CLEAN ENERGY FINANCE California Energy Commission Workshop April 7, 2015

Progress in Clean Energy Finance Residential PACE has tremendous momentum in California CAEATFA insurance pool PACE for commercial properties expected to boom in 2015 EDF’s Investor Confidence Project has helped increase investment in CT Several successful securitizations have created path to abundant, lower cost capital Competitive procurement for metered savings could be a helpful addition 1

Key Lessons: An Attractive Financing Product is Critical… Contractors are our customers Solution should be simple with broad application Predictable underwriting and application process Reasonable, simple fees and rates Longer terms help reduce payments Build off of what works 2

…But Go-To-Market Strategy is More Important Developing demand requires significant sales resources Investment in software tools, automation and call centers Focus on solving existing problems for contractors 3

Market and Policy Opportunities Combine EE with solar EE used to create a lower cost solar PPA Assist with market outreach for commercial PACE BayREN and SRS LA County and Renewall Eliminate timing mismatch for PACE Currently costs bps Target underserved sectors of commercial market Smaller deals, houses of worship, affordable housing and community sponsored entities 4

Contacts Brad Copithorne (office) (cell) 5