Financials assumptions

Default financial assumptions

Financial

1. Project lifetime estimated to 30 years

2. Loan terms: 10 years, interest rate 7%

3. Annual project return: 15% for the lifetime of the project

4. Tax Rate: 5% which assumes for the project to benefit from the Puerto Rico Energy Company preferential tax rate

5. ITC: ITC tax credit assumed at 30%

6. REC Value: unit transacted price assumed at $34 per MWh of renewable energy, with portfolio compliance limit of 40%

Energy

1. Operational maintenance estimated at $0.027 per kWh

2. Grid infrastructure, estimated at a minimum contract amount of $500,000 for 30 years, otherwise install + maintenance $0.025 per kWh

3. DexGrid cost:

   1. Contracted amount = $0.03 per kWh x 3 years x estimated annual production sold

   2. Once Contracted amount is zero, then $0.05 per kWh x total amount of production sold (paid and reset monthly)

4. Control Center Capex: The cost for the microgrid controller, defaults to $100,000

5. Power Inverter Capex: The cost for the power inverters, defaults to $20,000

6. Remote Breakers Capex: The cost for the remote breakers, defaults to $100

7. Transfer Switches Capex: The cost for the backup transfer switch, defaults to $1,000

8. Transformer Capex: The cost for transformers, defaults to $10,000

9. Smart Meter Capex: The cost for Smart Meter Caper, defaults to $300 per consumer