Quotation& Contract for a Renewable Energy Power System Save a Lot Solar- ContractorLicense# 971422 C46 - Solar & C10 - Electrical 6114 La Salle Avenue #760 Oakland, CA 94611 Licenses: 971422 Sales Consultant John Orfali Tel: 510-332-4971 Email: proposals@savealotsolar.com Customer fewfe fwefwef (222) 222-2222 Email: efwef@we.com Site Address fewfe fwefwef 33778 Wagon Train Dr Wildomar, CA 92595 Mailing Address: fewfe fwefwef 33778 Wagon Train Dr Wildomar, CA 92595 Major System Components Qty. 17 SolarWorld - SW250 Mono Inverter(s): Qty. 1 - SMA America - 3kW, 208Vac Sunny Boy Utility Interactive Inverter with display ProjectDescription& Major Components System Size: 3.120 kw DC, STC ($4.41/ DC watt) StandardComponents Racking and mounting components per Uniform Building Code. AC and DC disconnects per National Electric Code and Utility.Wiring, conduit and overcurrent protection per National Electric Code. StandardLabor: Design system and secure basic building or electrical permit (architectural,planning commission or other reviews are extra). Install specified system in good workman like manner. Complete and submit utility interconnectiondocuments (if any). Coordinate building, electrical and utility inspections (as applicable). AdditionalComponents& Allowances:
System PricingDetails Includes Sales tax and Shipping (before incentives) InstalledSystem Price: $14,087 Less Rebate(s) to be Received by Installer: $0 Contract Net Cost: $14,087 Payment Schedule Contract signing: $14,087 Construction started and equipment delivered: $0 Building inspection completed and signed off: $0 Any balance: Time for Completion: The work to be performed by Contractor pursuant to this Agreement shall be commenced within days from this date or approximately on and shall be substantially completed within days or approximately on. Due upon completion ConstructionCommencementSchedule: Commencement of work shall be defined as Delivery of material to site, or. Contractor`s failure to substantially commence work, without lawful excuse, within twenty (20) days from the date specified above is a violation of the Contractor`s License Law. AdditionalContract Provisions: All payments are due when invoiced. Equipment delivery progress payment is required prior to installation of solar panels. System completion occurs upon building or electrical inspectors permit signoff. Utility inspection typically occurs 4 to 14 days after permit signoff. Quoted system price includes permit and electric utility fees. This PV system includes a/the 10-year warranty required by the California Solar Initiative. Acceptance This quotation is valid for 14 days from the above date, quoted schedule is valid for 3 days. If the customer decides to purchase the goods and services outlined above, this document shall become part of the Agreement for Supply and Installationof a Renewable Energy Power System which specifies additional terms and boilerplate consumer rights as part of a Home Improvement Contract. This contract is governed by the California Contractors State License Board. For more information contact: Contractors State License Board 9821 Business Park Drive Sacramento,CA 95827 Phone (800) 321-CSLB Salesperson Signature: Date: To be signed when customer decides to purchase Customer Acceptance Signature: Date:
Terms & Conditions of Sale GeneralProvisions Any alteration or deviation from the above specifications,including but not limited to any such alteration or deviation involving additional material and/or labor costs, will be executed only upon a written order for same, signed by Owner and Contractor,and if there is any charge for such alteration or deviation, the additional charge will be added to the contract price of this contract. If payment is not made when due, Contractor may suspend work on the job until such time as all payments due have been made. A failure to make payment for a period in excess of 15 days from the due date of the payment shall be deemed a material breach of this contract. In addition, the following general provisions apply: All work shall be completed in a workman-like manner and in compliance with all building codes and other applicable laws. To the extent required by law all work shall be performed by individuals duly licensed and authorized by law to perform said work. Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials provided at the time the next periodic payment shall be due. All change orders shall be in writing and signed both by Owner and Contractor,and shall be incorporated in, and become a part of the contract. Contractor warrants it is adequately insured for injury to its employees and others incurring loss or injury as a result of the acts of Contractor or its employees or subcontractors. Contractor shall obtain all permits necessary for the work to be performed. The actual cost due for any permits to be obtained will be passed on to the Owner. Contractor agrees to remove all debris and leave the premises in broom clean condition. In the event Owner shall fail to pay any periodic or installment payment due hereunder, Contractor may cease work without breach pending payment or resolution of any dispute. All disputes hereunder shall be resolved by binding arbitration in accordance with rules of the American ArbitrationAssociation. Contractor shall not be liable for any delay due to circumstances beyond its control including strikes, casualty or general unavailability of materials. Contractor warrants all work for a period of one hundred and twenty months following completion. FAILUREBY CONTRACTORWITHOUTLAWFULEXCUSETO SUBSTANTIALLYCOMMENCEWORK WITHINTWENTY(20) DAYSFROM THE APPROXIMATEDATE SPECIFIEDIN THE PROPOSALAND CONTRACTWHEN WORK WILL BEGINIS A VIOLATIONOF THE CONTRACTOR'SLICENSELAW. Other Terms The following terms and conditions apply to the payment schedule: If the payment schedule contained in the contract provides for a down payment to be paid to Contractor by Owner before the commencement of work, such down payment shall not exceed One Thousand Dollars ($1,000) or 10% of the contract price, excluding finance charges, whichever is the lesser. In no event shall the payment schedule provide for Contractor to receive, nor shall Contractor actually receive, payment in excess of 100% of the value of the work performed on the project at any time, excluding finance charges, except that Contractor may receive an initial down payment authorized by condition (1) above. A failure by Contractor without lawful excuse to substantially commence work within twenty (20) days of the approximate date specified in this Contract when work will begin shall postpone the next succeeding payment to Contractor for that period of time equivalent to the time between when substantial commencement was to have occurred and when it did occur. The terms and conditions set forth above pertaining to the payment schedule shall not apply when the contract provides for Contractor to furnish a performance and payment bond, lien and completion bond, bond equivalent, or joint control approved by the Registrar of Contractors covering full performance and completion of the contract and such bonds or joint control is or are furnished by Contractor,or when the parties agree for full payment to be made upon or for a schedule of payments to commence after satisfactorycompletion of the project. If the contract provides for a payment of a salesperson's commission out of the contract price, that payment shall be made on a pro rata basis in proportion to the schedule of payments made to the contractor by the disbursing party.
Notice of Right to Cancellation NOTICETO OWNER (Section 7018.5 California Contractors License Law) THE LAW REQUIRESTHAT,BEFOREA LICENSED CONTRACTORCAN ENTERINTO A CONTRACTWITH YOU FOR A WORK OF IMPROVEMENTON YOUR PROPERTY,HE MUST GIVE YOU A COPY OF THIS NOTICE. Under the California Mechanics' Lien Law, any contractor, subcontractor,laborer, supplier, or other person or entity who helps to improve your property, but is not paid for his or her work or supplies, has a right to place a lien on your home, land, or property where the work was performed and to sue you in court to obtain payment. This means that after a court hearing; your home, land, and property could be sold by a court officer and the proceeds of the sale used to satisfy what you owe. This can happen even if you have paid your contractor in full if the contractor's subcontractors,laborers, or suppliers remain unpaid. To preserve their rights to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are each required to provide a document called a "Preliminary Notice."Contractors and laborers who contract with owners directly do not have to provide such notice since you are aware of their existence as an owner. A preliminary notice is not a lien against your property. Its purpose is to notify you of persons or entities that may have a right to file a lien against your property if they are not paid. In order to perfect their lien rights, a contractor, subcontractor,supplier, or laborer must file a mechanics' lien with the county recorder that then becomes a recorded lien against your property. Generally, the maximum time allowed for filing a mechanics' lien against your property is 90 days after substantial completion of your project. The Notice of Cancellation,regarding your right to cancel this contract, is attached hereto and made a part to this contract. NOTICEOF RIGHT TO CANCEL: Notice of Cancellation (enter date of transaction) You may cancel this transaction,without any penalty or obligation, within three business days from the above date. If you cancel, any property traded in, payments made under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice. Additionally,any security interest arising out of the transaction will be canceled. If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller`s expense and risk. If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract. To cancel this transaction,mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to: Contractor Name and Address: No later than midnight of (date) I hereby cancel this transaction(date) (Buyer`s Signature)
Disclaimers & Assumptions Operation,Maintenance,and InflationRates This estimate assumes the following system operation, maintenance and inflation rates: System Life: Operation & Maintenance: PV Degradation: EstimatedInverter Life: O&M InflationRate: Inverter Replacement InflationRate: 25 years 0.10% of system cost per annum 0.80% per annum 26 years 1.0% per annum 1.0% per annum System Size Ratings& Performance There are three methods commonly used to rate PV system size: STC,PTC and CEC. The Standard Test Condition rating ("STC"also called "DC" or "nameplate")assumes a standard set of optimal operating conditions. The STC rating is most often used by manufacturers to classify the power output of PV modules. The PV-USATest Condition ("PTC")and California Energy Commission ("CEC")ratings were designed to approximate system performance in more realistic operating conditions. The Energy production for the first year is based on PVWattsVersion 2. To calculate the system's energy production for any future year, the expected degradation in system performance is included (See "PVDegradation",in table above). Tax Credits & Deductions Income tax rate assumed: 37.30% (Federal 28.00% - State:9.30%) To calculate the estimated cash flow in this proposal, our analysis used these tax rates. We should stress that we cannot provide tax or investment guidance. You should consult your tax preparer or investment adviser for these services. This analysis calculates the cash flows based only on the assumptions entered into the proposal. This analysis assumes Federal income Tax isnot applied to any rebates. Therefore,the basis for the Federal ITC is the installationcostless 100% of any and all rebates. Residential: In calculating the cash flow for an individual, our analysis assumes that the homeowner can deduct the interest from financing the system. This will be true if the financing is secured by the real estate,such as with a second mortgage, home equity loan, or home equity line of credit. (Net) EnergyBill Savings For an individual, electric bills are not usually deductible against income taxes. For a business, electric bills are usually deductible against income taxes. If an income tax rate is defined, the cash flow displays a "Net"Energy Bill Savings line item which is the Energy Bill Savings less the loss in tax deduction due to the PV system's lowering of the electric bill. Cost inflation for the utility rate and degradation of system performance are also taken into account. Average MonthlyUtilitySavings "Average Monthly Utility Savings" is the average monthly (Net) Energy Bill Savings expected over the system life. This takes into account utility rate inflation and any expected degradation in system performance. This estimate has not assumed any changes in the amount or timing in your building's energy use.
Rate of Return (IRR) on Cash Invested "Rate of Return on Cash Invested"(also called "InternalRate of Return" or "IRR")is the annual compounded rate of return that the cash flows (savings, incentives, tax benefits,etc.) bring based upon the net cash invested in the year of installation("year 0"). In financial math terms, IRR is the discount rate required to make the sum of the present values of each annual cash flow equal zero. If you financed your system 100%, IRR does not apply since you did not actually invest cash. System Resale Value "SystemResale Value" is based upon research published in the Appraisal Journal which concluded that "The increase in appraisal value for a home is about twenty (20) times the annual reduction in operating costs due to energy efficiency measures." To calculate System Resale Value the first year annual utility savings is multiplied by twenty (20). Source: Evidenceof Rational Market Valuationsfor Home Energy Efficiency, Appraisal Journal, Nevin/Watson,October 1998 Total Life-CyclePayback "TotalLife-Cycle Payback" is the total cash flows (savings, incentives, tax benefits,etc.) for all years after installationas a percentage of the net cash invested in the year of installation("year 0"). This ROI calculation is not adjusted for inflation or the time-value of money. LevelizedCost of Energy "Levelized Cost of Energy" (or LCOE) is an approximation of the average cost of energy from your solar system ($/kwh).to determine LCOE,the system Net Cost ($ in the installationyear) is divided by the amount of energy produced (kwh) over the system life (years). For this calculation,energy produced over system life is limited to the annual energy consumption of the building times the system life in years. The Net Cost does not include incentives which may materialize in later years, such as tax credits or deductions or production rebates. This calculation is not adjusted for the time-value of money. EnvironmentalAnalysis CO 2gas emissions avoided per passenger via various travel methods: Travel Method Small Car Car SUV/4Wheel Drive Airplane (Boeing 747) Air travel average USA capacity. Emissions/ mile.59 pounds Medium 1.10 pounds 1.57 pounds 0.97 pounds Tree offsetcalculation is based on a tree planted in the humid tropics absorbing on average 50 pounds (22 kg) of carbon dioxide annually over 40 years - each tree will absorb 1 ton of CO2 over its lifetime;but as trees grow, they compete for resources and some may die or be destroyed - not all will achieve their full carbon sequestrationpotential.this calculator assumes that 5 trees should be planted to ensure that at least one lives to 40 years or that their combined sequestrationequals 1 ton. General waste is based on the USA average carbon dioxide emission equivalent of 1,010 pounds per person per year. Sources: SightlineInstitute,Trees for the FutureandUSA EnvironmentalProtectionAgency
ElectricUtilityRates & Assumptions Utility: Rate Name (Post Installation): Rate Code: Pacific Gas and Electric Co (PG&E) Residential Service E1 Annual Inflation: 5.5% (assumed) About UtilityAverage Costs Tiered Rates: Solar can reduce the average cost of electricity by reducing Tiered rate usage. We assumed the daily amount (kwh) that defines the base quantity for your location and electric usage. The percentage of the base quantity that triggers higher Tiered rates were also used. To estimate tiered electricity use after a solar installation,your historical electricity usage was reduced by the estimated solar system output (kwh) for that month. Your utility may change these rates or the tiers applied. Tiered rate charges can account for a large percentage of your utility bill and the assumptions used in these estimates may not be accurate for your particular situation. Annual Electric Bill "True-Up"(Reconciliation): This analysis assumes you will receive a cumulative credit from your electric utility at the end of the year for each month your system produces more energy value to the grid than you consumed. Sometimes this is referred to as a utility bill "true up". This action balances your bill across the year: often in summer months your solar system may provide excess electricity ("spin the meter backwards"), compared to winter months. So you receive billing "credits" in summer for excess energy generated (aka Net Excess Generation).At the end of the year these credits may be applied to charges incurred in months where you purchased electricity (usually winter months) assuming your utility provides Net Metering. This analysis assumes your total annual utility bill will not be less than any minimum utility customer charges, as applicable. UtilityElectricRate Inflation:HistoricalReferences California Rates:In 2009, the average retail electric rate was 13.24 cents per kwh(14.74 cents residential).investor-owned utilities averaged 14.15 cents per kwh. Since 1970, electric rates in California have increased 6.7% annually. National Averages:In 2009, the average retail electricity price for all customers across the United Statesrose to 9.83 cents per kwh, a small increase over 2008. Over the two year period though, from 2007 to 2009, the average retail price rose 7.7 percent. In 2009, residential retail prices nationally increased from 11.26 cents per kwh in 2008 to 11.51 cents per kwh. See the following Dept of Energy source for more detail on regional and state inflation patterns. Source: http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html