1. IREM® Fall Conference
San diego, Ca
10/21/2016

2. Are You Leaving Money on the Roof
Are You Leaving Money on the Roof? How to Leverage Solar Energy to Increase Real Estate Value

3. | About Us
AltaE helps its clients navigate their way to achieving the benefits of renewable energy– we are a “Renewable Energy Navigator”
For owners and managers of commercial and industrial real estate portfolios, we provide:
Neutral, subject matter expertise
Portfolio analysis and procurement/deployment services
Holistic, long-term renewable energy strategy development

4. Solar Energy | Introduction
Solar has become mainstream
Costs have fallen by 70% over last decade
Solar electricity is cheaper than utility electricity in more and more places
Major corporation with solar:
Target, Walmart, Prologis each with more than 100MW installed (>700 facilities)
Apple, Costco, Walgreens, Macy’s, Kohl’s, GGP, FedEx, J&J, GM
In 2016, more solar generation will be added in the US than ANY OTHER SOURCE of electricity

5. Solar Energy | Benefits for CRE
Favorable Economics
Increased NOI
Positive returns – 7-15% IRR
Tax incentives
Multiple financial structures
Sustainability
CO2 emissions reductions
LEED certification points
Tenant Satisfaction
Lower cost electricity
Preference for green buildings
Ancillary benefits, e.g. covered parking and EV charging with solar carports

6. CRE Solar | Structure Options
Direct Purchase*
Property Owner finances, owns system
Tax incentives to Property Owner
30% ITC
MACRS Depreciation
Property Tax Exemption
Electricity produced offsets utility electricity
Common area loads
Master meter (full service lease without submetering)
Self perform or contract O&M
IRR 7-15%, payback 4-10 yrs
*Best economics with capital and tax appetite
Property Owner
Solar System
Common
Area
Loads
Master Meter (Full Service Lease)
Master Meter (Sub-metered)
Tenant Meters (Triple-net)
Utility Bill Savings
Tax Benefits
Cash Payments
Debt Service
O&M
Solar Electricity

7. CRE Solar | Structure Options
Power Purchase Agreement (PPA)*
Third Party finances, owns system
Tax incentives to Third Party
Solar electricity sold to Property Owner at discount to utility electricity
Common area loads
Master meter (full service lease without submetering)
Tenant meters (triple-net)
O&M provided by Third Party
Savings 15-25%, 20 year contract
Lease payment to Property Owner optional
*No capital outlay required
Cash Payments
Debt Service
O&M
Tax Benefits
Property Owner
Third Party
Utility
Bill
Savings
Energy
Payments
Tenant
Solar System
Solar Electricity
Common
Area
Loads
Master Meter (Full Service Lease)
Tenant Meters (Triple-net)
Master Meter (Sub-metered)

8. CRE Solar | Structure Options
Roof (or Parking Area) Lease*
Third Party finances, owns system
Tax incentives to Third Party
Solar electricity sold to others
Triple-net lease Tenants
Utility feed-in-tariff (e.g., LADWP)
O&M provided by Third Party
Lease payments to Property Owner, ~$0.15 -$0.25 / ft per year
*Simplest transaction for CRE
Third Party
Solar System
Common
Area
Loads
Master Meter (Sub-metered)
Tenant Meters (Triple-net)
Tax Benefits
Cash Payments
Debt Service
O&M
Property Owner
Tenant
Utility
Bill
Savings
Energy
Payments
Electric Utility
Lease
Solar Electricity
Master Meter (Full Service Lease)

9. CRE Solar | Project Implementation
Customer Side Variables
Market Side Variables
Electricity Consumption Patterns
Technology
Manufacturers
Establish Goals
Analyze Portfolio
Make Business Case
Define Scope
Select Provider(s)
Execute Projects
Monitor Portfolio
Facility Details/Site Characteristics
Installers/
Developers
Financial Requirements/ Hurdle Rates
Alternative
Energy Suppliers
Structure Preference & Restrictions
Fed/State &
Local Incentives
Planning Time
Horizon
Local Utilities
& Regulators
3rd Party & Constituency Requirements
Financial Partners
& Lenders
Turn underutilized space (roof, parking, etc.)
into sustainable, cash-generating assets

10. Case Study | Westfield Corp
Westfield US
33 Shopping Centers
40 Million Square Feet
5800 Stores
8 States
AltaE completed portfolio analysis and ranking of sites by IRR, providing ongoing monitoring
8 projects completed or underway, 10+ MW rooftops and carports
Structure: Direct purchase to serve common area loads
Cumulative savings >$40M
~10,000 metric tons/yr CO2 reduction

11. Case Study | Large Real Estate Portfolio
Global real estate investment firm
400 properties
50 Million square feet
Global footprint
Initial project under development
2 upper level parking garage canopies with EV charging
1.4 MW
Full offset energy requirement of common area amenities building
Structure: Power Purchase Agreement with lease payment to serve common area loads
$1M new lease revenue
300 metric tons/yr CO2 reduction

12. Conclusion | Solar works for CRE
Those empty spaces can deliver more…
Financial Performance
Tenant Satisfaction
Sustainability
…you’ve got a portfolio of opportunity waiting to be tapped.
Don’t leave that money on the roof!

13. WWW.ALTAENERGYINC.COM info@altaenergyinc.com 650-489-1300
Thank You!