truSolar Affiliate Webinar

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the trusted source for solar
truSolar®
August 2013
Affiliate Webinar

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Agenda
ITEM TIME
Introduction 5 minutes
truSolar Mission and Timeline 10 minutes
Credit Screen Introduction & Roundtable 15 minutes
Affiliate Program Overview 15 minutes
Q&A 15 minutes
~ 1 hour

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The Industry Noise
too many failed deals
underperforming projects
1000s of parties originating
projects
misalinged risks and costs
wasted resources
sunk costs on failed deals
NO standard project evaluation methods
confused investors
Bankability Knowledge gap

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VISION
Expand the market with standardized financing methods
Consistent screening of projects aligned with pricing of risk
Standardized evaluation of Credit and Pricing of Risk will:
- lower transaction costs
- reduce the weighted avg. cost of capital
- better assure risk adjusted returns
- improve the project and portfolio quality
- Increase deal velocity AND project volume
MISSION
truSolar™ to be an industry-wide, WG-created,
credit screen for C&I projects
Credit screen to be: transparent, broadly
accessible, and widely available
Created for industry by industry:
equity and debt investors, developers, value-
chain participants, and platform providers
truSolar Vision and Mission

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2013-2014 Program Schedule
Phase 1: Alpha Development
Phase 2: Beta Development
Credit Screen
Testing on Project
Sites
Testing & Validation of
Scoring Methodology
Phase 3: Operational Release
Operational Release &
Establishment of Permanent
Stds. Body
(Jan ‘13 – Jun ‘13)
(Jun ’13 – Q1 ‘14)
(Q1 ’14 – Q2 ‘14)
Beta Program
Definition
Credit Screen
Development
Credit Screen
Interviews &
Feedback
Credit Screen
Refinement & S&P
Review
Alpha Credit Screen
Release to WG
Data Collection &
Credit Screen
Design
Development of
Credit Scoring
Methodology
Credit Screen Refinement
Preparation for Release to
Standards Body

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The truSolar Credit Screen
applicable across the phases of project development
Project
Origination
Site/Offtake
Pre-development
Development EPC Finance
Credit &
Enhancement
Underwriting
Ratings
Agency
Asset
Management
O&M
Is this a real
deal?
What’s the real risk
and how do we
price it?
How good is
the deal?
Has the risk
changed?
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The truSolar Credit Screen
a comprehensive framework for evaluating and scoring risk
TECHNICAL
DESIGN &
SYSTEM
PERFORMANCE
CONTRACTUAL
TERMS &
COUNTERPARTIES
POLICY &
REGULATORY
ISSUES
Site Conditions
Land condition
Roof condition
Solar resource
Policy & Regulation
Net metering eligibility
Interconnection
Permitting
Tax Matters
Tax expenses
ITC Eligibility
Contracts
Site lease
Property rights documentation
Revenue contract
Inventive contract(s)
Mortgage on bldg. / property
Module supply agreement
Inverter supply agreement
EPC contract
O&M contract
Purchase agreement contracts
System
Panels
Inverters
Racking
BOS
System design
Developer
Experience
Financial Positioning
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The truSolar Credit Screen
risk assessment scoring
Project Level
Section
Category
Sub-
Category
Risk
Element
Simplicity
Detail

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The truSolar Credit Screen
risk assessment sample: racking
Project
Score
Section:
Technical
Design &
System
Performance
Category:
Equipment
RackingSub-Category:
Racking
Wind load
capacity
Rooftop Weight
Restrictions
Snow Load
Geotechnical
Analysis
Geotechnical analysis
complete; reviewed and
confirmed by 3rd party
engineer
Geotechnical analysis
complete; NOT reviewed
and confirmed by 3rd
party engineer
Geotechnical
analysis underway
Geotechnical
analysis not
started
Unsatisfactory
geotechnical analysis;
or unknown
Etc.
Sample
Racking Risk
Elements
Geotechnical
Risk Mitigation
Options

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Affiliate Program Overview
Drive collaborative market
development
Improve project quality,
accelerate deal flow, and help
accurately price risk
True partnership with leading
industry stakeholders
Benefits
Build truSolar
ecosystem
Goal
Need
Data Projects
Expertise Validation
Seed Funding

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truSolarTM Affiliate Program – Overview
Phases
& Roles

WG
Founder
WG
Strategic
Advisor
Charter Member
Stakeholder/
Subscribers
Goals

Information
Available
Upon
Request
Current Focus
of Discussion Q4’13
Criteria
Why get
involved?
Member
rights
Launch

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truSolarTM Charter Members
Overview Charter Member
Goals
Leverage C&I project data and
investor inputs
Criteria
• Performance / design data
• Leader in project analytics
• Share / access failure modes
Why get
involved?
• Encourage industry
accountability, accelerate
deal flow, and demonstrate
value of data
Member rights*
• Co-branding on truSolarTM
website
• Propose specifications
• Participation in ops.
Committees
• Beta testing results
1. Technical input into truSolar
standards development
2. Thought leadership
3. Integrated business benefits

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The Market Signals
US non-residential solar project originators survey
9out of 10say
CONVENTIONAL UTILITY BUSINESS
MODEL WILL FAIL IN <10 YEARS
COMMON SCREENING PRACTICES ARE
VITAL TO INDUSTRY GROWTH
4out of 5say
6out of10say
DISTRIBUTED GENERATION WILL ACCOUNT FOR
MOST NEW GENERATION CAPACITY THRU 2020
8out of10say
TODAY’S LEADERS IN TAX EQUITY WILL NOT
BE TOMORROW’S LEADERS IN SOLAR FINANCE
UNIFORM SCORING METHODS WILL
INCREASE ACCESS TO LOW COST CAPITAL
19out of 20say
TO BECOME AN AFFILIATE OR CHARTER
MEMBER OF THE TRUSOLAR INITIATIVE
3out of 5want

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Get involved
www.trusolarscore.com
Technical Committee
(Monday’s 1-2pm PST)
MarComm Committee
(Friday’s 10-11am PST)