cost
National Tax Rate
Local Tax Rate
Bill savings are taxed as revenue by
National Tax
Local Tax
The average annual operation and maintenance costs, represented as a cost per kW
(DC) installed in the system.
The cost per kW of replacing the system equipment once the Equipment Lifetime
period has expired.
The national income tax rate. Enter a value for the rate which may be used to
calculate the amount of taxation that is applied to exported system production.
The local income tax rate. Enter a value for the rate which may be used to calculate
the amount of taxation that is applied to exported system production.
Bill savings may be viewed as revenue in some countries and regions. Where this is
the case, the taxation rate that is applied to the region must be selected. Usually
this is either a National or Local tax rate.
Select the National Tax check box to use the National Tax Rate in the taxation
calculations that are applied to exported system production and used in preparing
the financial report.
If in your region a taxation levy is not applied to exported system production then
make sure this option remains unchecked.
Select the Local Tax check box to use the LocalTax Rate in the taxation calculations
that are applied to exported system production and used in preparing the financial
report.
If in your region a taxation levy is not applied to exported system production then
make sure this option remains unchecked.
Financial Analysis Terms and Descriptions 17
Energy Consumption Terms
Term Description
Consumption
Period
Consumption Profile
Displays the amount of energy expected to be used for a set period in kWh. Initially
the value shown is the same as that entered in the Project Info page. Changing the
consumption value in the Energy Consumption tab updates the value listed in the
Project Info page.
The Energy Consumption fields on the Financial Anaysis page appear blank if the
energy consumption values were not entered as part of the Project Info.
The Period indicates the amount of time over which the energy is consumed.
Annually: The value entered in the Consumption field reflects the amount of
energy consumed over a year.
Monthly: The value entered in the Consumption field reflects the amount of
energy consumed over a calendar month.
Provides an indication of how commercial businesses or residential facilities
consume energy throughout a day and over a week.
Constant energy consumption: Indicates a constant energy consumption seven
days a week.
Examples include, stores with intensive cooling systems, parking lots, data
centers.
Evening focused consumption: Indicates that high energy consumption occurs
mainly during evening hours, seven days a week.
Examples include, hotels, restaurants, gas stations, sports centers.
Weekdays focused consumption: Indicates that high energy consumption
occurs mainly during regular daytime work hours, five days a week.
Examples include, offices, cafeterias, banks, service providers.
Application Note - Using the Designer Financial Analysis Features
18 Incentive Terms
Term Description
Commercial (shopping hours): Indicates that high energy consumption occurs
mainly during regular daytime work hours, six days a week.
Examples include, grocery stores, retail stores, department stores.
Family with school-age children: Indicates that high energy consumption
occurs during morning and afternoon routines.
Family with infants or pre-school children): Indicates that high energy
consumption occurs during morning and afternoon routines, plus by other
daytime usage.
Single or two person household: Indicates that high energy consumption
occurs during morning hours when occupants get ready for work and in the
evening when returning from work.
Retirees or working from home: Indicates that most energy consumption occurs
during regular daytime/work hours.
Nightime focused consumption: Indicates that most energy consumption
occurs during nightime hours.
Incentive Terms
Term Description
Select Incentive The Select Incentive drop-down list shows incentives that:
Apply to the project's country and or state
Match the currency associated with the project
Are currently valid and available for use
Selecting an incentive from the drop-down list adds the incentive to the project and displays the
incentive name and a brief description of the incentive.
Add Incentive
Create new incentive If an incentive that is available for your locale does not automatically appear in the Select Incentive
Incentive State Appears if the country in which the project is located has states. A check box Indicates that the
Displays a new instance of the of the Select Incentive drop-down list.
drop-down list you can create a new incentive and manually enter the values for the incentive
parameters.
Incentives that you create are referred to as user-defined incentives and appear in the Select
Incentive list with the suffix (user-defined) attached to the incentive name.
You perform these operations in the Create New Incentive window.
incentive can be limited for use within the state or local entity supported incentives exist for the
location in which your project is located.
Select the State Name Local Incentive, for example California Local Incentive, check box to
indicate that the incentive is only available for use in the assigned state. .
If the State Name Local Incentive is unchecked then the incentive is available for use in all the
states that belong to country. For example, if the Project site is located in the U.S. then the
incentive would be available for use in a project site located in any of the U.S states.
Incentive Name Enter a name for the incentive in the Incentive Name field.
All incentives must have a unique name.
Incentive Type
Fixed Grant : A grant that is given in the form of a fixed cash amount.
Amount: Enter the of the grant.
Taxes: Indicates whether or not revenue generated from the grant is taxable or not.
Select the Taxable checkbox if revenue generated from the incentive must be taxed.
Application Note - Using the Designer Financial Analysis Features
Term Description
Do not select the Taxable checkbox if revenue generated from the incentive is free of tax.
Summary: Provides a brief explanation of what the system owner receives as a grant.
System Cost Based Grant: This is a cost based incentive. The system owner receives a one time
grant as a percentage of the system cost. The grant is provided as tax credit or rebate in the
first year.
Amount percent: Enter the percentage of the system cost that the system owner should
receive as a grant.
Taxes: Indicates whether or not revenue generated from the grant is taxable or not.
Select the Taxable checkbox if revenue generated from the incentive must be taxed.
Do not select the Taxable checkbox if revenue generated from the incentive is free of tax.
Summary: Provides a brief explanation of what the system owner receives as a grant.
System Production Based Grant:
Return rate per kWh: Enter an amount per kWh to be used to calculate the value of the
grant.
Escalation factor: Enter a percentage value that is used to increase the Return rate per
kWh each year for the duration of the grant.
Duration in years: Enter a value for the number of years that the grant runs before it
expires.
Taxes: Indicates whether or not revenue generated from the grant is taxable or not.
Select the Taxable checkbox if revenue generated from the incentive must be taxed.
Do not select the Taxable checkbox if revenue generated from the incentive is free of tax.
Summary: Provides a brief explanation of what the system owner receives as a grant.
Financial Analysis Terms and Descriptions 19
Make this incentive available
for users on: My account
System Size Based Grant: This is a system sized based incentive. The sytem owner receives a
cash grant based on the
Based on: Select whether the incentive is based on ACor DC.
Return rate: Enter an amount per Watt in the Return rate field to be used to calculate the
value of the grant.
Cap: Enter a value for the upper limit of the grant if a grant cap exists. Otherwise leave
the field blank if the incentive does not have a cap. 0 is not a valid entry.
Taxes: Indicates whether or not revenue generated from the grant is taxable or not.
Select the Taxable checkbox if revenue generated from the incentive must be taxed.
Do not select the Taxable checkbox if revenue generated from the incentive is free of tax.
Summary: Provides a brief explanation of what the system owner receives as a grant.
Select this checkbox to make the incentive available to users that have access to your account.
Application Note - Using the Designer Financial Analysis Features
20 System Pricing Terms
System Pricing Terms
Term Description
Pricing Type Fixed Price: Enter a value for the system in the Price field.
Price perWatt (DC): Enter a price per watt DC in the Price field and the
application calculates the total price by multiplying this value by the sum of STC
power of all wired modules.
If a value exists for Price per Watt (DC) in the user preferences then that value is
automatically shown as the initial value in the Price field.
Price according to BOM: If the you select this option from the Drop-down list
then a Cost column and a Total column is added to the BOM card. The total
price of all BOM components is calculated and displayed in the System Pricing
card.
Price
The cost of the system.
Energy Consumption and Export Rate Terms
Term Descriptions
Utility Provider Shows all the utility providers that have rates in the site's country and state and that match
the site's currency.
Click the drop-down list and select a provider from the list or click Can't find your rate to
open the Create Rate window to create a custom rate.
Energy Charge Units Displays the units used for charging for energy use. Options include:
$/kWh/day
$/kWh/month
Rate Overview Click to open the Rate Overview window to view the Charge Parameters and Charge
Structure that together define the way selected rate calculates the cost of energy hourly,
weekly, and monthly use over a year.
The Rate is composed of three factors:
The Utility Provider set parameters and charges.
A Charge Structure that can include up to 9 charging periods which can each be
allocated with separate thresholds and usage rates.
A Charge Schedule that supports applying the various charge structure periods to
different times of day, parts of the week and different months to best match how the
customer uses energy throughout the year.
Rate Name A rate describes the price per 1 kWh of importing from the grid. This rate may be flat,
tiered (depending on consumption tiers), seasonal (price varies in different seasons of the
year), TOU (price varies in different hours of the day), as well as price variation between
weekdays and weekends.
A drop-down list that shows all the rates that are provided by the selected Utility Provider
in the site's country and state that match the site's currency.
Each rate belongs to the Utility Provider and must have a unique name. While the rates
belong to the Utility Provider, the rate can be duplicated and edited so the conditions of
use reflect the specific terms available to a particular customer.
Types of utility rates Different utility providers provide usage plans that vary widely for both residential and
commercial purposes. These plans are generally variations of some basic types of rates as
described here. Consult a specific utility providers documentation to accurately
understand and assess the terms and conditions associated with any particular utility.
Flat or fixed rates: A fixed price per kWh. The price may vary for weekends and
Application Note - Using the Designer Financial Analysis Features
Financial Analysis Terms and Descriptions 21
Term Descriptions
seasonally for use in Summer and Winter.
Time of Use (TOU): Rates per kWh vary based on the time of day. Electricity rates are
lower at nights and on weekends, but go up during peak hours when energy resources
are in demand. The rates may vary seasonally. Different providers provide TOU plans
that provide users with options that can reduce overall costs and take into account the
use of Solar renewable energy.
Tiered rates: Usage plans that include packages or allotments of energy that have
usage ceilings or thresholds. Each allotment is referred to as a Tier for which customers
pay a single rate per kWh for use of energy within the tier. As monthly energy
consumption extends beyond the threshold for a baseline tier, the rate increases for
consumption of energy alloted to the next and more expensive tier. Many providers
have mult-tiered plans. For instance plans that combine TOU and Tiered rates where
tiered rates vary for Time of Use such as Peak and Off-Peak.
Demand charges: Additional fees that utilities charge non-residential or commercial
customers for maintaining a constant supply of electricity. These fees can amount to a
substantial sum of money that businesses must pay on monthly electric bills. They can
be as much as 50% of the total electric bill or more. In some instances, demand charges
can actually be higher than the energy portion of the electric bill itself. So the price
that a business is charged each month for electricity depends not only on how much
electricity was used during the month, but also on the rate at which consumption of
electricity occurred.
Demand can be defined as the maximum amount of energy a business uses at any
given point in a billing cycle.
Fixed Charge
A fee or charge that the utility provider applies regardless of energy consumption. This
should not be confused with a fixed or flat rate.
Minimum Charge
A fee or charge that the utility provider applies if the energy consumption does not reach
a minimum threshold for the charge period.
Export Rate The rate that the utility company pays for exported electricity.
Fixed Rate: All exported kWh are credited with a set and constant value.
Independent Rate: All exported kWh are credited as a flat export feed-in tariff that is
independent from the Utility Rate.
Retail Rate: All exported kWh are credited the same as a kWh imported from the grid.
This is used for traditional net metering rules.
Retail Rate With Fixed Reduction: Exported kWh are valued as the retail rate, minus the
specified reduction per kWh as set in the Reduction $/kWh field.
Retail Rate With Percentage Reduction: All exported kWh are valued as a percentage of
the retail rate. The percent reduction is set in the Reduction % field.
For example, a 10% reduction would reduce the value of exported energy to 90% of
the retail value.
Effective Start Date
Indicates if this rate is intended to replace an existing rate. On reaching the set start date,
the existing rate automatically expires.
Effective Ene Date
Indicates if the rate has an expiration date. On reaching the set end date the existing rate
expires.
Charge Structure Contains parameters that are used to define the way selected rate calculates the cost of
energy hourly, weekly, and monthly use over a year.
Period: The Period is a unit that groups a number packages of energy and sets the cost
of those packages to the customer. The Period is the unit that is applied to the Charge
Schedule.
Application Note - Using the Designer Financial Analysis Features
22 Energy Consumption and Export Rate Terms
Term Descriptions
Tier: Defined amounts of energy that are grouped into packages.
Max kWh: The upper limit on the .
Rate $/KWh: The cost per kWh of energy for the amount of energy included in a Tier
Charge Schedule Describes that distribution or application of charge structure periods to different times of
day, parts of the week and different months to best match how the customer uses energy
throughout the year.
Weekdays: A chart used for applying scheduling periods for weekdays.
Weekends: A chart used for applying scheduling periods for weekends.
Application Note - Using the Designer Financial Analysis Features
Loading...