GET THE JUICES FLOWING SOLAR POWER PURCHASE AGREEMENTS The Elite Conference Nov 10 2017

Agenda – Get the Juices Flowing Who is Juice Capital ? What is a PPA ? Eligibility Benefits Competition Emerging Opportunities FAQs

WHO IS JUICE CAPITAL? Solar and Finance experts, specialising in Solar Power Purchase Agreements Enabling Solar as a Managed Service through Solar Power Purchase Agreements We support Solar Juice partners/Solar developers to complete solar projects 20kW + Our combined skills add value to solar projects Capital Informal Advice Equipment & Credit Terms EPC (Engineering, Procure, Construction) Together, we can Build, operate, monitor, manage and maintain commercial solar systems Develop ongoing customer relationships…get set for storage

WHAT IS A SOLAR POWER PURCHASE AGREEMENT ? The lower electricity price serves to offset the purchase of grid electricity. Customer typically receives 2 bills SPPA is a managed agreement where Juice Capital carries out the design, network approvals, procurement, installation and provides the funding for a solar system on a commercial roof top or for a Ground Mount Solar Farm, at no cost to the customer Juice Capital then sells the solar power generated to the business at a fixed rate The fixed rate is lower than the local utility’s grid supplied retail rate SPPAs typically range from 7 to 25 years Longer the term the lower the price Juice Capital assumes the risk of ownership and receives the income from the SPPA Juice Capital remains responsible for the operation and maintenance of the system for the duration of the agreement and has the right to upgrade the systems with batteries and other technological advancements during the term of the PPA

Refresh… Why & How PUREST FORM OF OPERATING LEASE – OFF BALANCE SHEET NO UPFRONT CAPITAL COSTS: Together, Juice Capital and you as the developer handle the upfront of sizing, procuring and installing the solar PV system. Without any upfront investment, customers are able to adopt solar and begin saving money as soon as the system becomes operational. REDUCED ENERGY COSTS: Solar PPAs provide a fixed, predictable cost of electricity for the duration of the agreement and are structured so that clients save money. They are often viewed as a genuine hedge against rising electricity prices. ACCOUNTING AND TAX : Juice Capital owns the solar system and it does not appear on the client’s balance sheet. Clients may claim tax deductions for all electricity purchased as one would for grid electricity, but may not claim deductions for depreciation of the asset. PUREST FORM OF OPERATING LEASE – OFF BALANCE SHEET

Eligibility… BEHIND THE METER RULES Paying >15c per kWh Owner Occupiers or Tenants with Landlords Consent Been in business more than 2 years (https://abr.business.gov.au/) Making money Stable and suitable rooftop or allocated ground mount site Constant loads operating 6-7 days a week – Export is typically not considered in calculations BEHIND THE METER RULES

BENEFITS OF A PPA > Additional product to compete > Differentiate – Sell energy not technology > Compete in larger transactions > Generate ongoing annuity income and secure maintenance > Enhanced credit terms protecting cash flow

BENEFITS - Continued > Don't fight margin squeeze on cash sales > STCs fluctuation creates risk which is easily managed through a PPA > Look for LGC deals > Get paid in full on project completion > LGCs to Juice’s account

COMPETITION? Why are utilities pitching PPAs ? How do we complete ? Distributed energy is clearly a threat Reduce churn – longer term relationship Stickier client base Positioning for storage Differentiation How do we complete ? Consultative sell; face-to-face; value add Is Origin genuinely helping clients to lower energy costs ? Is Origin consulting on tariff strategy/demand management ?

EMERGING OPPORTUNITIES Regional Areas Landlords Embedded Networks Body Corporates Farmers - Pumping Water, Cold Storage Multi site – Value for Export Solar Farms

SOLAR DEVELOPERS Larger Installations being funded/backed by PPAs Behind the Meter with PPAs Project and Development Finance Ground Mount Technology rapidly improving solar farm installations Corporate Offtake Agreements are emerging

EMBEDDED NETWORKS

CORPORATE TAKE OFFS

Pricing Background… We can transact in one of two ways: Where Solar Coy provides the hardware & monetises rebates Where Juice Capital provides the hardware & monetises rebates The advantages of JC providing the hardware include: Your credit terms are not tied up No risk of carrying the cost of the equipment should a delay occur The ability to play in larger transactions as a ‘solar developer’

Requirements to price… JUICE PROVIDING EQUIPMENT SOLAR COY PROVIDING EQUIPMENT ANY NON TYPICAL SITE COSTS $ CAPEX $ Desired PPA Term(s) System Size Annual Production Geography Current Cost of Power Peak/Off Peak ($ / %)

Next Steps… Call or Email the Juice Capital Development Desk 02 8028 9028 sales@juicecapital.com.au we can: help with & validate quotes | provide quoting tool | discuss hardware requirements | assist with PPA alternatives | discuss pumps, farms and large scale projects | embedded networks

PRICING AND PROCESSING www.juicecapital.com.au

SALES TOOL

APPLICATION

FAQ’s www.juicecapital.com.au

FAQS How is the regular energy bill affected? Typically the client will continue to purchase energy from the retail or wholesale market. The PPA product will allow a portion of their spend on power to be locked in at a price for the power produced from the Solar system. Is a deposit necessary ? PPAs are CapEX free as a managed service and are designed with $0 upfront. Will the solar system produce all the power required? Typically not but depends on demand profiles and available roof space at each site. Each customer will be required to maintain a relationship with an energy provider, unless of course there is no retailer in your area and you are planning to go entirely off grid. What happens to unused energy that the system produces ?  This will be negligible if the system is sized correctly for the business. Solar is perfect for businesses that are occupied during the day as power is produced. Any excess energy may be fed back into the grid and feed in credits will be worked in to the economics.  

FAQS What if I sell my business or the property ? There are several options available if your customers needs to move or sell. Our PPA can be novated to a new party and we assist with this process. Buying the system is an option and would be negotiated at the time. Is it possible to dissolve the PPA contract if circumstances change? To exit the PPA, a customer would either: Exercise their buyout as per the terms and conditions Assist Juice Capital to novate the agreement to a new party if applicable  

FAQS How do PPAs differ? PPAs are most similar to a traditional energy bill as opposed to financing. The key difference being a PPA bills for kilowatt-hours generated rather than a fixed monthly payment. Can tenants participate? Yes. Landlords consent is required, and PPAs can be structured based on remaining lease terms + lease options. Since PPAs save money from the outset, it makes financial sense to install a solar system even for tenants. Who operates and maintains the system?  Juice Capital will own and maintain the system. This includes all operational and maintenance costs as well as inverter swaps. It is wholly in our interests to ensure the system is operating as intended to generate revenues. You as the project developer/installer would be approached first for maintenance/warranty/operational issues which adds value by maintaining the customer relationship.  

FAQS What about Juice Capital? What happens if their business changes and how would this affect maintenance & support? Juice Capital are part owned by the largest wholesaler and importer of solar equipment in Australia. They are financially very strong and in the industry for the long haul. With ‘Non Utility’ based PPAs, interests are perfectly aligned. If the system is not operational, the PPA provider generates no return. There is a strong incentive for all assets to be functioning as intended. There is no circumstance conceivable where either Juice Capital or an underwriter/ funding partner would not be in a hurry to ensure the system is running optimally.  

Next Steps… Real Deals...20 October 30 minute crash course in quoting and process We will present live PPA quote examples Data required to quote a deal Geography e.g. Nth QLD CapEX or Site Extras e.g. $9,000 network costs Current daytime cost of power and if network charges apply System size First year system generation and client usage Results: 10 year $_ _ / kWh 15 year $ _ _ / kWh 20 year $ _ _ / kWh