Revenue and Offset Payments |  |  |  |

| This topic describes SAM 3.0 and has not been revised for SAM 2009 Beta. You may find useful information, especially if you are new to SAM, but some of the information may be inconsistent with the new version.

Residential and commercial projects may receive net-metering offset payments for electricity generated by the project. Commercial projects also pay federal and state income tax on the payments as shown in the explanation for after tax net equity cash flow above. The electricity purchase price is equal to Flat Rate on the Utility Rates page.

Offset Payments =
Electric Output x Electricity Purchase Price

For utility projects, the operating income is determined in each year by the annual output and the electricity sales price. For residential and commercial projects, the sales price is equal to Flat Rate on the Utility Rates page. For utility projects, Solar Advisor calculates the year one sales price to meet the financing constraints on the Financials page, and calculates the sales price in year two and subsequent years based on the first year sales price and the PPA escalation rate on the Financials page.

Revenues =
Electric Output x Electricity Sales Price

Operating Income =
Revenues - Total Operating Expenses