How Small Developers and EPC Contractors Can Add PPA Financing to their Arsenals John Langhus, VP Business Development Midwest Solar Expo 2019 New Energy Equity LLC © 2019 All Rights Reserved

Summary Overview New Energy Equity is an end-to-end solar project developer Initial feasibility and project development Design and engineering Transaction execution and funding Legal and agreement execution Construction and commissioning Operations & maintenance, asset management Focused on 500 kW - 10 MW C&I distributed generation projects Headquartered in Annapolis, MD Over $300MM in total project value (more than 150MW commissioned) 100% partner-driven growth New Energy Equity LLC © 2019 All Rights Reserved

Power Purchase Agreement Power Purchase Agreement (PPA) Standard industry document Contract period: 20–25 Years Typical contract length: 15-30 Pages Electricity rate: Fixed with a yearly escalator (ex. $.10/kWh, 2.5%) End of term options Renewal of PPA / Removal of system / Fair market value purchase SRECS and Environmental Attributes New Energy Equity LLC © 2019 All Rights Reserved

New Energy Equity Advantages for PPAs Low cost of capital – access to a variety of financial resources drives a lower cost of capital; Competitive pricing – our low cost of capital and efficient transaction processes helps us offer highly competitive take-out financing prices; Solar incentive expertise – our multi- state experience allows us to optimize state and federal incentives while protecting parties from unseen risks to get the best return from the transaction; Financial transaction expertise – our background in investment banking provides expertise in financial engineering, due diligence, and transaction execution; Flexible credit screening – our diverse investor base allows for more flexibility on credit requirements for PPA customers; Support for underserved markets – we target projects in the underserved solar commercial sector from 500kW to 10MW; Technical capability and experience – our engineers optimize system design for greatest solar production, high reliability, and top investment returns; Extensive internal transaction resources – our in-house legal and financing team provides fast, responsive, and efficient transaction processes – keeping transaction costs low and project completion rates high; Flexible equipment selection – we leverage large-scale procurement relationships for partners to bring big savings to small projects; The personal approach – our “easy button” mentality allows us to move quickly New Energy Equity LLC © 2019 All Rights Reserved

Partner Roles in Solar Financing System Owner owns and operates the solar installation for the PPA term The Host Customer signs a Power Purchase Agreement and Site Lease with the System Owner The Host Customer purchases solar electricity from the project for a period of 20-25 years System Owner hires an experienced construction partner to engineer and construct the solar system New Energy Equity LLC © 2019 All Rights Reserved

Customer Benefits Reduction of electricity costs Up to 10% savings on electricity costs in first year Predictable energy rates Fixed electricity prices over the 20-25 year contract period Positive environmental impact Reduction of greenhouse gas emissions from electricity usage Positive community impact Construction is completed with a local workforce providing additional jobs and positive economic impacts to the local economy No capital expenditure or system maintenance obligations No initial or ongoing capital expenditure or operating costs System Owner is responsible for system maintenance and operation New Energy Equity LLC © 2019 All Rights Reserved

Roles and Responsibilities Each Partner stays focused on its strengths Developer / Construction System Owner Host Customer Project Development Capital Investment Execute PPA and Site Lease Engineering and Permitting Develop PPA and Site Lease Approve System Design and Layout Execute Construction Agreement Develop EPC Agreement Provide Assistance with Permitting and Interconnection Manage Construction Maintain Net Metering Agreement System Commissioning Purchase Electricity O&M / Asset Management End of Term Options New Energy Equity LLC © 2019 All Rights Reserved

Transaction Benefits / Risks While PPAs do not come without risks, New Energy Equity has the experience to provide a predictable savings with no upfront capital. System Owner Benefits System Owner Risks Host Customer Benefits Host Customer Risks Return on Investment Capital Investment / Interest Rates Reduction of Electric Spend Long Term Contract (20-25 Years) Long Term Contractual Revenue Stream Solar Renewable Energy Credits Electricity Cost Predictability Tax / Policy Changes Tax Advantages Electricity Production Community Benefits Lower Utility Energy Rates Limited Distraction from Core Operations Host Customer Credit Positive PR Impact Construction Educational Benefits O&M / Warranty / Insurance New Energy Equity LLC © 2019 All Rights Reserved

Permitting and Procurement Project Timeline Typical project length from initial meeting through system commissioning is 6-9 months Project Development Preliminary engineering Electricity usage and spend analysis Initial proposal Initial utility and permitting diligence 2 - 4 Months Project Execution Interconnection Application Negotiation and Execution of PPA and Site Lease Detailed engineering study Project funding 1 - 2 Months Permitting and Procurement Financial close for system owner Procurement of materials Submit for permits Interconnection approval 1 - 2 Months Construction Initial Site Prep Mobilization Racking, Module and Electrical Installation Submit for approval to operate 1 - 2 Months System Commissioning Final punch-list items System testing Interconnection approval 30 – 60 Days Total Process: 6 – 12 Months New Energy Equity LLC © 2019 All Rights Reserved

Conclusion Offering PPAs can turbocharge your business No money down More options, for more customers Larger projects with the same resources Read more about us at www.newenergyequity.com Questions? John Langhus jlanghus@newenergyequity.com (802) 369-4415 New Energy Equity LLC © 2019 All Rights Reserved