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HomeMy WebLinkAboutHA25090 - Sunwize/GenselfProposal for Design & Construction of PALM VILLAGE APARTMENTS CARPORTS Ffi9@TH PHOTOVOLTAIC SOLAR AR?:: VS Submitted to THE PALM DESERT REDEVELOPMENT AGENCY By T C H N ©L ®C B Class B Contractors License No. 859006 Kingston, NY & Oxnard, CA Class C•10 Contractors License No. 829374 Irvine, CA & Palm Desert, CA June 2, 2006 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 TABLE OF CONTENTS 1 PREFACE 3 2 DESIGN SUMMARY 3 3 SOLAR CARPORT DESIGN OVERVIEW 4 3.1 System Description 5 3.2 System Physical Layout 6 3.3 PV Array 6 3.4 . Power Conditioning System (Inverter) 7 3.5 System Electrical Diagrams 8 3.6 System Energy Production 9 4 COMPANY BACKGROUND 10 4.1 SunWize Company Background 10 4.2 GenSelf Company Background 12 5 COMMERCIAL PROPOSAL 13 5.1 SUNWIZE & GENSELF SCOPE OF WORK 13 5.2 BID PRICE 13 5.2.1 Conditions of Price Quote 13 5.3 ECONOMIC ANALYSIS 14 5.3.1 CEC Rebate 14 5.3.2 Net System Price Summary 14 5.3.3 Cost -Benefit and Payback Analysis 15 5.4 CONTRACT TERMS & CONDITIONS 15 5.5 SCHEDULE 16 5.6 POINTS OF CONTACT 17 6 ATTACHMENTS 18 Table of Contents GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 1 PREFACE This proposal has been jointly developed by GenSelf Corporation ("GenSelf') and SunWize Technologies, Inc. ("SunWize"), who manages and executes PV system design and construction contracts under Class B Contractor License No. 859006 in the State of California. Upon acceptance, the Palm Desert Housing Authority would enter into an agreement with SunWize for the turnkey project, with GenSelf providing the electrical installation of the solar power systems under subcontract to SunWize. The system has been designed in accordance with the Palm Desert Housing Authority Request for Proposals (RFP) dated April 27, 2006. GenSelf & SunWize have been requested to submit the enclosed design and price proposal for consideration, with the understanding that certain terms and conditions may be negotiated if the initial design and price is deemed acceptable. On that basis, we have noted where the system design and contractual terms differ from the RFP, and we request that this proposal be incorporated into the Contract Documents for any subsequent contract. 2 DESIGN SUMMARY SunWize and GenSelf are pleased to propose the turnkey design & construction of a solar photovoltaic (PV) carport system at the Palm Village Apartments, including 14 distinct solar power systems feeding individual apartments and building common areas per the RFP. The PV systems are designed with similar components and features to provide economy of scale, parts commonality and design simplicity. A summary of the PV systems is shown in the table below: PV System Description Apt 1,2,5-9 Building A Apt 3, 4 Building B Building C PV Array Location West - Outside West - Outside East - Outside East - Outside East - Outside Table 1 - PV System Summary Unit PV Array Size (W-DC 0 STC) 3,400 5,100 3,400 5,100 5,100 Unit PV System Size (W-AC Cad CEC1 2,833 4,317 2,833 4,317 4,317 Total System Quantity 7 1 2 1 3 14 Total PV System Size (W-AC (rD CEC) 19,832 4,317 5,666 4,317 12951 47,084 The carport design features an attractive, semi -cantilevered straight I-beam structure with a white galvalume roof deck for complete shade and rain protection. Each carport includes galvalume edge trim that can be matched to the building color scheme, and a hot -dip galvanized finish on columns and beams for durability (a flat color paint finish is also available as an option). Two similar and symmetrical carports are provided in' the East and West parking areas, each oriented at a 5-degree tilt upwards toward the center of the drive. The solar arrays are located on the outside carports adjacent to the property lines. The PV modules are integrated into the carport design and mounted flat on the roof deck at a 5-degree tilt; while this may differ from the proposed layout, it is critical to the viability and integrity of the design approach. 3 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. lune 2, 2006 The semi -cantilevered design provides full coverage to the 18-feet depth of the parking spaces. The concrete piers and steel columns will be located within the triangular curbs in the parking area. Pier spacing of 27-feet on center, in lieu of the 18-feet as proposed, has been specified to match standard 9-foot wide parking spaces and minimize installed system costs. The parking layout/lines will need to be adjusted to match the 27-foot wide spacing. A summary of the carports is shown in the table below: Carport Description West - Outside West - Inside East - Inside East - Outside Carport Dimensions 129'x235' 129' x 23.5' 129' x 23.5' 129'x235' Table 2 - Carport Summary Carport Covered Orientation Spaces 5° West 14 5° East 14 5° West 14 (13) 5° East 14 56 (55) PV Array Size (W-DC 0 STC) 28,900 None None 27�00 56,100 Note that all four carports are specified at the same length for design consistency. It is possible to extend the West -Inside carport to match the additional 9-foot wide parking space, however, this will require a sixth column/beam assembly and the additional cost. 3 SOLAR CARPORT DESIGN OVERVIEW The SunWize PowerPort is a utility grid -tied solar power system that can be electrically connected in parallel to achieve power outputs ranging from 30 to 3,000 kilowatts or more. The PV array is located on the roof deck of a canopy structure that provides shade and weather protection for various purposes such as vehicle parking, visitor walkways, and outdoor activities. The low tilt angle of the deck and array reduces wind loading and maximizes power output to coincide with peak electrical load periods. The physical design is also flexible enough to accommodate various layouts and configurations. The following design overview provides information specific to the solar carport design for the Palm Village Apartments. Figure 1 - SunWize 48 kW PV Canopy at the Orange County Public Library, Foothill Ranch, CA 4 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 3.1 System Description The Palm Village Apartments carport system is a nominal 47 kilowatt -AC power plant with the PV array located on 2 of the 4 carport structures. The system converts solar energy into utility -grade electricity using high -efficiency Sharp Solar PV modules integrated into the parking canopy roof deck. The PV systems are connected to the 240V, 1-phase or 3-phase utility grid via 14 PV Powered inverters. In this grid -tied configuration, the PV system operates in parallel with the utility to provide power to the building during the daylight hours. There is no provision for energy storage (i.e., no battery bank). The system does not have stand-alone capability, since it must be connected to AC power from the utility grid in order for the inverter to function. In the event of a utility loss of phase or complete power outage the inverter shuts down to ensure the safety of utility line workers. Upon restoration of utility grid power the inverter will automatically resume operation after a 5-minute delay. The system operation is completely automatic. It "wakes up" and begins to deliver power as the sun rises and "sleeps" as the sun sets. The inverter controls monitor and match utility voltage, frequency and phase angles and deliver current as sunlight is available. Upon detection of abnormal conditions such as utility over/under frequency or over/under voltage the inverter disconnects itself from the utility grid and goes into a standby mode, awaiting restoration of normal utility conditions. Figure 2 - Site Plan View of West & East Parking Areas 5 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 3.2 System Physical Layout The PV array is integrated with the roof deck of the carports. The four (4) semi - cantilevered canopy structures — each designed to support over 30 kW of PV modules -- measure 23.5 feet by 129 feet. The canopy structure consists of a white metal Galvalume Plus deck supported by galvanized steel purlins, columns and beams. Five (5) column and beam assemblies, fabricated from hot -dip galvanized steel structural steel I -beams, are located 27 feet apart to support the purlins. Each column is anchored in a concrete pier engineered for the specific site soil conditions. The anticipated loads on the structure and the resulting design and sizing of structural members are compliant with the applicable Building Code. The semi -cantilevered structure is suitable for coverage of a single -row of 9' x '18' parking spaces as illustrated in Figure 2. This layout provides full coverage for 14 standard single -row parking spaces. The cross-section view of the single -cantilever design (Figure 3) illustrates the space available for full coverage parking. It is also possible to shade a 3-foot wide sidewalk or pathway on the short side of the structure. Figure 3 - Cross -Section View of Semi -Cantilevered Design 4'a 3.3 PV Array The PV modules, used to generate direct -current electricity from sunlight, are Sharp Solar Model NE-170U1 170W Multi -silicon modules, with a CEC (PTC) rating of 149.9 watts -DC. This module comprises 72 poly -crystalline solar cells. The module has a stabilized rated power of 170 Watts at Standard Test Conditions, which equates to an efficiency of approximately 13.1 percent based on gross module area. The PV module produces its rated power at 34.8 VDC and 4.9 ADC. Performance may vary from rated power due to variations in temperature, solar radiation and spectral distribution. The total PV array, including both East and West parking areas, is electrically configured into 33 identical source circuits, each consisting of a string of 10 modules in series as shown in Figure 4. The source circuits are configured as described to achieve the required inverter input voltage of 230-500 VDC. The PV source circuits for the individual systems are collected in DC combiner / junction boxes. The output of the combiner box feeds into each inverter. 6 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2096 Figure 4 — PV source circuit single line (typical) IN SHARP NE-17081 MODULE 170W, 54.8 Vmp, 4.9 Amp ©STC (10 PER SOURCE CIRCUIT)--- LJ N ' verl L—POSITIVE (+) NEGATIVE (-) OUTPUT OUTPUT CONNECTION COUIIEC iIOn SQURCE-LRCULT ONE LINE 1.70 kWp © STC [j• 348 Vmp, 4.9 Amp 3.4 Power Conditioning System (Inverter) The DC output from each PV array is switched through a DC disconnect and inverted in a PV Powered PVP inverter to produce 240 VAC, 60 Hertz, 1-phase output. This system uses nine (9) PVP3200 3.2 kW inverters and five (5) PVP5200 5.2 kW inverters. Each of the PVP3200 inverters is connected to individual housing units. One PVP5200 is connected to the main service panel in Building A and one is connected to the main service panel in Building B. The remaining three PVP5200 units are distributed between the phases on Building C's 240VAC 3-phase main service panel. The PV Powered PVP3200 and PVP5200 inverters use advanced electronics to convert the DC power from the array to AC power and manage the interface with the utility grid. The inverter control system incorporates a continuous maximum power tracking feature that automatically adjusts DC operating voltage while monitoring AC output power for maximum value. These inverters have been certified by Underwriters Laboratories to perform these functions in compliance with UL1741 Static Inverters and Charge Controllers for Use in Photovoltaic Power Systems. In summary, the inverter provides the following functions: o Provides automatic start-up at sunrise when the DC array output power increases. o Provides continuous, automatic tracking of maximum AC output power. o Provides automatic shutdown when the DC array output power drops at sunset. o Provides automatic shutdown and standby when a utility out -of -tolerance condition occurs, such as over/under-voltage or over/under frequency. The inverter will wait for 5 minutes before automatic restart after the utility line has returned to its normal condition. o Provides LED indicator lights and a vacuum fluorescent display that indicate inverter status, AC power output, and system fault messages when applicable. The PV system has been designed for safe, reliable unattended operation with a photovoltaic DC power source, including protection from internal and external faults and automatic reset and restart from transient faults. A properly functioning system is capable of automatic start-up and shutdown with no operator intervention. 7 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 3.5 System Electrical Diagrams The PV carport systems include 14 distinct solar power systems feeding individual apartments and building common areas per the RFP. There are 3 system types, all designed with similar components and features to provide economy of scale, parts commonality and design simplicity. Electrical single line diagrams of the 3 system types are shown in Figure 5. PV ARRAY SPLICE BOX SOURCE CIRCUIT 8 i 17001'/ SOLAR PAIIELI r 1 1 I 432 Vac. 5.4JA i02. I I 348 Vnom 2 SOURCE CIRCUIT C i7000 201.M PAIIEL 432 Voo. 3.1]d M. 040 `Mom I700Y/ 501AP. PAIIEL 432 VOc. S.47A loc. 346 Vnom PV ARRAY I I L OUTSIDE SPLICE BOX I I 2 j no0Y/ 2006 Pm/21I I - .`33 Vnq 5.470 I:w 340 Vnam PNEL I l 3I 433 Va0. 5.n]A I:e, 0 Vnem L —1 SOUTCE IF 020 Iu V:.. T,,.._ 4., u...1 PV TORT? OUTSIDE SPLICE C08 1 I \/n_LI-- I 1 L L J 01E000UECT Fudsn'DOD io WE' r P05 s1w TT/FRIER23402 1 1 s.2rvp, 1r a a 4D 1 5 4310... m.I 7 II1 1 1-..f 7I L J 0 f.# v_ 101 n. ; 92. 1 DI:EPxloc 6N1 021 I 502 COO v0s r 523 s203 xrvEr.TER 1 I r°I'M o'm 15 anc: iobcoH °6ui,�0 I 1 L___J L INSIDE I U115111,: IINI DISCONNECT SWITCH 30A. 600 VDC FUSED 0 10A — — — I 10, 60 Hz OUT,. I I INSIDE Figure 5 — PV system single line diagrams DC DISCONNECT SWITCH 30A, 600 VBC 1 1 PVP 3200 INVERTER r 3.21:VA. MAX 14A 0 2d0 VAC, I 10. 60 Hz OUT I I I I OY SUNWIZE AC DISCONNECT SWITCH 60A. 250 VAC FUSED 0 30A UTILITY SERVICE 120/240 1o_, TO APA THEM' SERVICE PANEL BY 61TY OF PALM 0ESERi 1 - / I ® I 'U - —__J L J L J (9 5''Si_'oS) AC DISCONNECT SWITCH 60A. 250 VAC FUSED 0 20A r 1 I I J L J PVP 5200 INVERTER r 5.2 :VA, 1 LWIi r MAX 23A 0I240 VAC, METER SYSTEM_5_1.Ih'/o, 45,7 2tV14.2 01CC91UIECT SWITCH 301. 600 vOC NSLO 0 10A PVP SS00 0IVEHIER 1 r---, 152v«:a Eae°ODui°I ! ILJ OUTSIDE! 122210E _—_J J r PV SYSTEM SUB PANEL 240 WO 20 30A, 20 50A. 3P L J BY SU20IZE AC O2C01p.E0T swami COA. 220 VAC FUSED 0 505 UTILITY SERVICE 120/240 10 4'r TO GUI DING SERVICE PANEL 9Y CITY OF PALM DESERT 111L10 SERVICE„ 240 OTC 30 L__J m smre:E ID BmLmnc 5'-RV2CE PANEL 00 5NY OF Oe5P1 8 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 3.6 System Energy Production System energy production is dependent upon time of year and the specific weather conditions. An estimate of annual energy is dependent upon the accuracy of long-term historical weather data, and it follows that year-to-year variances of as much as 15-20% can be expected in actual output with respect to the long-term average. SunWize uses manufacturer's certified test data, a computer simulation tool and 30-year weather data to drive the performance simulation. Based on our simulation, the 56 IcWp PV array is expected to provide approximately 93,500 kWh/year assuming an un-shaded PV array. A summary of the individual system outputs is shown in Table 3. PV System Description Apt 1-2, 5-9 Building A Apt 3, 4 Building B Building C Table 3 - PV Array Location West - Outside West - Outside East - Outside East - Outside East - Outside Estimated Annual Unit PV Array Size (W-DC 0 STC) 3,400 5,100 3,400 5,100 5,100 Energy Production Summary Unit Total Production System fkWh/yr) Quantity 5,644 7 8,558 1 5,639 2 8,549 1 8,549 14 Total PV System Energy Production (kWh) 39,508 8,558 11,278 8,549 25 647 93,540 Estimated monthly outputs for the Building B system is shown in Figure 4 below. Figure 6— Estimated monthly and annual output for Building B system. 0- Jab Feb t :r Apr Noy Jun Jul I A Array Intel = of nods: Ili, Ali Ay Ell: t ver at Relhuy DC Voltaya AC Voltagd 0 Aug Sep Oct Nov Doc E! Sy`tem Oulpte 'I hwanat Efficiency Amulet ACl',tral .. 9 IV Anaysie E port Bata Tele GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 4 COMPANY BACKGROUND 4.1 SunWize Company Background SunWize Technologies, a solar technology company founded in 1992, specializes in the design and manufacture of integrated solar power systems, and associated project development and product distribution. The company, with 70 employees, operates a 30,000 ft2 manufacturing/distribution facility in Kingston, NY and a 10,000 ft2 distribution center in Oxnard, CA and has offices throughout North America and in Europe. SunWize has extensive design and construction experience and has built several PV canopy structures for public facilities, including the following: o Electrical Junior Apprentice Training Center of Southern Nevada (International Brotherhood of Electrical Workers), Las Vegas, NV, 20 kW -AC, 3/2006 o County of Orange, CA, Foothill Ranch Public Library, 43 kW -AC, 1/2006 o National Park Service, Joshua Tree National Park, 64 kW -AC, 8/2003 o Tennessee Valley Authority, two (2) 32 kW -AC systems & one (1) 18 kW -AC, 12/2002. References for these projects are available upon request. A complete list of project references and personnel qualifications is available upon request. The photos below include the 64 kW -AC shade structure in Joshua Tree National Monument, the 32 kW -AC system at TVA's Florence, AL water treatment plant, and the Orange County, CA 43 kW -AC system at the Foothill Ranch Public Library. Figure 7 - SunWize PV Shade Structure at Joshua Tree National Monument (a) Underside view of the canopy and PV array (b) Power conditioning equipment The structure combines two 32 kWac double -cantilevered arrays into a single 64 l;Wac structure. The power conditioning equipment features two Xantrex PV30208 inverters and one high -efficiency 60 kVA isolation transformer. A SunWize PV shade structure that was built for the Tennessee Valley Authority (TVA) in Florence, AL is pictured below: 10 GenSelf Corporation SunWize Technologies, Inc. Palm Village Apartments Carports With Solar Arrays June 2, 2006 Figure 8 - SunWize 30 kW -AC PV Shade Structure at the Tennessee Valley Authority (a) Elevated view of the array (b) Rear view of the array SunWize provided a PV canopy structure for the Orange County Public Library at Foothill Ranch, CA, pictured below: Figure 9 - SunWize 48 kW PV Shade Structure at the Foothill Ranch Public Library, CA 11 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 4.2 GenSelf Company Background GenSelf Corporation was founded over 4 years ago and has been exclusively dedicated to installing high quality photovoltaic (PV) solar systems for homeowners and businesses in Southern California. With over 2 megawatts of installed capacity, GenSelf has quickly become one of California's largest photovoltaic solar installation companies. Thus far, GenSelf Corporation has installed nearly 400 residential PV solar systems, as well as a number of larger commercial PV solar systems. GenSelf Corporation's management team is comprised of individuals with extensive background and experience within the fields of renewable energy and electric power engineering and management. GenSelf is a bonded, insured and licensed C-10 electrical contractor (California License Number 829374). GenSelf Corporation has experience with the design and installation of all major PV residential and commercial installation types. GenSelf Corporation's quality is distinguished by: o Installing industry leading solar modules o Choosing high efficiency inverters o Using long-lasting corrosion resistant mounting materials o Designing systems with minimal shading losses o Proper system design and configuration GenSelf Corporation's installation territory includes all of Southern California. GenSelf is a professional corporation with office locations in Irvine and Palm Desert. A list of project references and personnel qualifications is available upon request. A photo of GenSelf's solar canopy project at Edwards Mansion is shown in Figure 10. Irvine Office: 43 Corporate Park, Suite 202, Irvine, CA 92606 Palm Desert Office: 78015 Wildcat Drive, Suite 101, Palm Desert, CA 92211 Figure 10 - GenSelf 30 kW PV Shade Structure at the Edwards Mansion 12 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 5 COij1JIUlERCIAL PROPOSAL 5.1 SUNWIZE A GEINSELF SCOPE OF WORK The proposed scope of work for this project includes: o Project management services, including CEC rebate administration support; o Design development of systems based on final site information; o Detailed engineering design and documentation of power system, including: • Civil and structural design (with California P.E. stamp), electrical design, materials specification; • Plan check approval and permitting; • Installation, operation and maintenance documentation; o Turnkey site installation and commissioning services; o Five (5) year system warranty. 5.2 BID PRICE The following TOTAL LUMP SUM BASE BID PRICE is subject to the conditions described below, and negotiation of acceptable contract terms & conditions. General Design & Construction of All Contract Work: Special Services as Directed by the Owner: Total Lump Sum Base Bid Price: $ 597,066 $ 5,000 $ 602,066 5.2.1 Conditions of Price Quote The bid price assumes the following conditions: o Includes prevailing wage rates and California sales tax of 7.75% on materials. fl Customer is responsible for cost of all required local taxes, local environmental assessments, and any Owner -required engineering and design certifications (other than P.E. stamp for structural drawings). • Price assumes that Owner will provide suitable 240VAC electrical tie-in points in the electrical rooms. • Price assumes that the Owner will provide four (4) electrical pull boxes and underground conduit runs from the PV array to electrical rooms, as indicated on drawings. • Price assumes no painting, grading or landscaping, other than spoils removal from drilled piers. • Price assumes that Owner will provide a soil test report suitable for engineering design of drilled piers in parking area. SunWize reserves the right to modify bid price if necessary to obtain soil test results. • Price is based on soil conditions with a minimum of '1000 Ib. soil bearing and 250 ib. passive pressure values, free of obstructions or rock, and not subject to sandy soil, soil collapse or significant groundwater. SunWize reserves the right to modify bid price based on soil test results. • Price does not include PV system monitoring equipment, which can be discussed during negotiation upon proposed system design acceptance. 13 GenSell Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 5.3 ECONOMIC ANALYSIS 5.3.1 CEC Rebate We understand that the Palm Desert Redevelopment Agency will apply for the California Energy Commission's (CEC) Emerging Renewables Program rebate. The CEC provides a standard rebate of $2.80 per watt (CEC AC rating) for eligible PV systems. Affordable housing projects may qualify for an extra 25 percent rebate above the standard rebate, or $3.50 per watt, not to exceed 75 percent of the eligible system costs based on meeting additional eligibility criteria as detailed in the CEC guidebook. The projected rebate for this project is shown below, assuming that the project is eligible for the $3.50 per watt affordable housing project rebate. GenSelf will assist the Palm Desert Redevelopment Agency with the CEC rebate process. Table 4 - Estimated CEC Rebate Unit Total Total PV System System Size System Description JWac-CEC) Quantity Apt 1, 2, 5 - 9 2,833 7 Building A 4,317 1 Apt 3, 4 2,833 2 Building B 4,317 •i Building C 4,317 3 14 PV System Size (Wac-CEC) 19,832 4,317 5,666 4,317 12951 47,084 Est. Rebate $3.50/W f1 $69,411 $15,110 $19,832 $15,110 S45.330 $164,793 5.3.2 Net System Price Summary The following table calculates the net price to the Owner after deducting the estimated CEC rebate amounts. This table also shows an estimate of non -eligible system costs that must be deducted for purposes of the CEC rebate calculation. We have assumed that the two non-PV carports are not eligible rebate costs (even though this deduction does not result in a rebate reduction). Table 5 - Net System Price AMOUNT($} Subtotal — Price w/out Sales Tax 567,965 CA Sales Tax - mat'Is only 7.75% 29,101 TOTAL -- Turnkey price w/Sales Tax 597,066 S/Wac-CEC S/Wdc-STC 12.06 10.12 0.62 0.52 12.68 10.64 Add! Non -Solar Carport Cost (not an eligible CEC cost) (68,000) (1.44) (1.21) Net System Cost (less add! non -solar carports) 529,066 11.24 9.43 CEC Rebate (max. 75% of cost) $3.50/watt-AC 164,793 3.50 2.94 Net Owner System Price w/out Add'I Non -Solar Carports Net Owner System Price w/Add'l Non -Solar Carports 364,274 7.74 6.49 432,274 9.18 7.71 14 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 5.3.3 Cost -Benefit and Payback Analysis Based on a net Owner price of $6.49 per watt -DC (excluding the non -solar carports), and assumptions in this proposal, SunWize has prepared a detailed 30-year financial analysis. The results demonstrate: o simple payback = 17 years o total net present value of = — $29,000 o internal rate of return = 5.7 percent The key assumptions in the economic analysis include: o cost of capital = 5.0% o marginal (displaced) electricity cost = 18.0 cents/kWh o electricity escalation = 3.0% per year o renewable energy credit (REC) of 1.5 cents/kWh for years 2 thru 11 The primary economic benefit is in the form of the CEC affordable housing rebate of $3.50/ watt, in addition to the value of the electricity generated by the PV system. There is also the potential for additional savings if renewable energy credits are considered. Unfortunately, the City of Palm Desert most likely does not qualify for several other financial incentives available for corporations. The State of California tax incentives, which are in the form of a state tax credit of 7.5% and special depreciation, and Federal incentives, including the 10% investment credit and accelerated depreciation, may not be applicable for a municipality, and have not been included in our economic analysis. A spreadsheet is available upon request for economic analysis details. 5.4 CONTRACT TERMS & CONDITIONS SunWize requests the following terms and conditions be incorporated into any subsequent contract. 1. Warranty — SunWize warrants the system, per CEC requirements, against defects in material and workmanship, and against breakdown or degradation in electrical output of more than ten percent from the original rated output, under normal use and service conditions, for a period of 5 years from the date of commissioning. SunWize shall also pass through component manufacturer warranties, including 10 years on inverter and 25 years limited on PV module output. The SunWize warranty shall constitute the sole recourse of Owner for breach of any of SunWize Technologies' obligations under this contract. 2. Waiver of consequential damages — The Owner shall waive all claims against SunWize Technologies for special, consequential or incidental damages arising out of or related to this contract. 3. Limitation of liability — Financial liability of SunWize Technologies in any circumstance shall be limited to the contract price. 15 GenSelf Corporation SunWize Technologies, Inc. Palm Village Apartments Carports With Solar Arrays June 2, 2006 4. Waiver of liquidated damages and "time is of the essence" requirements - The Owner shall waive the $2,000 per day liquidated damages penalty, and delete all contractual text stating that "time is of the essence". 5. Professional liability insurance — The Owner shall waive the requirement for SunWize to carry professional liability insurance contingent upon SunWize hiring a California registered Professional Engineer that does carry professional liability insurance. 5.5 SCHEDULE As outlined in GenSelfs letter dated May 24, 2006, the ability to complete the project within the requested 90 days is limited by a number of factors outside of our direct control. SunWize will make every effort to allocate solar modules for this project, however, the receipt of said modules is dependent upon manufacturer deliveries and based on experience these are subject to change. The table below presents our best estimate of schedule and completion, but is not a guarantee. Given The City's time constraints with respect to construction of the Palm Village apartment buildings, we can discuss options for modifying our schedule to meet your needs. For example, the schedule below assumes a single construction mobilization. If we can "fast -track" the design and permitting of the carport structural design, then it may be possible for SunWize to install the carport within your stated timeframe, even if the solar modules are not available in time. This would require additional per diem and mobilization on our part, so we would need to consider the impact on costs once we agree on a plan. Milestone Initial SunWize design submittal for plan check Plan check approval and permit issuance Deliver major components (modules, structure, inverters) Complete installation and system commissioning Estimated Date 4-5 weeks after receipt of: o Approved contract; o approval of SunWize proposed design concept, o soils test report, and o final Owner specifications on paint color, finish, etc. 6-12 weeks after receipt of order (ARO); dependent upon time for Owner engineering review and approval. 9-18 weeks ARO; assumes single mobilization, and dependent upon module availability. 12-24 weeks ARO assumes single mobilization, and dependent upon coordination with Owner's contractors for paving, electrical, etc. 16 GenSelf Corporation Palm Village Apartments Carports With Solar Arrays SunWize Technologies, Inc. June 2, 2006 5.6 POINTS OF CONTACT David Panico, President SunWize Technologies, Inc. 1155 Flatbush Rd Kingston, NY 12401 845-336-0146 x121 DPanicoCahbesicoro.com Gordon Bloom, Executive Vice President GenSelf Corporation 43 Corporate Park, Suite 202 Irvine, CA 92606 949-417-0750 abloom( aenself.com 17