1. 2013 ADC INSTALLATION INNOVATION FORUM | PAGE 1 1 Overview and Goals  This is meant to be an interactive discussion  What is working in procurements?  What isn’t working in procurements?  Are issues procurement specific?  Why?  Goal is to develop information and make it available to DoD

2. 2013 ADC INSTALLATION INNOVATION FORUM | PAGE 2 2 SunPower 2 >2.5 GW solar PV deployed Nellis AFB: 14.2 MW USAFA: 6.0 MWChina Lake: 13.7 MW World Leading Technology Financial Strength Industry Leading Warranty 40 MWs Installed for DoD Highest Net Present Value

3. 2013 ADC INSTALLATION INNOVATION FORUM | PAGE 3 3 What Works & Why  Approvals: Complete NEPA in Advance  Subject Expertise: Engage DOE National Labs Early  Infrastructure: Understand Local Utility Interconnection Requirements  People: Use Experienced Legal & Contracting Officers, Obtain Base Command Support  Contracting: Proven, financeable vehicle  Evaluation: Use NPV rather than only initial PPA cost  Financing & Legal: Termination Value Schedules, Conditions Precedent, Take or Pay

4. 2013 ADC INSTALLATION INNOVATION FORUM | PAGE 4 4 What Doesn’t Work  Approvals: no environmental approvals completed; industry required to perform  Infrastructure: unknown offtaker, unknown interconnection, unknown site access  People: Lack of command support, lack of approval chain knowledge  Contracting: failing to align with industry requirements  Evaluation: low first year PPA rate evaluation only  Financing & Legal: inflexible RFP/contract language  RECs: unrealistic expectations  Timetable: unrealistic timeline for financing

5. 5 Dave Belote, VP of Federal Business - Nellis Air Force Base Commander, first Executive Director of DoD Siting Clearinghouse Wade Barnes, Development Manager – Navy Surface Warfare Officer Mark Goodwin, President – Former Naval Aviator The Apex Federal Business Unit is uniquely qualified to work with all levels of government, from base commanders to intermediate command to the Pentagon: Apex has a 300 MW facility in OK (energy to power 100,000 homes), a new solar portfolio in CO, and a pipeline of late-stage projects. Apex Wind Energy

6. Why enter the DoD market? Contribution to energy independence/national security 30-year PPA authority: attractive to investors Chance to create energy-secure solutions: base commanders’ dream could benefit everyone

7. Why not enter the DoD market? Economics/pricing: growing pains for RFP writers Opposition by local utilities: DoD often prime customer in area Mission compatibility: wind 2/3 price of solar, but difficult to site Lack of communication in community: proponents/opponents often talk past, not to, one another