avacos - clean sustainable energy

Clean Sustainable Energy.

For Our Next Generation and Beyond...

Presentation Outline

Section I: Introduction to AVACOS Solar

Section II: Introduction to Solar Technology: An Overview

Section III: Solar Potential in Design

Section IV: Financial Analysis

Section V: New Technology in Roof Top Efficiency

Project Objective

The objective of this presentation is to demonstrate the economicalbenefits associated to the environmental investment of Going Solar.

Project Benefits

Generate Revenue by Selling Power Back to the electrical grid.

Create Power Independence by Producing Your Own Electricity.

Become a Power Provider. Manage and Control Future Electricity Costs.

Realize Profit From a New “Rooftop Square Footage” Income Model.

Independently-owned Business

Incorporate a Client-based Business Approach

Based in Ontario and Operates Internationally

Strategic Relationships with International Manufactures

Reputable Synergies with Professional Installers

Credible Relationships with Debt and Equity Partners

Offers an Extensive Array of Services

Introduction to AVACOS Solar

About AVACOS Solar

AVACOS RE Group is a leading Renewable Energy developer in Canada. We possess proven expertisein designing, building, and managing small and large-scale Renewable Energy power projects in Ontario,primarily solar photovoltaic. Our customers become leaders in green energy production by use of ourinnovative technologies and solutions.

With successful solar projects in operation, AVACOS Solar (our PV division) is on the cutting edge of greentechnologies. We are constantly looking for newer and improved technologies to increase the efficiency andeffectiveness of our products, and to provide our customers with better service.

AVACOS Solar Corporate Profile

AVACOS Solar is a one-hundred percent Canadian owned company founded in 2007, offering complete

renewable energy power solutions. AVACOS Solar specializes in developing client-based, grid-connected,commercial solar power generation facilities.

Our mission is to meet the growing demand for renewable energy by offeringour customers viable energy solutions.

We seek synergies that stimulate emerging renewable energy technology partnerships to empower ourcustomers. Our goal is to be internationally recognized as an industry leader in bringing alternative energysolutions to market.

From Concept to Completion

Power System Services:

•

Feasibility Studies

Financial & Customer Proposal Presentations

Technology & Project Assessments

Applications & Approvals

System Design & Engineering

Product Documentations and Certifications

Power System Connection Impact Assessments (CIA's)

Installation, Commissioning, Quality Control and Supervision

Facility Monitoring & Power System Maintenance

Introduction to Solar Technology

Photovoltaic Electricity is a process whereby sunlight is converted directly into direct current(DC) electricity in a solar cell that is typically based on Silicon. Solar cells are manufactured intosolar modules, which are then constructed into arrays. Solar arrays feed direct current electricityto an inverter that connects the array to the utility grid via the building’s electrical system.

Solar arrays are commonly located on building rooftops and they are ideal for integration intobuilding designs, where multiple benefits may be attained through solar Photovoltaic deployment,such as integration with day lighting strategies. Solar Energy is the most reliable electricitysource available and the Operations & Maintenance costs are negligible as compared with allother electrical generation systems.

Life Expectancy

Service life estimate of photovoltaic arrays is generally taken to be 30 years, although they willcontinue to operate well beyond. Outright failure is rare, even at extreme age; it is the degradationof power generation that renders the products less usable over time. Annual output reduction is inthe order of 0.5 to 0.75%.

The Photovoltaic modules generally carry warranties of 25 years and the power inverters aregenerally warranted at 10 years, with available warranty extensions that can be purchased at timeof system order.

Since there are no moving parts, solar Photovoltaic systems are not subject to wear and tear aswould be typically associated with other types of generation systems.

photovoltaic modules can be recycled at the end of their useful life.

Photovoltaic modules employ layers of micro-fine crystalline silicon to convert ordinarysunlight into small electrical charges. To explain the photovoltaic solar panel moresimply, photons from sunlight knock electrons into a higher state of energy, creatingelectricity. The term photovoltaic refers a photodiode in which current through thedevice is generated by light energy. Virtually all photovoltaic devices are some type ofphotodiode. Solar cells produce direct current electricity from light, which can be usedto power equipment or distribute to the electrical grid.

Solar photovoltaic power systems are categorized into three types.

Autonomous Power Systems - non-electrified areas Hybrid Power Systems - wind, solar, hydro, etc.Grid-Connected Power Systems

– Static / Adjustable Ground/Rooftop Mounted Arrays– Single-Axis Horizontal Tracking Arrays– Dual-Axis Tracking Arrays

Photovoltaic Electricity Overview

Photovoltaic Efficiency

Photovoltaic systems operate by collecting daylight, both direct sunlight and diffuse daylight, andacross a broad light spectrum. For our purposes, regarding deployment on this property, efficiency isprobably best considered as being the power able to be generated (in rated peak kilowatts) in a givenamount of space. Operationally, the electrical energy yield of Photovoltaic will vary depending on numerousfactors including ambient and solar cell temperature, tilt angle, ventilation and shading from obstructions,etc.

Careful project design is imperative in order to attain optimum operational efficiency.

Benefits of Solar Photovoltaic Energy

Solar Systems offer many advantages:

Clean, efficient, safe, and sustainable

Highly reliable and operate cost-effectively

Require little maintenance, when compared to other generation sources

They are flexible and can be expanded at any time

Requires little lead time, solar facilities can be up and operational in under a year

No additional fuel cost

Operating expectancy of 25 to 30 years

Environmental Benefits

Photovoltaic systems can significantly reduce the carbon footprint ofbusinesses and cities.

Greenhouse gas emissions reductions can be calculated as greater than theoffset created merely by the generation of electricity. 1kW of electricity representsapproximately 250 tonnes of CO2 offset over the life of the system, depending on thefinal nameplate rating chosen.

For example, a proposed photovoltaic project size stated at 250 kilowatt peak willprovide for approximately 62,500 tonnes of CO2 offset over the life of the system,depending on the final nameplate rating chosen.

Energy Payback

Typical silicon solar Photovoltaic modules will achieve an energy break-even in 3-4 years. Thetotal embodied energy in the product from its manufacture will be returned about 10 times overits operational life. An important goal in the design of a photovoltaic project is to optimize theancillary systems required to mount the solar modules to the building so as to maintain thegreatest net energy return.

The energy payback time for a well-designed Photovoltaic system today can be in the range of6 to 9 years.

PV Design Applications

Rooftop System

Solar Walkway

Solar Carport

Solar Canopies and Structures

Static Mounted Solar Arrays

Static Mounted Solar Arrays (Con’t)

Single-Axis Horizontal Tracking Solar Arrays

Dual-Axis Tracking Solar Arrays

Dual-Axis Tracking Solar Arrays (Con’t)

Ontario Power Authority (OPA)(FIT) Feed In Tarrif Program

Ontario was the first jurisdiction in North America to adopt a European styled program to stimulateinvestment in photovoltaic installations and other renewable generation technologies including wind.

This program provides for the signing of a 20 year contract with the Government of Ontario, whereby thecontract guarantees a fixed amount payable per kilowatt-hour generated from the renewable energy project.Controlled and paid by the Ontario Power Authority.

With the advent of the program, the economics of a commercial photovoltaic system purchase in Ontariohave been improved by a factor of four.

Proposed OPA’s FIT rates for Photovoltaic Electricity production

≤ 10kW @ 80.2 cents /kWh 10 - 250kW @ 71.3 250 - 500kW @ 63.5 ≥ 500 kW @ 53.9

Ground mounted field applications ≤ 10MW @ 44.3 cents per kWh

Project Payback

While photovoltaic systems have a significant capital cost, they offer negligible operating costs as well as

potential savings in building or brown field costs depending on how they are deployed. It is important tounderstand that, as compared to buying electricity from traditional sources, the capital cost of a photovoltaicsystem inherently includes 30 years of electricity cost savings.

Return On Investment with large commercial photovoltaic installations is nearing the 6-9 year timeframe,taking into account available Federal and Provincial programs and incentives.

Paybacks can be improved further by designing the photovoltaic system to optimize client’s financial goalsand to facilitate either building or brown field integration of such power systems.

Financial Analysis

10 kW Roof-mount system RESOP F.I.T rate 80.2 cents / kWh (20 yr. Contract with OPA)

Cost / Watt total system Est. Annual Est. Annual Est. Payback Investment

cost (kWh) Generation Revenue Term (yrs) ROI Rate of Return IRR

$9.98 $99,800.00 16191.00 $12,985.18 7.69 13.01%

A 10 kilowatt hour system will provide for approximately 2500 tonnes of CO2 offset over the life of the system

Total inclome based on the10 kW / OPA 20 year contract: $259,703.64




$9.62 $192,400.00 32382.00 $23,088.37 8.33 12.00%


Total inclome based on the 20 kW / OPA 20 year contract: $461,767.32




$9.58 $287,400.00 48573.00 $34,632.55 8.30 12.05%


Total inclome based on the 30 kW / OPA 20 year contract: $692,650.98




$9.24 $462,166.53 80958.00 $57,723.05 8.01 12.49%

A 50 kilowatt hour system will provide for approximately 12,500 tonnes of CO2 offset over the life of the system

Total inclome based on the 50 kW / OPA 20 year contract: $1,154,461.08

100 kW Roofmount system RESOP F.I.T rate 71.3 cents / kWh (20 yr. Contract with OPA)



$8.59 $859,094.26 148761.00 $106,066.59 8.10 12.35%



250 kW Roofmount system RESOP F.I.T rate 63.5 cents / kWh (20 yr. Contract with OPA)



$8.34 $2,084,900.51 402500.00 $255,587.50 8.16 12.26%



Federal Capital Cost Allowance Acceleration

The Federal Capital Cost Allowance Acceleration (CCA)

The tax act includes Class 43.2, Schedule II that allows photovoltaic generating assetsto be written off at an accelerate rate of 50% per annum (declining balance calculationmethod), thereby serving to speed the time to photovoltaic project breakeven.

New Technology in Roof Top Efficiency

PRODUCT DESCRIPTION

DuROCK TIO-COAT is a bright white, polyurethane modified acrylic elastomeric coating.

It is developed for use over existing asphaltic roof coatings in residential, commercial and industrialapplications.

DuROCK TIO-COAT forms a protective barrier that expands and contracts with varying temperatures.

DuROCK TIO-COAT forms a weather resistant membrane that reflects the sun’s heat which reduces theinterior temperature of buildings.

The dirt pick-up resistance technology of the acrylic polymer enhances the reflective properties of themembrane.

DuROCK TIO-COAT is an easy to apply roof coating that offers years of durable protection.

BENEFITS OF ELASTOMERIC ROOF COATINGS

There are many benefits to using DuROCK TIO-COAT Elastomeric Roof Coating.

The product applies to a smooth, clean and uniform appearance.

It protects the roofing from UV degradation but most importantly it has high reflectivity for energy savings.

DuROCK TIO-COAT also has high adhesion to existing asphaltic roof coatings.

APPLICATION

Before application ensure surface is clean and free of debris, dirt, mildew, chalk and degradedroofing membrane.

The surface must be dry and free of all moisture. It is not recommended to thin product.

Do not apply when temperatures are below 7ºC (45ºF).

Do not apply when coating will be subjected to rain or heavy dew before it has had enough time todry.

Temperature and humidity conditions will affect drying time.

DuROCK TiOCoat Elastomeric Roof Coating can be applied by brush, roller or spray gun (confirmsprayer gun and tip size with DuROCK representative).

Apply coating uniformly ensuring entire surface is coated. Wait 12 hours before applying secondcoat.

DuROCK TiOCoat Elastomeric Roof Coating is available in 19L (5 gallon) pails.

The weight per pail is 24kg (53lb) covering approximately 350ft2 at a dry film thickness of 10 mil.

For the complete specification please consult your DuROCK representative.

www.powerauthority.on.ca

www.energy.gov.on.ca

More Information

Contact Us

Sandro Costa AVACOS Solar Energy

[email protected] (416) 302 5931

Steven CostaAVACOS Solar Energy

[email protected] (416) 567 2502

21 John Frank Road, Vaughan, ON, Canada L4L 0A5

www.AVACOS.ca

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