Basic Information
- Name: The name of your financing (template), e.g. "Cash", "Loan (5%)"
- Project Useful Life: The expected life of your system. This will determine how many years are included in the financial analysis
- Type: Currently only "residential" is an option
- Discount Rate: The discount rate that will be applied to all future cash flows
- Electricity Rates: One of "Tiered / TOU", "Flat Rate" or "Feed-In Tariff"
- Financing Option: "Cash", "Loans", "PPA (beta)", "Lease (beta)"
Utility Rates
Aurora allows you to model complex utility rates in detail, which allows you to get accurate financials under net energy metering regimes. If you select "Tiered / TOU" from "Electricity Rates", you can specify the following options. Note that the pre-solar utility information is set in the consumption profile of the project.
- Pre Solar Utility: The name of the utility company before the client goes solar
- Pre Solar Utility Rate: The name of the utility rate before the client goes solar
- Rate Effective Period: The effective period of the utility rate before the client goes solar
- Post Solar Utility: The name of the utility company after the client goes solar
- Post Solar Utility Rate: The name of the utility rate after the client goes solar
- Rate Effective Period: The effective period of the utility rate after the client goes solar
- Utility Rate Escalation: The assumed annual increase in utility rates
- Net Surplus Compensation: How much the homeowner will be compensated for every kWh exported to the grid in excess of the home's energy consumption on an annual basis
- Hourly Export Penalty (beta): The amount by which the prevailing utility rate gets reduced when exporting to the grid (in $/kWh)
Flat Rates
You can easily model simple utility rates by selecting "Flat Rate" from "Electricity Rates". Choose this option, if you are not dealing with a complex tiered/time-of-use utility rate.
- Flat Rate: The utility rate in $/kWh
- Flat Rate Escalation: How much the flat rate increases every year (in %)
- Monthly Charge: Any fixed monthly charges in $
- Hourly Export Penalty (beta): The amount by which the prevailing utility rate gets reduced when exporting to the grid (in $/kWh)
Feed-In Tariff
If you selected "Feed-In Tariff" from "Electricity Rates", you can model feed-in tariff structures in Aurora by specifying the following parameters:
- Feed In Tariff Rate: The utility rate in $/kWh
- Feed In Tariff Rate Escalation: How much the feed-in tariff increases every year (in %)
- Feed In Tariff Start Year: The year the tariff begins
Note that you can model more complex structures by adding additional tariffs and specifying a start year other than 1. A given feed-in tariff will be active until another tariff begins. In addition to the tariff rates you have the option to specify a fixed monthly charge.
- Monthly Charge: Any fixed monthly charges in $
System and Equipment Information
- Degradation Factor: How much the system will be producing in a given year in comparison to the last year
- Inverter Replacement Cost: How much it costs to replace the inverters (in $/W)
- Inverter Life: After how many years the inverter needs to be replaced. You will see a dip in the annual cashflows whenever the inverters are replaced.
Taxes
This section is only available when "Cash" or "Loans" is selected in as "Financing Option". Enable taxes by checking off the "Taxable Entity" box.
- National Tax Rate: This applies federal income taxes to your savings from solar. It does not apply in the US for residential taxes.
- Local Tax Rate: This applies local income tax rate to your savings from solar. It is rarely used in the US for residential taxes.
Cost Based Incentives
Cost-based incentives are incentives that are calculated as a percentage of the system cost. This section is only available when "Cash" or "Loans" is selected as a "Financing Option".
- National CBI: Any national/federal incentives that are defined a percentage of system cost. For example, to account for the 30% federal investment tax credit in the US, you would fill in "30"
- Local CBI: Any local/state incentives that are defined as a percentage of system cost
Performance Based Incentives
Performance-based incentives are incentives that are calculated based on system performance (i.e. production). This section is only available when "Cash" or "Loans" is selected in as "Financing Option".
- National PBI: Any national/federal incentives that are based on the performance of the system (in $/kWh produced)
- Local PBI: Any local/state incentives that are based on the performance of the system (in $/kWh produced)
Grants
This section is only available when "Cash" or "Loans" is selected in as "Financing Option".
- Additional Rebates / Grants: Any additional rebates or grants in $
- DC System Size Based Grant: Grants that are specified based on the DC system size (in $/W STC installed)
Loans
This section is only available when "Loans" is selected in as "Financing Option".
PPA
This section is only available when "PPA" is selected in as "Financing Option".
- PPA Upfront Payment: Any upfront payment(s) the homeowner receives (in $)
- PPA Price: The compensation the homeowner receives for every kWh produced (in $/kWh)
- PPA Escalation: How much the PPA price increases year over year (in %)
Lease
This section is only available when "Lease" is selected in as "Financing Option".
- Lease Upfront Payment: Any upfront payment(s) to the homeowner (in $)
- Monthly Lease Payment: The monthly lease payment to the homeowner (in $)
- Lease Escalation: How much the lease payment to the homeowner increases every year (in %)