Spreadsheet: 07a49de1-f3e0-41dd-bb40-728dcc2b737a
Sheet: Introduction

 | Title: | Cost of Renewable Energy Spreadsheet Tool (CREST)
 | Version: | Solar, version 1.2
 | Author: | Sustainable Energy Advantage, LLC
 | For Technical Support, Please Contact: | [NAME], [NAME] (303) 384-7363 [EMAIL]
 | For Model Customization, Please Contact: | Sustainable Energy Advantage, LLC (508) 665-5850 [EMAIL]
 | Introduction: | The CREST model is a cost-of-energy analysis tool intended to assist policy makers evaluating the appropriate payment rate for a cost-based renewable energy incentive policy. The model aims to determine the cost-of-energy, or minimum revenue per unit of production needed for a sample (modeled) renewable energy project to meet its investors' assumed minimum required after-tax rate of return.  This model was developed in conjunction with a report entitled “Renewable Energy Cost Modeling: A Toolkit for Establishing Cost-Based Incentives in the United States”, developed under contract to the National Renewable Energy Laboratory. For more information about the factors, issues and policy decisions involved in establishing cost-based rates and incentives, please refer to the report. The report, user manual and CREST models are free and available for download at:
 |  | http://financere.nrel.gov/finance/content/crest-model
 | User Manual: | The CREST model comes with a User Manual which describes its design, features, inputs and outputs.  The manual is intended to provide an easy to follow road map to users who might not typically work with financial analyses,  to ensure successful utilization of this Cost of Energy tool.  The User Manual gives a "guided tour" of the model architecture, provides an explanation of how to operate the model, compare multiple analyses, and understand the results.  The User Manual is available to download at:
 |  | http://financere.nrel.gov/finance/content/crest-model
 |  | The remainder of this Introduction worksheet provides an abridged version of the User Manual.
 | Model Architecture: | The CREST model consists of six worksheets: (1) Introduction: An overview of the CREST model, (2) Inputs: The interface for nearly all user-defined assumptions, (3) Summary Results: A framework for storing the output (results) and associated key inputs of multiple model runs, (4) Annual Cash Flows & Returns: Provides a summary of the modeled project's annual cash flows, (5) Cash Flow: The formula calculations, or "guts", of the model; derives all project cash and tax benefits, and (6) [NAME]: This worksheet is only used if the user elects to include a detailed breakdown of project costs; this choice is selected by the user on the Inputs tab. Users should expect to work primarily with the "Inputs" and the "Summary Results" worksheets, although the other tabs and summaries are also expected to be useful during the policy-making process.
 |  |  | Examples:
 | Entering Inputs:  Model Conventions | [NAME] Text denotes user-defined inputs.  The user is responsible for modifying these cells to be consistent with the project being evaluated. | [NAME]
 |  | Black Text is strictly reserved for cells that are calculated automatically . These cells should not be modified. | Calculated [NAME]
 |  | In the "Check" column, green cells are used to indicate that the user has entered an acceptable value in a required field.
 |  | Conversely, red cells appearing in the "Check" column indicate that a required cell is blank or contains an invalid argument which requires the user's attention.
 |  | Yellow boxes are used to highlight input choices the model user must make via a dropdown menu. | Drop-Down Menu
 |  | The "Notes" column, populated with boxes showing a "?", contains a combination of definitions, explanations and ranges of typical values for most inputs.  To read a note, the users need only move the cursor onto the applicable cell.  The user is strongly encouraged to review all of these comments in order to understand key features of the CREST model. | ?
 | Operating the Model: | Once a user has finished entering the characteristics of the project under review on the "Inputs" tab, the model will automatically calculate both the "Year One" and equivalent "Levelized Cost of Energy" -- as defined and discussed in the User Manual.  MS Excel's "Calculation Options" MUST be set to "Automatic" in order for these results to be generated automatically.  If "Calculation Options" are not set to "Automatic," then the user will need to press "F9" after any input is changed, in order to calculate accurate results. Even when the Calculations Options are set to Automatic, there are circumstances in which F9 will need to be pressed one or more times in order to complete the calculation.  This is described in more detail in the note towards the top of the Summary Results worksheet.   Results appear on the "Summary Results" worksheet.  In an effort to allow the user to perform a side-by-side review of multiple cases, the "Summary Results" tab has columns for multiple results. The user is encouraged to copy and paste results from column D into columns F-O as multiple scenarios are run.  This is accomplished by using the "copy" and then "paste special -- values" features in Excel.
 | Understanding the Results: | The output of this model is the all-in payment required to cover all expenses and meet the project investors' after-tax return requirements over the specified number of years. This payment can be used to inform the feed-in tariff rate-setting process.  The payment can either be expressed as a  ‘Year One’ value of which all, or a designated portion, escalates each year during the tariff's duration at a defined rate, or as a "nominal levelized" value (where zero annual escalation is assumed).  The model output is always expressed in cents/kWh.  It is important to note that this calculated tariff rate is net of other assumed incentives, such as federal tax credits and state grants.
 | Summary of Reference Links From Inputs Worksheet | Several of the input-specific "Notes" on the Inputs worksheet contain hyperlinks.  Since these hyperlinks are not operable when placed within the MS Excel notes feature, they are duplicated here for the user's convenience.
 | [NAME] | http://www.pvwatts.org/
 | NREL Degradation Study | http://www.nrel.gov/docs/fy02osti/31455.pdf
 | DSIRE | http://dsireusa.org/
 | DSIRE: Tax/Grants | http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=US02F&re=1&ee=1
 | DSIRE: Other Fed Incentives | http://dsireusa.org/incentives/index.cfm?state=us&re=1&EE=1
 | Summary of Models Reviewed During the Development of the solar, wind and geothermal CREST: | These models were reviewed primarily to identify best practices which effectively balance ease of use with flexibility and advanced functionality.  In most cases, the helpful modeling techniques identified are not technology-specific, and have influenced the general design of all three CREST models.  Each of the models listed below is discussed in more detail in the report (please see link at the top of this worksheet).
 |  | RETI Cost of Generation Spreadsheet
 |  | [NAME]
 |  | RETScreen
 |  | Gainesville FIT Model
 |  | Solar Advisor Model (SAM)
 |  | EU PV Platform
 |  | Vote Solar Incentive Comparison Model
 |  | Geothermal Electricity Technology Evaluation Model (GETEM)