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Meet Your Installer Night

Presented by: Massachusetts Clean Energy Center

June 27, 2013

2

Agenda

• Recap of Solar 101

• Overview of Solarize Mass

• Getting Started

3

MassCEC Statutory Mandate

Advance Clean Energy Technology

Create Jobs

Develop a Trained Workforce

Accelerate Deployment of Clean Energy

4

Solar Photovoltaic (PV) Basics

2 – 6 per year

COAL 1,8

Uranium 1,9

900 Total reserve

90-300 Total

Petroleum 1,8

240 total

Natural Gas 1,8

215 total

WIND1,2

Waves1,3

0.2-2

25-70 per year

OTEC1,4

Biomass 1,5

3 -11 per year

HYDRO 1,6

3 – 4 per year

TIDES 1 Geothermal1,7 0.3 – 2 per year

0.3 per year

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FINITE ENERGY RESERVES

RENEWABLES

ANWR

© R. Perez et al.

World energy use 16 TW-yr per year ~ 475 exajoules ~ 460 Quads

2 – 6 per year World energy use 16 TW-yr per year

COAL 1,8

Uranium 1,9

900 Total reserve

90-300 Total

Petroleum 1,8

240 total

Natural Gas 1,8

215 total

WIND1,2

Waves1,3

0.2-2

25-70 per year

OTEC1,4

Biomass 1,5

3 -11 per year

HYDRO 1,6

3 – 4 per year

TIDES 1

SOLAR10

23,000 per year

Geothermal1,7 0.3 – 2 per year

© R. Perez et al.

0.3 per year

ANWR

COAL 1,8

Uranium 1,9

7

Is There Enough Sun In MA?

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Massachusetts Residential Electricity Prices

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2011 Avg Residential Electricity Prices (cents per kWh)

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Residential Electricity Rates MA

US

Sources: EIA 2011 Data

MA homeowners had the 10th highest average electricity prices in 2011.

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Residential Project Trends

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High electricity prices + Reduced Solar PV Costs + Numerous Incentives = Economical solar projects

Solar Incentives in Massachusetts

Incentives

Tax Incentives: Federal (30%)

State (15% up to $1,000)

Rebates from MassCEC: Typically $2k - $4k

Net Metering

SREC Sales

Low/No money down options www.house-power.com/blog/wp-content/uploads/2009/12/iStock_000009001180XSmall.jpg

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• Quarterly funding blocks

• $1.5 million available

• Residential, commercial, non-profit & public solar PV systems ≤ 15 kW

• Rebate capped at 5 kW

• Rebate ranges from $2,000 to $4,250 for 5kW system

• Rebate covers ~7% of Installed Cost

Commonwealth Solar II Rebate Program

Block 14 Rebate Levels ($ per watt (DC @ STC))

Base Incentive $0.40

PLUS:

Massachusetts Company Component Adder $0.05

Moderate Home Value Adder OR Moderate Income Adder ≤ 120% of MA median income (only residential projects eligible)

$0.40

Natural Disaster Relief Adder $1.00

Go to www.MassCEC.com/commsolar to learn more.

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• Experienced Installer

• Minimum Technical Requirements – Equipment must meet certain standards

– Required warranties • Panels have 20 year production warranty

• Inverters have 10 year warranties

• 5 year workmanship warranty

– 80% of optimal system production

MassCEC Rebate Program (cont.)

15

Solar Renewable Energy Certificates (SRECs)

Electricity Pathway • Electrons from all generation sources are physically the same • Cannot be tracked independently on the grid

SRECs Pathway • SRECs represent the “green” attributes of the renewable generation source

• Utilities are required to purchase SRECs every year • 1 SREC = 1,000 kWh • Verified SRECs ensure that only one buyer can claim each SREC

Electricity and SRECs can be, and often are, sold

separately

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Note on SRECs

• DOER is extending current SREC program

• Developing the next generation program

• Clear support from state to continue supporting solar PV projects – Governor has a new goal of 1.6 GW of solar by

2020

• MassCEC and DOER will provide ongoing updates on the status of a new program

17

Goals of Solarize Mass

• Increase education through community outreach

• Introduce model to simplify process

• Reduce time to contract

• Reduce installation costs

Equipment Costs

“Soft” Costs

Sales

Installation

State Average

Equipment Costs

“Soft” Costs

Installation

Solarize Mass

Drive down the cost stack

MassCEC/DOER Town and Installer RFPs

Engage tech. consultants

Marketing/Education

System Rebates/SRECs

Installer Free Site Assessments

Tiered Pricing and Ownership Options

Contracting

Rebate Application

Installation

Homeowner Sign up for a site

assessment

Talk to neighbors!

Community Installer Selection

Solar Coach

Volunteers

Outreach

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2013 Solarize Massachusetts Basics

• 10 Communities this round

• Competitive Installer selection

• Tier Pricing (based on contracted capacity)

• Limited time offer – Contract through Sept 30, 2013

kW Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

1 -25 >25 -50 >50 -100 >100 -200 200+

Chelmsford and Newton received 4 Proposals Diverse evaluation criteria

Average installed price at beginning of program: $4.85/watt SolarFlair Tier 1 Ownership price = 24% savings* SolarFlair Tier 5 Ownership price = 35% savings* Offer a PPA model as well

* Assumes base price and no cost adders

Installer Selection Process

Price and reduction Customer service

Ability to serve community Experience of team

Quality of equipment PPA and Ownership Offering

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2013 Solarize Mass Starting Line

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Residential Scale Projects (as of 4/30/13)

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• Newton already has more than 80 people express interest in the program

• Contacts provided to SolarFlair

– Will follow up to discuss site feasibility

Is There Interest In My Community?

www.flickr.com/photos/lumaxart

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Next Steps • Sign up for email updates and a free solar site

assessment • Sign up for a free energy audit with Mass Save

www.MassSave.com • Consider other options if solar PV is not feasible

• Tell your friends and neighbors!

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Thank you! www.SolarizeMass.com

(617) 315-9306 MassCEC: solarize@MassCEC.com

Or

Newton Solar Coach:

SolarizeNewton@gmail.com

SolarFlair Energy, Inc. Solar 101 Presentation-Continued

Agenda/ Overview • Tiered Pricing Structure • Purchase the system vs Power Purchase Agreement • Product Offerings Overview

Continuation of CEC Presentation: System

Financials

• Company history and mission statement • Past Solarize Experience • Key Contacts About SolarFlair Energy, Inc.

• Sign up for a Site Assessment! • Sign up for a Mass Save Home Energy Audit! • Spread the Word! Next Steps

System Financials: Tiered Pricing Structure Tiers 1kW-25kW >25kW-50kW >50kW-100kW >100kW-200kW 200kW+

Purchased Price ($/W) $3.69 $3.59 $3.49 $3.34 $3.14

Lease/PPA Price ($/kWh) Lease/PPA Price (at 90% optimal):_$.104___ Escalator (%):__2.9%__

Lease/PPA Incentive N/A -$0.012 -$0.02 -$0.03 -$0.045

Details on Lease/PPA Pricing Model

PPA prices above are based on a 20 year agreement, 180 degree azimuth and 42 degree tilt, SRECS at $.285/KWh for 10 years. Possible escalators available are 0%, 1.5%, and 2.9%. PPA pricing is based on above Tiered pricing only and does not include any adders.

System Financials: Ownership Model 5kW Canadian Solar System @ Tier 5 $15,700 Adder: Structural Engineering Analysis $500

Adder: Microinverters & Monitoring System

$1,300

System Gross Cost $17,500 Commonwealth Solar II Base Incentive ($2000)

State Income Tax Credit ($1000) Federal Income Tax Credit (30%) ($4,650)

Net Cost after Incentives $9,850 Annual Electricity Bill Savings (87%

offset) ($1000)

Annual SREC Revenue ($285/SREC) ($1700) Estimated Payback Period 3-4 Years

Lifetime Savings >$50,000

System Financials: Power Purchase Agreement System Price $17,500

$/kWh $0.109

Initial Payment $0

Pre-Solar Monthly Cost $102

Post-Solar Monthly Cost $75

Monthly Savings $27

Payback < 1 Year

Lifetime Savings $23,585

System Financials: Power Purchase Agreement- Details 20 Year Service Agreement Easily Transferrable to new homeowner (Penalties if new homeowner doesn’t want service) Customer can buy out the agreement after year 5 Maximum system size= 15kW Customer must have FICO score >700 Rate can have escalators up to 2.9% Customer can make a down payment to bring the overall rate down.

Increased Pricing Factors (Adders) Site Specific: Multiple roof arrays Tilt racking Flat roof Pole or ground mounted

system Tree removal Steep/Tall Roof Structural Engineers Analysis Reinforcing rafters Line side tap Electrical panel upgrade Electrical sub-panel Meter Upgrade/Change Interior Conduit Run

System Upgrades:

Monitoring Extended Warranty Maintenance Micro-inverters Automated SREC Reporting All Black Canadian Modules Suniva Solar Panels SunPower 327W Modules

Product Offerings Overview- Solar Panels

250 Watts 250 Watts 327 Watts

Product Offering Overview: Inverters

Product Offerings Overview: Warranties Modules: 25 Years Solectria Central Inverter: 10 Years Inverter lifespan: 15 Years Inverter replacement cost: $1,000-$4,000 EnPhase Micro-Inverter: 25 Years

SolarFlair Workmanship Warranty : 10 Years Expected System Life: 25+ years

NO Maintenance!

About SolarFlair Energy, Inc: Mission Statement SolarFlair Energy, Inc. was founded with a mission to deliver

cost effective clean energy solutions to residential and commercial clients in Massachusetts.

Our Mission at SolarFlair Energy Inc. is to: Empower individuals to make a switch to clean energy for powering their home, business, or

institution Reduce our dependence on carbon based fuels such as oil and coal. Accelerate the transition to clean energy technologies so as to minimize the impacts on the global

economy Reduce the effects of global climate change Provide an opportunity for individuals (employees and customers) that are passionate about these

issues to make a tangible impact on the energy usage of the communities in which we live.

About SolarFlair Energy, Inc: Continued Founded in Hopkinton, MA in 2006 by Locally Owned by Matt Arner and his Wife, Mini ( No outside investors) Located in Framingham, MA Completed over 250 Installations in the state Over 35 Employees and growing! Selected installer during Solarize Mass 2012 for Arlington, Hopkinton and Mendon Contracted over250 Installations between all three towns during the program

Key SolarFlair Personnel Matt Arner- Owner and President Dan Greenwood- Vice President of Sales Jeff Constantine- Vice President of Operations Steve Coffrin- Engineering Manager Steven Constantine- Outside Superintendent Garrett Sprague- Solarize Newton Program Manager Ivy Milsna- Solarize Newton Residential Sales Associate James Rose-Intern Solarize Newton

Why SolarFlair? Locally owned and operated We DON’T SUBCONTRACT our work Licensed electrician foreman for EVERY project 3 NABCEP Certified PV Installers LEED AP Construction Supervisors License, HIC License, Fully Insured Very well respected & experienced

Next Steps Step 1: Contact SolarFlair for a FREE site Assessment- visit: www.solarflair.com Call the Solarize Newton Office at: 508-808-4206 Or send an email to: solarizenewton@solarflair.com Step 2: Contact Mass Save for a FREE Home Energy Audit www.masssave.com Step 3: Sign a Contract by 9/30/13 Step 4: Installation After Comm Solar II rebate and permit approval Step 5: START SAVING!