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  • 1. Overview of Solar RenewableEnergy Incentives & Benefits Presented toBuilding Owners & Managers Association New Jersey May 25, 2011www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 2. Renewable Energy Renewable & Alternate Energy Sources: • Solar • Geothermal • Natural Gas Energy Conservation Programs • Energy Star Certification • Sustainable Development • Leadership Energy and Environmental Design (LEED)www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 3. Energy Management Electricity Costs Are Over 26% of Operating Expenses with Costs Continuing to Rise. Energy Management is important to owners and operators because there is a need to: • Measure Savings • Manage Usage & Costs • Manage Procurement • Promote Environmental StewardshipSource: Independent Building Owners & Managers Association (BOMA) Advisory Board – May 2010 www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 4. Federal Energy Laws & Policies Tax Relief Unemployment Energy Improvement Insurance Reauthorization and Extension Act of and Job Creation Act of 2010 2008 12/17/10 9/17/08 Due To Expire American Recovery 12/31/11 and Reinvestment • 30% ITC Rebate Act of 2009 • First Year Bonus 2/19/09 Depreciation of 100% Small Business Jobs • Extended Section Act of 2010 179 Deduction of 9/27/10 $500,0002008 2009 2010 2011 2012 www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 5. How a Solar System WorksSolarArray Electrical Electric Distribution Grid Panels Utility Meter Inverter Electricity from Grid Electricity from Solar Surplus Solar Electricity to Grid Electricity to Facility www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 6. Net MeteringSolar electric generating facilities that qualify for theNJCEP SREC program are “Grid Connected” andsubject to “Net Metering” regulations.• Net metering permits surplus electricity to be delivered to the grid for credit causing the electric meter to run backwards.• If the annual solar production is greater than the facilities consumption, the surplus electricity will be credited at the ‘Wholesale Rate,’ typically at $.07/kWhr. $.07/kWhr.• If there is a loss of power from the grid, the solar system will automatically shut down. Note: Solar electric production occurs during midday, reducing the more expensive ‘On- Peak’ electric rate, typically $0.22 to $0.25/kWhr. www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 7. Benefits of Solar • Federal and State incentives “underwrite” approximately 40% to 50% of the solar system cost. • Earn residual income the first year and even more thereafter. • Eliminate 20% to 50% of your electrical costs per year for the life of the system. • Pays for itself within 2 - 5 years. • Hedge against energy price volatility, inflation, and potential carbon legislation costs. • Increases property value but not real estate taxes. • Provides significant environmental benefits. • Demonstrates corporate responsibility.www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 8. Incentives For Solar Federal Investment Tax Credit/Grant (ITC) (ITC) 30% Grant (expires in 2011) Section 179 Deduction Deduct up to $500K for Qualifying Equipment First Year Bonus Depreciation Tax Benefit 100% Depreciation in Year 1 (2011 only) Total Benefits 6 Year Depreciation Tax Benefits (Modified Accelerated Cost Recovery System – MACRS)Solar Renewable Energy Certificate Earnings SREC 15 Year Program Electrical Energy Savings 25+ Years of Avoided Electrical Costswww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 9. New Jersey Clean Energy Program (NJCEP) -Solar Renewable Energy CertificateProvides for Generation and Trading of Solar RenewableEnergy Certificates (SRECs) by Solar Owners • NJCEP requires electric utilities to supply a percentage of their electricity from solar. • Utilities can meet their requirements by purchasing SRECs from solar electric owners. • If utilities do not purchase SRECs they must make an Alternate Compliance Payment (ACP). • A SREC is a Tradable Commodity with Monetary Value.www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 10. Solar Renewable Energy Certificates (SRECs) in New Jersey • One SREC = 1,000 kW hours of solar production • ACP was set at $693 for 2010 and will drop 3% each year • Estimated SREC Values: • 2011: $650 - 2014: $450 - 2019: $350 11SREC SREC 11SREC SREC 11SREC SREC 11SREC $78,000 = SREC 11SREC SREC 11SREC = SREC per yearTypical 100 kW system produces About 120 SRECsabout 120,000 kWh per year. per year. www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 11. How SREC Transactions Work Currently, a 100 kW system will earn $78,000 per year Every 1,000 kW Produced = 1 SREC 1 SRECUtility companiespurchase SRECsto meet their Commodity Exchangerenewable is similar to Stub Hubenergy goals. www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 12. The Solar Energy Advancement and Fair Competition Act (A3520)• Signed into law on January 18, 2010, by Governor Corzine. Corzine. Gwhrs / Energy Year• The Act requires electric suppliers 6000 to procure a minimum of 195 Gigawatt hours (GWH) of electric 5000 power from solar generators in 2010 and increases to 5,316 4000 GWH by 2026.• The BPU is required to establish a 3000 15 year Solar Alternative Compliance Payment (SACP) 2000 schedule. Prior to this requirement, the SACP extended 1000 out 8 years.• If the average SREC price 0 decreases for 3 years or if the 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 supply of SRECs meets or exceeds demand for 3 years the requirement increases by 20%. www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 13. Solar Finance Options • Ownership Investment • Capital Outlay • Loan • Lease • Operating • Capital • Solar Power Purchase Agreementwww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 14. Factors of Influence • Company Balance Sheet • Federal Benefits & Incentives • Renewable Solar Energy System Components • Commodity Value of SREC • Electrical & Inflation Rateswww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 15. Ownership, Power Purchase & Lease Arrangement Renewable Energy Electrical & Energy Project Fees Production Capital Budgeting & Factors of Influence on Internal Rate of Return (IRR) for Renewable Energy Project Energy Policies & Federal & State Legislation IncentivesAdvances in Energy World Wide Renewable Portfolio Renewable Energy & Green Certificate Values Economic Factors Standards (RPS) Technologywww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 16. Commercial Building – 200 kWwww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 17. Cash Flow – Capital Investment Project Economic Inflow Over 15 Years Electric Savings & Solar Renewable Energy Certificate $2,313,732 (SREC) Income Federal Incentives & Benefits $575,309 Potential Revenue $2,889,041 Project Economic Outflows Solar Renewable Energy Project Investment + O&M ($994,466) Potential Investment ($994,466) Net Expected Income (Pre Tax) $1,894,575 3000000 2500000Cash Amount 2000000 1500000 1000000 500000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 -500000 -1000000 Years www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 18. Cash Flow – Operating Lease Project Economic Inflow Over 15 Years Electric Savings & Solar Renewable Energy Certificate $2,313,732 (SREC) Income Potential Revenue $2,313,732 Project Economic Outflows Solar Renewable Energy Project Payments + O&M ($1,016,995) Potential Investment ($1,016,995) Net Expected Income (Pre Tax) $1,296,737 2500000 2000000Cash Amount 1500000 1000000 500000 0 Years 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 19. Power Purchase AgreementA customer hosts the solar system and agrees to purchasethe electricity produced under a 15 to 20 year contract.Benefits:• Provides a capital free means to obtain solar energy.• Assured of obtaining electricity at a predictable price for 15 to 20 years.• Electricity will be less expensive and less inflationary than utility supplied electricity. Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 20. Carbon Credits & Environmental Benefits for a 200 kW SystemSolar Renewable Energy System (200kW) will: • Provide Avoided Greenhouse Gasses (Over a 30 Year Period): Carbon Dioxide CO2 – 1,923 tons Nitrous Oxide NOx – 13,394 lbs Sulfur Dioxide SO2 –8,631 lbs Equivalent tree absorption of CO2 = 70 acres • Produce Carbon Credits - A Potential Tradable Commodity www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 21. Project Timeline Project Overview & Timeline (estimate based on 200 kW) Week Description -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Pre-Feasibility SolarAppraisal & AuditContract Review &ExecutionProject Assessment –Permitting & EngineeringSite & Roof Upgrade(if required)Procure Solar EquipmentProject ConstructionPost-Solar RoofInspection & CertificationLocal, State & UtilityInspectionsInterconnection &CommissioningTraining & EducationPublic Relations &Marketing *Subject to change based on project conditions www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 22. Typical Commercial Installations Merck Whitehouse Station, NJ Tiffany & Co. Whippany, NJwww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 23. Trends: Solar Parking Canopies GE Charging Stationswww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 24. Trends: Ground Mount Trackers Single Axis Trackers • Higher Efficiency • 20% less area over fixed tilt systems • 60% less area over thin film systems • Most Energy Per Acrewww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 25. Trends: Thin Film Applications • Advantages: • Light-weight (<2 lbs/sq. ft.) Light- • Low Cost Materials • Ease of Installation • Efficiencies are Improvingwww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 26. LimitationsThe estimates, projections, figures and other fiscal representations (the “Projections”)contained herein are made on the basis of incomplete information and without thebenefit of knowing what will actually happen in the future with a particular matter orany other item. The Projections shall not be relied upon as final. The ultimate projectfees, costs and other financial considerations may be different than the Projections.Information contained herein contains “forward looking statements” within themeaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities and Exchange Act of 1934. Any statements that express or involvediscussions with respect to predictions, expectations, beliefs, plans, projections,objectives, goals, assumptions or future events or performance are not statements ofhistorical facts and may be “forward looking statements”. Forward looking statementsare based on expectations, estimates and projections at the time the statements aremade that involve a number of risks and uncertainties which could cause actual resultsor events to differ materially from those presently anticipated.IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S.Federal tax advice contained herein is not intended or written to be used, and cannotbe used by you or any other person, (i.) for the purpose of avoiding any penalties thatmay be imposed under the Internal Revenue Code, or (ii.) in promoting, marketing orrecommending any Federal tax transaction(s) or matter(s) addressed herein.This document contains computer enhanced images that are general in nature andprovided for demonstration purposes only and they are not intended to be relied on forany other purpose.The information and content provided within this document is general in nature and isfor informational purposes only. It is not intended, and should not be construed, as arecommendation, or legal, tax or investment advice, or a legal opinion. You shouldcontact your tax advisor, lawyer and Certified Public Accountant to help answerquestions about your individual or business specific situation or needs prior to takingany action based upon this information. www.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.
  • 27. Contact Information 1 (800) 571-8661 571-www.entechgroupinc.com/energy Thomas A. Furey, P.E., LSRP tfurey@entechgroupinc.com Joseph P. Colucci jcolucci@entechgroupinc.comwww.entechgroupinc.com/energy © 2011 The Entech Group, Inc. All Rights Reserved. 1.800.571.8661 Please refer to the Limitations section at the end of this presentation.

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