the ladwp fit50: going solar with a world-class...

THE LADWP FiT50:

Going Solar with a World-Class Partnership

August 2014

Executive summary

� LADWP has chosen SunEdison and PermaCity to develop solar installations on 4

mmsf of rooftops in the Los Angeles basin through the FiT50 Program. We are

identifying and selecting sites on a first-come first-serve basis for this limited program

and are looking to worth with both property owners and other solar developers.

� PermaCity and SunEdison represent a world-class partnership, which combines local

solar construction expertise and breakthrough installation technology with global

leadership in solar financing and operations.

� Solar installations create additional cash flows to property owners, resulting in

significant increases in property value at zero cost.

� Participation in the FiT50 has a significantly higher expected value for solar

developers than the FiT100

� PermaCity’s breakthrough patent-pending SolarStrap technology is the only racking

system that completely removes common concerns associated with rooftop solar

installation due to the elimination of penetrations and bulky ballasts.

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� PermaCity & Sun Edison Overview

� Opportunity for Owners

� Opportunity for Developers

� Unique Technology

Agenda

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US leader in solar energy design

and construction

Global leader in solar energy development

and financing

� Formed in 2003 � Founded 1959

� Listed by Solar World Today as one of the nation’s

Top Solar Contractors

� Publicly traded (NYSE: SUNE) with >$5B raised

� Completed 30 MWs of rooftop installations (~4.5

mmsf)

� #1 solar developer in the world based on total

MWs installed (2012)

� Patented SolarStrap mounting system with world

distribution in 2014

� High quality solar module and equipment

manufacturer

� Dedicated Los-Angeles based team of 20 solar

professionals

� 6,000 employees in 25 global locations

� 1.5GWs developed, financed and under

management

The SunEdison and PermaCity partnership represents a strong global track record and local expertise

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Our customers include:

We have built over 30 Costco locations

nationwide totaling ~20 MWs (3 mmsf).

The 432.5 kW Cathay Bank carport was the winner of

LA Business Council’s Sustainable Architecture Award

in 2011.

PermaCity is the trusted solar provider for local schools and multinational corporations

Source: IHS Research

2012 Global Solar installations

MWs

200

250

300300324

350360380

450

498

SunPower

Corporation

Enerparc BELECTRIC GD Solar TBEA Sun

Oasis

First Solar SunEdison China Power

Investment

Corporation

Jiangsu

Zhenfa New

Energy

L&T ECC

Solar

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Sun Edison is one of the largest solar companies in the world

Utsunomiya, Japan

St. Peters, Missouri

Novara, Italy

Hsinchu, Taiwan

Chonan, South KoreaPortland, Oregon

Manufacturing Facilities Sales & Support Offices SunEdison Offices

Belmont , California

Beltsville, Maryland

Athens, Greece

Bangkok, Thailand

Barcelona, Spain

Chennai, India

Denver, Colorado

Dubai, U.A.E.

Lecce, Italy

Madrid, Spain

Milan, Italy

Minden, Nevada

Pennsauken, New Jersey

Portland, Oregon

Prescott, Arizona

Recife, Brazil

Sacramento, Califormia

Chonan, South Korea

Hsinchu, Taiwan

Ipoh, Malaysia

Kuala Lumpur, Malaysia

Kuching, Malaysia

Novara, Italy

Pasadena, Texas

Portland, Oregon


Utsunomiya, Japan

Hsinchu, Taiwan

Novara, Italy

Paris, France

Shanghai, China

Santa Clara, California

Sherman, Texas

Singapore

Seoul, South Korea


Tokyo, Japan

Ipoh, Malaysia

Pasadena, Texas*

Kuala Lumpur, Malaysia

Kuching, Malaysia

San Francisco, California

San Juan, Puerto Rico

Sao Paulo, Brazil

Santiago, Chile

Seoul, South Korea

Shanghai, China

Singapore

Tokyo, Japan

Toronto, Canada

* Indicated locations are Polysilicon manufacturing facilities

SunEdison has a true global presence

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SunEdison has worked with Fortune 100 companies and large governmental organizations

Utility

REITs / Developers

Public Sector

Commercial

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Agenda

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Why participate in the solar evolution

� Unlock additional cash flows for power generated on

under-utilized rooftops

� Reduce HVAC costs (solar installations reduce indoor

temperatures by up to 5°)

Increase bottom line

� SolarStrap technology strengthens existing

infrastructure without penetrations or ballast

� Solar panels add a protective layer to your roof

Improve your roof

� Solar panels generate green power from the planet’s

most reliable and safest energy source—the sunProduce clean energy

� Tenants and consumers increasingly value

environmentally-friendly and sustainable business

practicesGenerate positive PR

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Is the FiT50 program right for you?

� Owner has low (e.g., house meter only) or no

electricity bills to offset

If owner pays electricity bills for property,

then a net metering system is likely a more

valuable option

� Usable rooftop square footage of at least

50,000 sf per site

Clean rooftops with minimal skylights, HVAC,

etc. and minimal shading from billboards,

trees, etc.,

� Ability to encumber rooftop for 20 years

Ideal Property

Characteristics

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In exchange for access to your roof, PermaCity offers a variety of options that create value

Annual lease payments Payments based on power sales generated by solar system;

owner captures additional savings (e.g., HVAC electric reduction,

decreased roof repair and maintenance)

Upfront lump sum Equivalent to present value of cumulative lease payments

Roof Replacement New roof with 20-year NDL warranty; reduce operating costs from avoided

roof repairs

Net Metering Solar

Installation

Eliminate common area electric costs

Energy Efficiency Upgrades Reduce electric costs

Building Control Systems Reduce electric costs and utility demand charges

Payments or equivalent products will increase property values.

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This property owner would receive a $210,000 annual lease payment or a $2.1mm

upfront payment, as well as additional savings from reduced HVAC expenses.

Example: 7 MW system (1 mmsf) on large distribution center

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This owner saved $300,000 on a new roof and will save $2mm over 25 years due to

reduced roof maintenance, reduced HVAC expenses and lower power consumption

as a result of lighting and building control upgrades.

Example: 1 MW installation on 120,000 sf cold storage facility

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Agenda

Opportunity for developers

� PermaCity is looking to collaborate with other local solar developers to fulfill

its 22 MWac obligation under the FiT50 program

� Unlike the FiT100 where project selection is subject to a lottery with a 20-

30% chance of success, PermaCity will place projects on a first-come first-

serve basis.

� We intend to pay a developer fee of at least 10c/Wdc, however, this number

may increase or decrease depending on certain key variables, such as lease

rate, yield, system size, etc. (i.e., the more valuable the project, the higher

the developer fee). We are also open to working with developers on a full

turnkey EPC basis.

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Agenda

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� No roof penetrations

� Straps floats over roof without bulky ballasts

� Panel array weight under 3 psf

� Spacing efficiency with integrated setback

adjustments

� Suitable for roof slope range from 0° to 20°

� Pre-approved in the City of LA

� Patents pending

SolarStrap is the only risk-free solution for property owners

� At over 5 MW, it is largest rooftop

solar installation in Los Angeles

� First and only location in LA to

leverage LADWP’s net metering and

feed-in-tariff programs, which

provides both income and savings

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� First installation that uses SolarStrap –avoided ~18,000 penetrations

� Installation includes new roof with 20-year NDL warranty

� “Cool roof” captures additional savings by reducing HVAC costs

Forever 21 is a landmark installation

Thank You!

Please do not hesitate to contact us:Saritha Peruri, EVP Finance

[email protected]

Herb Mendelsohn, EVP Sales & Marketing

[email protected]

John Mason, Technical Sales Analyst

[email protected]

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