1. 1 Why Choose Solar? Solar costs are coming down Solar panels are getting better and better Electricity costs are rising Solar panels last +25 years

2. 2 Pieces of a PV System

3. 3 Extra Considerations Before Adding Solar PV to a Building How old is the roof? Move a solar array to install a new roof = $2,000 - $5,000 Can the structure support the load? This includes snow loads and wind loading in addition to weight of the solar array. Structural engineering calculations = $1,000 - $2,000 Can the existing electrical panel accept the new PV circuit? New panel = $500 - $1,000

4. 4 Assumptions for Financial Calculations All numbers on the following two slides assume PV system is installed before 1/1/2012 to take advantage of special 100% first year depreciation for tax purposes. Total rebate including “Made in Minnesota” credits are based on current rate filing by Xcel Energy with the PUC. All numbers must be confirmed by your own tax consultant.

5. 5 10kW system – No Made in Minnesota Credits Total Contractor Price$55,000 Xcel Solar Rewards rebate-$22,500 Total Cost before Tax Considerations$32,500 35% Taxes on rebate income$7,875 30% Federal Tax Credit-$16,500 Total Cost before Depreciation$23,875 Tax savings @35% for depreciation-$13,475 Final Total Cost at end of First Year$10,400 kWh of Yearly Electricity Generated12,748 $ of electricity savings at $0.10/kWh$1,275 Years Payback Time, 3% inflation7.5

6. 6 10kW system – Made in Minnesota Credits Total Contractor Price$75,000 Xcel Solar Rewards rebate-$22,500 Made in Minnesota Rebate-$18,462 Total Cost before Tax Considerations$34,038 35% taxes on rebate income$14,337 30% Federal Tax Credit-$22,500 Total Cost before Depreciation$25,875 Tax savings @35% for depreciation-$18,375 Final Total Cost at end of First Year$7,500 kWh of Yearly Electricity Generated12,748 $ of electricity savings at $0.10/kWh$1,275 Years Payback Time, 3% inflation5.7

7. 7 Don’t Forget Long Term Advantages to Solar PV! At 3% annual increase in electricity rates, by year 25, you will be saving $0.203/kWh, or $2,073 annually. Depending on your schedule of electricity use, you could save demand charges as well. Increased property values. Enhanced Company Image.

8. 8 Thank you. Brian Millberg, PE City of Minneapolis