Residential Solar Investment Program Installer Discussion Solar Installer Meetings June 26-27, 2012

Agenda  Introductions  Residential Solar Investment Program – Facts and Figures  Financing Product – Connecticut Solar Lease  How are Your Businesses Doing?  Other Items – Data Transparency, Solarize, and Legislation 2

Residential Solar Investment Program Facts and Figures  Market Watch Report – weekly update on the overall status of the program by step for both the rebate and PBI installers  Number of applications  Total and average project costs  Total and average installed capacity of projects  Incentives available (i.e. dollars and/or installed capacity) and provided  ZREC equivalent incentive price 3

Residential Solar Investment Program Step 1 Results 4 - Over 90% of the applications approved and installed capacity were through the rebate 1 - Nearly $1 of ratepayer incentive attracted over $2 of capital from other sources 2 - Approximately $1,750/kW STC incentive – nearly 30% less than the $2,450/kW STC incentive 3

Residential Solar Investment Program Step 2 Results Thus Far  Applications coming in at a steady pace – about 25 a week or 5 a day  PBI applications are increasing from 10% in Step 1 to 40% in Step 2  Average installed costs for installers using the rebate have come down by nearly 10%, while PBI has increased by 4% – installed costs are now in balance between the installers using the rebate versus the PBI  Leverage ratio of $1 of ratepayer incentive to $2 of capital from other sources is still holding  Incentives per kW installed have come down by nearly 3%  x 5

Home OwnerInstaller (Approved by CCEF) CCEF - DebtCo (Debt and Incentive) Approved Installers CT Solar Lease, LLC TaxEquityCo, LLC (100% Equity) ITC Equity Debt Service DeveloperCo, LLC (Developer) AdminCo,LLC (Program Admin) Originates Note Sells Note Services Management Fee Payment Lease Rebate/Incentive Solar PV System REFERENCES Design – 5.5% interest rate, secured, 200% of median income Consumer Credit Guidelines – 640 if salaried, 680 if self-employed for at least 2 years, 720 if self-employed less than 2 years, no bankruptcy in last 7 years, debt to income or monthly obligations to monthly income 50% for all credit scores Performance – 850 loans, 6.0 kW AC average system size, from $5,320/kW rebate in 2009 to $2,731/kW rebate in 2011, and 2 defaults. 6 Financing Product Connecticut Solar Lease (Version 1.0)

Financing Product Connecticut Solar Lease (“The Deuce”) 7 Tax Equity Investor(s) (Ownership of LLC) Cash Equity Investor(s) Project Owner LLC (100% Ownership of a Project) Non-Member Manager of LLC Origination, Servicing, and Contractor Management Senior Debt Providers Subordinated Debt Providers Direct Subsidy (if needed) CEFIA Credit Enhancement Lessee (Homeowner) System Output Lease Payment Debt Capital Principal & Interest Debt Capital Principal & Interest Subsidy Call Option to Purchase Ownership of LLC

Financing Product Preliminary Resident Lease Construct 8 Lease Price Consumer Benefit (Avoided Electric Costs) $/kWh Time Electric Price Increasing Financing and Decreasing Subsidies Financing Drivers  Installed costs  Electric prices  Avoided costs

9 How are your businesses doing?

 Freedom of Information Act – quasi-public agency using ratepayer funds  Best practice from MassCEC – Finding a Solar Installer (Information on Installers and Costs Report)  Working with the Office of Consumer Counsel to release a Connecticut version of the report  Future data will include real-time clean energy production information as a result of Locus meter installations 10 Other Items Data Transparency

Other Issues Solarize Connecticut 11

 Successful legislative session  Commercial Property Assessed Clean Energy  Special Capital Reserve Fund and Bonding  Legislative priorities for next year?  Neighborhood or Community Net Metering (i.e. virtual net metering)  Commercial Property Tax  Others? 12 Other Items Legislation

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About the Organization Strategic Vision and Mission Help ensure Connecticut’s energy security and community prosperity by realizing its environmental and economic opportunities through clean energy finance and investments. Support the Governor’s and legislature’s energy strategy to achieve cleaner, cheaper and more reliable sources of energy while creating jobs and supporting local economic development 14

About the Organization Strategic Goals Attract and deploy capital to finance the clean energy goals for Connecticut Help Connecticut become the most energy efficient state in the nation Help scale-up the deployment of renewable energy in the state Provide support for the infrastructure needed to lead the clean energy economy 15

Develop and implement strategies that bring down the cost of clean energy in order to make it more accessible and affordable to consumers Reduce reliance on grants, rebates and other subsidies and move towards innovative low-cost financing of clean energy deployment About the Organization Strategic Goals (cont’d) 16