R. Michael MartinExecutive Vice President Development, Principal Solar, Inc.

R. Michael Martin, a long-time and passionate supporter of renewable energy and sustainability practices, leads PSI’s overall business growth strategy and execution including project acquisitions and partnerships. Michael has over 20 years experience in the information technology industry in diverse business development roles. During his successful career in technology, Michael consistently provided high-value solutions to large enterprises for strategic aspects of their operations. A key to Michael's success has been creative problem-solving with senior management of large corporate customers.Michael most recently led the sales efforts of Aquire's strategic workforce planning solutions. Previously, he led i2 Technologies' largest strategic partnerships, such as the global IBM alliance, which spearheaded the company's dramatic growth. Additionally, Michael worked in the systems integration and consulting field primarily with SHL Systemhouse (now a part of HP/EDS) and as a sales leader at Unisys Corporation.Michael earned his B.B.A. in International Business from The University of Texas at Austin, which included a year of study at the Université de Paris. When he's not passionately promoting solar, Michael is busy with his family, cycling, traveling, fund raising and a variety of social business and community projects.

Speaker Biography

1

Acquire, Develop & Operate solar production capacity

- Distributed Generation and Utility Scale - with the aim of building

the most valuable asset base in solar.

Creating the world’s first distributed solar utility

Principal Solar Business Model

Sample $100,000,000 Acquisition (tax equity flip)

• 55% Tax Equity = $55,000,000. Tax Equity investor earns 10% IRR (ITC + MACRS + Cash Flow). Investor exits the project after 6 years. Non-dilutive to PSI shareholders

• 5% PSI Shareholder Equity = $5,000,000

• 40% Debt = $40,000,000. PPA income will service the P&I.

In this example, $5,000,000 shareholder (dilutive) investment, yields $60,000,000 in assets to the shareholder.

For illustration only; not actual projections or forecast

Sample Deal Model

Developer• With track record of completed projects• Who does not own long-term• Who will take a small stake in the project• With whom we can do repeat transactions• With a creative, flexible, get-it-done culture

Project• Utility or large-scale commercial/industrial• Has PPA with investment grade off-taker• Has Interconnect Agreement, Site Control• >$15M total capital

•Investors

Partner / Project Profile

Source: From PSI’s network of solar professionals, introduction to Vis SolisProcess

• Company, personnel introductions• Preliminary project review and valuation• Term sheet for exclusive period• Due Diligence – financial, technical, legal, site; data room• Capital raise• Purchase Agreement• Operations & Maintenance Agreement (O&M)

Now• Operating above projected output• Profitable

Powerhouse One Deal

Ken AllenChief Operating Officer, Principal Solar, Inc.Kenneth G. Allen brings a wealth of knowledge to Principal Solar from his experience as team leader in Administration and Engineering at Texas Utilities, at Texas Independent Energy and from Principal Solar Inc. Kenneth spent 30 years as a manager at TXU Energy, one of the nation's largest electricity generation companies. During that term, Kenneth oversaw construction of several gigawatts of generation. After leaving TXU, Kenneth joined Texas Independent Energy, an entrepreneurial startup, where he spent nine years managing gas-fired facilities and selling electricity to the Electric Reliability Council of Texas. Following this experience Kenneth joined Principal Solar Inc. as the Chief Operating Officer. He developed a conceptual design for a 1 gigawatt PV Solar Power Plant and later performed the research and development to acquire data and assisted with implementing a PV Module Rating System for the solar industry.Kenneth draws on his experience chairing Safety Committee upgrades and ensuring compliance with government and state regulatory agencies; developing a safety handbook; and implementing protection measures to meet regulatory requirements. Additionally, Kenneth is an experienced director of accounting and administrative review teams to streamline procedures, accounting, policies and procedures, and methods of purchasing and distributing materials. Kenneth earned his B.S. in Electrical Engineering from New Mexico State University

Speaker Biography

• Pictures and visit to become familiar with site and equipment conditions • Site visit to meet co-owners and team for Powerhouse One in Fayetteville, Tennessee

Tim Hayes and Barry Brown

Items of Interest Prior to Purchasing an Operating Project

PV Modules, Inverter and Monitoring System Familiarity and Evaluation

Equipment Condition

• Air Filters were being maintained and equipment was clean

• Good road access to the projects

• Security fencing was in good condition

• Fence lighting was in place and working

Items of Interest Prior to Purchasing an Operating Project

PV Modules, Inverter and Monitoring System Familiarity and Evaluation

• Each location has a reference cell

• All PV modules had the same manufacturer and model number

• Foundations Support hardware and racking looked good

• Drainage

Items of Interest Prior to Purchasing an Operating Project

Powerhouse One Site

Solar Output By Hour

• With Permission from Owner, Log On To Monitoring System Daily

and Review Data

• Evaluate Operational Statistics

• Become Familiar with Coordination of Responsibility

• Alarm Management and Response

• Energy Loss Management

After a Relationship is Establishedand With Owner’s Permission

• Communications Protocol With Support Team

• Weekly O&M Meetings, Alarm Response, Lost Energy Tracking,

Maintenance, Documentation

• Agenda PH1 Dec 20, 2013

• Analyze Causes of Lost Generation

• Inverter Shutdowns

• Grid Instability

• Inverter Grid Ride-Through-Capability

• Remote Inverter Restarts

• Output Breakers (400 A) Too Small Needing Replaced with (500 A)

After Purchase

• Inverter D Indicating a Power Output Dipping at the Same Time Each Day / Clock 12 Hrs Off • Shade Lost Energy ($30K/Yr) / Tree Trimming South East (25%) and South West (50%)

• Inverter D Array Faults to Ground Delaying Startups / Faulted Home Run Cable from Array to Inverter

Miscellaneous Operating Issue Costs

• Paying Bills / Local Bank

• Updating of O&M Logs

• Continuous Monitoring of Alarms

• Training to Understand Alarms and Scan Rate

• Inverter Energy Comparison / 2 hour Integration and 10% deviation to 1 hour and 15% deviation

• Irradiance verses Power Output / 1 hour integration and 10% deviation

• Response time to Alarms

• Missing Data from Meteocontrol Monitoring

Administrative Issues

• Local Utility / Fayetteville Public Utility

• Waste Management

• Fire Department Location, Response Time and Solar Training

• Water Supply Location

• Computer Internet and Telephone Provider

• DAS/DCS Performance Support Contractor

• Security Contractor / Sheriff

• Engineering Contractor

• Environmental Health and Safety Contractor

Local Resources

Preventive Maintenance Program

Preventive Maintenance Schedule for PH1 11.13.13

O & M Program

Ref. Equipment Time Interval Description of Maintenance Month1.1 Measuring Instruments Annually Calibrate KWH Meters (4)

Pyranometer @ Weather station (1)Radiation Measurement Cells (2)

April

1.22.1

Electrical 6 month Visual Inspect for Defects, Rust Corrosion & Dirt, Repair as Needed: PV Modules InvertersCombiner Boxes & Terminations Wiring , Cable, Insul. & Terminations Power Center Breakers Transformers Gates Operator, Lighting

June / Dec

1.32.3

Inverters Annually Maintenance See Page 6-1 through 6-10 of Users Manual

Dec

1.4 Substructure Annually Test Torque on 30% Racking Fasteners

Dec

1.5 Security Fencing 6 month Visual for Damage & Fasteners Failing June/Dec

2.2 Grounds As Needed Visual Vegetation Interference, mow as needed

As Needed

2.3 Thermal Scan Annually IR Scan all Electrical Equipment July

• Average Performance Ratio +4%

• Production +18% (539 KWH/KWP to 636 KWH/KWP)

• Days Below 90% 7 to 3 (2 caused by tornado in 2014)

• Lost Energy 40MWH to 14MWH (10MWH - Tornado 2014)

Performance Improvements 2013 to 2014

Barry BrownPartner, Brown ConstructionBarry Brown was the originator in obtaining successful contracts with TVA and is the land owner of Lincoln Farms I – IV, where the 3 MW Powerhouse One solar project is located.Barry began his career as a telecommunication technical manager, lasting over 25 years. He resumed his current business from his father in 1997, growing the company into several areas of general contracting, including pv solar installation. Some of the larger projects include the installation and completion of a 10MW system for VW of Chattanooga, TN; 4-ea 750kW farms in Lincoln Co., TN and 8-ea 200kW farms in Fayetteville, TN. He provides the Operations and Maintenance on all the Lincoln County and Fayetteville systems.Barry owns and operates an equine facility; breeding and selling registered Quarter horses and warm blood completion horses, hosting monthly Dressage and Hunter/Jumper shows and Cross Country events throughout the year.Barry is an avid car collector, primarily muscle cars. He owns a vast collection of different models, keeping a vigilant eye out to add his collection. He enjoys collecting classic cars and spending time with his family: wife Phyllis; 5 children.

Speaker Biography

Ken AllenChief Operating OfficerPrincipal Solar, Inc.ken.allen@principalsolar.com

Please enter your questions in the chat window

Michael MartinEVP, Business DevelopmentPrincipal Solar, Inc.michael.martin@principalsolar.com

Question and Answer…

Barry BrownPartnerBrown Constructionbbrown@billbrownconstruction.com

Tim HayesChief Operating OfficerVis Solisth@vis-solis.com