©2011 James Tyson

Central Jersey Solar Planning's GRID-PARITY CALCULATOR for Individual Solar Site Evaluations is protected under US copyr

The Grid Parity Calculator may copied by users ONLY for use in financial evaluations of INDIVIDUAL solar sites, and then under
a) The entire workbook is copied, including the sheets explaining the Variable Details and the Copyright requiremen
b) No changes may be made to any cells in the spreadsheet, except for the green-font input cells and the Project Na
c) The user inserts the variables in accordance with the instructions given on the "Variable Details" sheet.
d) The user accepts full responsibility for verifying the accuracy of the calculations and holds the Copyright owner h

Any other use of this intellectual property, without the express written consent of the owner, is forbidden.
This includes, but is not limited to, publication of it in any electronic media, use of it for public or private policy purp
from it in any publications.

Those who wish to use it for publication, policy research or any purposes other than an individual project evaluation may obta
James Tyson by email at JayTyson@CJSolarPlanning.com.
ns is protected under US copyright laws.

UAL solar sites, and then under the follow conditions:

and the Copyright requirements
t input cells and the Project Name & Notes areas on the GP Calcs sheet.
riable Details" sheet.
d holds the Copyright owner harmless under all circumstances.

or public or private policy purposes and publications of results

al project evaluation may obtain written consent by contacting

Central Jersey Solar Planning's GRID-PARITY CALCULATOR for Individual Solar Site Evaluations
INPUTS Adjust only the items in GREEN for your local situation. Project Name & Address:
Firm, Site-Specific Variables (for detailed definitions, see "Variables Defi
1 ### Current average cost of electricity per kWh (averaged over the course of the year pr
2 $5.00 Installed price per watt for PV system, including sales tax (if any)
3 10.00 Total size of the PV system, in DC rated kW
4 1,200 First year's annual production of AC kWh by a 1 kW PV system at your site (Obtain t
5 1.00% Anticipated loss, per year, in PV system's productivity, based on module manufactur
6 25 Years of life cycle (normally 25 years, but can be adjusted if roofing conditions, shad
7 $715 Current cost per kW for inverter replacement, including installation
8 $100 Current average cost per year for tree trimming
9 $150 Current annual cost for system cleaning, monitoring, and maintenance
10 $1.00 Current annual cost for add'l homeowners insurance, per $1,000 cost of PV system r
11 0.00% Property tax rate for add'l annual property tax payment, required as a result of addin
Businesses: For equipment depreciation tax benefits, insert savings below in Colum
Speculative Variables (cannot be determined with certainty, even when all of the details o
12 3.0% Projected inflation rate for typical costs
13 5.0% Projected inflation rate for grid electricity. This is the biggest single unknown affectin
14 $0 Estimated present value of equipment at end of life cycle, minus the removal costs
PV SYSTEM EXPENSE CALCULATIONS (over the entire life cycle)
Present
Cleani Residual Present
ng, Add'l Value at Value of All Total AC
Installed Inverter Tree Monito Propert End of PV Costs kWh
PV Replace- Trim- ring & Insur- y Tax, Life over the Produce
System ment ming Maint. ance if any Cycle Life Cycle d
Present
### $7,150 ### ### ### $0 $0 $64,650 ###
Value:
Year
1 Business owners can also include in the calculation $0 12,000
2 their estimated annual tax savings $0 11,880
3 due to depreciation of PV equipment. $0 11,761
4 these as positive numbers in the green cells at right. $0 11,644
5 (See your tax consultant for details.) $0 11,527
6 $0 11,412
7 $0 11,298
8 $0 11,185
9 $0 11,073
10 $0 10,962
11 $0 10,853
12 $0 10,744
13 $0 10,637
14 $0 10,530
15 $0 10,425
16 $0 10,321
17 $0 10,217
18 $0 10,115
19 $0 10,014
20 $0 9,914
21 $0 9,815
22 $0 9,717
23 $0 9,620
24 $0 9,523
25 $0 9,428
26 $0 0
27 $0 0
28 $0 0
29 $0 0
30 $0 0
31 $0 0
32 $0 0
33 $0 0
34 $0 0
35 $0 0
36 $0 0
37 $0 0
38 $0 0
39 $0 0
40 $0 0
41 $0 0
42 $0 0
43 $0 0
44 $0 0
45 $0 0
46 $0 0
47 $0 0
48 $0 0
49 $0 0
50 $0 0
 olar Site Evaluations
©2011 James Tyson. See "Copyright" tab for details. www.cjsolarplanning.com

List Project Name & Address he List additional comments about the project here.
r the course of the year prior to install Add'l Notes
if any)

tem at your site (Obtain this value from PVWatts, based on site-specific conditions & derate
ed on module manufacturer's warrant
if roofing conditions, shading conditions,
stallation
Present Value of Total PV Net Savings (or Net
Expense) Over the Life Cycle of the System. Net
maintenance Expense, in red, indicates grid parity has not yet
$1,000 cost of PV system replacement been reached. (No financial incentives are
equired as a result of adding the PV s included.)
rt savings below in Column I.
when all of the details of a propo
$367
st single unknown affecting the Grid P
minus the removal costs
GRID EXPENSE CALCULATIONS
Present Assumptions:
Value of
Total AC Grid 1) PV system has been sized so that, over the
kWh Grid Electricity course of a year, all energy produced has been
Consum Cost Per over the consumed on site, or any annual excess energy
ed kWh Life Cycle is being reimbursed at full retail value.
2) Net metering allows energy to go back to the
### ### $65,017 grid at full retail value, over the course of at at
least one year.
3) Cost of inverter replacement, insurance, tree
12,000 ### $2,394.00 trimming, cleaning, monitoring, and general
11,880 ### $2,488.56 maintenance and property taxes will rise at same
11,761 ### $2,586.86 pace as general inflation.
11,644 ### $2,689.04
11,527 ### $2,795.26 Notes:
11,412 ### $2,905.67 1) This is a Grid Parity Calculator, which means
11,298 ### $3,020.45 that NO tax credits, rebates, SRECs, or other
financial incentives have been included in the
11,185 ### $3,139.75
calculations. If you can determine them using
11,073 ### $3,263.77
www.DSIREusa.org and other resources, you can
10,962 ### $3,392.69 set the total incentives against the Net Expense
10,853 ### $3,526.70 given above (if any) to estimate your total profit
10,744 ### $3,666.01 or loss on the PV system over its life.
10,637 ### $3,810.82
10,530 ### $3,961.34 2) Due to the uncertainties associated with the
10,425 ### $4,117.82 variables—especially the three speculative ones
10,321 ### $4,280.47 (#12, #13, and #14)—it is impossible to say with
10,217 ### $4,449.55 certainty whether financial incentives will be
needed to make a PV project financially
attractive. The Grid-Parity Calculator can help
solar planners quantify the possible incentive
needs under a variety of assumptions that they
can make using the variables.
 2) Due to the uncertainties associated with the
variables—especially the three speculative ones
(#12, #13, and #14)—it is impossible to say with
certainty whether financial incentives will be
needed to make a PV project financially
10,115 ### $4,625.31
attractive. The Grid-Parity Calculator can help
10,014 ### $4,808.01 solar planners quantify the possible incentive
9,914 ### $4,997.92 needs under a variety of assumptions that they
9,815 ### $5,195.34 can make using the variables.
9,717 ### $5,400.56
9,620 ### $5,613.88 *Limitations:
The Calculator will not give valid results for life-
9,523 ### $5,835.63 cycles greater than 50 years. Life cycles that are
9,428 ### $6,066.13 not whole numbers may also return erroneous
0 ### $0.00 results.
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
0 ### $0.00
Definitions and Explanations Regarding Grid Parity and Each of the Grid Parity Variab
©2011 James Tyson. See "Copyright" tab for details. www.cjsolarplanning.com

Note: This calculator provides an estimate of "apparent grid parity" (GP A) i.e. it does not attempt to account for direct subsidie
such as free disposal of certain gaseous and liquid wastes into the atmosphere and rivers, etc. To account for these items i.e. t
their average cost per Kw-Hr to the cost of electricity in Variable 1. This would result in many more solar sites reaching grid pa
inclusion is purely academic.

Sample
Input # Figures Site-specific variables: (Note: The numbers on this sheet are examples only. Changes to
$0.1900 Current average cost of electricity per Kw-Hr, including both generation and transmission charges (if these a
1 electricity bills. Ideally, it is the average cost during the 12-months prior to the start-up of the system. For
tiers or time-of-use to the extent that the solar system will provide alternative energy for those tiers or durin

$5.00 Installed price per wat for your solar system, including sales tax if any. It is best to get a quote from a local
cost factors associated with your particular site. Add in any initial tree trimming or other site adjustment co
cost-per-watt prices in your location, go to: http://openpv.nrel.gov/ . Enter your state or zip code. Click on
2 the spreadsheet to sort out only the projects that are (a) recent (last year or so) and (b) relatively nearby (se
Variable 3 below). Then create a "cost per watt" column which takes the total project cost on each line and
project. This will give you a good idea of recent prices in your area. It will likely be somewhere between $4

10.00 Total size of the solar system, in DC nameplate Kilowats i.e. the number of panels times the watts per pane
3 Residential systems typically range between 3 and 10 Kw in size.

1,200 Annual production of AC Kw-Hrs by a 1-KW size solar system at your site during the 1st year. Obtain this fro
http://rredc.nrel.gov/solar/calculators/PVWATTS/version1/ . This is where the location, the weather and 13
typical values are provided for most of the terms, but if you need more exact information, contact a solar de
for the "DC Rating (kW)". Note that "Cost of Electricity" can be ignored, as we have already listed that as Va
4 "Derate Factors" according to the specifics of your system. Leave the 11th one as 1.0. That is adjusted sepa
during parts of the year, you may need to have a solar consultant do a shade analysis to determine this facto
Energy (kWhr) in the righthand table, at the bottom of the middle column, and enter it as Variable 4 here. 6

1.00% Anticipated loss in productivity of PV system per year, based on panel manufacturer's warranty. Typically th
for the panels you plan to use for this detail. If you wish to be less conservative (i.e. assume less loss than th
5 downward slightly. (See also Column AA in PV Module Buyer's Guide at http://homepower.com/webextras
loss.)

25 yrs of life cycle. Normally 25 years, but can be increased or decreased if roofing conditions or shading cond
6 For periods shorter than 13 years or longer than 25 years, you should consider adjusting the number of inve
respectively. See Variable 7 for more details. Note 2: Use whole numbers only. Fractions (e.g. 12.5 years) m

$715 Current cost per Kw for replacement of inverter, including installation. A general estimate can be obtained f
environment/inverter-prices . For a more exact estimate, you can contact a local solar dealer. NOTE: This c
7 25-yr life cycle of a system. If you are using a longer life cycle, and will need 2 or 3 replacements, multiply th
life-cycle with an inverter guaranteed to last the length of the life cycle, change this variable to "$0".

$150 Current, average, cost per year for tree trimming. If you have no trees that could grow up during the life-cy
trees yourself with no charge for your own time, mark this as "0". If you will need a trim once every 4 years
8 enter $150 here ($600 divided by 4). If you have to trim or remove trees at the time of installation, and if yo
right to trim their trees) add these costs, divided by the total number of watts, to the installed price-per-watt
 $100 Current, annual cost for system Cleaning, Monitoring and Maintenance. Frequency of cleaning will vary dep
panel. If average dust/pollen is not removed (by hose or by rain), expect a loss of at least 5% of your annua
already included if you use the standard PVWatts derate factor of 0.77 as part of Variable 4. If you are plan
9 of the number of hours per year times the value of your time. Computer-based monitoring may be availabl
free. Outside-of-warranty repairs are infrequent and difficult to estimate. An educated guess may be neede
the guestimated number of years between visits.

$1.00 Current annual cost for additional homeowners insurance, per $1,000 cost of solar system replacement. Th
10 or storm or other disaster destroys the panels and/or the whole house. Your homeowners insurance agent
standard rate for any improvements to the home. It typically ranges from $0.50 to $2.00 per $1,000.

0.00% Property tax rate for additional annual property tax payment, if required, as a result of adding the solar syst
11 for your state at www.dsireusa.org (Property Tax Exemption). If you are not exempt, contact your tax assess
between 0.5% and 3% of the market value.

Speculative variables: (These cannot be determined with certainty, even when all of the details of a proposed solar
3.0% Projected general inflation rate for typical costs. It is difficult to predict inflation rates 25 years or more into
12 much more significant is the general inflation rate compared to the inflation rate of the cost of electricity fro
5.0% Projected inflation rate for electricity from the grid. This is the biggest unknown. Historically, energy prices
much faster? This depends on which part of history you're looking at. And how similar will the past be to th
growth of supply? Will the government add taxes to the fossil fuel industry to reflect its real environmental
13 anywhere from 0% to 6.5%. I agree that it's likely to be more than the general inflation figure (Variable 12 a
approach is to plot a few different values and review the corresponding results.

$0 Total present value of equipment at end of life cycle, minus the removal & disposal costs. (Present value i.e
you assume that the cost of removing and selling the panels is equal to their resale value at the end of the c
14 salvage value, then enter the total cost of removal + disposal as a negative number. If the resale price (or t
sales costs, enter the difference between the two as a positive number.
 the Grid Parity Variables:

mpt to account for direct subsidies received by the fossil fuel industry, nor for indirect subsidies
. To account for these items i.e. to calculate for true Grid Parity (GP T), you would need to add
more solar sites reaching grid parity. But until such costs are actually required by law, their

et are examples only. Changes to the variables here will not affect the calculations sheet.)
nd transmission charges (if these are separately itemized on your bill). This can be found on your
o the start-up of the system. For tiered or time-of-use rate structures, use the cost of the upper
tive energy for those tiers or during those times-of-use.

s best to get a quote from a local installer in your area, who can take into account any special
mming or other site adjustment costs. However, if you need only a general idea of the recent
er your state or zip code. Click on "Export to CSV", download the data into a spreadsheet. Use
or so) and (b) relatively nearby (select nearby zip codes) and (c) approximately the same size (see
otal project cost on each line and divides it by the total number of watts (Kw x 1000) for that
likely be somewhere between $4 and $10 per watt.

f panels times the watts per panel at Standard Test Conditions (STC) divided by 1,000.

uring the 1st year. Obtain this from the PV Watts Version 1 Calculator found at
e the location, the weather and 13 additional site-specific variables are added. Explanations and
act information, contact a solar designer/consultant to guide you through this. Always use 1.0
s we have already listed that as Variable 1 above. Review and adjust as needed the first 10
one as 1.0. That is adjusted separately as Variable 5 here. If parts of your array will be shaded
de analysis to determine this factor. After clicking the "Calculate" button, find the Yearly AC
, and enter it as Variable 4 here. 600 to 1800 are typical values.

ufacturer's warranty. Typically this ranges from 0.5% to 1.0%. Check the technical specifications
vative (i.e. assume less loss than the worst case under the warranty) you can adjust this figure
ttp://homepower.com/webextras for info on warranty for specific models against productivity

oofing conditions or shading conditions or other factors require it (50 year maximum). Note 1:
sider adjusting the number of inverter replacements from 1 downward to 0 or upward to 2 or 3
s only. Fractions (e.g. 12.5 years) may result in inaccurate calculations.

eneral estimate can be obtained from Solarbuzz.com/facts-and-figures/retail-price-

a local solar dealer. NOTE: This calculation assumes one inverter replacement during the typical
ed 2 or 3 replacements, multiply the normal cost by 2 or 3 accordingly. If you are using a shorter
ange this variable to "$0".

t could grow up during the life-cycle to cast a shadow on the panels, or if you plan to trim the
will need a trim once every 4 years, and your local landscapers currently charge $600 per visit,
t the time of installation, and if you need to buy a solar easement from your neighbors (i.e. the
atts, to the installed price-per-watt calculation in Variable 2.
requency of cleaning will vary depending on site- and weather-conditions, and tilt angle of
loss of at least 5% of your annual energy. This, along with an assumed 2% system downtime, is
part of Variable 4. If you are planning to do all of the CM&M work yourself, insert your estimate
based monitoring may be available for free. Do NOT include warranty-based repairs, as these are
An educated guess may be needed here based on typical cost of an electrician's visit divided by

t of solar system replacement. This is for the replacement of the system in the event that a flood
our homeowners insurance agent or company should be able to provide this figure, as it is a
$0.50 to $2.00 per $1,000.

as a result of adding the solar system. Several states have prohibited this tax. Look up the details
ot exempt, contact your tax assessor to determine the rate, which is typically somewhere

of the details of a proposed solar system are known.)

flation rates 25 years or more into the future. Fortunately, this not a critical variable. What is
on rate of the cost of electricity from the grid--see Variable 13 below.
known. Historically, energy prices have generally risen faster than overall inflation. But how
d how similar will the past be to the future? Will the growth of electrical demand outstrip the
y to reflect its real environmental costs? Will it reduce fossil fuel subsidies? I've seen estimates
neral inflation figure (Variable 12 above) but it's hard to say how much more. Perhaps the best
sults.

disposal costs. (Present value i.e. do not use the inflated price at the time of the sale here.) If
eir resale value at the end of the cycle, the total net cost is "0". If you assume that they have no
e number. If the resale price (or tax benefit if donated to a charity) will exceed the removal and