1. Solar Energy in Maryland November 2014 Presented by: Hans Wittich President Solargaines

2. COURSE AGENDA 1.Theory Overview Environmental movement Economic movement 2.Solar in Maryland Incentives and climate Strong growth 3.Case Study How does it work Design considerations Installation Monitoring of system Financial Analysis 4. Interactive discussion

3. What will be learned 1. How it works 2.Four design principals Orientation Tilt Shading Weather / geographic 3.Installation and monitoring 4.Economics Costs Electricity savings Tax benefits Incentives

4. An oil spill is called a tragic environmental disaster…

5. A solar spill is just called a really nice day!!!

6. 1. Theory Overview

7. Why Solar? Unlimited and sustainable resource Clean power is included in the future of energy generation Many states have adopted “Renewable Portfolio Standards”

8. Taking responsibility for the future Current circumstances present unprecedented opportunity to “do good” and “do well,” the proverbial “double dividend”

9. THE FUTURE IS NOW

10. 30,000 ft view of renewables The way that we currently deliver power is, from an economic and environmental perspective, unsustainable. Period. – Dependent on limited resources – Environmentally damaging – Wasteful; concentrated generation vs. distributed generation

11. Solar in Maryland 1.Political Willpower RPS/Net Metering Federal stimulus Sustainability mandate 2.Favorable conditions Sun hours per day 3.Attractive economics Good incentives Rising rates Lower costs First LEED Platinum home in Baltimore

12. Market trends

14. Case Study Distribution Services Company

15. 2. Basics How does it work Design Phase/technology overview Installation and monitoring of system Economic Review

16. How does it work? Technology is relatively simple and has been around since the 1960’s Points of potential failure are minimal with few moving parts (Panels, Inverters and Balance of System) No Batteries (net metering) The Panels (or Modules) have warranties to perform for 25 years; some systems placed in service in the 1970’s are still producing power

17. Design Phase/technology overview

18. Suitable location Four Main Design Principals Azimuth / orientation Tilt / pitch (latitude on earth) Shading analysis Weather Patterns (avg sun hours per day) insolation maps

19. Azimuth / orientation Compass Azimuth (deg) True Azimuth (deg)DirectionScaling Factor 91.1280 0.7216 101.1290East0.7683 111.12100 0.813 121.12110 0.8547 131.12120 0.8925 141.12130 0.9255 151.12140 0.9531 161.12150 0.9747 171.12160 0.9899 181.12170 0.9984 191.12180South1 201.12190 0.9948 211.12200 0.9827 221.12210 0.9642 231.12220 0.9394 241.12230 0.9089 251.12240 0.8733 261.12250 0.8335 271.12260 0.7901 281.12270West0.7443

20. Tilt / Pitch Tilt Angle (deg)Scaling Factor 00.8577 50.8957 100.9278 150.954 200.9744 250.9888 300.9973 351 400.9968 450.9876 500.9726 550.9517 600.9249 650.8922 700.8536 750.8091 800.7587 850.7024 900.6403

21. Shading Analysis

22. Insolation Maps

24. Racking / layout design Inverter design Roofing attachments for pitched roof (shingle or metal) and flat roof. Balance of system / electrical engineering – Service size constraints

25. Appropriate panel/inverter design Panel types – output characteristics Poly and Mono Crystalline silicon Thin Film CIGS Building integrated – roof shingles, wall systems

26. Examples

27. Installation of system

28. Monitoring of system

29. Financial Analysis

30. Incentives / Returns 1.Tax Advantages a.Federal Income Tax Credit 30% of total cost (including site preparation) b.Modified Accelerated Cost Recovery System (MACRS) depreciation (commercial projects only) NPV of depreciation is taxes avoided 2.Savings / Revenue Benefit a.Annual Electricity Savings (Net Metering) kWhr X total rate (supply+distribution+transmission+tax) b.Solar Renewable Energy Certificates (SRECs) Renewable Portfolio Standard (RPS) Spot Market vs Forward Contract

31. Structuring considerations 1.Corporate, LLC or solar proprietor? Tax rate of entity or members Where is tax liability? Passive income issues See Spreadsheet for Analysis

32. Contact us if you have any questions or interest in learning more Solar Gaines 10616 Beaver Dam Rd. Baltimore, MD 21030 410.785.1760 www.solargaines.com

33. Sample Last Slide Solar Gaines 10616 Beaver Dam Rd Baltimore, MD 21030 410.785.1760 www.solargaines.com