1 Rudolph/Libbe Solar

2 Our Perspective on Solar in Ohio  Ohio has the foundation for rapid solar growth (distributed generation) – Existing electrical infrastructure already exists in our state – Manufacturing backbone that follows solar production curve – sREC market (preserve the current RPS under SB221) – Projected rising power cost  ITC preservation is key to continued solar growth in Ohio  Balance of System Cost (B.O.S.) – Continue to decrease moving solar to “grid parity” – Consolidation on component side inevitable – Component price competition is fierce

3 Ohio’s Solar Potential  Building generating resources here will: – Attract jobs; 1 – 2MW project ~ 60 construction & 300 manufacturing jobs – Offers business stable and low cost power – Retain assets in Ohio that would otherwise be built elsewhere  Ohio can lead the nation and world in solar – Germany/Japan/China – Ohio has the complete spectrum of solar “services” Developers & Installers Manufacturing – all components Financing, Accountants, Attorneys, etc

4 Why our customers want solar?  Rudolph Libbe offers a deal structure with no capital outlay by site host  Costs for power are known in advance, with predictability in array output – PPA’s have pre-determined energy prices ($/kWh) – Cost escalators also agreed in advance – Protection from Electric Rate increases  In many cases, opportunities exist to lower energy cost – Fixed cost escalation below historical average trends for utilities  Sustainability image (Customers, suppliers, media)  Investment Potential

5 Key Criteria for Solar Project Host  Suitable site – Location in a desirable solar market Weather Conventional power prices Subsidies – Available for solar development Undeveloped land or “un-useable” land Rooftop Parking area – Long-term control of site, either through ownership or lease  Willingness to commit to long-term PPA or array lease  Creditworthiness (important to secure external financing)

6 Making a Solar Deal Happen Project Revenues Project Costs Investor Return Expectations Power sale revenue SREC revenue Lease revenue System design Construction cost Component cost O&M cost Project equity Take-out debt

7 Balance of System Roadmap

8 Solar Project Structures Power Purchase Agreement Third-party owner develops power plant on host site Host contracts to purchase power for years Well-suited for corporate hosts Incentive risk borne by project owner Allows solar benefit without capital Solar Lease Third-party owner develops power plant on host site Host enters into long- term lease for power plant Option to buy at end of lease term Well-suited for municipal utilities Universities K-12 Direct Ownership by Host Host contracts for power plant on site it controls All incentives accrue to host Power is virtually free after plant is operating Host must have tax capacity to fully monetize investment incentives

9 Contact Information: Jason Slattery Solar Team Leader Rudolph/Libbe Phone: Fax: Website: The information contained in this presentation is confidential and privileged information. It may not be used or disclosed to any other group or individual with out written consent from Rudolph Libbe.