SEIA Finance Initiative Mike Mendelsohn Sr. Director Project Finance & Capital Markets May 9, 2018 © 2015 Solar Energy Industries Association®

SEIA Finance Initiative Designed to open untapped sectors for solar deployment thru in-depth comprehension of barriers and innovative financial structuring Open to SEIA members and non-members Paid for by SEIA – your support via SEIA membership is greatly appreciated! Additional benefits for SEIA members: Access to research, conferences, lobby days, etc. Subcomm. leads, project steering & other activities via SEIA Project Finance Committee (e.g., mtg. banking, international, etc.) References & conference speaking opportunities (e.g., SEIA Finance & Tax Seminar targeted to Fortune 500) May 9, 2018 © 2014 Solar Energy Industries Association®

3 Primary Goals: Capital 1. Open and Expand Sources of Investment: * real estate * capital markets and private equity, and * banks and credit unions for investment and Credit Support * foundations * green banks * program and mission-based investment, and * insurance & related sources May 9, 2018 © 2014 Solar Energy Industries Association®

3 Primary Goals: Offtakers 2. Facilitate Untapped Markets Sectors * schools * housing agencies * other non-profits * multi-tenant properties, and * other unrated credits Comprehend and address specific barriers. Organize offtake and installer market to facilitate asset consistency via standard contracts, best practices, consistent credit metrics, Tax Equity criteria, etc. May 9, 2018 © 2014 Solar Energy Industries Association®

3 Primary Goals: Structures 3. Create Financial Innovations * warehouses * asset-backed securities, and * other debt instruments Leverage available credit enhancement and pool solar project cash flows for investment by pension funds and other large-scale capital managers. May 9, 2018 © 2014 Solar Energy Industries Association®

A Brief History of… SAPC Solar Access to Public Capital 3 year project – convened by NREL & funded by DOE to open capital markets 500 member entities by summer 2015 Primary activities: Standard contracts – suite of 6 leases and PPAs Best Practices in Installation & O&M Performance dataset – oSPARC Mock securitization (resi, C&I) with rating agencies Tandem tax equity / debt structure to include both in initial capital stack May 9, 2018 © 2014 Solar Energy Industries Association®

2 Primary Avenues: #1) Non-Profit Organize PRI & Mission Investment Comprehend mission agenda and relevant criteria Assess credit enhancement structures (e.g., mezz. debt, insurance product) to meet criteria and attract senior debt Line up targeted non-profit off-take Facilitate Warehouses and Other Structures Develop term sheets and other elements to support structures Transfer to investment banks / private equity for implementation Reduce transaction costs via asset consistency SAPC Standard Contracts (leases & PPAs) SAPC Best Installation and O&M Practices SEIA Solar Business Code & Other Consumer Protection Protocols May 9, 2018 © 2015 Solar Energy Industries Association®

2 Primary Avenues, cont’d: #2) For Profit Comprehend real estate markets REIT / investor, asset manager perspective Benefits / disbenefits of solar fixtures / ownership Educational materials Margins on energy sales or roof leases Customer acquisition / retention benefits as offering tenants stable and green 20-yr electricity price Target RE conferences & venues Financial Structure Apply portfolio benefits to limit underwriting limitations Statistical assessments across property Credit enhance up to / near historical vacancy peak May 9, 2018 © 2014 Solar Energy Industries Association®

© 2014 Solar Energy Industries Association® What can you do? Participate in SEIA Finance Initiative and subcommittees (proposed list): Real Estate Mission-based investment Offtakers Structuring Leverage your rolodex Colleagues, clients, etc. Build solutions that will open the solar economy Subcomm. Activities: * Outreach & interview targeted communities * Develop concise educ. materials * Speak at non-solar events * Develop financial structure & term sheets / analytics (if applicable) May 9, 2018 © 2014 Solar Energy Industries Association®

© 2015 Solar Energy Industries Association® Contact To join: Christina Brooks Operations Manager-Membership cbrooks@seia.org To discuss: Mike Mendelsohn Sr. Director, Project Finance & Capital Markets mmendelsohn@seia.org 303.218.0456 May 9, 2018 © 2015 Solar Energy Industries Association®