© British Gas Trading Limited 2014 In association with: Community energy for local authorities and housing associations Anthony Collins Solicitors LLP 19/02/2015

© British Gas Trading Limited 2014 The opportunity: Participate in an award winning community solar PV scheme Slide 2 Solar PV installations for Domestic and Commercial property stock fully funded by Social & Community Finance delivering tangible community, financial & environmental benefits for local authorities, housing associations and their tenants. British Gas and Gen Community are delivering £60m of community solar PV for up to 12 selected housing organisations across the UK.

© British Gas Trading Limited 2014 Our partnership brings together a unique set of skills to deliver long-term social benefit Slide year old organisation providing long term assurance blue chip solar PV: leading UK solar installer since 1994 financial strength quality assurance on install plus performance warranties long-term remote monitoring and maintenance package The Community award winning community energy and social impact organisation investment professionals covering renewable energy, social enterprise & community benefit models developed UK’s first dedicated fuel poverty community solar project leading social investment intermediary (Peterborough & Gentoo Solar) UK’s first solar social bond – to deliver £60m community energy projects aim’s to source lowest cost of capital in order to maximise social benefit “The community”

© British Gas Trading Limited 2014 Gen Community Model: The Community investing in renewable energy to deliver local benefits Objectives deploy solar across as many homes as possible reducing energy costs & carbon retain maximum income stream from FiT for local benefit & social impact Community power: engage people on an energy journey whilst strengthening the local economy help address fuel poverty improve community well being, inclusion & financial resilience Gen Community Model 100% funded project – no investment required (option to invest if desired) locally owned, autonomous community benefit society facilitates local investment, ownership & governance provides a community fund from year one delivering local projects

© British Gas Trading Limited 2014 Project structure – CBS “ Community Power Company” Community Benefit Society Development & 20 year asset management agreement Institutional Investor Local Community cash Fund Community investors Underwriting fund Community Share Offer Solar Social Bond 80% of Capital 20% of Capital Local Authority/ Housing Association (Board position on CBS)

© British Gas Trading Limited 2014 Municipal project structure – social impact LAHA Community Power Special Purpose Vehicle Development & asset management agreement Institutional Investor Social Impact Fund Project equity Solar Social Bond 80% of Capital 20% of Capital Roof license LAHA

© British Gas Trading Limited 2014 Project specific forecasted benefits: circa.3722 suitable properties identified – potential 8.37MWp solar PV Slide 7 c.£2.18m community fund (over lifetime) (£40k immediately available) Fuel Poverty Support Improved Community support for low income homes Energy Behavioural training Social impact Using local supply chain c.£12.34m of energy savings (Based on 35% usage and13p/kWh offset ) 65.8k tonnes of CO2 Community Shares c.£2.14m gross return (6.58% IRR index linked) Community power What could your community do with ~£100,000 per year?

© British Gas Trading Limited 2014 Customer journey: British Gas will provide a key point of contact throughout the project Slide 8 Stage 1Stage 2Stage 3Stage 4 Initial presentation NDA signed Site list received DNO approval given by client Budget desktop completed Budget proposal sent to confirm customer qualification Gencom approval LOI (Exclusivity and HoT) Sent and Signed. Known procurement route (framework) Early dialogue with DNO LAHA TLO to be supplied Detailed desktop (MPAN needed) Full DNO application Firm offer (Subject to DNO consent and technical surveys) LAHA license /lease approved EPC and O&M contract agreed DNO Consent LAHA license /lease signed by both parties Identified project list Property occupier agreement signed by tenant Tenant liaison and construction Completed by end of Q Agreements in place by Q Construction to be discussed and agreed (subject to DNO approval)

© British Gas Trading Limited 2014 The creation of “Community Power” - local ownership and social impact Community Benefit Society: locally registered Community Benefit Society – investing members/benefit community democratically elected board (residents & wider community) responsibility to deliver community cash fund and local engagement Gen Community will establish, administrate, provide technical & financial management British Gas Solar will deliver project operation & maintenance Community cash fund: to support fuel poverty programs and positive social benefit programmes catalyst for further community projects over 20 year lifetime. to attract match funding for further initiatives recipients must be able to report on their social impact (training given)

© British Gas Trading Limited 2014 As your energy partner British Gas can offer a wide range of energy services Slide 10 Generation Green School engagement programme Green Deal (Private Sector) SMART Grid Infrastructure Electrical Vehicle Charging Energy Hubs Schools EP, Biomass and Solar proposition Solar Scheme Void Property Management Digital Inclusion Industry Leading Training & learning County wide partnership Cardiff Council & British Gas – Energy Partnership British Gas Solar provides access to a wider opportunity than most Solar companies LAHA

© British Gas Trading Limited 2014 Andy Heald Mark Emery With thanks to Holly Southall, from Millbrook Primary School, Newport