SolarCity Analysts Day_2015

2 0 1 5 A N A L Y S T D A Y
Delivering Better Energy

This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding SolarCity’s business strategies; our operational growth and expansion opportunities; our
international expansion plans, including our expectations as to lower global module pricing and labor costs outside the United States; the deployment and installation of megawatts, including estimated Q4 2015 and
2016 megawatt installations; future bookings; financial strategies for cash generation and increasing shareholder value; forecasted cash flows from existing Energy Contracts, including related assumptions as to
energy production future operations and maintenance expenses, cancellation rates, renewal rates, default rates, amounts of performance based incentives and other identified assumptions; our projections related to
decreases in cost per Watt, including our plans to decrease our sales cost per Watt by eliminating higher cost channels, utilizing more efficient channels, and other initiatives, the impact of proprietary technology in
decreasing our installation costs, our expectations regarding future hardware pricing, our expectations regarding the maturing efficiency of our operations centers, and our plans to vertically integrate our commercial
product offerings along with related projections regarding installation efficiencies and cost savings; our plans to achieve manufacturing economies of scale and associated manufacturing cost reductions; our
expectations regarding the Riverbend agreement and the development and construction of the Riverbend facility, including our projection that the facility will be completed and ready to commence operations by Q2
2016, our expectations regarding capital and operating expenses and the performance of our manufacturing operations; our expectations as to future regulatory and policy outcomes affecting our industry, including
our belief as to the likelihood of an extension of the Federal Investment Tax Credit and the continued adoption and extension of net-energy metering programs; our projections regarding hypothetical cash flows and
tax equity transactions following the schedule step-down in the Federal Investment Tax Credit; our projections regarding the future pricing of utility-generated electricity and customer savings; our liquidity and
forecasted access to capital, including assumptions related to the terms of future financing (including risk premiums and interest rates), the sufficiency of committed available financing, the terms and frequency of
future securities offerings (including securitization offerings and our expectation that the risk premium of future securitized offerings will decrease consistent with that of mortgages) and our expectations regarding the
refinancing of existing debt obligations, including our short-term Solar Bonds; the amount of megawatts that can be installed and deployed based on committed available financing; the success of our product
development efforts and customer preferences, including the potential and performance of residential and commercial energy storage products and other new product offerings; and assumptions relating to the
foregoing.
Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be
achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking
statements. In order to meet our projections, we will need to expand our workforce and increase the efficiency of our sales and installation operations relative to what we have achieved to date. Additional key risks
and uncertainties include the effect of electric utility industry regulations, net metering and related policies; the availability and amount of rebates, tax credits and other financial incentives; the level of demand for our
solar energy systems; the availability of a sufficient, timely, and cost-effective supply of solar panels and balance of system components in each of our geographies; our ability to successfully integrate acquired
businesses, operations and personnel; our ability to achieve manufacturing economies of scale and associated cost reductions, our expectations regarding the Riverbend agreement and the development and
construction of the Riverbend facility, including expected capital and operating expenses and the performance of our manufacturing operations; the effects of existing and future tariffs and other trade barriers;
changes in federal tax treatment; the availability and amount of financing from fund investors; the retail price of utility-generated electricity or the availability of alternative energy sources; risks associated with
SolarCity’s rapid growth; risks associated with international expansion; the success of our product development efforts and customer preferences; risks that consumers who have executed energy contracts may
seek to cancel those contracts; assumptions as to the value under energy contracts and contract renewal rates and terms, including applicable net present values, performance-based incentives, and other rebates,
credits and expenses; SolarCity’s limited operating history, particularly as a new public company; changes in strategic planning decisions by management or reallocation of internal resources; and general market,
political, economic and business conditions. You should read the section entitled “Risk Factors” in our most recent Quarterly Report on Form 10-Q and subsequent Current Reports on Form 8-K, which have been
filed with the Securities and Exchange Commission, which identify certain of these and additional risks and uncertainties. We do not undertake any obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law.
Forward-Looking Statements
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B U S I N E S S D R I V E R S & M E T R I C S
L E A D E R S H I P O F A G R O W I N G O P P O R T U N I T Y
V A L U E O F A S S E T S
M O N E T I Z A T I O N O F E N E R G Y C O N T R A C T S
V E L O C I T Y A N D C O N S I S T E N C Y O F D E P L O Y M E N T S
P R O P R I E T A R Y O R I G I N A T I O N A T L O W E R A C Q U I S I T I O N C O S T S
O P E R A T I N G C O S T E X C E L L E N C E
I N V E S T M E N T I N B E S T - I N - C L A S S T E C H N O L O G Y
G U I D A N C E A N D C O N C L U S I O N
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Strategy Update
 Organic origination of long-term Energy Contracts at lower acquisition costs
 Best-in-class installation costs through proprietary technology
 Monetization of a higher portion of the value of our Energy Contracts through low-cost,
long duration financing
 Exploring monetization of the full value of some Energy Contracts
 Be a catalyst in de-carbonizing the energy infrastructure
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Introduction: Business Drivers and Metrics
Leadership of a Growing
Opportunity
Monetization of Energy Contracts
and Creation of Asset Value
Investment in Best-in
Class Technology
Metric Unit 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3
U.S. Power Capacity:
U.S. Installed Generating Capacity GW-AC 1,161 1,169 1,172 1,177 1,182 1,171 1,176
Distributed Solar as % of U.S. Generating Capacity % 0.6% 0.6% 0.7% 0.7% 0.8% 0.9% 0.9%
U.S. Installed Distributed Solar Capacity GW-DC 6.7 7.3 7.9 8.6 9.2 10.0 10.8
New U.S. Installed Distributed Solar Capacity MW-DC 483 564 559 719 682 697 796
SCTY Units:
SCTY % of New U.S. Distributed Solar Capacity % 17% 19% 25% 25% 22% 27% 32%
MW Installed MW 82 107 138 177 153 189 256
MW Deployed MW 82 107 137 176 143 177 205
MW PTO'd MW 83 79 113 138 160 156 203
Energy Contract Pricing of New Deployments (Yr. 1) $/kWh $0.12 $0.12 $0.12 $0.12 $0.13 $0.13 $0.13
Annual Escalator % 1.7% 1.9% 1.9% 1.9% 2.1% 2.1% 2.2%
SREC (5-Yr. Portfolio Average) $/kWh $0.01 $0.01 $0.02 $0.02 $0.02 $0.02 $0.02
Energy Harvest (Yr. 1) kWh/kW 1,425 1,416 1,406 1,402 1,404 1,379 1,352
Value Generation and Monetization:
Asset Financing in Period (including rebates)* $/W $2.69 $2.04 $2.62 $2.28 $2.35 $2.33 $3.20
Contracted Value of MW Deployed in Period † $/W $3.68 $3.55 $3.37 $3.24 $3.44 $3.49 $3.50
Renewal Value of MW Deployed in Period † $/W $0.38 $0.40 $0.38 $0.34 $0.33 $0.34 $0.36
Total Value of MW Deployed in Period $/W $4.06 $3.95 $3.74 $3.58 $3.77 $3.83 $3.86
Cost per Watt**:
Sales $/W $0.51 $0.47 $0.49 $0.57 $0.59 $0.53 $0.64
Installation $/W $2.44 $2.28 $2.19 $2.09 $2.09 $2.13 $1.92
G&A $/W $0.30 $0.26 $0.21 $0.20 $0.27 $0.24 $0.27
Total Cost per Watt $/W $3.25 $3.01 $2.89 $2.86 $2.95 $2.91 $2.84
R&D Expenses $M ($1.9) ($3.0) ($4.2) ($10.0) ($12.1) ($12.4) ($17.7)
Capital Expenditures $M ($4.7) ($2.9) ($5.8) ($9.5) ($30.5) ($71.6) ($45.7)
Change in Working Capital Q/Q $M $28.3 $22.7 $37.0 ($38.1) ($72.3) ($31.7) ($41.7)
Debt and Cash:
Debt - Recourse $M ($176.6) ($349.8) ($165.2) ($149.7) ($290.6) ($419.2) ($518.2)
Debt - Convertible $M ($230.0) ($230.0) ($730.0) ($796.0) ($796.0) ($796.0) ($796.0)
Cash & Short-Term Investments $M $526.2 $429.6 $756.8 $663.6 $586.2 $497.6 $438.7
Current Portfolio Value
Unlevered Pre-Tax NPV Remaining of Cumulative MW Deployed (1.5 GW) $M $2,708
Debt – Non-Recourse $M ($995)
Net NPV of Cumulative MW Deployed
$M $1,713
Proprietary Origination at Lower Cost
Operating Cost Excellence
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* Weighted average of Q1-Q3 2015 Asset Financing is $2.68
** Cost per Watt is based on our quarterly cost calculation methodology we detail on our website
† Updated since original report

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Solar Represents a Plurality of New U.S. Power Capacity
Total U.S. Installed Generating Capacity is ~1,170 GW with 15-20 GW/Yr. of New Gross Capacity since 2010
Distributed Solar Accounted for 22% of New-Build U.S. Generating Capacity in 1H15 with Utility-Scale at 23%
1,110
1,120
1,130
1,140
1,150
1,160
1,170
1,180
0
5
10
15
20
25
30
2010 2011 2012 2013 2014
TotalInstalledCapacity(GW)
New-BuildCapacity(GW)
New Build U.S. Generating Capacity
U.S. Total Installed Capacity
3% 5% 5%
11% 12%
22%
1%
3% 6%
17%
21%
23%
0%
10%
20%
30%
40%
50%
2010 2011 2012 2013 2014 1H15
%ofNew-BuildU.S.GeneratingCapacity
Utility-Scale Solar
0.6
1.1
1.6
1.9
2.3
1.4
0.0
0.5
1.0
1.5
2.0
2.5
2010 2011 2012 2013 2014 1H15
GWInstalled
>20% of New U.S. Capacity was
Distributed Solar in 1H152
U.S. Distributed Solar Grew at a 40% CAGR
2010 to 20143
15-20 GW of New U.S. Generating
Capacity per Year1
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Distributed

Solar is Competitive in a Significant Portion of the U.S.
Avg. U.S. Retail Electricity Price Is ~$0.13/kWh with 583 TWh Consumed at that Price or Higher4
Total U.S. Residential and Commercial Electricity Sales ≥$0.13/kWh Exceeded $90 Billion in 2014
0
100
200
300
400
500
< $0.08 < $0.09 < $0.10 < $0.11 < $0.12 < $0.13 < $0.14 < $0.16 < $0.18 < $0.20 > $0.20
U.S.ResidentialandCommercial
ElectricityConsumption(TWh)
Average Retail Utility Price ($/kWh)
NY
MA
NC
CT
AZGA CA
MDTX
FL PA HI
SolarCity Service States
Non-SolarCity Service States
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Retail Utility Rates Are Rising on Infrastructure Spending
Retail Utility Rates Have Increased despite Lower Energy Prices Due to Infrastructure Capex
CA Rate Reform is Increasing Investor-Owned Utilities’ Baseline Tier 1 Residential Rates Initially to >$0.17/kWh in 2017
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
2004 2009 2014
Avg.ResidentialUtilityRate
($/kWh)
$0.15 $0.16 $0.17$0.17
$0.20
$0.23
$0.20 $0.21
$0.25
$0
$0
$0
$0
$0
$0
SCE PG&E SDG&E
ResidentialUtilityRates($/kWh)
Old Tier One (1H15) Tier One (2017)* Tier One (2019)*U.S. Avg.Avg. in Our 19 States
New CA Rate Reform Increasing Tier One Rates6Utility Rates in SolarCity Geographies Are Up 49% since 20045
* Assumes 3% Additional Annual Rate Inflation
3.4% CAGR
4.1% CAGR
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Cleaner, Lower Cost Energy
Solar PPAs, Leases, and Loans Lower Customers’ Energy Bills for No Initial Investment
 No upfront cost for installation required
 Solar energy paid for monthly at a lower $/kWh price than charged
by the local utility
 Our solar contracts typically generate 50-90% of a customer’s
annual electricity needs
 Customers able to generate savings of up to 20% from Day One
Avg. Annual Year-1
Savings Of > $400 in
California
SOLARCITY EXAMPLE OF A CALIFORNIA PPA WITH NO DOWN PAYMENT
SolarCity Bill
New Utility Bill
New Avg. Bill
~$1,848 /Yr.
Old Avg. Bill
~$2,256 /Yr.
$0.15/kWh
$0.15-0.19/kWh*$0.19/kWh
* Because of tiered pricing based on usage in California, the output from solar energy systems also lowers the rate charged by the utility
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SolarCity
U.S. Service
Territories
Total U.S.
Total U.S. Residential Solar
Installations at the End of Q2 2015 7 0.68M 0.73M
/ Total U.S. Single Family Housing
Units 8 41.3M 92.2M
= Distributed Solar Penetration of
U.S. Single-Family Homes
1.7% 0.8%
Despite Continued Growth, Solar Penetration Remains Low
U.S. Solar Penetration of Both Residential and Commercial Buildings Is Below 1%
Residential Solar Is Installed on Only 1.7% of Single Family Homes in SolarCity’s U.S. Service Territories
 Over 733k residential solar homes in the United States
as of the end of Q2 2015 with ~190k new residential
installations in 2014.7
 635k new single-family home permits across the Country
in 2014, expanding the opportunity.9
 Less than 1% solar penetration of the 5.6M commercial
buildings in the U.S.10
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The Clear Leader in U.S. Distributed Solar Installations
SolarCity is the Largest U.S. Residential and Commercial Solar Installer
Installed 28% of Distributed Solar, 15% of Total Solar, and 7% of New Gross Power Capacity in the U.S. 1Q-3Q15
3%
6% 6%
5%
7% 7%
22%
7%
8%
11%
17%
25%
33%
37%
11% 10%
2009 2010 2011 2012 2013 2014 3Q15 SCTY 3Q15 Resi
Installer No. 2
3Q15 Resi
Installer No. 3
%ofU.S.DistributedSolarInstalled11
Commercial Residential
SolarCity accounted for more than 1% of all solar installed globally this year
22%
32%
Blended
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Potential to Expand SolarCity’s Core Expertise Globally
 Acquired ILIOSS for $10M in Aug. 2015
 Strong track record with major Mexican corporations
SOLARCITY IS NOW A LEADING C&I INSTALLER IN MEXICO
 International opportunities expected to benefit from lower global module
pricing and lower labor costs outside the United States
 Exploring partnerships with potential long-term asset owners
Example Countries Australia Chile Italy Kenya
Residential Utility
Rates ($/kWh)
$0.23 $0.15 $0.26 $0.24
Commercial Utility
Rates ($/kWh)
$0.16 $0.09 $0.19 $0.10
Solar Insolation
(kWh/kW)
~1,500 ~1,800 ~1,200 ~1,400
EXPLORING MORE FOREIGN OPPORTUNITIES12
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Regulatory Update
 The California Public Utilities Commission’s forthcoming
decision on NEM 2.0 is expected to not significantly affect
economics for new customers, as state law requires that
the new tariff ensure that customer-sited DG “continues to
grow sustainably”
 New York removed its NEM cap through 12/31/16 while a
comprehensive docket called Reforming the Energy Vision
(REV) seeks to appropriately value distributed solar/clean
energy
 Though Hawaii’s public utilities commission capped the
state’s NEM program at existing levels, Hawaii is a unique
state that (a) already has double-digit rooftop solar
penetration and (b) has a very high cost of energy with
wholesale rates above the cost of distributed solar
 In Arizona, utility SRP’s implementation of anti-solar rate
design changes for new installations is being challenged in
Arizona federal court
 Extension growing increasingly likely as we
approach the step-down in the ITC from 30%
to 10% on 1/1/17
 Nevertheless, we are approaching our
business assuming no extension
STATE NET ENERGY METERING (NEM) POLICIES FEDERAL INVESTMENT TAX CREDIT (ITC)
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Regulators Are Continuing Net Energy Metering
Regulators Tend to View Distributed Solar Positively Because Its Benefits Outweigh Its Costs
State-developed mandatory
rules for certain utilities
No uniform or statewide mandatory
rules but some utilities allow
No net energy metering
State-developed net energy
metering rules ended for new customers
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Project Cash Flow Driven by Units, Production, and Pricing
Solar Insolation
Annual hours of sunshine on the panels adjusted
for tilt and azimuth
X
System Size Capacity (kW or MW)
=
Annual Energy Production
Estimated kilowatt-hours (kWh) of solar energy
produced in year one
X
$0.13/kWh ( Energy Contract Price
All the energy produced by the solar system is
sold to the customer at an established $/kWh
price with an annual escalator (includes
performance-based incentives)
+ +
$0.035/kWh
SREC Price )
Portfolio average, e.g.,
$0 in California
Certain states require non-renewable energy
generators to purchase Solar Renewable Energy
Certificates to meet state renewable energy
portfolio standards
= =
$1,486
(or $0.22/W)
Energy Contract
Revenue
Annual revenue is the customer bill plus
payments for SRECs. Customers contract for 20
years and we expect to provide energy to the
home for at least 30 years
1,332 Hours
260W x 26 Panels
= 6.8kW
9,004 kWh
751 Avg. FICO
Investment-grade off-taker
BILL
SREC
*
*Average of 3Q15 Lease/PPA Deployed; Q315 average including MyPower is 1,352 hours
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Year 0 1 2 3 4 5 6 7 8 9 10 11* 12 13 14 15 16 17 18 19 20
Energy Production kWh/kW 1,332 1,325 1,319 1,312 1,306 1,299 1,293 1,286 1,280 1,273 1,267 1,261 1,254 1,248 1,242 1,236 1,229 1,223 1,217 1,211
Annual Degradation (0.5%)
Contract (+PBI) Price $/kWh $0.13 $0.13 $0.13 $0.14 $0.14 $0.14 $0.14 $0.15 $0.15 $0.15 $0.16 $0.16 $0.17 $0.17 $0.18 $0.18 $0.18 $0.19 $0.19 $0.20
Annual Escalator 2.2%
SREC $/kWh $0.04 $0.03 $0.03 $0.02 $0.01
Rebates/Prepayments $/W $0.10
Project Revenue $/W $0.22 $0.21 $0.21 $0.20 $0.20 $0.18 $0.19 $0.19 $0.19 $0.20 $0.20 $0.20 $0.21 $0.21 $0.22 $0.22 $0.23 $0.23 $0.24 $0.24
O&M Expenses $/W ($0.02) ($0.02) ($0.02) ($0.02) ($0.02) ($0.02) ($0.02) ($0.02) ($0.02) ($0.02) ($0.18) ($0.02) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03)
Gross Project Cash Flow $/W $0.10 $0.20 $0.19 $0.19 $0.18 $0.17 $0.16 $0.16 $0.17 $0.17 $0.17 $0.02 $0.18 $0.18 $0.19 $0.19 $0.20 $0.20 $0.20 $0.21 $0.21
Year 21* 22 23 24 25 26 27 28 29 30**
Energy Production 1,205 1,199 1,193 1,187 1,181 1,175 1,169 1,163 1,158 1,152
Annual Degradation
Contract (+PBI) Price $0.18 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.23 $0.23
Annual Escalator
SREC
Project Revenue $0.22 $0.22 $0.23 $0.23 $0.24 $0.25 $0.25 $0.26 $0.26 $0.27
O&M Expenses ($0.15) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.03) ($0.04) ($0.04) ($0.04)
Gross Project Cash Flow $0.07 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.22 $0.23 $0.23
Gross Project Cash Flows (Pre-ITC) Valued at $2.56/W NPV
The Foundation of Our Value Creation Rests Upon the Cash Flow Stream of the Underlying Assets
Q3 2015 NPV of Lease/PPA Gross Project Cash Flows before the Investment Tax Credit/Depreciation Was $2.56/W at a 6% Discount Rate
$/W UNIT ECONOMICS FOR THE 172 MW OF LEASES/PPAS DEPLOYED IN Q3 2015:
30-Year NPV: $2.56/W
 Rebates/Prepayments: $0.10/W (upfront)
 Contracted NPV: $2.02/W (discounted at 6%)
 Renewal NPV: $0.44/W (discounted at 6%)
* Inverter replacement assumed in Year 11 at a cost of $0.15/W and in Year 21 at a Cost of $0.12/W
** Renewal assumes SolarCity continues to provide energy to the home at a 10% discount to the utility price at the time of renewal
Note: Excludes default rates
In aggregate, the lease/PPA MW Deployed in Q3 2015
are expected to generate unlevered Gross Project Cash
Flow (pre-tax equity distributions) of ~$34M in Year One
(172 MW x $0.20/W)
Excludes MyPower MW Deployed (See Appendix A)
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Tax Equity Primer
$/W $/W % of Return
Cash Investment in Project ($1.77)
Investment Tax Credit offsetting
income tax
$1.36 65%
Depreciation offsetting income tax over life of
partnership
$0.29 14%
Cash Flow from project $0.46 22%
Total Nominal Return $2.11 100%
 The Investment Tax Credit (ITC) available under Section 48 of the IRC currently includes a 30%
tax credit for solar systems on residential and commercial properties, which is scheduled to be
reduced to 10% after December 31, 2016.
 While the current ITC focuses primarily on renewable energy property, various iterations of the
ITC have existed since 1962, and over its history the ITC has been used by Congress to spur
investment in a multitude of industries.
 ITC is part of broader General Business Credit under Section 38 that provides tax credits to
various asset types, including low income housing, new markets, carbon sequestration,
marginal oil wells, and dozens of other industries.
HISTORY ECONOMICS
 Pool of sophisticated investors comprised of leading financial institutions and corporates
investing for an attractive risk adjusted return
 Investor base continues to expand as asset class matures
INVESTOR BASE
SELECT TAX EQUITY INVESTORS
 Partnership with SolarCity as 1% Member and Tax Equity as 99% Member
 Investment structured with projected “flip” and tenor 6.5 years
 Tax Equity partner receives the ITC, accelerated depreciation benefits and a share of cash flow
 After Tax Equity partner reaches a target IRR, their partnership interest flips down to 5% and
SolarCity can exercise a buyout of the Tax Equity’s interest
PARTNERSHIP STRUCTURE
% Benefit to Tax Equity Partner
Pre-Flip Post-Flip
ITC / Depreciation 99% 0%
Cash Flow 30-40% 5-10%
 After-tax IRR 7% to 12%; pre-tax cash IRR 2% to 5%
 Tax Equity partner funds $1.75-1.80 / W ($4.55 Fair Market Value * 30% ITC * 1.28 funding
multiple)
 Return is comprised of 65% ITC, 14% depreciation, 22% cash flow
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Year 0 1 2 3 4 5 6 7 8 9 10 11* 12 13 14 15
Gross Project Cash Flow $0.10 $0.20 $0.19 $0.19 $0.18 $0.17 $0.16 $0.16 $0.17 $0.17 $0.17 $0.02 $0.18 $0.18 $0.19 $0.19
Tax Equity Investment $1.77
Tax Equity Distributions ($0.07) ($0.07) ($0.07) ($0.06) ($0.06) ($0.06) ($0.05) ($0.01) ($0.01) ($0.01) ($0.01) ($0.01) ($0.01) ($0.01) ($0.01)
Unlevered Project Cash Flow to SCTY $1.87 $0.13 $0.12 $0.12 $0.12 $0.11 $0.10 $0.11 $0.15 $0.16 $0.16 $0.01 $0.17 $0.17 $0.17 $0.18
SCTY Share of Cash Flow 65% 65% 65% 65% 65% 65% 67% 92% 92% 92% 51% 93% 93% 93% 93%
Tax Equity Share of Cash Flow 35% 35% 35% 35% 35% 35% 33% 8% 8% 8% 49% 7% 7% 7% 7%
Year 16 17 18 19 20 21* 22 23 24 25 26 27 28 29 30**
Gross Project Cash Flow $0.20 $0.20 $0.20 $0.21 $0.21 $0.07 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.22 $0.23 $0.23
Unlevered Project Cash Flow to SCTY $0.18 $0.19 $0.19 $0.19 $0.20 $0.06 $0.18 $0.18 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22
Unlevered Cash Flow After-Tax Equity Valued at $3.87/W***
In Addition, Tax Equity Enables the Monetization of the Investment Tax Credit (ITC) in Year One
Tax Equity Invests $1.75-1.80/W in Return for a Portion of Gross Project Cash Flow and Most of the 30% ITC/Depreciation
30-Year Unlevered Pre-Tax NPV: $3.87/W
 Tax equity investment: $1.77/W (upfront)
 Rebates/Customer prepayments: $0.10/W (upfront)
 Contracted Unlevered NPV: $1.59/W (discounted at 6%)
 Renewal Unlevered NPV: $0.41/W (discounted at 6%)
** Renewal assumes SolarCity continues to provide energy to the home at a 10% discount to the price at the time of renewal
*** Unlevered Cash Flow Value of $3.87/W on this slide only includes Leases/PPAs; the $3.86/W reference on Slide 5 is a blend including MyPower
UNLEVERED PROJECT CASH FLOW OF LEASES/PPAS WITH A 30% ITC Tax Equity Share of Cash Flows:
 Pre-Flip: 30-40%
 Post-Flip: 5-10%
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Levering Cash Flows Yields $2.76 upfront
Non-Recourse Project Debt Is Used to Help Fund the Upfront Investment and Target Day One Cash
Aggregation Facility Debt Currently Funds $0.80-0.90/W and Is Expected to Be Refinanced with Long-Term ABS Debt
30-Year Pre-Tax NPV: $3.87/W
 Debt monetization: $0.89/W (upfront)
 Contracted Levered NPV: $0.70/W
 Renewal Levered NPV: $0.41/W
** Aggregation Facility debt assumes the terms of current aggregation facilities (2-yr. maturity)
*** Assumes ABS debt is issued to refinance the aggregation facility debt after two years, an 18-year amortization period, and the average interest rate of our first 4 ABS
issuances of 4.5% (the most recent LMC-4 issuance was at 4.4% including fees)
LEVERED PROJECT CASH FLOW WITH A 30% ITC
$/W 0 1 2 3 4 5 6 7 8 9 10 11* 12 13 14
Unlevered Project Cash Flow $1.87 $0.13 $0.12 $0.12 $0.12 $0.11 $0.10 $0.11 $0.15 $0.16 $0.16 $0.01 $0.17 $0.17 $0.17
Aggregation Facility Proceeds/Paydown** $0.89 ($0.05) ($0.84)
Aggregation Facility Debt Service** 2.75% ($0.02) ($0.02)
Expected ABS Debt Proceeds*** $0.97
ABS Debt Service*** 4.50% ($0.08) ($0.08) ($0.08) ($0.07) ($0.07) ($0.10) ($0.10) ($0.11) ($0.11) ($0.11) ($0.11) ($0.10)
Levered Project Cash Flow $2.76 $0.05 $0.24 $0.04 $0.04 $0.04 $0.03 $0.04 $0.05 $0.05 $0.05 ($0.10) $0.06 $0.06 $0.07
$/W 15 16 17 18 19 20 21* 22 23 24 25 26 27 28 29 30
Unlevered Project Cash Flow $0.18 $0.18 $0.19 $0.19 $0.19 $0.20 $0.06 $0.18 $0.18 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22
Aggregation Facility Proceeds/Paydown**
Aggregation Facility Debt Service**
Expected ABS Debt Proceeds***
ABS Debt Service*** ($0.11) ($0.11) ($0.10) ($0.03)
Levered Project Cash Flow $0.07 $0.08 $0.08 $0.16 $0.19 $0.20 $0.06 $0.18 $0.18 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22
21

>50% of Value Is Monetized Upfront and the Rest Retained
* Unlevered contracted cash flow net of operations and maintenance expenses and tax equity distributions
** Non-recourse aggregation facility debt issuance at a 56% advance rate and a 2.5-3.0% interest rate with the
potential to subsequently term out through ABS debt at a 66% advance rate and a 4.5-5.0% interest rate
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Total Value of MW
Deployed
Upfront Cash Remaining Value not
Monetized Upfront
$perWatt
Tax Equity
Investment
Plus Rebates/
Prepayments:
$1.87/W
Contracted
Post-Tax
Equity:
$1.59/W* Debt
Monetization:
$0.89/W**
Renewal:
$0.41/W
Renewal:
$0.41/W
$3.87/W
Retention of
Contract
$0.70/W
Renewal: $0.41/W
Unlevered Sale of
Contract $0.55/W
Tax Equity
Investment
Plus Rebates/
Prepayments:
$1.87/W
$2.76/W
Retention of approximately
1/3 of contract value and 100% of
renewal
>50% of total value and 56% of
contracted value monetized
upfront at 2.5-3.0%, and ultimately
66% in securitizations at 4.5-5.0%
6%
Discount rate
6%
Discount rate
22

Hypothetical Unlevered Cash Flow with a 10% ITC of ~$3.32/W
With a 10% ITC, Tax Equity Investment Could Fall to $0.45-0.50/W and Pre-Flip Distributions to ~10%
Offsetting the Decline in the ITC from 30% to 10%, We Expect Contract Pricing to Be Higher By ~$0.02/kWh by 2017
30-Year Unlevered Pre-Tax NPV: $3.32/W
 Contract NPV: $2.23/W (discounted at 6%)
** Renewal assumes SolarCity continues to provide energy to the home at a 10% discount to the price at the time of renewal
HYPOTHETICAL UNLEVERED PROJECT CASH FLOW OF LEASES/PPAS WITH A 10% ITC
23
Year 0 1 2 3 4 5 6 7 8 9 10 11* 12 13 14 15
Customer Preyaments/State Rebates $0.10
Tax Equity Investment $0.48
Unlevered Project Cash Flow $0.58 $0.20 $0.20 $0.19 $0.19 $0.18 $0.17 $0.18 $0.19 $0.20 $0.20 $0.05 $0.21 $0.21 $0.22 $0.22
SCTY Share of Cash Flow 90% 90% 90% 90% 90% 90% 91% 98% 98% 98% 93% 98% 98% 98%
Year 16 17 18 19 20 21* 22 23 24 25 26 27 28 29 30**
Unlevered Project Cash Flow $0.23 $0.23 $0.24 $0.24 $0.25 $0.10 $0.23 $0.23 $0.24 $0.24 $0.25 $0.26 $0.26 $0.26 $0.27

Multiple Options to Monetize Unlevered Cash Flows
$/W 30% ITC 10% ITC
Upfront Asset Financing:
Tax Equity Investment $1.77/W $0.48/W
Rebates & Prepayments $0.10/W $0.10/W
Aggregation Facility Debt $0.89/W $1.26/W
Total Upfront Asset Financing $2.76/W $1.84/W
Remaining Value: $1.20/W $1.60/W
Contracted Levered NPV** $0.70/W $0.95/W
Renewal Levered NPV $0.41/W $0.52/W
Value of MW Deployed $3.87/W $3.32/W
CURRENT STRATEGY IS TO MAXIMIZE UPFRONT MONETIZATION EQUITY INVESTMENTS FROM 3RD PARTY FINANCIAL BUYERS ALSO POSSIBLE
$/W 30% ITC 10% ITC
Upfront Asset Financing:
Tax Equity Investment $1.77/W $0.48/W
Rebates & Prepayments $0.10/W $0.10/W
Equity Investment at 7% unlevered IRR* $1.46/W $2.05/W
Total Upfront Asset Financing $3.33/W $2.63/W
Remaining Value:
Renewal Value Yrs. 21-30 $0.41/W $0.52/W
Value of MW Deployed $3.74/W $3.15/W
*Illustrative example; equity investment in contracted cashflows at 8% unlevered IRR would yield $1.34/W and total asset monetization of $3.21
** Additional ability to monetize another $0.10 through securitization
5.5%
6.9% 7.4% 7.7% 8.9%
NEP Comparable
YieldCo Average
CAFD NYLD Unlevered Year
1 Yield of Contracted
Sale at 7% IRR*
DividendYields(2016
Consensus)
COMPARABLE YIELDCOS
24

NPV of Portfolio’s Levered Project Cash Flows of $1.7B*(excluding SRECs)
The NPV of Unlevered Project Cash Flows to SolarCity is $2.7 Billion; Project Non-Recourse Debt is $1.0 billion
Power Co Portfolio as of 9/30/15
Cumulative Deployments under an
Energy Contract
1.5 GW**
Annual Energy Harvest (2016) 1,400
Average Contract Price (2016) $0.126/kWh
Tax Equity % of net cashflow
(2016)
43%
Project Debt ($M) $995
Blended Cost of Debt (%) 4.5%
* Excludes SRECs
** Cumulative Deployments under an Energy Contract of 1.5GW excludes 0.1 GW of System Sales 25
-50.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049
O&M Cash to Tax Equity Debt Service Levered Cashflows to SC
Cash flows generated by Energy Contracts

Strong Asset Quality with Predictable Performance
Underlying Asset is Contracted Cash Flow that Represents Customers’ Monthly Energy Bills
Low Delinquency Rates and the Predictability of Solar Irradiation Provide High Visibility into Cash Payment Stream
180+ Day Delinquency Rates are Low and Holding Steady kWh Production is Coming in Largely within Forecast
0.6%
0.6% 0.6% 0.6%
0.5%
0.6%
0.5% 0.5%
0.4% 0.4% 0.4%0.4%
0.5%
0.0%
0.2%
0.4%
0.6%
0.8%
Oct
14
Nov
14
Dec
14
Jan
15
Feb
15
Mar
15
Apr
15
May
15
Jun
15
Jul
15
Aug
15
Sep
15
Oct
15
Delinquenciesas%ofBillings
 Average FICO score of residential portfolio was >750 as of 9/30/15
 Commercial customers largely consist of municipalities and investment grade corporations
0
50,000
100,000
150,000
0%
20%
40%
60%
80%
100%
Sep
14
Oct
14
Nov
14
Dec
14
Jan
15
Feb
15
Mar
15
Apr
15
May
15
Jun
15
Jul
15
Aug
15
Energy(MWh)
Actual/Underwritten%
Actual Energy (MWh) Underwritten Estimate (MWh)
Actual/Underwritten %
26

B U S I N E S S K E Y D R I V E R S & M E T R I C S
1
2
3
4
5
6
7
8
9
27

Strategy Targets Lower Cost, Longer Term Financing
Non-Recourse Term Financing
Solar Bonds
$334m Facility
at 3.25% + LIBOR
Corporate Revolver
Tax Equity
Non-Recourse
Aggregation Facilities
$650M Facility
at 2.75% + LIBOR
Long-Term Debt Securitization
at 4.3%-4.8% and Rated A and BBB+
0-1 Year 0-5 Year 8-13+ Years
Development and Construction
Financing (DevCo)
Asset Ownership (PowerCo)
28
$240M Facility
at 3.25% + LIBOR

$0.1 $0.3 $0.4 $0.4
$0.8
$1.7
$2.6
2009 2010 2011 2012 2013 2014 2015 1Q-Q3
NewCommittedProject
Financing($B)
Strong Track Record and Visibility into Financing
 Issued first asset-backed securitization (ABS) of distributed solar assets in
Q4 2013
 Four ABS transactions to date raised $450 million in non-recourse debt
collateralized by 317 MW of distributed solar
 Total Tax Equity Financing Raised: $4.4B
 Tax equity capacity: $929M
 Aggregation facility capacity: $398M
 MyPower conduit capacity: $77M (increased by $40M in Q4 2015)
 Revolver capacity: $19M (increased by $65M in Q4 2015)
 Cash and short-term investments: $439M
STRONG FINANCING TRACK RECORD $1.4B IN COMMITTED/UNDRAWN FUNDING AS OF 9/30/15
29

Debt Outstanding as of the End of Q3 2015
Terms
(Yrs.)
Underlying
MW
$M Outstanding
at End of 3Q15
Pre-Tax
Cost
Recourse
Payment
Schedule
Investment-Grade ABS Debt 8-13 317 $425M 4-5% Non-Rec. Amortizing
Aggregation/ MyPower
Facilities
2-3 764 $570M 3-4% Non-Rec. Amortizing
Revolver and Other* <1 $308M 3-4% Recourse Term
Solar Bonds 1-15 $211M 1-6% Recourse Term
Convertible Debt 5 $796M 2-3% Recourse Term
MW Inspected - No Back
Leverage
188
MW Inspected – Fully
monetized
225
PowerCo
Debt
DevCo
Debt
* Includes revolver debt of $295 and other debt of $13M
$123M LMC4
Issued at
4.4% WACC
and Rated A
Weighted-
Average 2.2%
interest rate
and 1.3 Yrs.
Remaining
Term
30

Short Term Maturities Extended to 2017
Revolving Debt Facility Maturity Extended and Capacity Increased
Revolving Aggregation Facilities Enable the Recycling of Assets and Are Expected to Be Upsized and Renewed
Outstanding
(9/30/15)
2016 2017
Revolver $295M
Prior Maturity:
Dec. 2016
New Maturity:
Dec. 2017
Solar Bonds $211M
$176M Due:
Sept. 2016
Expected to
Be Rolled Over
MyPower Facilities $123M Jan. 2017
Strategy to term out
in longer duration ABS
Aggregation Facilities $447M
Option for one yr. extension
on Dec. 2017 maturity
Strategy to term out
in longer duration ABS
31

B U S I N E S S K E Y D R I V E R S & M E T R I C S
1
2
3
4
5
6
7
8
9
32

Installation Process for Customers Includes Six Steps
Sale Survey Design Permit Install PTO

Improving Customer Wait Times
34
MEDIAN DAYS FROM BOOKING TO INSTALL HAS FALLEN ~50% SINCE JANUARY 2013
50
60
70
80
90
100
110
120
130
140
150
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
MedianDaysfromBookingtoInstall
0 50 100 150 200 250 300
Q32015Installations
Days from Booking to Install

Our Process Results in High Customer Satisfaction
60%
70%
80%
90%
NPSScore%
Q1 2015 Q2 2015 Q3 2015
* Net promoter score is based on a scale of 1-10 in which the percentage of 0-6 scores is subtracted from 9-10 scores
35

1
2
3
4
5
6
7
8
9
50

Proprietary Origination at Scale
MW Booked Grew at a Compounded Annual Rate of 95% from Q3 2013 to Q3 2015
As We Continued to Drive Higher Growth, Sales Unit Costs Increased over the Last 2 Years from $0.40/W to $0.64/W
$0.40
$0.43
$0.51
$0.47 $0.49
$0.57 $0.59
$0.53
$0.64
$0.61 $0.59
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
SCTY
3Q15
Comp A
3Q15
Comp B
SalesCost($/W)
51
91
101
136
218
230
206
237
395
345
95
71
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
SCTY
3Q15
Comp A
3Q15
Comp B
MWBookedinPeriod

Lead generation Close
 Performance Marketing
 Retail partners
 Home Builder partners
 Malls
 Events
 Canvassing
 Ambassadors
 Referrals
• In-home consultation
• Phone consultation
• Online
MallCartTheHomeDepotDigitalAd
Diversified residential sales channels
52

Formulaic Growth in Commercial Sales
2013 2014 2015 YTD
CommercialMWBooked
CommercialSalesRepsbyCategory
Public Sector National Accounts Agriculture/Water
Mexico MW Booked
53

Reallocating Resources to Lower Cost Sales Channels
Sales Costs Vary Significantly by Channel
SolarCity Already has Channels Operating at Goal Cost Structures
Avg. $0.64
MW Installed by Channel
SalesCostbyChannel
($/W)
54
Note: We will not be disclosing this level of granularity on a regular basis

Achieving Our Sales Cost Goal of $0.40/W
Goal Is to Reallocate Resources and Drive Productivity to Improve Cost of Acquisition
$0.64
$0.40
$0.14
$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Sales Cost 3Q15 Channel Mix Effect Initiatives incl. Productivity
Improvement
Sales Cost Goal
SalesCost($/W)
55

1
2
3
4
5
6
7
8
9
56

18
34
15 17 17 28
14 21
5362 70 67
90
120
148 139
168
203
0
25
50
75
100
125
150
175
200
225
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
MWsInstalledinPeriod
Commercial Residential
Best-in-Class Operations Lead the Way in Volumes and Costs
MW Installed Have Grown 80% per Year since 2013 to Annualized Pace of >1 GW
Installation Cost/Watt of <$2.00/W is the Lowest Among Publicly-Reported Companies
57
* Installation cost is based on MW Deployed and tranched in period, which was a higher mix of lower cost residential installation in Q3 2015
$2.65 $2.49 $2.44
$2.28 $2.19 $2.09 $2.09 $2.13
$1.92
$2.27
$2.87
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
$2.75
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
SCTY
3Q15
Comp. A
3Q15
Comp. B
InstallationCost($/W)
*

Safety and Quality Have Improved with Growth
58
TRAINING PROGRAM
 4 training academies
 All installers go through rigorous employment training
before setting foot on a job site
 Follow up with continued education online and in
person
 General leadership training at SolarCity headquarters
 Dedicated training team
SCTY vs. OSHA
Incidence Rates13
Recordable Rate Lost Days
SolarCity 1.8 0.3
Construction (All) 3.6 1.3
Specialty Trade 3.8 1.4
FEWER INCIDENTS AND LOST DAYS THAN COMPARABLE INDUSTRIES
2013-12 2014-03 2014-06 2014-09 2014-12 2015-03 2015-06 2015-09
FailureRate
CumulativeInstallations
Month of failure case creation
Jobs in Fleet Inverter Failure Rate Installer Error Rate
QUALITY: FAILURE RATES HOLDING STEADY WITH VOLUMES
For every 100 employees, SolarCity
experiences 1.8 recordable injuries/
illnesses (incl. non-serious) in a given
year (vs. 3.6 for the construction industry).
0.3 of these incidents have lead to missed
days (vs. 1.3 for construction).

SolarCity Product Quality
 SolarCity partners with select Tier-1 suppliers and requires them to meet our standards for product and
manufacturing excellence, with rigorous third party testing on an ongoing basis
 China-based SolarCity quality team (8 staff) and third party auditing firms visit supplier factories on regular
basis to ensure our products are built to specification
 SolarCity believes that the Useful Life of the Solar modules used in our installations exceeds 35 years.
59

Infrastructure in Place to Serve Key U.S. Solar Geographies
With 81 Operations Centers, We Are within 30 Minutes of 90% of the Population in Our Geographies14
Our Differentiated Logistics Network Enables Low Costs and Faster Customer Response Time
6 6
14 17
25
0
10
20
30
40
50
60
70
80
90
0
5
10
15
20
25
30
2011 2012 2013 2014 3Q15
Cumulative
New
Operations Centers
Opened Cumulative
60

Zep Offers Proprietary Means to Lower Unit Labor Costs
Zep Has Enabled Installation Crews to Double Productivity
InstallationHoursperkWInstalled
Zep Non-Zep*
* Small sample size
Single mounting system offers efficiencies in training, quality, safety, and maintenance
61

Certain Operations Centers and Commercial Projects Already
Performing Above Goals
Q32015InstallationCost($/W)
New Offices Mature Offices at
Operational Excellence
Offices Focused
On Being Optimized
Average
Q32015InstallationCost($//W)
Carports Ground-Mount and Rooftop
Average
Q3 2015 Commercial Installations81 Operations Centers
RESIDENTIAL
COMMERCIAL
* Some Q3 2015 installation costs will flow through Q4 2015 cost per watt as MW are deployed and tranched
Note: We will not be disclosing this level of granularity on a regular basis
62

Reducing Installation Cost Goal to $1.50/W
Lower Hardware Prices and Soft Costs Are Each Expected to Drive ~50% of Cost Reductions
$1.02
$1.50
$0.90
$0.22
$0.10
$0.10
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
Installation Cost 3Q15 Hardware Price
Reductions
Normalizing Higher
Cost Operations
Centers to Avg and
Lower Mix of Higher
Cost Carports*
Other Initiatives Installation Cost Goal
AverageTotalCostperWatt
$1.92
Soft Costs
Hardware
Costs
* Current economics in some states support carports but lower revenue numbers will reduce carport projects that generate enough returns
63

1
2
3
4
5
6
7
8
9
64

Broad Technology Portfolio
SOLAR MODULES
 Silevo Tunneling Junction
 High efficiency / low cost
 World record module efficiency of
>22% certified by Renewable
Energy Test Center
 System design automation
 Energy production forecasting
 Logistics and resource management
 Utility rate tariff database
 Energy usage evaluations
 Customer account management
 Customer applications
SOFTWARE
 Fast installation, lower cycle time
 Superior aesthetics
MOUNTING HARDWARE &
BALANCE OF SYSTEM
 Real-time energy monitoring
 Voltage control
 Energy storage integration
GRID CONTROL SYSTEMS
65

Integrated Module Production Offers New Cost Advantage
Vertical Integration into Module Manufacturing to Provide Competitive Edge in Costs and Aesthetics
2017 Goal Is to Produce Modules at a Lower Cost of $0.55/W at a Higher Module Efficiency of 21-22%
Traditional Silicon Modules Silevo Module
Panel Wattage (60-cell) 260 350
Module Efficiency (Cell Efficiency) ~15% (~18%) 21-22% (24%)
Additional Energy Harvest -
>5%
Manufacturing cost goal ($/W) ~$0.55/W
Balance of system (BoS) cost reduction - >$0.10/W
Module Efficiency of >22%
Certified by Renewable Energy
Test Center
WORLD RECORD MODULE
 Silevo’s 350-Watt module is significantly above original 310-W at the time of acquisition due to breakthrough in
shingling technology
 Silevo cell is bi-facial, which allows for additional energy harvest in commercial and utility-scale installations
66

Higher Efficiency Enables Lower Labor and BoS Costs
Silevo’s 350-W Module Utilizes 33% Fewer Panels than Traditional Modules on a Typical House
Silevo installation
16 panels
× 350 Watts per panel =
6 kW System Size
Standard installation
24 panels
× 260 Watts per panel =
6 kW System Size
Additional mounting
planes required
 Enables fewer balance of system components and lower labor costs
 Increases available energy generation in roof-constrained environments
Higher Efficiency:
67

Largest Solar Panel Factory
in the Western Hemisphere
 Construction at Buffalo is underway with winter weather
incorporated into the schedule
 Targeting construction completion and initial equipment
installation by Q2 2016
 Silevo’s high-volume manufactured product has been
validated by Tier 1 financial solutions; installations underway
with manufacturing in China and our Fremont facility
 SolarCity will be operating the facility but does not own it,
which will be our strategic approach towards manufacturing
68

Zep Enables Better Aesthetics and More Panels on a Roof
Competitor with Traditional Mounting Hardware SolarCity with Zep
69
Note: Competitor image is rendered

Proprietary Residential Mounting Hardware Requires Fewer Steps
Our Zep Mounting Hardware Simplifies Installation and Eliminates the Need for Rails and Clips
Zep Enables Lower Installation Costs by Requiring Fewer Components and Less Labor Hours
CORE COMPONENTS
ToolsEnd CapArray SkirtGripDC Wire GripCombiner boxGround ZepInterlockLeveling Foot
70

Continued Investment in Productivity through Simplification
Current Part Count
New Part Count
71

Commercial Mounting Hardware Offers Unique Solution
CORE COMPONENTS
Positive AttachmentBallast Pan Zep Tool
DC Wire ClipSnap BushingPeak Base
Valley Base
Ground Zero
Bridge AssemblyConduit Assembly Tube Connector
ADDITIONAL COMPONENTS
72

Storage Enables Energy Independence
Market Segment Product
Commercial & Industrial DemandLogic reduces peak demand charges
Residential Cleaner, more affordable back-up power
Remote Communities
and the Developing
World
Microgrids protect against outages and provide
more affordable energy
Utilities
Capacity and power quality services
73
Storage Enables Solar Energy at Night

Building Firm, Dispatchable Power
74

Cleaner, More Affordable, More Resilient Grid
A Network of Distributed Solar and Storage Systems Enables a Lower Cost, More Reliable Grid
Distributed Energy Resource Aggregation Can Provide Low-Cost Grid Services such as Peak Shaving and Voltage Support
75

1
2
3
4
5
6
7
8
9
76

Conclusion
 Originating new solar installations at an annualized rate of >1 GW
 New Energy Contracts generating value of ~$3.86 per Watt today with a 30% ITC (and an
estimated $3.32 per Watt with a 10% ITC)
 Building solar assets at the best cost of publicly-traded peers of ~$2.84/W with a path to $2.25/W
in 2017 and ultimately $2.00/W
 Deployed and retained portfolio of 1.5 GW generating $135M in annual unlevered and $55M
in annual levered cash flow on average over the next five years and a total 30-Yr. NPV of
$1.7 billion (excluding SRECs)
 Currently monetizing upfront ~2/3 of the value generated, and exploring options to monetize more
of the cash flow in year one
 Investing in technology to widen our relative cost advantage and enable greater renewable
capacity on existing grid infrastructure
- Goal of not owning manufacturing assets on balance sheet
77

83
136
285
503
878-
898 1,250
0
250
500
750
1,000
1,250
2011 2012 2013 2014 2015E* 2016E*
MWsInstalledinPeriod
Guidance Implies MW Installed Growth of 43% in 2016 vs. 2015
* Based on Q4 2015 guidance of 280-300 MW Installed
78

Long-Term Guidance
79
Metric Unit 2014 2015 2017 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3
U.S. Power Capacity:
U.S. Installed Generating Capacity GW-AC 1,161 1,169 1,172 1,177 1,182 1,171 1,176
Distributed Solar as % of U.S. Generating Capacity % 0.6% 0.6% 0.7% 0.7% 0.8% 0.9% 0.9% Continued increase in
U.S. Installed Distributed Solar Capacity GW-DC 6.7 7.3 7.9 8.6 9.2 10.0 10.8 Distributed solar generation penetration
New U.S. Installed Distributed Solar Capacity MW-DC 483 564 559 719 682 697 796
SCTY Units:
SCTY % of New U.S. Distributed Solar Capacity % 17% 19% 25% 25% 22% 27% 32%
MW Installed MW 82 107 138 177 153 189 256 One Million Customer Goal
MW Deployed MW 82 107 137 176 143 177 205
MW PTO'd MW 83 79 113 138 160 156 203
Energy Contract Pricing of New Deployments (Yr. 1) $/kWh $0.12 $0.12 $0.12 $0.12 $0.13 $0.13 $0.13 Increase in Pricing
Annual Escalator % 1.7% 1.9% 1.9% 1.9% 2.1% 2.1% 2.2%
SREC (5-Yr. Portfolio Average) $/kWh $0.01 $0.01 $0.02 $0.02 $0.02 $0.02 $0.02
Energy Harvest (Yr. 1) kWh/kW 1,425 1,416 1,406 1,402 1,404 1,379 1,352
Value Generation and Monetization:
Asset Financing in Period (including rebates)* $/W $2.69 $2.04 $2.62 $2.28 $2.35 $2.33 $3.20 Seeking to monetize a higher % of value upfront
Contracted Value of MW Deployed in Period † $/W $3.68 $3.55 $3.37 $3.24 $3.44 $3.49 $3.50
Renewal Value of MW Deployed in Period † $/W $0.38 $0.40 $0.38 $0.34 $0.33 $0.34 $0.36
Total Value of MW Deployed in Period $/W $4.06 $3.95 $3.74 $3.58 $3.77 $3.83 $3.86
Cost per Watt**:
Sales $/W $0.51 $0.47 $0.49 $0.57 $0.59 $0.53 $0.64
Installation $/W $2.44 $2.28 $2.19 $2.09 $2.09 $2.13 $1.92
G&A $/W $0.30 $0.26 $0.21 $0.20 $0.27 $0.24 $0.27
Total Cost per Watt $/W $3.25 $3.01 $2.89 $2.86 $2.95 $2.91 $2.84 $2.25 $2.00
R&D Expenses $M ($1.9) ($3.0) ($4.2) ($10.0) ($12.1) ($12.4) ($17.7)
Capital Expenditures $M ($4.7) ($2.9) ($5.8) ($9.5) ($30.5) ($71.6) ($45.7)
Change in Working Capital Q/Q $M $28.3 $22.7 $37.0 ($38.1) ($72.3) ($31.7) ($41.7)
Debt and Cash:
Debt - Recourse $M ($176.6) ($349.8) ($165.2) ($149.7) ($290.6) ($419.2) ($518.2)
Debt - Convertible $M ($230.0) ($230.0) ($730.0) ($796.0) ($796.0) ($796.0) ($796.0)
Cash & Short-Term Investments $M $526.2 $429.6 $756.8 $663.6 $586.2 $497.6 $438.7
Value creation
Unlevered Pre-Tax NPV Remaining of Cumulative MW Deployed (1.5) $M $2,708
Debt – Non-Recourse $M ($995)
Net NPV of Cumulative MW Deployed
$M $1,713
* Weighted average of Q1-Q3 2015 Asset Financing is $2.68
** Cost per Watt is based on our quarterly cost calculation methodology we detail on our website
† Updated since original report

Appendix A: MyPower Gross Project Cash Flows
81
Year 0 1 2 3 4 5 6 7 8 9 10 11* 12 13 14 15 16 17 18 19 20
Energy Production kWh/kW 1,488 1,480 1,473 1,466 1,458 1,451 1,444 1,437 1,429 1,422 1,415 1,408 1,401 1,394 1,387 1,380 1,373 1,366 1,359 1,353
Annual Degradation (0.5%)
Contract (+PBI) Price $/kWh 0.16 0.17 0.17 0.18 0.18 0.19 0.19 0.20 0.20 0.21 0.21 0.22 0.22 0.23 0.24 0.24 0.25 0.26 0.26 0.27
Annual Escalator 2.6%
SREC $/kWh $0.04 $0.03 $0.03 $0.02 $0.01
Rebates/Prepayments $/W $0.04
Project Revenue $/W 0.25 0.26 0.26 0.26 0.27 0.27 0.28 0.28 0.29 0.29 0.30 0.31 0.31 0.32 0.33 0.33 0.34 0.35 0.36 0.36
O&M Expenses $/W -0.02 -0.02 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03 -0.18 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03 -0.03
Gross Project Cash Flow $/W 0.04 0.23 0.23 0.24 0.24 0.24 0.24 0.25 0.25 0.26 0.27 0.12 0.28 0.28 0.29 0.30 0.30 0.31 0.32 0.32 0.33
Year 21* 22 23 24 25 26 27 28 29 30
Energy Production 1,346 1,339 1,332 1,326 1,319 1,313 1,306 1,299 1,293 1,287
Annual Degradation
Contract (+PBI) Price 0.27 0.28 0.29 0.30 0.31 0.31 0.32 0.33 0.34 0.35
Annual Escalator
SREC
Project Revenue 0.37 0.38 0.39 0.39 0.40 0.41 0.42 0.43 0.44 0.45
O&M Expenses -0.15 -0.04 -0.04 -0.04 -0.04 -0.04 -0.04 -0.04 -0.04 -0.04
Gross Project Cash Flow 0.22 0.34 0.35 0.36 0.36 0.37 0.38 0.39 0.40 0.40
$/W UNIT ECONOMICS FOR THE 26 MW OF MYPOWER DEPLOYED IN Q3 2015:
30-Year NPV: $3.77/W
 Rebates/Prepayments: $0.04/W (upfront)
 Contracted NPV: $3.73/W (discounted at 6%)
• Inverter replacement assumed in Year 11 at a cost of $0.15/W and in Year 21 at a Cost of $0.12/W
†Updated since original report

1 FERC “Energy Infrastructure Updates” from December 2011 to December 2014 (http://www.ferc.gov/legal/staff-reports.asp)
2 GTM Research/SEIA’s “U.S Solar Market Insight Report Q2 2015” for residential and solar solar capacity and FERC “Energy Infrastructure Updates” ((http://www.ferc.gov/legal/staff-reports.asp) for all other energy capacity
3 GTM Research/SEIA’s “U.S Solar Market Insight Report Q2 2015”
4 EIA’s “2014 Utility Bundled Retail Sales” (https://www.eia.gov/electricity/sales_revenue_price/pdf/table10.pdf)
5 EIA’s “Average Price by State by Provider, 1990-2014” (http://www.eia.gov/electricity/data/state)
6 Based on filings from PG&E (http://www.pge.com/nots/rates/tariffs/tm2/pdf/ELEC_4697-E.pdf), Southern California Edison (https://www.sce.com/NR/sc3/tm2/pdf/3268-E.pdf), and SDG&E (http://regarchive.sdge.com/tm2/pdf/2784-E.pdf)
and assumes an additional 3% annual rate increases per year
7 GTM Research/SEIA’s “U.S Solar Market Insight Report Q2 2015”
8 Single-family housing units based on data from U.S. Census American Community Survey’s “Housing Units by Units in Structure and State” and assumes 1.0% annual growth in the housing stock per year through 2015. Excludes multi-
family, mobile, and other housing units
9 U.S. Census Bureau’s “Building Permits Survey by State – Annual” (http://www.census.gov/construction/bps)
10 Commercial buildings count from EIA’s 2012 Commercial Buildings Energy Consumption and commercial solar installations from GTM Research/SEIA’s “U.S. Solar Market Insight Report”
11 GTM Research – U.S. PV Leaderboard
12 Solar insolation hours based on NREL PV Watts calculator and representative cities in each country. Pricing is derived from a range of sources, including Eurostat, Climatescope, GTM Latin America Playbook, and CFE
13 Bureau of Labor Statistics Incidence rates of nonfatal occupational injuries and illnesses by case type and ownership, selected industries, 2014 (http://www.bls.gov/news.release/archives/osh_10292015.htm)
14 U.S. Census Bureau 2010. Based on the percent of the population, in states where SCTY operates, that reside in zip codes serviceable by SolarCity. Excludes NY, TX, PA and Mexico
Appendix B: Footnotes - (1/1)
82

“Asset Financing in Period” represents the aggregate project financing cash receipts in a period. This includes both tax equity investment as well as non-recourse project debt, such as our aggregation and MyPower facilities and solar
asset-backed loans. Asset monetization per watt is a ratio of total Asset Monetization in the Period divided by MW Deployed in the period, and reflects only actual cash received in a period whether or not they are specifically related to the
actual MW Deployed in the period.
“Customers” includes all residential, commercial and government buildings where we have installed or contracted to install a solar energy system, or performed or contracted to perform an energy efficiency evaluation or other energy
efficiency services.
“Energy Contracts” includes all residential, commercial and government leases and power purchase agreements and consumer loan agreements pursuant to which consumers use or will use energy generated by a solar energy system that
we have installed or contracted to install. For landlord-tenant structures in which we contract with the landlord or development company, we include each residence as an individual contract. For commercial customers with multiple locations,
each location is deemed a contract if we maintain a separate contract for that location.
“Gross Project Cash Flow” forecast represent our estimate of the sum of total cash inflows we forecast from MW Deployed in the applicable period under Energy Contracts over the 30 year expected life of the system. This includes (a)
payments that our customers are obligated to pay us over the remaining term of such contracts, (b) associated performance-based incentive (PBI) payments, (c) associated solar renewable energy credits (SRECs) that we have contracted to
sell, typically representing 5 years of a total potential term of 15 years, and are net of (d) estimated operations and maintenance, insurance, administrative and inverter replacement costs, based on contractually agreed amounts as well as
historic and forecasted expenses. Operations and maintenance, insurance, and administrative costs reflect our operating expenses in our funds, or are estimated at $0.021 per watt and assumed to grow at a 2.5% inflation rate per year, and
inverter replacement unit costs are estimated to decline at a (2.5%) rate per year, implying $0.15 per watt in Year 11 and $0.12 per watt in Year 21. Energy production is estimated to degrade at 0.5% per year. For our MyPower Energy
Contracts, we use the expected cash flows over the full term of the 30-year contract, and for lease and PPA Energy Contracts with terms less than 30 years, we assume the contracts are renewed at a contract price equal to 90% of the
contractual price in effect at expiration of the initial term through the remainder of the expected 30-year system life.
“MW” or “megawatts” represents the DC nameplate megawatt production capacity.
“MW Booked” represents the aggregate megawatt production capacity of solar energy systems pursuant to customer contracts signed (with no contingencies remaining) during the applicable period net of cancellations during the applicable
period. This metric includes solar energy systems booked under Energy Contracts as well as for solar energy system direct sales.
“MW Deployed” represents the megawatt production capacity of solar energy systems that have had all required building department inspections completed during the applicable period. This metric includes solar energy systems deployed
under Energy Contracts as well as for solar energy system direct sales.
Appendix C – Definitions (1/2)
83

“MW Installed” represents the megawatt production capacity of solar energy systems, for which (i) all solar panels, inverters, mounting and racking hardware, and system wiring have been installed, (ii) the system inverter is connected and a
successful DC string test has been completed confirming the production capacity of the system, and (iii) the system is capable of being grid connected (including pending a utility disconnect procedure), the latest of which is completed during
the applicable period. This metric includes solar energy systems deployed under Energy Contracts as well as for solar energy system direct sales. In each case in-period completion of the above criteria may be demonstrated by written
verification by each of the Chief Financial Officer and the President (which may include written sub-certifications).
“MW PTO’d” represents the megawatt production capacity of solar energy systems that have had all required building department inspections completed by the authority having jurisdiction and subsequently interconnected to the utility grid.
“Pre-Tax NPV” represents the net present value at a 6% discount rate of the Levered Project Cash forecast. It includes both the debt proceeds and total debt service including full principal repayment for both (a) actual Aggregation Facility
debt drawn down (or expected to be drawn down) and (b) our forecast for Solar Asset-Backed Loans for the underlying MW Deployed in the period. This includes both “Contracted Levered NPV,” which represents the net present value of
Levered Project Cash Flow under contract as well as “Renewal Levered NPV,” which represents the net present value of Levered Project Cash Flow forecast from renewal.
“Unlevered Project Cash Flow” represents our forecast of Gross Project Cash Flows after both Tax Equity Investment and Tax Equity Lease/PPA Distributions. “Tax equity Investment” represents the total expected investment from our tax
equity funds investors in our lease and PPA Energy Contracts. “Tax Equity Lease/PPA Distributions” are based on the terms of the agreements we have in place with our tax equity investment partners for the MW Deployed in the applicable
period under lease and PPA Energy Contracts. We do not use tax equity investment for our MyPower product. For tax equity investment in our lease and PPA Energy Contracts, our investment partners share in a portion of the Gross Project
Cash Flow forecast received over the term of the agreement. Our estimate is not inclusive of any potential buy-out of our tax equity partners’ interests in the project after Year 20.
“Unlevered Pre-Tax NPV” represents the net present value at a 6% discount rate of the Unlevered Project Cash forecast. It includes (a) the Tax Equity Investment as well as the Gross Project Cash Flows after Tax Equity Lease/PPA
Distributions. This includes both “Contracted Unlevered NPV,” which represents the net present value of Unlevered Project Cash Flow under contract as well as “Renewal Unlevered NPV,” which represents the net present value of Unlevered
Project Cash Flow forecast from renewal of our lease/PPA contracts.
“Value of MW Deployed” represents the Unlevered Pre-Tax NPV of MW Deployed under an Energy Contract during a specified period.
“Levered Project Cash Flow” represents our forecast of Unlevered Project Cash Flows after non-recourse debt service. Debt service includes both (a) Aggregation Facility debt for the first two years, based on the terms of our current
facility, as well as (b) Solar Asset-Backed Loans, which we assume we issue at the end of year two to refinance the Aggregation Facility debt. We base the interest rate on the average of all four of our previous issuances and assume
principal repayment over an 18-year term.
Appendix C – Definitions (2/2)
84

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