1. ST PAUL’S WALNUT CREEK

2. ANATOMY OF A SOLAR SYSTEM ST PAUL’S CHURCH WALNUT CREEK

3. SOLAR PANELS – DC POWER

4. INVERTERS – DC TO AC

6. CONNECT TO ELECTRICAL

7. SOLAR USAGE DAYTIME –USE SOLAR, EXCESS TO PG&E NIGHTTIME –USE FROM PG&E MORE GENERATED IN SUMMER

8. TIME OF USE METERING VALUE BASED ON TIME USED –SUMMER PEAK WEEKDAY NOON TO 6 PM CURRENTLY $.366 PER KWH –OFF PEAK WEEKEND & NIGHT CURRENTLY $.11 PER KWH RATE CAN BE USED WITHOUT SOLAR –SCHEDULE A-6

9. NET METERING

10. ST PAUL’S SOLAR 135 PANELS 5 INVERTERS 23,000 WATT PEAK POWER PROVIDES MOST ELECTRIC USAGE COST $187,852 $8.17 PER WATT WARRANTY –PANELS25 YEARS –INVERTERS10 YEARS –INSTALLATION10 YEARS

11. FINANCING DONATIONS LOANS PRIVATE OWNER ASSISTED BY NORMAL ELECTRIC PAYMENTS STATE INCENTIVE

12. ST PAUL’S METHOD GOAL: SELF SUPPORTING SYSTEM FORM PRIVATE COMPANY LLC LOANS FROM CHURCH MEMBERS

13. COMPANY ADVANTAGES FEDERAL TAX CREDITS 30% RAPID DEPRECIATION 5 YEAR –POSITIVE CASH FLOW POWER REVENUE > COSTS –TAX LOSS POWER REVENUE < COSTS + DEPREC MAY PROVIDE 50% OF SYSTEM COST TAX BENEFITS NOT USED BY CHURCH

14. COMPANY FORMATION REGISTER WITH STATE OPERATING AGREEMENT POWER PURCHASE AGREEMENT WITH CHURCH

16. LOANS LOAN AUCTION FROM CHURCH MEMBERS MEMBERS CHOSE AMOUNT, RATE, TERM PLEDGED $248,000 –INTEREST RATES FROM 4% TO 10% –TERM ONE TO TEN YEARS USED $187,000 AVERAGE RATE 5.22%

17. COMPANY MEMBERS TAX DUE TO ALLOW TAX CREDIT NOT SUBJECT TO ALT MIN TAX NEED TO “MATERIALLY PARTICIPATE” –PERFORM WORK, NOT JUST INVEST –OPTION – ASSIST WITH CONSTRUCTION GUARANTEE LOANS UNDERSTAND CONCEPT MORE COMPLICATED TAX RETURN

18. COMPANY STEPS MEMBERS BUY SHARES TAX SAVINGS PAID TO COMPANY COMPANY REDUCES LOANS COMPANY WILL SELL SYSTEM TO CHURCH AFTER FIVE YEARS MEMBERS RECEIVE SHARE PRICE PLUS SMALL PROFIT

19. SOLAR SYSTEM PROJECTIONS SYSTEM PAYOFF DEPENDS ON ELECTRIC RATES PAID BY CHURCH EXPECTED SYSTEM COST PAY BACK –ABOUT 8 YEARS SYSTEM PRODUCTION LIFE –30 YEARS

20. SECURITY THEFT OF SOLAR PANELS USED FOR PRODUCTION, NOT SCRAP SECURITY METHODS –MOTION DETECTOR MAY HAVE FALSE ALARMS –SENSOR WIRE THROUGH PANELS

21. ST PAUL’S WALNUT CREEK