ENMAX Solar – Brazeau County Solar Education Event

Jason Atkinson,Director, Solar Operation

CONFIDENTIAL – Not for Circulation

March 11, 2019

ENMAX Overview

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ALBERTA’S GREAT SOLAR RESOURCE

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Source: Photovoltaic and solar resource maps - NRCANSource: PVWATTs, NREL (Assumptions: 0.77 Derate factor, Array Azimuth = 180 deg., Tilt = Latitude)

ENMAX Solar 2007 – Technology Evaluation 2008 – Product Development 2009 – Pilot Program 2010 – CCEMC Fund ($14.5 MM) 2011 – Residential Solar PV 2013 – Residential Solar PV 2.0 2014 – Commercial Solar PV 2016 – Irrigation Pivot Application 2017 –10 MW Solar PV Milestone 2018 – Largest Roof Top Solar PV

in Canada

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ALBERTAMICRO-GENERATION Regulation (MGR)

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Alberta’s MGR sets up rules called “Net Billing”

Net import (charge) and net export (credit) shown as separate sections on electricity bill

Provincial Solar PV Incentives

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Municipal Solar PV Incentives

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Tax Treatment Updates

8 Source: https://budget.gc.ca/fes-eea/2018/docs/speech-discours/2018-11-21-en.html

Delivery Saving Examples (Fortis, Jan 1, 2019)

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Rate Class Service Total Tariff

11 Residential Service 6.2990¢/kWh

21 Farm Service 4.144¢/kWh

23 Grain Drying Service 5.9837¢/kWh

24 REA Farm Service 3.992¢/kWh

26 Irrigation Service 7.7145¢/kWh

29 REA Irrigation Service 3.992¢/kWh

61 General Service (Commercial) 0.5759¢/kWh

Source: https://www.fortisalberta.com/

Fortis Delivery Tariff Trends

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0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

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Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Fortis Tariff

Residential Farm Irrigation Small General Service

9.8%/Year

8.2%/Year

10.6%/Year

6.9%/Year

Source: https://www.fortisalberta.com/

Case Study – Residential (Lease)

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System Size: 10.8 kW Production: 11,450 kWh/Year

Purchase Price: $26,744 EEA Solar Incentive: $9,361 Brazeau County MEER: $9,361 Upfront Payment: $17,830 Net Upfront Payment: $ - Amortized Amount: $8,914 Monthly Payment: $46.47 APR: 1% End of Term Payment: $1,337

Solar Electricity Price: 0.049/kWh Potential Saving: $159/Year 1

1. Assuming 34% solar production consumed on site.

Case Study – Farm (Financing)

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System Size: 13.9 kW Production: 17,609 kWh/Year Purchase Price: $40,833 EEA Solar Incentive: $10,395 Brazeau County MEER: $10,000 Upfront Payment: $20,395 Net Upfront Payment: $ - Amortized Amount: $20,438 Monthly Payment: $138.69 APR: 2.75%

Solar Electricity Price: 0.095/kWh Roughly Breakeven First Year

1. Assuming 60% solar production consumed on site.

Solar Module Recycle

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All solar module components can be recycled

Solar modules in Canada won’t become obsolete at least another two decades

EU already set up a process that Canada can easily follow

For more information see http://www.pvcycle.org/

Next Steps

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Sign up for a solar quote Determine your annual

electricity consumption System will be sized to your

homes annual electricity needs

Accept proposed system Enmax and its Dealer will

submit grant applications Enmax and its Dealer will pull

the applicable permit & submit the Micro-gen application

Once approved we start work No capital investment

required by the customer

Recently Completed Agriculture Solar PV Projects

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TG Hopkins Farm, 37 kW

Kolan Farms, 41 kW

Blue Grass Nursery, 112 kW

Ebel’s Desert Hill Farm, 166 kW

Brazeau County Solar Project Financial Summary

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Total KW's 83.7 9.3 161.2 25.42 279.62Actual NumbersCOST: Cold Storage LODGEPOLE ADMIN BLDG RRWTP TOTALS50% Upfront 88,591.47$ 11,715.28$ 148,970.37$ 29,349.30$ 278,626.42$ Lease Payments & End Term Buyout 100,306.35$ 13,264.45$ 168,669.45$ 33,230.30$ 315,470.55$ CCEMC Funding (Grant To Enmax)* 41,225.01$ 3,817.97$ $88,082.22 11,371.63$ 144,496.83$ TOTAL PROJECT COST 230,122.83$ 28,797.70$ 405,722.04$ 73,951.23$ 738,593.81$ Actual Cost/Invested 188,897.82$ 24,979.73$ 317,639.82$ 62,579.60$ 594,096.98$ *CCEMC - Climate Change and Emmissions Management Corporation

FUNDING SUMMARY:Alternative Energy Rest. Surp. $88,591.47 $11,715.28 $148,970.37 $29,349.30 $278,626.42Grant - Directly to Enmax $41,225.01 $3,817.97 $88,082.22 $11,371.63 $144,496.83Borrowing (Lease) - 15 year repayment Alternative Energy Rest. Surp. $100,306.35 $13,264.45 $168,669.45 $33,230.30 $315,470.55TOTAL FUNDING $230,122.83 $28,797.70 $405,722.04 $73,951.23 $738,593.81

SOLAR PANEL COST/FUNDING SUMMARY

CCEMC Funding helped the County lower the project costs

CCEMC Funding Projects

MCCAC Funding ProjectTotal KW's 38.1

Actual NumbersCOST: Breton FirehallUpfront 52,305.00$ Deferred Payment Purchase Repayment 38,961.00$ TOTAL PROJECT COST 91,266.00$ MCCAC Funding (Grant To Brazeau County) 21,794.00$ Actual Cost/Invested 69,472.00$

FUNDING SUMMARY:Alternative Energy Rest. Surp. $30,511.00Grant - Directly to Brazeau County $21,794.00Borrowing (DPP) - 15 year repayment Alternative Energy Rest. Surp. $38,961.00TOTAL FUNDING $91,266.00

MCCAC Funding helped the County lower the project costs

QUESTIONS?

Jason Atkinson Director, Solar OperationENMAX Power Service Corp.(403) 514 2709jatkinson@enmax.com

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