1.  PACE & RECAP: Financing Renewable Energy Michelle Hickey, ISEA Program Coordinator Illinois Solar Energy Association 1

2. Economics of Solar - PACE & RECAP 7/15/2010Illinois Solar Energy Association 2 In the first year net REVENUE of $919.44

3. What is PACE? Property Assessed Clean Energy Enables local governments to finance renewable energy and energy efficiency projects on private property. Property Assessed Clean Energy Enables local governments to finance renewable energy and energy efficiency projects on private property. Illinois Solar Energy Association 3

4. How PACE Works Illinois Solar Energy Association 4 Local Agency (City or County) Property Owner (Residential, Commercial, Industrial) Provides upfront Project $$ through Bond Issuance Loan paid on Property Tax Bill

5. Property Owner Benefits Eliminates upfront costs Payments tied to property, not owner Save $ on energy bills Interest portion of annual repayment is tax deductible 20-year financing term matches payback Eliminates upfront costs Payments tied to property, not owner Save $ on energy bills Interest portion of annual repayment is tax deductible 20-year financing term matches payback Illinois Solar Energy Association 5

6. City/County Benefits JOB CREATION Meet climate and renewable energy goals No debt or credit risk Saves money for residents 100% opt-in program with no costs to non- participating property owners JOB CREATION Meet climate and renewable energy goals No debt or credit risk Saves money for residents 100% opt-in program with no costs to non- participating property owners Illinois Solar Energy Association 6

7. Installer Benefits JOB CREATION Eliminates #1 Barrier to Sales – Upfront cost Close more sales Reduces focus on ROI JOB CREATION Eliminates #1 Barrier to Sales – Upfront cost Close more sales Reduces focus on ROI Illinois Solar Energy Association 7

8. ILLINOIS SB 583 PACE STATE ENABLING LEGISLATION A municipality may enter into voluntary agreements with the owners of property within the municipality to provide contractual assessments to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Illinois Solar Energy Association 8 Effective January 1, 2010

9. ILLINOIS SB 2505 PACE Financing  Property owners may enter into an agreement with Counties & Municipalities (C&M) to finance energy improvements  C&M may levy property taxes in connection with green energy service areas  C&M may issue bonds and may sell, assign or pledge those bonds to the Illinois Finance Authority. Illinois Solar Energy Association 9 ON HOLD

10. ILLINOIS SB 2482 PACE Financial Component Amends the IL Finance Authority Act Amends Counties Code and Municipal Code Amends Special Service Area Tax Law in Property Tax Code Provides power to purchase special service area bonds related to green energy special service area projects Allows any unit of government to issue special service area financing Illinois Solar Energy Association 10 ON HOLD

11. Where is PACE Now?  Last July, the Federal Housing Finance Agency told Fannie Mae and Freddie Mac to stop underwriting mortgages with PACE assessments.  February 10 th – D.C. Staffer briefing on PACE  Many organizations and states are urging Congress to take action and allow states to start PACE programs Illinois Solar Energy Association 11

12. PACE Programs BerkeleyFIRST Program Boulder County ClimateSmart Loan Program Palm Desert Energy Independence Program Sonoma County Energy Independence Program Illinois Solar Energy Association 12

13. PACE Resources www.PACENOW.com www.Renewfund.com Database of State Incentives for Renewables and Efficiency (DSIRE) Database of State Incentives for Renewables and Efficiency Illinois Solar Energy Association 13

14. IL Policy Resources Illinois General Assembly Learn about bills, sponsors, and bill status Illinois Board of Elections Find your legislators and their contact info Environmental Law & Policy Center Midwest’s leading public interest environmental legal advocacy and eco-business innovation organization Illinois Environmental Council Track bills and legislative updates Illinois Solar Energy Association 14

15. RECAP - Renewable Energy Certificate Aggregation Program ISEA program available to members Pays $200/ 2011 Solar REC Grid-tied PV systems Preference to small systems (<10 kW) Illinois Solar Energy Association 15

16. RECs Represents the property rights to the environmental, social, and other non-power qualities of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source. EPA Definition Illinois Solar Energy Association 16

17. 5/4/2015Illinois Solar Energy Association 17 Energy & RECs

18. SRECs 1 MWh solar energy = 1 SREC For every 1 MWh (1000 kWh) of energy produced by a Photovoltaic system, 1 Solar Renewable Energy Certificate (SREC) is produced Average 5 kW system annually generates 6000 kWh = 6 MWh = 6 SRECs 7/15/2010Illinois Solar Energy Association 18

19. Price of SRECs  2011 Price is $200 Cap of 160 SRECs 40 PV systems applied At Capacity  2010 Price $135 Purchased ~169 SRECs 30 PV systems Total payout = $22,767  2009 Price $65 Purchased ~84 SRECs 20 PV systems Total payout = $5,437 Illinois Solar Energy Association 19

20. Price of SRECs  Need more states to open market up to IL SRECs  Illinois RPS with 6% carve out for solar will help for big installations  Sustainability Plans with teeth Illinois Solar Energy Association 20

21. Illinois Solar Energy Association 21 Thank you! Illinois Solar Energy Association 1281 E Brummel Ave Elk Grove Village, IL 60007 312-376-8245 www.illinoissolar.org contactisea@illinoissolar.org