The document discusses the benefits of solar energy systems compared to traditional energy sources. It states that the upfront cost of solar is comparable to the cost of a new car but solar provides a better long term investment due to energy cost savings. Solar energy rates provide stable costs while traditional energy rates have historically doubled every 10 years. The document also notes that solar homes appreciate in value faster than comparable non-solar homes and that solar systems typically pay for themselves within 5 years or less when accounting for energy savings and tax incentives.

1. The Benefits Of Solar

2. How Much Does A Car Cost? Avg. New Car: $28,400* Depreciation in first 4 years: 40-60%** For about the same amount of money, Solar is a much better investment * National Automobile Dealers Association **Consumer Reports

3. Energy Inflation & Volatility Historically, energy rates double every 10 years, however…Oregon natural gas prices nearly quadrupled in the last 10 years! $3.28 $12.58* Wholesale gas prices per thousand cubic feet *Avg. NYMEX-Henry Hub Price 6/1-6/19/08 Source: Energy Information Administration, Oregonian 6/22/08

4. Impact of Natural Gas Inflation Inflation in wholesale natural gas affects the retail price of natural gas… NW Natural asking a 14% rate increase in November, 2008 (20% in Washington) AND, it affects the retail price of electricity PGE asking for a 14-15% rate increase in January, 2009

5. Oil is even worse! Light Sweet Crude, Per Barrel Futures Price (source: NYMEX) June 1, 2007 = $65 June 23, 2008 = $136.74

6. Efficient Homes Appreciate High Efficiency Solar homes appreciate in value faster than comparative, conventional homes 1 $163,629 $227,592 $ gain in property value (mean) 26% 42% Percentage of $ gain in property value (mean) 13%-35% 6%-56% Range of percentage $ gain in propery value $208,410, owned 24 mos. $309,505, PV, owned 14 mos. High-end of gain 17-25 mos. 10-29 mos. Length of ownership (range in mos.) 21.8 mos. 18.7 mos. Length of ownership before resale (mean in mos.) Homes in Comparison Community Homes in SheaHomes Community Variable

7. Higher Satisfaction With Solar Energy efficiency improves overall buyer satisfaction with the home—when combined with solar Table below shows percentage comparison of respondents from homeowners in the SheaHomes communities regarding their expectations about savings on the utility bills 1 21% 17% 19% Disagree/strongly disagree 50% 30% 43% Unsure 29% 53% 38% Agree/strongly agree SheHomes Respondents without PV (n=68) SheaHomes Respondents with PV (n=40) All Shea Homes Respondents (n=108) Response

8. Efficiency Increases Home Value Solar electric systems increase property value by decreasing utility operating costs. Appraisal Journal found that a home’s value is increased $20,000 for every $1,000 reduction in annual operating costs from energy efficiency. Sources: Appraisal Journal, Oct 1998; NorCal Solar Energy Resource Guide, Oct 2005, “Payback and other Financial Tests for Solar in your home”, Author: Andy Black. Wells Fargo Bank

9. Solar Rate Of Return Higher Another study found that solar additions to existing homes nets higher rate of return Source: Business 2.0 , November 2006 1)National average, 2)Average cost for 2,000 sq/ft home, 3) California Incentives $15,000 Rebates and tax credits 3 $9,900 Utility savings (5 years) $2,450 -$3,942 Payoff $22,500 $39,920 Home value increase $45,000 2 $43,862 1 Average Cost Solar Energy System Kitchen Remodel

10. Green Homes Sell For More Portland Metro four county avg. per square foot sales cost: Conventional Home Avg. = $185 Green Certified Home Avg. = $223 Time on market: Conventional Home Avg. = 73 days Green Certified Home Avg. = 66 days Source: Earth Advantage, May 6, 2008

11. An Observation about Global Warming

12. Mt. Hood & Global Warming Mt. Hood’s White River Glacier has lost 61% of its volume since 1982 Photos courtesy of Gary Braasch: http://www.braaschphotography.com . More of his photography regarding global climate change is available at http://www.worldviewofglobalwarming.org

13. Does Solar Really Work Here?

14. The Willamette valley gets as much sun on an annual basis as the US average

15. Oregon’s Solar Advantage “ Even the cloudiest parts of Oregon receive more sunlight than Germany and Japan, who are currently the world leaders in PV Installations.” Frank Vignola, University of Oregon

16. Better than Florida! “ An average solar water heater in western Oregon will save as much energy, on an annual basis, as an average system in Florida.” Christopher Dymond, Senior Energy Analyst, Oregon Department of Energy

17. Anytime The Sun Shines, We Get Energy Location: Lion’s Gate Inn, Newberg, Oregon Date: January 24, 2008 Time: 2:00 PM Outside Air Temperature: 37 F "Real Feel" (AccuWeather): 26 F Conditions: Sunny, winds from NNW, incoming clouds Temp in Solar Water Tank: 100 F

18. Net Metering Excess power is sold back to the power company at retail rates when sunny Acts as your battery so when it rains you have credit to draw from

19. Consumer Photovoltaic (Solar Electric) Incentives Energy Trust $2.25/Watt (PGE) or $2.00/Watt (Pacific Power) up to $10,000 Paid to contractor to reduce customer cost Oregon RETC $3.00/Watt up to $6,000 Max $1,500 claimed/yr Federal 30% of net cost, NO CAP! (2009) Income tax credit Example: 2 kW DC System $20,000 Installed price -$4,500 ETO Incentive $15,500 Net price -$6,000 Oregon RETC -$4,650 Fed tax credit $4,850 Final cost

20. Consumer Solar Hot Water Incentives Energy Trust Electric: $.40/kWh up to $1500 Gas: $.30/kWh up to $1500 Paid to contractor to reduce customer cost Oregon RETC $.60/kWh up to $1,500 Claimed in one year Federal 30% of net cost, NO CAP! (2009) Income tax credit Example: System Savings: 2,700 kWh annually, electric backup $8,500 Installed price -$1,080 ETO Incentive $7,420 Net price -$1,500 Oregon RETC -$2,226 Fed tax credit $3,694 Final cost*

21. System Payback Historically, Energy Rates Double Every Ten Years In a home, for every $1 in annual energy savings created, the value of the home appreciates by $20 Sources: Appraisal Journal Wells Fargo Bank Value Appreciation Payback Model™ Assumed current power rate: $.10 per kW/h Energy Inflation assumption: 5% Annually (Conservative) Property Appreciation assumption: $20 increase for every $1 annual energy savings Estimated System Payback, as proposed: 3 to 5 years For the 2,700 kw/h Solar Water and 2 kw PV examples, previous slides--~$8,544 installed after incentives.

22. In Conclusion Solar improves the value of your home Solar insulates you from energy inflation and volatility—energy cost savings escalates as energy rates inflate Solar saves energy by creating energy Solar payback is aggressive, when considering market factors

23. Solar Hot Water Side-wall mounted, drain-back system, PV powered pump, offsets 2,700 kWh annually

24. Hybrid 2 kw PV with space and water heating

25. 5.6 kw PV system in Oregon Wine Country

26. Thank You! Contact: Keith Knowles Vice President, Solar Consultant 503-317-6536 [email_address]