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f H f X 6 Y~ O l 0 I l O X 5 <br />FLDH:RAL ACCLLL;RA'1'h:ll llL:PR1: C:I A'I'IUN <br />1'hc IRS has an accelerated depreciation schedule I~x PV" scstans. I'n~cu though PV' scstans h;n~c a lilt <br />c~pecmna~ of Deer 2S scars, ta~ablc entities kith PV" iustallatiuns can utilize the ~IodiGed .Accclerau~d <br />Cost Recovers Scuem (11.1CRS) under ~~-hich rhec can reeocer im-esrmenn in PV' electric eyuipnunt <br />through depreciation deductions Deer siz cairn. 'I'bis depreciation uhedule uses a 31111 pera~nt <br />declining balance method, ~chich corresponds ro the depreciation schedule sho~~-n in 1~able ~. I4-dcral <br />acccleraicd depreciation kill apple io a pri~;uc Third-parn~ o~cned PV' scstem under a PP.A or leasing <br />arrangement, and is incnrporatc<I in to dx~ Scenario 3 analysis. <br />Table 7: MACRS Depreciation Schedule <br /> <br />Year 1 ~-. <br />20.00 <br />Year2 32.00% <br />Year 3 1920 <br />Year 4 11.52 <br />Vear 5 11.52 <br />Vear 6 5.76°0 <br />FGDliRAL INV ESI'MEN"1' TAX CHliD LI' <br />l'he I~:ncigc Lnprocement and I'.~tension .1st of 311118, included in die I~:met;gcua I~:anvnuic <br />Stabilization Aet of '_Uf18, c~tended a 311 percent federal im~esuncut ray credit for conmureial solar <br />installations through December 31, 3111 G. <br />hhc ray ordir is calculated based on the total installed project cost, including materials, labor, and .,ales <br />ut~ bur esdudes project costs covered be subsidised cncrgc financing or ray-c~empt pri~~ate acticitc <br />bonds. <br />UTILITY NET METERING CREDITS <br />Net-metering rules in California eurrendc apple ro rene~sable cncrgc scstans up to 1 A[ega~cau (\[\\~ <br />in size L~'ermetering allo~s~s customers to reccice credits for anc on-silt gcucraiiou of eleciriciic iu <br />excess of what the cuslomcr consumes based on the lime-of-iue ra[es. ~l'hus, it a PV' scstem produces <br />cncrgc during pcah periods in c~cess of the sire's usage during peak periods in a given month, the <br />cuslomcr is credited thr the value of This c~eess generntiou al the ulilil c's higher peak talcs. lileciriciic <br />usage charges net on-sire generation during each rare period arc billed to the customer acarediug to iho <br />talc schedule chat applied prior to iustalliug the PV' scstena. Net metering credits arc capped on an <br />annual basis at lUU° ~, of the cusunncr's annu;tl cncrgc cspcndinu-c. <br />lu the auaksis under Scenarios 3 and 3, the Cites utilitc clcctricitc c~pcuses arc partialk ollsa be net <br />metering a-edits. l~he OSC is on a Pacific Gas and I?Icctric Co. (PGn.I O 1 ~: I )SS clcctricitc rate <br />schedule and V\211 tin. 8 is on a Pacific Gas and I{Icctric Co. (P(.&li) .A-( ek•etriein~ rare schedule in <br />~s-hid~ nc~ rate caries depending on nc~ rime of ccar.'° The net metering a-edir ~-alucs each I:AC~h of <br />clcctricitc produced in a given time period at the sane talc that sX'ould apple to clcctricitc purdrased <br />during that period. In addition, the 1i-19tiS schedule Features demand charges (S/ma~innun k\C~ <br />f <br />PG ~I f lu tririic car ahrdulr; inrludr .f xununrr ratle period Ibr AI.n iLnnf~~~i (1~ fubar unJ a ~cini rr eiir prriuJ tut <br />\iic~~mbrr fhn nfkh .April. Pot addfri~inal nnr>chrdulr inlhnnwifm l9vur Yrlcr io higr. _~c~~ff pqf.< m f.^iil<. <br />