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Copyright © 2009 · Uptown Solar · All Rights Reserved

THESE MATERIALS ARE CONFIDENTIAL AND THE SOLE EXCLUSIVE PROPERTY OF UPTOWN SOLAR ANY USE OF TRADEMARK LOGOS, GRAPHICS, OR
CONCEPTUAL SCREEN SHOTS ARE FOR ILLUSTRATIVE PURPOSES ONLY. THESE DOCUMENTS ARE NOT INTENDED FOR RE-DISTRIBUTION OR PUBLICATION.
CONFIDENTIALITY IS EFFECTIVE UNTIL IF AND WHEN NOTIFIED IN WRITING.
 Agenda

• Global Solar Marketplace

• US Marketplace
• Federal/State/Utility Program
• System Components
• Solar Applications
• Project Financing
• Lifeline Solar

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“I’d put my money on the sun and
solar energy. What a source of
power!

I hope we don’t have to wait till oil

and coal run out before we tackle
that.”

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Solar Grid Tied System
Commercial

4
 Global Solar Marketplace

Chicago, Illinois
Latitude: 41.90 Berlin, Germany
Longitude: 87.65 Latitude: 52.32
Longitude: 13.25

Chicago, Illinois Solar Hours: 3.14

Berlin, Germany Solar Hours: 2.73 5
 Global Solar Marketplace

• US ranks 4th in both New Capacity & Cumulative Capacity

• US trails Germany in 1st , Italy 2nd, Japan 3rd

• US Grid Tied PV Systems

(28% steady growth since 2006)

• US will become largest solar energy market in 2011; but will be

surpassed in 2015 by China

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 US Solar Marketplace
• U.S. solar energy industry grew— both in new
installations and employment.

• U.S. solar electric capacity from photovoltaic (PV)

and concentrating solar power (CSP) technologies
climbed past 2,000 MW, enough to serve more
than 350,000 homes.

• Solar industry revenues also surged despite the

economy, climbing 42 percent in 2010.

• A doubling in size of the residential PV market

helped lift the U.S. solar electric market 37 percent
in annual installations over 2008 from 351 MW in
2008 to 481 MW in 2010.
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 US Solar Marketplace

• General Electric plans to close its Newark, DE, solar module facility at
the end of 2009 and lay off 82 employees.

• Evergreen Solar told investors that it will stop making solar panels at
its Devens, MA, plant and start making them in China by mid-2010.

• GE and Evergreen join BP Solar in closing U.S. facilities. In March, the

British firm said it would end module assembly at its facility in
Frederick, MD.

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 Solar Incentives Components
• Federal
• State
• Rebates
• Grants
• Production Incentives-Feed In Tariffs
• Solar Renewable Energy Credits

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 Renewable Portfolio Standards
• An RPS requires the State’s utilities to have a certain percentages of
electric power produced by renewable sources of energy, such as solar
and wind power, over X number of years.

• RPS requirements vary widely by state.

• National RPS as part of the Cap and Trade legislation, all States would be
required to generate some portion of their electric energy through
renewable resources by a certain time.

• Currently, there are 29 States plus DC that have adopted a Renewable

Portfolio Standard (RPS)

• An additional 7 States have established Renewable Goals, which is 1 up

from 2009. These are the next States to follow up suit with RPS adoption.
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 Renewable Portfolio Standards
www.dsireusa.org / August 2010

VT: (1) RE meets any increase in

ME: 30% x 2000
WA: 15% x 2020* New RE: 10% x 2017
MN: 25% x 2025 retail sales x 2012;
MT: 15% x 2015 (Xcel: 30% x 2020) (2) 20% RE & CHP x 2017 NH: 23.8% x 2025
OR: 25% x 2025 (large utilities)* ND: 10% x 2015 MI: 10% + 1,100 MW x MA: 22.1% x 2020 New RE:
5% - 10% x 2025 (smaller utilities) 2015* 15% x 2020
(+1% annually thereafter)
SD: 10% x 2015 WI: Varies by utility;
NY: 29% x 2015 RI: 16% x 2020
10% x 2015 statewide
NV: 25% x 2025* CT: 23% x 2020
IA: 105 MW OH: 25% x 2025†
CO: 30% by 2020 (IOUs) PA: ~18% x 2021†
10% by 2020 (co-ops & large munis)*
IL: 25% x 2025 WV: 25% x 2025*† NJ: 22.5% x 2021
CA: 33% x 2020 UT: 20% by 2025* KS: 20% x 2020 VA: 15% x 2025* MD: 20% x 2022
MO: 15% x 2021
DE: 25% x 2026*
AZ: 15% x 2025
OK: 15% x 2015 NC: 12.5% x 2021 (IOUs) DC DC: 20% x 2020
10% x 2018 (co-ops & munis)
NM: 20% x 2020 (IOUs)
10% x 2020 (co-ops)

TX: 5,880 MW x 2015

HI: 40% x 2030

State renewable portfolio standard Minimum solar or customer-sited requirement 29 states + DC

State renewable portfolio goal
Solar water heating eligible *† Extra credit for solar or customer-sited renewables
Includes non-renewable alternative resources
have an RPS
(7 states have goals)
 New Solar Capacity Required to Meet
State RPS Carve-Outs
• State RES carve-outs will set the baseline demand for solar over the next 15 years.

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 Federal Incentives - Commercial

Federal Business Energy Investment Rebate-Credit *

• American Recovery and Reinvestment Act of 2009 removed a provision which
reduced the basis for the tax credit to the extent “subsidized energy financing”
was used, and created a mechanism for eligible projects to receive a cash
grant from US Department of Treasury in lieu of the tax credit. There is no
maximum limit to the credit. If the credit is not used entirely in the year the
equipment is placed into service, then the remaining credit may be carried
back one year or forward 20 years.

Federal Accelerated Depreciation

• MACRS-5 year accelerated depreciation cycle.

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 “Traditional” State
Solar Policy Options
State Financial Incentives State Regulatory Policies

• Rebate Programs • Public Benefits Funds (PBFs)

• Production Incentives
• Corporate Tax Credits
• Personal Tax Credits
• Grant Programs
• Ind. Recruitment/Support
• Loan Programs
• Property Tax Incentives
• Sales Tax Incentives
• Renewable Portfolio Standards (RPSs)
• Solar/DG Carve-Outs
• Net Metering
• Interconnection Standards
• Solar Access Laws
• Contractor Licensing

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 State SREC Programs
• Renewable Portfolio Standard (RPS) requires electricity suppliers to secure
a portion of their electricity from solar facilities connected to the local
distribution grid in that state.
– The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to
be created on behalf of the solar owner and sold to electric suppliers to meet their solar
RPS requirement. All electric suppliers are required to use the SREC program to show
compliance with this part of the State’s Renewable Portfolio Standard.
• Increasing state focus on solar renewable energy certificates (or
equivalent) SRECs as a financial incentive
• SRECs provide solar owners with an economic incentive to investing in
solar electric systems which improve the electric distribution grid.

• 1000 kW produced, equals one SREC

• To date, 16 of the 29 States with RPS Policies have a provisions for a Solar
carve-out; 2 of the 7 States with Renewable Goals have a solar provision.
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 Solar SREC (RECS)

• SRECs are in fact a “credit” for the amount of clean solar energy that your
solar panels produce. Utilities in some states need a certain amount of
these credits in order to comply with the State’s RPS.

• How do utilities get these credits? Generally, two ways: They either build
solar or wind farms and/or they pay you for the clean power your solar
panels produce. And how much cash is that credit worth?

• Note; you are selling the “environmental benefit” of your solar panels to
someone else, like the utility. You get paid for these credits.

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 SRECs in Vogue

Data Sources: PJM-EIS GATS, Xcel Energy, Arizona Public Service, Tucson Electric Power, Public Service New Mexico, El Paso Electric

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 SRECTrade Interstate Trade Metrix
I can sell my SRECs in …

NJ PA DE DC MD NC VA WV OH
My System is in…
NJ X
PA X X X X
DE X X X X
DC X X X
MD X X X X
NC X X X
VA X X X
WV X X X X
OH X X X X
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 US Solar Marketplace
International Renewable Energy Council (IREC) –
Solar Power International Survey October 09

• 93% of Americans Surveyed Support Solar

• 12% understand how solar works

• 75% do not know where to go for solar

information

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Parking Lot Structure

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22
Proposed Solar Tree Energy Plant 96kW

Eight 12kW Trees

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 PA Solar Tree Incentives:
Federal Tax Credit Model
96kW Eight 12kW Tree’s Photovoltaic(PV) System $720,000

Federal Tax Credit 30% ($216,000)

State Rebate Program*(max. $52,500) ($52,500)
Sun Rebate*($100 per panel) ($38,400)

Net Cost After Rebates $413,100

Notes:
*Rebates paid approximately 60 days after installation is complete
* Sales Tax not included
* Finance Option’s available:
*384 panels in 96kW System

Based on install price of $7.50 per watt

Per Rebate Program, amount of incentive varies based on system size
($.50 - $.75 / W DC) 25
 PA Solar Tree Incentives:
Federal Tax Credit Model
Cost Recovery Sources: Credit
Solar
Federal State Renewable
Power Sun Tax Tax Energy Standard Total Savings and
Savings Rebate Credit Rebate Credits Depreciation Credits
1stYear $12,648 $38,400 $216,000 $52,500 $25,200 $106,304 = $451,052
2ndYear $12,648 $0 $0 $0 $25,200 $28,347 = $66,195
3rdYear $12,648 $0 $0 $0 $25,200 $17,008 = $54,856
4thYear $12,648 $0 $0 $0 $25,200 $10,205 = $48,053
5th year $12,648 $0 $0 $0 $25,200 $10,205 = $48,053
6thYear $12,648 $0 $0 $0 $25,200 $5,102 = $42,950
7thYear $12,648 $0 $0 $0 $25,200 $0 = $37,848
$88,536 $38,400 $216,000 $52,500 $176,400 $177,171 $749,007
Notes:
* Based on very conservative $0.10 per kwh as cost of power over the first 7 years
* Modified Accelerated Cost-Recovery System with effective tax savings at 34% corporate rate
* 126 SRECs per year, SRECs valued at $200
* Nominal Annual Rate used for sample purposes only
* SREC traded with Edge Energy 26
 PA Solar Tree Incentives:
Federal Tax Credit Model
Cost Recovery Recap: Credit
With No
Financing Financing
Total Project Cost $ 720,000 $ 720,000
Interest Rate

Cost of Financing (5 year term) 6.10% $ 117,180 $ -

Gross Cost to Customer $ 837,180 $ 720,000

Less Power Saving, Depreciation, SRECs &

Incentives $ 749,007 $ 749,007

Total out of pocket investment first 7 years $ 88,173 $ (29,007)

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PROJECT FINANCING

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 Equipment Finance

Lifeline Equipment Finance

25 Years of Industry Experience as a Company
5th Largest Bank Owned Company

Credit Requirements
3 Years in Business (NO START UPS)
Only Commercial Companies (NO RESIDENTIAL)
Deals up to $100K application only (SEE NEXT SLIDE)
Deals over $100K require financial package (SEE NEXT SLIDE)

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 Equipment Finance
continued
Benefits of Financing Equipment

Typically We Can Provide 100% Financing

Low up front cost
Usually just 1st payment and documentation fee due up front

Fast Turn Around

Application only deals less then $100K usually approved within 1-2 business days
Larger deals usually are approved within 3-4 business days

Tax Benefits
Possible depreciation of equipment (BEST TO CHECK WITH YOUR ACCOUNTANT)

Ability to Finance Soft Cost

Typically up to 20% of a transaction can include soft cost, which can include:
Installation Services
Maintenance
Warranty
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 Uptown Solar

• HQ-Houston

• Leading edge grid connected solar systems

– 25 year warrantee panels
– UL Listed
– California Solar Institute Listed
• http://www.gosolarcalifornia.org/equipment/pvmodule.html
– Florida Solar Energy Center Listed
• http://www.fsec.ucf.edu/en/industry/testing/PVmodules/pv_flashtest_list.htm

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 Lifeline Advantage

• “Turn-key” business system

• Leading edge solar systems and components
• Nationwide deployable program
• Comprehensive training program for distributors
• Solar training for installers and system designers
• Green Finance options

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 CONTACT US TODAY

Thank you for your time and consideration.

To request
- - -additional
- - - - - - -information
- - - - - - - - please
- - - - -contact
- - - - - one
- - - of
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- - -representatives.
-------

THESE MATERIALS ARE CONFIDENTIAL AND THE SOLE EXCLUSIVE PROPERTY OF UPTOWN SOLAR. ANY USE OF TRADEMARK LOGOS, GRAPHICS, OR
CONCEPTUAL SCREEN SHOTS ARE FOR ILLUSTRATIVE PURPOSES ONLY. THESE DOCUMENTS ARE NOT INTENDED FOR RE-DISTRIBUTION OR PUBLICATION.
CONFIDENTIALITY IS EFFECTIVE UNTIL IF AND WHEN NOTIFIED IN WRITING.