2010 Spring Investment Solar System Feasibility Course

Investment Grade Solar System Feasibility Underwriting, Production, and Presentation of Investment Grade Studies UCBX 430 Produced and Presented By Theodore Horton, LEED AP, Managing Member NorCal PV LLC.

Key Concepts Instant Feasibility Quantifying Demand The Value Stack vs the Cost Stack Harvesting & System Design Let’s Make A Deal

The Five Questions You Need to Answer on any Project 1. Why is this the Right Customer? 2. Why is this the Right Site? 3. Why is this the Right Way to Buy Solar? 4.Is the Pain Worth the Gain? 5. Why Do It Now?

Course Objectives •Get to feasible projects faster •Use tax, technology, customer to get to a deal •Do it right, build it now.

PV POWER PARTNERING WHERE PV WORKS.

YES Wants YES Tax Appetite? Performance Risk? Got Cash? Balance Sheet NO Capital Lease NO NO Bankable? NO PROJECT YES Wants YES Operating Lease Performance Risk? NO CREBs NO Which YES Financing Structure? > 400kW? PPA

15% Power Revenues (net of rent) California Performance Based Incentive SRECS Federal Investment Tax Credit After Tax Value of Depreciation After Tax Residual Value VALUE STACK

Tilt & Azimuth Matter

The Solar Trinity Monetize Tax Attributes Aggregate Demand Vendor Relationships

50 The Right Customer—16MAR10 40 The Right Site—30MAR10 25 Right Value Stack—06APR10 Mitigating Risk—13APR10 10 Term Sheet 4 1 Do It Now

The 12 Step Solar System Feasibility Process Step Task Goal 1. Host Customer Description Solar intent, Onsite Loads Define Need 2. Tax Equity Monetization Treasury cash grants, ITC, MACRS Capitalization 3. Production Forecast Energy production, guarantees Onsite Savings 4. Site Control Lease, license, easement Control 5. System Costs Contracts, leases, finance package Contract 6. Risk Factors Design, Construction, Operation Buy Out Risk 7. Capitalization PBI, Lease, debt, equity, SRECs Low Cost of Funds

The 12 Step Solar System Development Process Step Task Goal 8. Permitting Fire, electrical, site code compliance Building Permit 9. Procurement Component & equipment delivery Vendor Agreements 10. Construction Quality, pace and intensity On-time, On-budget 11. Commissioning Reduce errors and defects Utility Connection 12. Monitoring & Operations System yield, warranty service Beat Projections Reversion & Expansion Add’l sites, sale/xfer of PV assets Profitability

The scientists represented by the IPCC have spoken — what we need now are passionate, even partisan political soldiers to lead the way and push the final tipping point from awareness to action. --Bill Walsh, CNN

See you Saturday 13MAR 9A Registration: http://www.unex.berkeley.edu/cat/course1885.html

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2010 Spring Investment Solar System Feasibility Course

by norcalpv on Dec 28, 2009

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2010 Spring Investment Solar System Feasibility Course — Presentation Transcript