| V. Sattui Solar Power Winery
Save money while you do the right thing for your community's environment
Akeena Solar designed a 34 kWh solar power system the V. Sattui Winery in Napa Valley .
This system includes 198 Kyocera 170 modules and 1 Xantrex PV-30208 inverter. Peak power generating capability is 33,660 watts (based on manufacturer output ratings). This system provides about 45,350 kWh per year -- after taking into account various real-world efficiency losses. Annual utility electric expenses were reduced by approximately 16.2%.
Total costs of the solar energy system were $252,450, including all equipment, permits and installation on this corrugated steel roof (specialized mounting method was required).
The customer received:
$76,507 rebate from the California Energy Commission
$52,783 in federal tax credits.
Net costs to the owner: $123,160.
The solar energy system will reach an economic breakeven point in 5.2 years.
This solar energy system will save V. Sattui $12,517 per year, based on:
- current commercial electric rates
- 7% discount rate
- 30 year solar energy system lifetime
- 5% annual electrical rate increases
- 6% borrowing rates
- 42% combined State and Federal tax rates
According to the Appraisal Institute, energy saving improvements increases your property's value by $20 for every $1 reduction in annual energy usage. In this case the value of the building was increased by $123,629 in current dollars -- more than the net cost of the solar energy system itself! On a cash basis, this customer's electric bill went down by $515 per month in the first year.
Solar Energy System Design and Energy Bill Analysis
Our recommendation to install this particular solar energy system was based on a detailed analysis of the customer's energy bill, roof condition, orientation, electrical system, local weather conditions, environmental interests, financial goals and aesthetic preferences. This analysis was summarized in a detailed, 50+ page report that we presented to V. Sattui. The two bar charts below highlight the results of our before and after energy bill analysis.


Environmental and Financial Benefits
The following two tables summarize the environmental and financial benefits that the solar energy system will provide over its 30+ year lifespan.
|
PV System Investment Summary |
198 Modules |
|
Total Installed Price |
|
$254,950 |
|
Less Initial Visit Discount |
-$2,500 |
|
Contract Price |
|
$252,450 |
|
Less Refundable Audit Fee |
$0 |
|
Rebate |
|
|
-$76,507 |
|
Price Net of Rebate |
|
$175,943 |
|
|
|
|
|
|
State Solar Tax Credit |
|
$0 |
|
Federal Solar Tax Credit (residential) |
$0 |
|
30% Federal Tax Credit (business) |
-$52,783 |
|
Net Price |
|
|
$123,160 |
|
|
|
|
|
|
Estimated REC Revenue (10yr) |
$0 |
|
Depreciation Tax Benefit (MACRS) |
$51,727 |
|
Increase in Appraised Value |
$123,629 |
|
PV System Saving Summary |
|
|
|
Peak Power Output (DC watts) |
33,660 |
|
|
Annual Energy Output (kWh/yr) |
45,350 |
|
|
First Year Energy Savings |
$6,181 |
|
|
Total Energy Savings (30 yr life) |
$375,518 |
|
|
Locked In Net Cost/kWh (30 yr life) |
$0.0905 |
|
|
Rate of Return |
12.2% |
|
Environmental Benefits |
|
|
Avoided CO2 (30 yr life) |
908,388 |
pounds |
|
Avoided NOx (30 yr life) |
838 |
pounds |
|
Avoided SO2 (30 yr life) |
247 |
pounds |
These savings do not take into account several important factors:
- Distributed solar power is a renewable energy resource and very kind to the environment.
- Renewable solar energy system improvements add significantly to the value of your property without any increase in the assessed value in most municipalities.
- Cash flow savings are likely to be hundreds of dollars per month if you were to install a solar energy system in conjunction with other energy saving devices - and then refinance the entire package at a lower interest rate.
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