Solar Thermal Project Financial Calculations

CDYMCA  Guilderland Solar Thermal Project Financial Calculations

Price Increase for Natural Gas 3%  
Internal Rate of Return 87%  
Total Savings (10 years) $200,551.34

 

Projected Cash Flows for the Solar Thermal

Year of Operation Expected Natural Gas Costs Capital Spent on Solar Thermal System Net Cash Flows
0 0 ($50,000.00) ($50,000.00)
1 $42,000.00 $0.00 $42,000.00
2 $43,260.00 $0.00 $43,260.00
3 $44,557.80 $0.00 $44,557.80
4 $45,894.53 $0.00 $45,894.53
5 $47,271.37 $0.00 $47,271.37
6 $48,689.51 $0.00 $48,689.51
7 $50,150.20 $0.00 $50,150.20
8 $51,654.70 $0.00 $51,654.70
9 $53,204.34 $0.00 $53,204.34
10 $54,800.47 $0.00 $54,800.47
       

 

Evaluating Profitability

Solar Thermal Project/Debt to Equity Ratio 4 1.5 1 0.666666667 0.25 0
Debt (D)* $50,000.00 $40,000.00 $30,000.00 $25,000.00 $20,000.00 $10,000.00 $0.00
Cost of Debt (rd)* 6.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
Equity 0.00 10000.00 20000.00 25000.00 30000.00 40000.00 50000.00
Cost of Equity 19.00% 19.00% 19.00% 19.00% 19.00% 19.00% 19.00%
Tax Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Equity Weight 0.00% 20.00% 40.00% 50.00% 60.00% 80.00% 100.00%
Debt Weight 100.00% 80.00% 60.00% 50.00% 40.00% 20.00% 0.00%
Weighted Average Cost of Capital (WACC) 6.0000% 10.2000% 12.4000% 13.5000% 14.6000% 16.8000% 19.0000%
NPV of projected Cash flows $282,443.17 $214,634.34 $187,049.23 $174,871.12 $163,635.71 $143,654.51 $126,513.73