document.xls 1

Solar Photovoltaic Project Simple Financial ModelRPS Solar Carve-Out Program v1.0

DATA ENTRY AND FINANCIAL SUMMARY

Key Scenario Definitions

Entry Cells Scenario A: Non-Taxable Rebate - Assumes that the state rebate is non-taxable, but is subtracted from the cost basis for purposes of determining tax credits and accelerated depreciation.

Calculation Cells (Not for Entry) Scenario B: Taxable Rebate - Assumes that the state rebate is taxable, but is not subtracted from the cost basis for purposes of determining tax credits and accelerated depreciation.

Both Scenarios assume that the project owner can use both federal and state tax benefits

Select Taxable or Non-Taxable Entity Taxable Taxable 1 2 3 4 5 6 7 8

Non-Taxable Tax Assumptions

Project and Customer Cost Assumptions Federal Tax Rate 35%

200000 Watts (DC STC) State Tax Rate 10%

Total System Cost/Watt $ 5.500 $/Watt (DC STC) Effective Tax Rate 42%

$ 1,100,000.00 30%

100%

CEC Rebate Assumptions 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%

Rebate$ per/Watt $ - $/Watt (DC STC) Depreciation 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 0.00% 0.00%

Total Rebate Asset Basis

Gross Cost $ 1,100,000

Rebate $ -

Less 50% of Federal Tax Credit $ (165,000)

Project Performance and Savings/ Cost Assumptions

13.0% kW (DC STC) to kWh AC Asset Basis $ 935,000

0.50% % Financing Assumptions

Project Life 25 Years % Financed w/ Cash 100% Cash

20 Years % Financed w/ Loan 0%

$ 0.16 Loan Interest Rate 9.00% Loan

3.0% % Loan Period 20 Years (must be equal to or less than project life)

$ 0.285 $/kWh Net Cost $ 1,100,000

10 Years (must be equal to or less than project life) Customer Discount Rate 8.00%

0.0% % Loan $ -

$/kWh

Years (must be equal to or less than project life)

Annual Operations and Maintenance Cost Factor $ 17.59 $/kW/Year

Annual Operations and Maintenance Cost $ 3,518 $/Year

Annual Operations and Maintenance Adjustor 3.0% % Solar Project Financial Analysis Summary

$ 0.30 $/Watt (DC STC) Net Present Value $ 52,425

Inverter Life, Replace Every X Years 10 Year (must be equal to or less than project life) Simple Payback (100% Cash only) Year 7

Estimated Return on Equity 9.4%

Scenario A: Guess Return on Equity 10%

Solar Photovoltaic System Size

Total System Cost Federal Tax Credit

State Tax Deduction

5 Year Accelerated Depreciation Schedule (MACRS)

Annual Net Capacity Factor

Annual Production Degradation

Depreciation Life

Electricity Revenue (Avoided Costs) $/kWh

Electricity Revenue (Avoided Costs) Annual Adjustor

Solar Renewable Energy Certificate (SREC) Auction Price

SREC Auction Opt-In Term

SREC Revenue Annual Adjustor

SREC Contract Price

SREC Contract Term

Future Inverter Replacement Cost

Disclaimer: This Unofficial Cash Flow Model is intended to provide non-residential entities that are considering the purchase and installation of solar energy equipment with a general understanding of possible financial implications of such purchase and installation. Those entities interested in learning more about the financial implications of the purchase and installation of solar energy equipment are urged to consult their own tax and financial experts. The information contained in the Unofficial Cash Flow Model may not be relied on by anyone for any purposes. Furthermore, the information contained in this model does not necessarily reflect the views of the Department of Energy Resources or the Commonwealth of Massachusetts, and reference to any specific method does not constitute an implied or expressed recommendation or endorsement of it. Neither the Department of Energy Resources nor the Commonwealth of Massachusetts make any warranties or representations, expressed or implied, as to the usefulness, completeness, or accuracy of any processes, methods or other information contained, described, disclosed, or referred to in this model. Finally, neither the Department of Energy Resources nor the Commonwealth of Massachusetts makes any representation that the use of any product, apparatus, process, method, or other information will not infringe privately owned property rights and assumes no liability of any kind or nature for any loss, injury, or damage directly or indirectly resulting from, or occurring in connection with, the use of information contained, described, disclosed, or referred to in this Unofficial Cash Flow Model.

document.xls 2

Solar Photovoltaic Project Simple Financial ModelPRO FORMA AND PRODUCTION

Start-Up Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year

Project Output 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

227,760 226,621 225,488 224,361 223,239 222,123 221,012 219,907 218,807 217,713 216,625 215,542 214,464 213,392 212,325

FINANCIAL SCHEDULESINCOME STATEMENT

Electricity Revenue (Avoided Cost) $ 36,442 $ 37,347 $ 38,275 $ 39,226 $ 40,201 $ 41,200 $ 42,224 $ 43,273 $ 44,349 $ 45,451 $ 46,580 $ 47,738 $ 48,924 $ 50,140 $ 51,386

CEC Rebate $ -

SREC Auction Revenue $ 64,912 $ 64,587 $ 64,264 $ 63,943 $ 63,623 $ 63,305 $ 62,988 $ 62,673 $ 62,360 $ 62,048 $ - $ - $ - $ - $ -

SREC Contract Revenue $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Total Revenue (Avoided Costs) $ - $ 101,353 $ 101,934 $ 102,539 $ 103,169 $ 103,824 $ 104,505 $ 105,212 $ 105,947 $ 106,709 $ 107,499 $ 46,580 $ 47,738 $ 48,924 $ 50,140 $ 51,386

Replace Inverter? No No No No No No No No No No Yes No No No No No

Operations & Maintenance Costs $ (3,518) $ (3,624) $ (3,732) $ (3,844) $ (3,960) $ (4,078) $ (4,201) $ (4,327) $ (4,456) $ (4,590) $ (4,728) $ (4,870) $ (5,016) $ (5,166) $ (5,321)

Inverter Replacement Cost $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (60,000) $ - $ - $ - $ - $ -

Total Operating Expenses $ - $ (3,518) $ (3,624) $ (3,732) $ (3,844) $ (3,960) $ (4,078) $ (4,201) $ (4,327) $ (4,456) $ (64,590) $ (4,728) $ (4,870) $ (5,016) $ (5,166) $ (5,321)

EBITDA $ - $ 97,835 $ 98,311 $ 98,807 $ 99,325 $ 99,865 $ 100,427 $ 101,012 $ 101,620 $ 102,252 $ 42,909 $ 41,852 $ 42,868 $ 43,908 $ 44,973 $ 46,064

Federal Depreciation Expense $ (187,000) $ (299,200) $ (179,520) $ (107,712) $ (107,712) $ (53,856) $ - $ - $ - $ - $ - $ - $ - $ - $ -

EBIT $ - $ (89,165) $ (200,889) $ (80,713) $ (8,387) $ (7,847) $ 46,571 $ 101,012 $ 101,620 $ 102,252 $ 42,909 $ 41,852 $ 42,868 $ 43,908 $ 44,973 $ 46,064

Interest Expense $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

EBT $ - $ (89,165) $ (200,889) $ (80,713) $ (8,387) $ (7,847) $ 46,571 $ 101,012 $ 101,620 $ 102,252 $ 42,909 $ 41,852 $ 42,868 $ 43,908 $ 44,973 $ 46,064

Federal taxes saved/(paid) $ - $ 34,632 $ 73,752 $ 31,708 $ 6,412 $ 6,242 $ (12,785) $ (31,819) $ (32,010) $ (32,209) $ (13,516) $ (13,183) $ (13,503) $ (13,831) $ (14,167) $ (14,510)

State taxes saved/(paid) [can not deduct federal depreciation expense] $ - $ (9,784) $ (9,831) $ (9,881) $ (9,932) $ (9,986) $ (10,043) $ (10,101) $ (10,162) $ (10,225) $ (4,291) $ (4,185) $ (4,287) $ (4,391) $ (4,497) $ (4,606)

Net Income $ - $ (64,316) $ (136,968) $ (58,886) $ (11,908) $ (11,592) $ 23,743 $ 59,092 $ 59,448 $ 59,818 $ 25,102 $ 24,484 $ 25,078 $ 25,686 $ 26,309 $ 26,948

CASH FLOW STATEMENT

Cash From Operations

Net Income $ - $ (64,316) $ (136,968) $ (58,886) $ (11,908) $ (11,592) $ 23,743 $ 59,092 $ 59,448 $ 59,818 $ 25,102 $ 24,484 $ 25,078 $ 25,686 $ 26,309 $ 26,948

Federal Depreciation Expense $ - $ 187,000 $ 299,200 $ 179,520 $ 107,712 $ 107,712 $ 53,856 $ - $ - $ - $ - $ - $ - $ - $ - $ -

Cash Flow From Operations $ - $ 122,684 $ 162,232 $ 120,634 $ 95,804 $ 96,120 $ 77,599 $ 59,092 $ 59,448 $ 59,818 $ 25,102 $ 24,484 $ 25,078 $ 25,686 $ 26,309 $ 26,948

Cash From Investing

Installed PV Cost $ (1,100,000)

One Time State Solar Investment Tax Deduction (Actual Cash Value) $ 77,000

One Time Federal Solar Investment Tax Credit $ 330,000

Cash Flow From Investing $ (693,000) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Cash From Financing

Loan Disbursement $ -

Loan Repayment (Principle) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Cash Flow From Financing $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Annual Cash Flow $ (693,000) $ 122,684 $ 162,232 $ 120,634 $ 95,804 $ 96,120 $ 77,599 $ 59,092 $ 59,448 $ 59,818 $ 25,102 $ 24,484 $ 25,078 $ 25,686 $ 26,309 $ 26,948

Cumulative Cash Flow $ (693,000) $ (570,316) $ (408,085) $ (287,451) $ (191,646) $ (95,526) $ (17,927) $ 41,165 $ 100,613 $ 160,430 $ 185,532 $ 210,015 $ 235,093 $ 260,779 $ 287,089 $ 314,036

Simple Payback $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15

Net Investment $ (693,000) $ (570,316) $ (408,085) $ (287,451) $ (191,646) $ (95,526) $ (17,927) $ 41,165 $ 100,613 $ 160,430 $ 185,532 $ 210,015 $ 235,093 $ 260,779 $ 287,089 $ 314,036

Simple Payback Year 7 7

Annual Generation (kWh)

document.xls 3

Solar Photovoltaic Project Simple Financial ModelDEBT SCHEDULES

Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Scenario A Loan: Debt Schedule 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Beginning Balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Debt Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Principle $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Ending Balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year

Disclaimer: This Unofficial Cash Flow Model is intended to provide non-residential entities that are considering the purchase and installation of solar energy equipment with a general understanding of possible financial implications of such purchase and installation. Those entities interested in learning more about the financial implications of the purchase and installation of solar energy equipment are urged to consult their own tax and financial experts. The information contained in the Unofficial Cash Flow Model may not be relied on by anyone for any purposes. Furthermore, the information contained in this model does not necessarily reflect the views of the Department of Energy Resources or the Commonwealth of Massachusetts, and reference to any specific method does not constitute an implied or expressed recommendation or endorsement of it. Neither the Department of Energy Resources nor the Commonwealth of Massachusetts make any warranties or representations, expressed or implied, as to the usefulness, completeness, or accuracy of any processes, methods or other information contained, described, disclosed, or referred to in this model.

Finally, neither the Department of Energy Resources nor the Commonwealth of Massachusetts makes any representation that the use of any product, apparatus, process, method, or other information will not infringe privately owned property rights and assumes no liability of any kind or nature for any loss, injury, or damage directly or indirectly resulting from, or occurring in connection with, the use of information contained, described, disclosed, or referred to in this Unofficial Cash Flow Model.

document.xls 4

Solar Photovoltaic Project Simple Financial Model

DATA ENTRY AND FINANCIAL SUMMARY

9 10 11 12 13

0.00% 0.00% 0.00% 0.00% 0.00%

document.xls 5

Solar Photovoltaic Project Simple Financial ModelPRO FORMA AND PRODUCTION

Year Year Year Year Year

16 17 18 19 20

211,263 210,207 209,156 208,110 207,069

$ 52,663 $ 53,971 $ 55,312 $ 56,687 $ 58,096

$ - $ - $ - $ - $ -

$ - $ - $ - $ - $ -

$ 52,663 $ 53,971 $ 55,312 $ 56,687 $ 58,096

No No No No Yes

$ (5,481) $ (5,645) $ (5,815) $ (5,989) $ (6,169)

$ - $ - $ - $ - $ (60,000)

$ (5,481) $ (5,645) $ (5,815) $ (5,989) $ (66,169)

$ 47,182 $ 48,326 $ 49,498 $ 50,698 $ (8,073)

$ - $ - $ - $ - $ -

$ 47,182 $ 48,326 $ 49,498 $ 50,698 $ (8,073)

$ - $ - $ - $ - $ -

$ 47,182 $ 48,326 $ 49,498 $ 50,698 $ (8,073)

$ (14,862) $ (15,223) $ (15,592) $ (15,970) $ 2,826

$ (4,718) $ (4,833) $ (4,950) $ (5,070) $ 807

$ 27,601 $ 28,271 $ 28,956 $ 29,658 $ (4,440)

$ 27,601 $ 28,271 $ 28,956 $ 29,658 $ (4,440)

$ - $ - $ - $ - $ -

$ 27,601 $ 28,271 $ 28,956 $ 29,658 $ (4,440)

$ - $ - $ - $ - $ -

$ - $ - $ - $ - $ -

$ - $ - $ - $ - $ -

$ 27,601 $ 28,271 $ 28,956 $ 29,658 $ (4,440)

$ 341,638 $ 369,908 $ 398,865 $ 428,523 $ 424,082

$ 16 $ 17 $ 18 $ 19 $ 20

$ 341,638 $ 369,908 $ 398,865 $ 428,523 $ 424,082

document.xls 6

Solar Photovoltaic Project Simple Financial ModelDEBT SCHEDULES

Year Year Year Year Year 16 17 18 19 20

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Year Year Year Year Year

Disclaimer: This Unofficial Cash Flow Model is intended to provide non-residential entities that are considering the purchase and installation of solar energy equipment with a general understanding of possible financial implications of such purchase and installation. Those entities interested in learning more about the financial implications of the purchase and installation of solar energy equipment are urged to consult their own tax and financial experts. The information contained in the Unofficial Cash Flow Model may not be relied on by anyone for any purposes. Furthermore, the information contained in this model does not necessarily reflect the views of the Department of Energy Resources or the Commonwealth of Massachusetts, and reference to any specific method does not constitute an implied or expressed recommendation or endorsement of it. Neither the Department of Energy Resources nor the Commonwealth of Massachusetts make any warranties or representations, expressed or implied, as to the usefulness,

Finally, neither the Department of Energy Resources nor the Commonwealth of Massachusetts makes any representation that the use of any product, apparatus, process, method, or other information will not infringe privately owned property rights and assumes no liability of any kind or nature for any loss, injury, or damage directly or indirectly

Definitions

Kilowatt-hours (kWh)

Solar System

Annual Net Capacity Factor

Depreciation Life

SREC Auction Opt-In Term

This models allows the value of RECs to change by this percentage each year

SREC Contract Price The price of SRECs as agreed upon in a bilateral contract with a compliance entity or other entity purchasing SRECs.

SREC Contract Term The term of the bilateral contract with a compliance entity or other entity purchasing SRECs.

BackUnit of energy. This is a measure of how much energy is consumed by a home or facility. It is also a measure of how much electricity is produced by a solar PV system. The amount of energy consumption or production is measured by an electric meter.

BackThe solar photovoltaic (PV) system. This includes your panels (modules), inverter, and meter which connects you to the utility.

Back

Estimated Optimal Annual Generation (kWh)

optimal fixed south facing free from shading location

The best case scenario for how much electricity a solar PV system will produce. PV systems will produce more or less electricity depending on several factors. For example, a system will produce less energy if the panels are fixed (e.g. to a roof) than if they are on an axis that tracks the sun throughout the day. Another factor is orientation. The more the system is able to face due south, the more it should produce. Tilt angle also impacts production. The closer a system's tilt is to its latitude the more it will produce. An optimal system in Massachusetts that is fixed, faces due south (180 degrees) and has a tilt of 42 degrees.

BackSystem Size

kilowatts (kW)

Kilowatts are a measure of power. A kilowatt is 1,000 watts. In this case, it describes the size of the solar PV system. A single solar PV panel might be rated at 180 watts. If a system uses 10 panels rated at 180 watts each, the system size will be 1800 watts, or 1.8 kW.

Back

This is a ratio between the amount of energy produced by your solar PV system and its optimimum nameplate (labeled) production capability. A 12.8% net capacity factor is average for solar PV systems in Massachusetts. This value varies by the angle of the system, its orientation, and the amount of shading. If a solar PV system had the sun shining on it every day, 24 hours per day at the optimal tilt and orientation with no shade then that system would have a 100% capacity factor, in other words, it would produce its rated output.

BackAnnual Production Degradation

Over the course of the life of the PV system, its production capability will decrease as it deteriorates to a degree over time. Our default assumption is that this degradation will be 0.5% per year.

BackDepreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological obsolescence or other factors. Depreciation life is the "useful life" of the system, meaning the estimated length of time the system will provide an economic benefit.

BackElectricity Revenue (Avoided Costs)

This is the price per kWh that you will save on your electricity bill using this solar PV system. The default is $0.18/kWh as this is a state average price for electricity.

BackElectricity Revenue (Avoided Costs) Annual Adjustor

This model assumes that the cost of electricity will increase at 5% per year, therefore your savings from avoided electricity costs will also increase at 5% a year.

BackSolar Renewable Energy Certificate (SREC) Auction Price

Solar Renewable Energy Certificates (SRECs), also known as green tags, Solar Renewable Energy Credits, are tradable environmental commodities in Massachusetts which represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource. These certificates may have a value and they can be sold and traded so that the owner of the SREC can claim to have purchased renewable energy. Their default value is set at $.285/kWh, which is the price owners will receive for their SRECs if sold through the Solar Credit Clearinghouse Auction Account.

Back

The model uses a default term of 10 years. This term is based upon the length of the Auction Opt-In Term that all projects qualified in 2010 will receive. All projects with an Opt-In Term of 10 years will be eligible to sell SRECs generated during their Opt-In Term by depositing them in the end of year Solar Credit Clearinghouse Auction Account. The Auction is expected to be a measure of last resort for projects that have not signed bilateral contracts with compliance entities that are required to purchase SRECs by the end of the compliance year.

BackSREC Revenue Annual Adjustor

Back

Back

Annual Generation (kWh) This is the estimated amount of energy that your solar PV system will produce in kilowatt hours (kWh) each year.

Total System Cost

BackFuture Inverter Replacement Cost

A solar inverter is a component of a PV system that changes the direct current (DC) electricity from the PV array into alternating current (AC) for use with home appliances or any AC load. The life of a solar PV system's inverter is less than the life of the PV panels and will likely need to be replaced during the lifetime of the system which can be 25 years or more. This model assumes the default cost to replace the inverter will be $0.75/watt.

Back

BackTotal System Cost includes all elements of the installation including design, equipment, labor, permitting, interconnection, etc.  In the case of taxable commercial entities, the Total System Cost should include Massachusetts sales tax on the equipment

This models allows the value of RECs to change by this percentage each year

The price of SRECs as agreed upon in a bilateral contract with a compliance entity or other entity purchasing SRECs.

The term of the bilateral contract with a compliance entity or other entity purchasing SRECs.

Unit of energy. This is a measure of how much energy is consumed by a home or facility. It is also a measure of how much electricity is produced by a solar PV system. The amount of energy consumption or production is measured by an

The solar photovoltaic (PV) system. This includes your panels (modules), inverter, and meter which connects you to the

The best case scenario for how much electricity a solar PV system will produce. PV systems will produce more or less electricity depending on several factors. For example, a system will produce less energy if the panels are fixed (e.g. to a roof) than if they are on an axis that tracks the sun throughout the day. Another factor is orientation. The more the system is able to face due south, the more it should produce. Tilt angle also impacts production. The closer a system's tilt is to its latitude the more it will produce. An optimal system in Massachusetts that is fixed, faces due south (180

Kilowatts are a measure of power. A kilowatt is 1,000 watts. In this case, it describes the size of the solar PV system. A single solar PV panel might be rated at 180 watts. If a system uses 10 panels rated at 180 watts each, the system size

This is a ratio between the amount of energy produced by your solar PV system and its optimimum nameplate (labeled) production capability. A 12.8% net capacity factor is average for solar PV systems in Massachusetts. This value varies by the angle of the system, its orientation, and the amount of shading. If a solar PV system had the sun shining on it every day, 24 hours per day at the optimal tilt and orientation with no shade then that system would have a 100% capacity factor, in other words, it would produce its rated output.

Over the course of the life of the PV system, its production capability will decrease as it deteriorates to a degree over time. Our default assumption is that this degradation will be 0.5% per year.

Depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological obsolescence or other factors. Depreciation life is the "useful life" of the system, meaning the estimated length of time the system will provide an economic benefit.

This is the price per kWh that you will save on your electricity bill using this solar PV system. The default is $0.18/kWh as this is a state average price for electricity.

This model assumes that the cost of electricity will increase at 5% per year, therefore your savings from avoided electricity costs will also increase at 5% a year.

Solar Renewable Energy Certificates (SRECs), also known as green tags, Solar Renewable Energy Credits, are tradable environmental commodities in Massachusetts which represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource. These certificates may have a value and they can be sold and traded so that the owner of the SREC can claim to have purchased renewable energy. Their default value is set at $.285/kWh, which is the price owners will receive for their SRECs if sold through the Solar Credit Clearinghouse Auction

The model uses a default term of 10 years. This term is based upon the length of the Auction Opt-In Term that all projects qualified in 2010 will receive. All projects with an Opt-In Term of 10 years will be eligible to sell SRECs generated during their Opt-In Term by depositing them in the end of year Solar Credit Clearinghouse Auction Account. The Auction is expected to be a measure of last resort for projects that have not signed bilateral contracts with compliance entities that are required to purchase SRECs by the end of the compliance year.

This is the estimated amount of energy that your solar PV system will produce in kilowatt hours (kWh) each year.

A solar inverter is a component of a PV system that changes the direct current (DC) electricity from the PV array into alternating current (AC) for use with home appliances or any AC load. The life of a solar PV system's inverter is less than the life of the PV panels and will likely need to be replaced during the lifetime of the system which can be 25 years or more. This model assumes the default cost to replace the inverter will be $0.75/watt.

Total System Cost includes all elements of the installation including design, equipment, labor, permitting, interconnection, etc.  In the case of taxable commercial entities, the Total System Cost should include Massachusetts sales tax on the