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Project Development in the Solar Industry
book

Project Development in the Solar Industry

by Albie Fong, Jesse Tippett
December 2012
Beginner content levelBeginner
250 pages
10h 1m
English
CRC Press
Content preview from Project Development in the Solar Industry
204 Project development in the solar industry
Table 11.6 Value of current and future tax benefits (Mendelsohn, 2012b).
Year 0 1 2 3 4 5 6
Project Cost $100
Tax Rate $35
IRR Target 10%
Current Tax Equity Requirement
ITC 30%
ITC Value $30
Depreciable Basis $85
5-Yr. MACRS + Bonus Schedule
60.0% 16.0% 9.6% 5.8% 5.8% 2.9%
Depreciation Value (schedule × basis × tax rate)
$18 $5 $3 $2 $2 $1
Total Tax Benefit (depreciation value + ITC)
$48 $5 $3 $2 $2 $1
Tax Equity Inv. that Earns 10% IRR on Tax Benefits ($52)
Future Tax Equity Requirement
ITC 10%
ITC Value $10
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Publisher Resources

ISBN: 9780415621083