University of New Haven January 7, 2014 Solar Connecticut Member Meeting CEFIA Program Updates RSIP Step 4, Residential Finance Update, Commercial Finance Update University of New Haven January 7, 2014

Residential Solar Investment Program Step 4 Incentive Plan Offering

CCEF and CEFIA Residential Program Performance as of 12/31/13

Doing more with less and faster!!! Residential Solar Investment Program Performance as of 12/31/13 Doing more with less and faster!!!

Residential Solar Investment Program Step 4 Incentive Plan Offering Race to the solar rooftop of 10 MW – 5 MW rebate, 3 MW PBI, and 2 MW competitive Incentive levels Rebate – $1.25/W ≤ 5 kW; and $0.75/W 5 < x ≤ 10 kW PBI – $180/MWh Step 4 incentives effective January 6, 2014, 5:01pm The CEFIA Board of Directors will approve Step 5 at the point where (a) 7.5 MW of committed capacity is reached or (b) January 1, 2015, whichever comes first

A Full Suite of Residential Financing Products Kerry

Which option is right for your customers?   Smart-E Loan CT Solar Loan CT Solar Lease What Makes It Special? Quick and easy financing from your local bank Low monthly payment makes purchasing solar affordable Hassle- and worry-free, no money down, bundled insurance and warranty management Own Your Solar? Yes No (option to purchase) Down Payment? Not required Minimum of 5% of installed cost Not required if installed cost is less than $4.50/W Terms 5 - 12 years 15 years 20 years

Resources for Your Campaign 8/23/2013 Resources for Your Campaign Program logos Collateral Co-branded e-blasts Facebook posts Smart-E videos What else do you need? Kerry – Demo ect.com -collateral

CT Solar Lease Volume – as of 12/31 178 applications to date from 10 installers 16 leases executed 3 projects submitted to investors 84 approved or in process 11 PV Contractors eligible to offer CT Solar Lease, 2 SHW 30% declined 14% withdrawn 54% approved or closed

CT Solar Loan Volume – as of 12/31 72 applications to date 16 loans closed 29 approved or in process Avg loan size ~$21,000 17 PV Contractors eligible to offer CT Solar Loan 35% declined 3% withdrawn 51% approved or closed

Smart-E Loan Volume – as of 12/31 82 technical applications* to date 78 loans closed Avg loan size ~$12,100 30% of loans are solar, from 11 installers Rest are HVAC 33 PV Contractors eligible to offer Smart-E Loan *Note – don’t have lender data yet to report on overall applications and approvals

New Solar Lease for Solar Hot Water Kerry

What is the CT Solar Lease for Solar Hot Water (SHW)? Homeowners can ‘go solar’ worry-free for no money down 13

What is the value proposition? Plug & Play Technology 1-call for claims & questions and your workmanship warranty 15-year parts & labor warranty Dependable Coverage “No hassle” claims process for property/casualty & liability Straightforward options and financing 2 system options: 2 panel / 80-gallon 3-panel / 120-gallon 2.99% per year Escalating Payment (option to buy) 14

Annual Cost – How does SHW compare? Propane Oil Electric Going to revise minus amortized cost and add in updated lease cost, will revise scale – focus will be on lifetime savings. SHW Assuming current EIA heating oil price of $3.90/gall, direct-fired propane cost of $3.00/gall, and $.17/kWh electric, excluding amortized cost of tank replacement 15

Installer Payment 16 System Size Installer Payment (Preferred) System Cost (Paid by Leasing Co.) Preferred Pricing Installer Payment (Preferred) Installer Payment (Max for $0 Down Payment) 2-panel, 80-gallon $4,229 $41.99 / month $3,400 $3,800 System Size System Cost (Paid by Leasing Co.) Preferred Pricing Installer Payment (Preferred) Installer Payment (Max for $0 Down Payment) 3-panel, 120-gallon $5,245 $56.99 / month $4,400 $5,100 Labor assumption: 24 hrs total, 3 person x 8 hr @ $75.00 an hour fully loaded . System Cost: are complete kits with anti-scaling filter 16

Pricing Options Option for a second pump Will be built into the monthly lease price Ability to charge installer payment higher than CT Solar Lease max But anything over the max will need to be paid by customer as a down payment Can cover: higher margin, additional materials Municipal permitting or municipal engineering fees may be passed through to customer Must be paid as a down payment, can’t be rolled into monthly lease payment Labor assumption: 24 hrs total, 3 person x 8 hr @ $75.00 an hour fully loaded . 17

C-PACE and CT Solar Lease II

CEFIA: Major Accomplishments June 2011: Established from Clean Energy Fund via PA 11-80 2011-2012: Restructured, brought on seasoned staff (Directors, CIO, etc) Dec 2012: ~$7M investment in 15MW fuel cell project in Bridgeport, CT Dec 2012: Established CEFIA Holdings Jan 2013: Commercial Property Assessed Clean Energy launch Feb 2013: CEFIA’s $20M C-PACE warehouse facility launched Apr 2013: Smart-E Loans & Solar Loan launch Jun 2013: CT Solar Lease II launch (raised $50M private capital) Sept 2013: CEFIA’s C-PACE warehouse facility doubled to $40M Sept 2013: Contractors Working Capital launch Oct 2013: GoSolarCt.com launch Nov 2013: Auctioning first $27M of C-PACE loans – closing 12/13 Other activities: Designing an On-Bill Repayment program, in documentation for $5M Solar Loan fund, Lead by Example, microgrids , EVs ….

Property Assessed Clean Energy An innovative financing structure that enables commercial, industrial, and multi-family property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax Private capital provides 100% upfront, low-cost, long-term funding Repayment through property taxes A senior PACE lien is put on the property and stays regardless of ownership

Connecticut’s C-PACE Program Passed in PA 12-2 (June 2012): Commercial, industrial & multifamily property Requires the consent of the existing mortgage lender Requires SIR>1; permanently affixed Enables municipalities to opt-in Empowers CEFIA to administer a statewide program Which we have operationalized like this CEFIA: Program Design, Development, Marketing, and Strategy Buonicore Partners: 3rd Party Technical Administration Buonicore Partners: Program Expertise Celtic Energy: Technical Expertise Sustainable Real Estate Solutions: Real Estate Expertise

Solar Lease II: 3 types of leases, 2 sectors

Solar Lease II: partners

Solar Lease II: for Commercial Solar PV Installers Anchored in C-PACE (Commercial, industrial & multifamily property) Requires a ZREC Effective PPA rates under 7¢ / kWh (depends on your cost & ZREC) "Worry-free, hassle-free" experience for your customers: with insurance and warranty management covered over project’s 20 year lifetime Solar Lease II can get your projects financed, so you can get them built. WEBINAR Date: Tuesday, January 21, 2014  Time: 2:00 PM - 3:00 PM EST What types of projects and hosts qualify Estimated lease / PPA prices Installer responsibilities Operational mechanics Timing and caps on the fund

SunShot Initiative Rooftop Solar Challenge Project Goal: Make adoption of residential and commercial rooftop solar PV easier, faster, and cheaper for homeowners and businesses by streamlining, standardizing and digitizing administrative processes associated with installation. Project Action Areas: Permitting, Planning and Zoning, Financing, Interconnection/Net Metering Round I (complete): Study of CT’s solar market and recommendations for improving processes for installation of solar PV projects Round I Final Report: www.energizect.com/sunrisene or http://energizect.com/sites/default/files/uploads/SunShot%20Final%20Project%20Report%20optimized.pdf Round II (in progress): Refine and pilot Permitting Guide for CT municipalities and installers, conduct outreach in CT, work on implementation of local and state-level recommendations Permitting Guide Includes: Solar PV permitting recommendations for CT municipalities (e.g., reduction of permit fees, streamlining of processes, use of online permitting system), standardized solar PV permit application, methodology for structural review that reduces costs, guidelines and resources for streamlining permit application review and inspections, data collection on solar friendly practices adopted by CT municipalities Collaboration with other New England states via New England Solar Cost Reduction Partnership, led by the Clean Energy States Alliance. Solar PV installers and industry representatives are invited to a New England Solar Industry Forum on February 4, 2014 ALL FEEDBACK/PARTICIPATION IS WELCOME! CONTACT INFO: sunshot@ctcleanenergy.com Isabelle.Hazlewood@ctcleanenergy.com 860-258-7826 Selya.Price@ctcleanenergy.com 860-257-2362 The SunShot Initiative Rooftop Solar Challenge Project is funded by the U.S. Department of Energy.