Better Bricks Low Cost/No Cost O

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Commercial Integration of Solar Power Plants
Presented By Russ Wright Sales Manager,
Oregon SunEdison
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Agenda

• Objectives
• Retail Electricity Overview
• Solar Industry Overview
• About SunEdison Offerings
• Equipment

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• Retail Electricity Overview

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Electricity prices current

• Average commercial electricity prices varied from
  3-26 cents/kwh in 2008

Source Energy Information Administration, Form
EIA-826, "Monthly Electric Sales and Revenue
Report with State Distributions Report."
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U.S. commercial electricity prices

• On average, prices have increased 4.76 each year
  for the last 8 years

• Source Electric Power Monthly, DOE/EIA-0226 and
  Electric Power Annual, DOE/EIA-0348.

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Global energy demand

• Total world demand to increase 220 by 2030 (2
  each year)
• When energy demand goes up, energy prices go.

Source DOE International Energy Outlook, June
2008. http//www.eia.doe.gov/oiaf/ieo/excel/ieoht
ab_1.xls
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Global Electricity Demand
Global electricity demand to increase 142 by
2030 (1.4 each year)
Source DOE International Energy Outlook, June
2008. http//www.eia.doe.gov/oiaf/aeo/excel/aeohmt
ab_8.xls
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Energy demand drives costs

• Demand drives energy production
• Energy plants are dispatched by (lowest) variable
  costs
• Utility rate breakdown
• Baseload rate
• Peak rates
• driven by volatile variable
• costs
• Demand charges
• determined by facilitys
• highest energy use
• To save energy ...
• Reduce peak demand from utility

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Price volatility of peak energy

• Cause Effect
• Lower natural gas (NG) production ? Higher NG
  prices
• Less new NG drilling ? Higher NG
  prices
• Oil prices increase ? Higher NG
  prices
• Higher NG prices ? Utilities
  raise rates

Source http//www.petrostrategies.org/Graphs/Natu
ral_Gas_Futures_Prices.htm
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Solar reduces your peak demand
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Proven demand savings

• Actual demand savings from one of our solar power
  plants

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• Solar Industry Overview

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Demand for affordable green energy

• Society displeased with
• Volatile, increasing energy costs
• Dependence on foreign energy supplies
• Global warming use of carbon-heavy fossil
  fuels

Source DOE International Energy Outlook, June
2008. http//www.eia.doe.gov/oiaf/ieo/excel/ieohta
b_12.xls
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Benefits of solar energy

• On-peak power
• Power created when electricity is most expensive
• Predictable, competitive pricing
• Doesnt vary with fossil fuel volatility
• Distributed
• On-site generation, decreases need for
  transmission
• Public Support Jobs
• 90 approval ratings since late 90s1
• Creates jobs 7 job-years for every MW installed
• Reliable
• 20-25 yr warranties can last 45 yrs
• Clean
• No CO2 emissions requires little to no water

Source Mason-Dixon Polling Research, Inc.,
Feb 2007
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Growth of solar industry

• U.S. solar market grew 57 in 07 1
• Solar growth predicted at 60 in 08 1
• Industry has grown 30 per year
• for last 15 years 2
• In 2009, photovoltaics will account for
• 116,000 jobs
• 20 billion in capital investment 3

1 Rhone Resch http//www.seia.org/breakingnews.php
2 Solar Buzz Fast Facts, June 16, 2008
http//www.solarbuzz.com/FastFactsIndustry.htm 3
Navigant Consulting. http//www.seia.org/breakingn
ews.php
Source Company Analyst Reports, EERE, Solar
Energy Industry Forecast, May 30,
2008 http//www1.eere.energy.gov/solar/solar_ameri
ca/pdfs/solar_market_evolution.pdf
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Insolation viability of solar

• Germany has
• slightly less land than Montana
• far inferior insolation to the U.S.
• 57 of the worlds photovoltaic energy (1,328 MW
  vs. 220 MW in U.S. in 2007)

Source Solar Buzz 2007 World PV Industry Report.
http//www.solarbuzz.com/Marketbuzz2008-intro.ht
m
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Viable Solar States 2009
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• Photovoltaic equipment

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So many technologies which one is best?

• Thin film
• Less energy produced / sq ft.
• Less per kW
• Better performance in shading heat
• Flexible and laminate forms
• Types
• Amorphous silicon (a-Si)
• Cadmium telluride (CdTe)
• Copper indium gallium diselenide (CIGS)

• Crystalline
• More energy produced / sq. ft.
• More per kW
• More prevalent
• Time-tested
• Types
• Mono-crystalline silicon
• Poly-crystalline silicon

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We dont invest the best find us

• Our intentional neutrality makes us a magnet for
  innovative technologies
• We determine panels, racking, balance
• of system by analysis design to
• minimize costs
• maximize production
• complement site characteristics
• Pilot projects with manufacturers
• 3 studies for unreleased technologies
• currently underway

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Space required for 1 MW ground-mount

• Crystalline
• Fixed panels, 5 acres
• Single-axis trackers, 8 acres
• Thin Film, fixed
• Fixed panels, 10 acres

Estimates based on latitude of 38 (Washington
DC) module angle of 20
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Space required for 250 kW roof-mount

• Crystalline
• fixed 20 tilt, 37,000 (useable) square feet
• Thin film
• fixed 0 tilt, 50,000 (usable) square feet

Estimates based on latitude of 38 (similar to
Washington DC)
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Mounting solutions roof

• Tilt angle of 0-20
• Racking Types
• Ballasted
• no penetrations to membrane
• 5-10 lbs/sq. foot
• Penetrating
• Roof penetrations verified by original roofing
  contractor
• Adhesive (thin film)

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Mounting solutions ground

• Fixed
• No moving parts
• Takes less space
• Tracking
• Rotates on axis
• Create more kwh
• More OM (moving parts)
• Can be more or less economical depending on
  irradiation

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Inverters

• Converts direct current (DC) to alternating
  current (AC)
• UL rated, IEEE approved
• Outage protection
• Warranted by manufacturer

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• Incentives
• Financing Models

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Incentives

• Federal Investment Tax Credit - 30
• Currently sunsets at the end of the year
• Extender bill pending
• Oregon Business Energy Tax Credit 50
• Accelerated Depreciation - Modified Accelerated
  Cost Recovery System
• Federal 50 1st year in 08
• Energy Trust of Oregon
• Cash Incentive
• Paid at completion of project
• Based on size of project
• Funded by utility public purpose charges

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Financing Models

• Cash Sale
• Large capital outlay
• Monetize own tax credits
• Responsible for Maintenance and Insurance
• Approx. 5 yr ROI
• Flip
• Form LLC with Investor - some capital investment
• Investor owns 95 initially
• Host pays for energy produced
• Ownership interest flips at predetermined point
  in time
• 6-7 years
• Host buys out remaining interest
• Responsible for power production, maintenance and
  insurance

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Value Proposition of the SPSA

• Simple
• Customer just pays for energy
• Financially efficient
• Incentives are fully maximized
• Predictable long-term pricing
• PPA rate is equal or below
• utilitys rate
• Aligns interests
• We benefit from maximizing
• system output for entire contract term
• Service based
• We perform monitoring, operations, maintenance

Predictable SunEdison prices vs. Volatile energy
prices
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SPSA Direct sale

• Purchase energy
• no capital expenditure
• SunEdison maximizes incentives
• sells tax credits, RECs to interested parties
• provides (discounted) solar rate
• SunEdison holds responsibility
• monitors system performance, operations,
  maintenance, etc.
• Evaluate savings on SPSA rate vs. utility rate

• Purchase entire PV system
• pay cash upfront, asset on balance sheet
• Customer tries to monetize incentives
• uses incentives to offset capital
• expenses over appropriate payback period
• Customer holds responsibility
• self-performs maintenance operations - or
  hires a servicer
• Evaluate ROI on PV System
• vs. ROI on core business investment

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• About SunEdison
• History, Offerings, Experience

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Marketshare solar energy installers

• SunEdison holds 37 of the marketshare in the
  U.S.s largest solar market

Source CSI Data, June 2008.
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SunEdison Today

• North Americas largest solar energy services
  provider
• Experience with 36 module types
• 1.4 billion in supply contracts
• 153 commercial sized systems installed
• 47.9 MW under management
• Operating across a global
• marketplace
• 477 employees
• 11 U.S. offices
• Offices in Canada and Spain
• and expanding quickly

SunEdison installation data as of 08.22.08
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What we do

• Our fully managed service includes
• Program design
• Financing
• Design
• Construction
• REC certification sales
• Rebate processing
• Promotional support
• 24/7 monitoring verification
• Operations maintenance for term of agreement

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• Solar Monitoring

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Solar monitoring tells you

• How much energy is produced
• every 15 minutes
• Your demand charge savings
• Level of PV system performance
• If there is an outage
• Payback period return on your investment

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Without a solar monitoring solution

• You wont know about
• Production losses / lower energy generation
• Inverter failure or voided warranty
• Mechanical integrity failure
• Aluminum/steel rack corrosion, etc.
• Roof deterioration or voided warranty
• Safety risks
• Electrical risk of shock or fire
• Equipment detachment due to wind

Not a SunEdison Installation
Unattended solar systems can deteriorate beyond
repair, impacting a buildings structural
integrity or worse turning an asset into a
liability
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Solar Monitoring Benefits Analysis

• Verify demand offsets (kW)
• Verify energy savings (kWh)
• Track environmental benefits

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Thank you! Questions?
Russ Wright rwright_at_sunedison.com 503-297-6408