Overview of my Investment Solar System Feasibility course--where I teach The Shortest Possible Path to Profitable PV Projects. Taught at UC Berkeley Extension's Downtown Center. Starts 13MAR10

1. 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.

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

3. 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?

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

5. PV
POWER
PARTNERING
WHERE PV
WORKS.

6. 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

7. 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

9. Tilt & Azimuth Matter

10. The Solar Trinity
Monetize Tax Attributes
Aggregate Demand Vendor Relationships

11. 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

12. 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

13. 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

14. 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

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