Making high-quality, high-power solar cells

and modules using U.S.-based technology at

affordable costs to address the world’s energy needs

THE GPASI: GOOD NEWS FOR THE COMMERCIAL PV MARKET FEB. 8 2013

2

SUNIVA IN GEORGIA: OVER 90 SITES & 7+MW INSTALLED

Suniva Executives at HQ with First Lady & Georgia Governor Nathan Deal

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TODAY’S SPEAKERS

• Anthony Coker – Suniva, Sr. Director, Business Development

• Ervan Hancock -- Georgia Power, Manager of Renewable & Green Strategies

• Doug Beebe – Key Equipment Finance, Vice President, Energy Finance

4

AGENDA

• GPASI Overview & Benefits for Commercial Customers, Anthony Coker

• In-depth review of Medium-Scale Solar Agreement & Process - Ervan Hancock

• Highlights of lease financing plan for GPASI commercial clients - Doug Beebe

SUNIVA OVERVIEW

Manufacturer of high-efficiency, crystalline silicon PV cells & modules

– High-Efficiency Cells: 19.2+% in production; over 20% in laboratory; roadmap to 22+% by 2014

– High-Power Modules: Up to 16+% in production; 60-cell modules up to 270W, 72-cell modules up to 315W

– Buy American Compliant Modules: one of the highest U.S.-content modules on the market

– Manufacturing Capacity: 170 MW in the U.S. and expanding in 2013; 500 MW in Asia

5

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SUNIVA INVESTOR BACKING

Suniva is led by a highly-successful leadership team and backed by quality investors

7

SUNIVA & GEORGIA TECH DEEP ROOTS

1985: PV Program

Established at Georgia Tech

1992: Dept. of Energy provided funding

1992: GA Tech

University Center of Excellence

(UCEP) Established

2007: Suniva Founded

Deep Roots with GA Tech, Continued Collaboration

Suniva has access to over $50M worth of advanced research equipment at UCEP/Georgia Tech

Suniva benefits from a budget of over $43M of PV-related research programs funded partly by the U.S. DOE

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SUNIVA & GEORGIA TECH DEEP ROOTS

90 kW rooftop installation on Georgia Tech’s Clough Center

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SUNIVA INNOVATION IN THE VALUE CHAIN

Silicon Ingot Wafer Systems Integrators

Cells Modules

Balance of System Solutions

Unique Partnerships

The solar cell is the “DNA” of

any PV system, and hence the

key driver of value

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CELL TECHNOLOGY ROADMAP

2008 We are here 2014

Eff

icie

ncy

< 6months Startup

Industry leading performance

2-bus bar cell design

Proprietary recipes

Process optimization

Material and equipment improvements

3-bus bar design

Advanced Metallization

Finer Gridlines

Higher efficiency at Lower Cost

Full Al BSF

N-type Select Plus

N-type substrate

Back contact eliminates all shading

Integrated front & back side enhancements

Simplified 12-step process

Proprietary >20% cell structure

Back side improvements

NREL certified over 20%

Proprietary Cell and Process

World’s First adopter of Implant

Front side emitter improvement

Process Simplification

ARTisun 18.0%

ARTisun 17%

ARTisun Select 19.0%

ARTisun Star 20% ARTisun

Select + 19.5%

ARTisun IBC

> 22%

Execution Optimization Innovation Simplification Collaboration

2008 We are here 2014

Listed with all leading international agencies Certification

In-house and third party validation Reliability

• UCL Extended Stress Test – Passed at Fraunhofer ISE

• Bankability Audit by Beck/SAIC – Passed

• IEC Salt Spray Extended Severity Level 6 – Passed

• PID free as tested at PV Evolution Labs

• PAN File verification at PV Evolution Labs

Verified by independent labs & field sites Energy Yield

• Long Term Field Performance Analysis at TUV – 100%

• Hundreds of installs, documented field performance and yields – out perform

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QUALITY & RELIABILITY TESTING MODULES ARE FIELD TESTED, CERTIFIED & HAVE PASSED THE HIGHEST LEVELS OF QA TESTING

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ORIGINALLY PROPOSED TO THE PSC

2013 2013 2015 2014

60MW

10MW

180 Utility + 30 Distributed = 210 MW Total

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THE FINAL ALLOTMENT

The Balance of Any Unused DG

120 Utility + 90 Distributed = 210 MW Total

A 3x Increase for Commercial Applications

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GPASI DETAILS

Georgia Power recently announced its new solar program called the Georgia Power Advanced Solar Initiative (ASI). As approved by the PSC, Georgia Power will purchase 210

MW of solar power via a Power Purchase Agreement (PPA) with:

• 45 MW of Distributed Generation (5MW expected to be provided to SP1)

• 60 MW of Utility Scale to be deployed in 2013 and 2014 The Initiative is divided into 3 categories: 1) Small Scale Solar (25% reserved of Distributed Generation)

A. Less than or equal to 100 kW B. FIT of $0.13/kWh, 100% sold to Georgia Power for 20 years C. Must be installed within 6 months of acceptance date

2) Medium Scale Solar (Distributed Generation) A. Greater than 100 kW and less than or equal to 1 MW B. $0.13/kWh or an escalating price schedule both over 20 years C. Collateral security required plus system design/layout

3) Utility Scale Solar A. Competitive RFP process B. Must not exceed $0.12/kWh

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THE ASI APPLICATION PROCESS:

Evaluation

• Deadline for application: March 1, 2013

• GP to train and register all applicants

• Applicants trained on software

Submission

• GP to review application package consisting of one-line diagram, textual description, and proof of fee payment

Awarding

• If more than 45 MW of applications received then GP to subject whole batch to a lottery

• Applications not picked in first 45 MW, to be listed in the order they were received

• Remaining sites that do not advance stay in the queue for 2014; no refunds given for sites unless the 90 MW is oversubscribed and applicant did not make the queue

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GPASI PROCESS TIMELINE

Participants’ Conference at Georgia Power

On-line Application Process Open

Notification of Completeness of Application

After Acceptance, Project Completion

Feb. 22

Mar. 1-14

15 Days

190 Days

Georgia Power's Renewable Strategy with Solar Power

Presented by Ervan Hancock

Renewable Development and Green Strategy Manager

Georgia Power Company

GEORGIA POWER COMPANY’S CIRCLE OF LIFE

CUSTOMERS

Constructive

Regulation

Healthy Capital

Spending

High Reliability

Low Prices

High Customer

Satisfaction

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GEORGIA POWER ADVANCED SOLAR INITIATIVE (210MW)

1. Distributed Solar Purchase Programs (45MW per year)

– Small Scale Purchase Program (<100kW)- Customer & Developer

– Medium Scale Purchase Program (100kW-1000kW)- Customer & Developer

2. Utility Scale Solar RFP Program (60MW per year)

– Projects selected through RFP with Independent Monitor (IM)

– Project sizes will range from 1MW-20MW

– No single project will exceed 20MW

3. Excess Capacity Rolled to 3rd Year

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DISTRIBUTED SOLAR PURCHASE PROGRAMS

Distributed Solar Purchase Programs

Small Scale Purchase Program (<100kW)

Program will begin 1st quarter 2013

Targeting up to 11MW annually to be allocated to projects <100kW

Must me developed at a GPC customer site

No single customer will exceed more than 20% of annual program capacity

Program will initially be offered to the SP-1(Green Energy Program) waiting list

Simplified interconnection agreement & metering costs

Purchase price will include solar avoided costs, capacity benefits along with

T&D savings 13cents/kwh

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Medium Scale Purchase (100kW-1000kW)

Program will begin 1st quarter 2013

Targeting up to 34MW annually to be allocated to medium sized projects

Pricing terms similar to Small Scale Program with two exceptions

– Fixed escalating and levelized pricing will be offered

– Additional security may be required

More detailed interconnection agreement & potential for additional metering costs

No single customer can have more than 20% of annual program capacity

Purchase price will include solar avoided costs, capacity benefits along with T&D savings

13cents/kwh 21

Distributed Solar Purchase Programs

TIMELINE 1. Filed Program with PSC September 26th

2. Received PSC Approval on November 20th

– Ongoing meetings with solar industry and PSC staff

3. Distributed Generation (DG) program to launch by March 2013

– Approach current customers on SP-1 waiting list

– Begin to receive and process project applications

– Notify applications no later than April 5th

4. Utility Scale RFP process to begin January 2013

– Expect power purchase agreements (PPA)s to be signed by September 2013

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RESULTS

Places Georgia as a national leader in solar development

– Develops the largest voluntary portfolio of solar photovoltaic in the country

Meets the needs of customers wishing to develop solar at their homes and businesses

Diversifies Georgia Power’s generation portfolio by adding cost-effective solar resources

Expands the Georgia solar industry by creating additional opportunities to develop projects in a responsible manner

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• Investing in Diversified Fuel Mix – Large Scale Solar – Biomass Potential

• Investing in Cost

Effective Energy Efficiency

• Adding Two Zero-Emission Nuclear Power Units – Vogtle Units 3 & 4

All Arrows in the Quiver

Classification - 25

How to finance your solar project

in Georgia

Doug Beebe Vice President, Energy

Finance

Key Equipment Finance (KEF)

• 100% owned by KeyCorp (NYSE: KEY)

• Among nation’s largest, well-capitalized banks

• Headquartered in Cleveland, OH

• Organized in Ohio in 1858

• Strong balance sheet; $89 Billion in assets

• Over 1,000 KeyBank branches in 14 states

• Corporate banking, finance and leasing across U.S.

• Over 15,000 employees

KEF leasing capabilities

• Customer receives the income from the Georgia Power

buyback program with a KEF lease

• Direct, full-recourse leases and loans

– Capital lease / Non-tax lease

Customer takes the tax benefits of 30% ITC and depreciation

Similar to a loan

– Operating lease / Tax lease

KEF takes the tax benefits of 30% ITC and depreciation

KEF uses the tax benefits to reduce the lease payment

– Loans

• 7 – 10-year terms

• Deal size: $250,000+, no maximum

• Construction financing available

Classification - 27

Capital/Non-tax Lease

• Similar cash flows to a loan

• Tax benefits

– Lessee (customer) takes ITC and Depreciation

– Customer tax appetite necessary

– Interest component of lease payments is considered an expense

• Georgia Power buyback income belongs to customer

• 100% financing of the equipment and installation

• Asset and liability recorded on customer’s balance sheet

• Customer owns the solar array at end of lease

Classification - 28

Operating/Tax Lease

• Tax implications

– Lessor (KEF) takes ITC and depreciation benefits

– KEF uses tax benefits to reduce lease payment

• Georgia Power buyback income belongs to customer

• 100% financing of equipment and installation

• Lease payments are considered an expense for tax purposes

• Asset and liability are recorded on Key’s balance sheet

• Three options for lessee at end of lease: 1. Renew/extend the lease

2. Purchase the equipment at fair market value

3. Remove the system and return to lessor (at lessee’s expense)

Classification - 29

Lease comparison

Classification - 30

Capital/ Non-tax Operating/Tax

Tax benefits Lessee KEF

Similar to Loan Long-term rental

GP buyback

income

Lessee Lessee

100% financing Yes Yes

Tax deduction Interest portion Lease payment

Balance sheet Lessee KEF

At lease

termination

Lessee owns,

clear title

3 options: 1. Renew

2. Return

3. FMV purchase

Benefits of lease vs. cash purchase

• KEF offers additional capital source, allowing company

to reserve cash for business operations

– Reinvestment into the company’s core business

– Higher rate of return

• Lower lease payments improve cash flow

• Accommodates specific tax and accounting needs

• Flexible end-of-term options

• Master Lease agreement expedites internal approval process

Classification - 31

Additional considerations

• Proven track record: KEF deals range from 70kW to 8MW

• Georgia Power buyback income flows directly to customer

• Fees for legal, appraisal, CPA certification, etc.

can be included in the amount financed

• Lease documentation simplified; primarily facilitated

by KEF in-house specialists

• Relationships developed for all external professional services

• Funded from KeyCorp balance sheet

Classification - 32

How to finance your solar project

• Solar installer contacts KEF with project details

• Customer provides 3 years financial statements to KEF

• KEF prepares solar lease proposal and cash flow analysis

• Customer accepts lease proposal

• KEF credit team reviews transaction

• If approved, KEF sends lease documents

• Sign lease documents and return to KEF

• KEF provides finance during project construction

• Solar project completed, KEF funds the solar integrator

• KEF starts the lease

Classification - 33

Classification - 34

Doug Beebe

Key Equipment Finance

720-304-1410

douglas_beebe@Key.com