FEASIBILITY REPORT

Question: Is the proposed 20 kW array sufficient? Would Rex Hill benefit more from a larger or smaller installation based on their future energy usage estimates? What portion of Rex Hill’s current and estimated future usage does the 20 kW represent?

Answer: The size of the solar array that we are using for the report is based on actual solar installations in Oregon (for wineries and farms). I don’t know if they would benefit from a larger or smaller installation. Let’s assume that we don’t know what portion of Rex Hill’s current and estimated future usage the 20 kW will represent. However, if you want to include this in the report, you may be able to conduct some research and find a reasonable comparison. This could then be presented to Rex Hill.

Question: Are there any alternative or competitor bids for a similar system?

Answer: For the purpose of our assignment, I did not want to introduce that element. The feasibility report would then become a recommendation report. So, just assume the one proposal.

Question: Are there any ongoing operational costs for the system?

Answer: From what I understand, the ongoing operational costs are low. For the purpose of our assignment, don't factor them in.  

Question: What is the estimated cost of maintenance for the system in its lifespan from years 20-40? Does the first 20-year warranty cover all conditions, parts, and labor?

Answer: Maintenance costs for solar installations are also very low (from what I read). Don't worry about factoring that in. Or, you could include it as another benefit. You can decide what the warranty covers: it’s up to you. 

Question: Is there a down payment associated with the loan? Or is that cost amortized into the 6% interest figure and monthly payment?

Answer: Just factor in no down payment.  

Question: Are there any insurance requirements for the system?

Answer: Just assume that Rex Hill's existing insurance is able to include it no additional cost.  

Question: Does Rex Hill have any sort of corporate commitment to environmentalism? Is this installation part of a broader “green plan?”

Answer: That’s up to you. They can either have something in place (and maybe you inform them of how solar fits with their commitment), or perhaps they don't have anything in place (allowing you to help educate them about the benefits). 

Question: What is the proposed timeline for construction and implementation of the new array? Do payments on the loan begin before it is operational?

Answer: Let's say that payments begin only after it is operational.  

Question: Is there an energy cost curve I can use to predict potential savings beyond the first 5 years?

Answer: You are totally free to pursue this. Maybe you can find something to reference?  

Question: Does Rex Hill have a specific policy on returns required by capital investments of this nature?

Answer: For simplicity, let’s say that they don't.   

Question: How much of Rex Hill’s monthly cash flow does $1585/month represent?

Answer: Assume that Rex Hill has not shared this information with you. They want you to evaluate the project for what it is. They know their monthly cash flow and will be able to factor that in themselves after reading your report and making a final determination.