Solar Energy Services: Delivering Cost Effective Solar Power

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Solar Energy Services Delivering Cost Effective
Solar Power
Claire BroidoSunEdison, LLCClaire_at_sunedison.com
www.sunedison.com(443) 226 0273
March 18, 2004
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Why Solar Power?

• Recognizable environmental commitment
• Uses local resources, reduces demand for imported
  fossil fuels (NG, Oil)
• No NIMBY, asthetics, zoning problems, etc.
• Solar panels have a 25-year warranty, 35 year
  life
• Solar power provides peak power, not threatening
  to utility baseload power plants
• Costs should be compared to capital investment,
  fuel, and maintenance costs at other power plants
• Warranties backed by substantial companies, e.g.
  BP, Shell, Sharp, Kyocera

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Why SunEdison?

• SunEdison is made up of seasoned renewable energy
  professionals
• What need is SunEdison trying to fill
• SunEdison links third party investors with
  customers who want to buy solar (and not use
  their own capital)
• Investors want a way to invest in renewables with
  low risk
• Manufacturers want to sell solar products without
  being vertically integrated
• What value does SunEdison bring
• Standardized system design reduces engineering
  and other fixed costs
• Bulk discounts from the largest solar
  manufacturers, contractors and maintenance
  providers
• Attracts investors with structured finance
  approach to reduce risk and provide reasonable
  rates of return

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The Solar Electricity Service Offer
DO COMPANIES WANT TO BUY SOLAR ASSETS OR SOLAR
ELECTRICITY? Solar electricity below current
utility cost with no capital outlay

• BENEFITS
• Green power for less cost than brown power
• Fixed price hedge against significant utility
  cost increases
• All the benefits of solar power without the
  hassles of ownership
• No capital required
• No complicated rebates and tax credits to manage
• No maintenance and repair responsibilities
• Meet your green power or CO2 reduction
  commitments with a highly visible project at your
  site to complement your green credit purchases
• Solar power eliminates fuel price volatility
  impact on electric costs

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Self Ownership vs. Solar Services

• SunEdison owns the solar system AND customer only
  pays for what they receive
• much less overall time involved
• much less risk

• Self-Ownership Process
• Competitive solicitation and evaluation
• System Design
• Arrange Project Finance/Internal Financing
• Complete Site Specific Agreements
• Equipment supply agreement
• Government subsidy applications
• Utility environmental permits
• Construction / installation services
• System Construction

• SunEdison Solar Services Model
• Sign Solar Services Agreement
• Pay Quarterly Bill for Solar Services

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How It Works

• SUNEDISON, LLC
• Sell solar services
• Finances and owns PV system
• Operates and maintains PV system

• HOST CUSTOMER
• Purchase solar services at fixed price schedule
  under 10-20 year agreement
• Provide access to roof or parking lot
• No capital required

• MANUFACTURER
• Installs PV system at customer site
• Provides energy performance warranty for PV system

Performance based customer only pays for value
received from the PV system
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Solar Services Model
Equipment, installation, warranties

• Receives revenue from sale of panels, inverters
• Provides warranties for equipment and performance

On-site solar PV system
Sales OM revenue
ProjectDeveloper(SunEdison)
HostCustomer
10-20 year SolarServices Agreement
Financing

• Arranges financing, system design, and
  construction

• Purchases solar services at fixed price schedule
• Provides legal access to facility
• No capital required

Solar Services

• Receives low-risk ROI from electricity sales,
  state federal incentives
• Provides capital and owns system

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Which Facilities Work Best With Solar?

• Energy use and rate structure sites should be on
  a commercial rate structure with a demand of
  typically less than 1000 kW
• Best states CA, NJ, HI
• Building roof
• Should have a minimum of 10 years additional life
  
• Should be capable of bearing additional weight
• All roof types can work
• Will need over 10,000 sq. ft of unshaded roof
  space per 100 kW
• Ground mounted systems and parking shade
  structures are available

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Next Steps

• 1) Provide Information
• Identify site(s)
• Utility tariff, Load data, and utility bills
• Roof and Lighting Drawings
• 2) Review Preliminary Solar Services Agreement
• Customized Economic Analysis
• 3) Review Customized Contract
• Detailed Drawings Performance Analysis
• 4) Sign Contract
• 5) Installation within 3 months

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Thank You For More Information, Please Contact

• Claire Broido, President and COO
• Mobile [phone]
• Fax [phone]
• E-mail claire_at_sunedison.com
• Jigar Shah, CEO
• Mobile [phone]
• E-mail jigar_at_sunedison.com
• Greg Ashley, West Coast Sales
• Mobile [phone]
• Email 1974sun_at_earthlink.net
• Mac Moore, Director of Commercial Buildings
• Phone [phone]
• Mobile [phone]
• E-mail cameron.moore_at_bp.com