SunPower Residential Financing Bonaire Le – CCBA Training | December 16th 2016

Why do USA homeowners buy solar? Residential solar is competitive with residential utility rates (i.e., “grid parity”) in 20 states and expected to expand to 42 states by 2020, as costs come down and as utility prices rise. In California, solar power replaces the high retail cost of energy in tiered pricing utility rate structures: BUY LOWER-COST POWER FROM UTILITY REPLACE HIGHER-COST POWER WITH LESS EXPENSIVE SOLAR POWER Cost of Solar ($/kWh)* * After tax incentives

What does solar savings look like to a customer? $200/month (Utility Bill) BEFORE SOLAR $120/month (Solar Rent) $50/month (Remaining Utility Bill) AFTER SOLAR CUSTOMER SAVINGS WITH SOLAR $169 (Solar Rent) + $74 (Residual Utility Bill) = $243 versus $ 30/month (Illustrative Savings) $200/month $170/month

Getting solar to our homeowners in the USA SunPower leverages several strong sales channels to serve customers 45 States Served 450+ U.S. Channel Partners Direct In Select Markets >2,000 Sales Reps1 >1,000 Service Vehicles Lease Market Loan Market 1. Registered active users of SPWR quotation tool

Why solar and is it right for you? Solar is a great solution to for many homeowners to save on their electricity bill while also contributing to a more eco-friendly economy, but it may not be for everyone! ? Do you own your home? How much electricity does your household use? What is the cost of electricity where you live? How much space is available on your roof? What incentives are available to you?

Financing options: fitting a homeowner’s needs The financial situation is different for each homeowner and we want to provide options that fit. Private Ownership Third-Party Owned Cash Loan Lease You already have $ to pay for solar upfront You own it! You qualify for the 30% Federal Income Tax Credit1 May increase the value of your home2 You borrow $ to pay for the solar upfront You own it! You qualify for the 30% Federal Income Tax Credit1 May increase the value of your home2 Flexible payment options available No upfront cost (for qualified customers) You don’t own it Begin saving from the day your system is energized Monthly payments are less than your average electricity bill Guaranteed solar energy output Option to own, renew or remove at the end of the lease term 1 Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information. 2 Source: Hoen, B., Adomatis, S., Jackson, T., Graff-Zivin, J., Thayer, M., Klise, G., & Wiser, R. (2015). Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes. Based on analysis of home sales with & without solar energy systems in 8 states from 1999 to 2013. Actual impact on home values will vary.

Deciding between leasing and owning your solar system How important is owning your system to you? 1 How important is it for you to pay zero down* for your system? 2 If you’re making payments, is it critical that you save money each month? 3 Do you know if you have particularly strong credit? 4 Can you take the Federal Income Tax Credit?1 5 1 Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information. * For qualified homeowners.

Third-party ownership exists in many industries

Purchased vs. Financed Systems in a nutshell BENEFITS AND REQUIREMENTS LEASE LOAN CASH FINANCIAL SAVINGS Immediate utility bill savings  Zero upfront cost  30% Solar Tax Credit Lower property taxes SIMPLICITY & PEACE OF MIND Performance guarantee Credit requirements Two electric bills Transfer requirements at time of home sale INVESTMENT & SECURITY Hedge against future energy cost increases Increased resale value Maybe

How do we continue to make solar accessible and affordable? The solar industry is constantly changing and to win in this market, we need to continually reassess our position and offerings. Policy and Regulatory Reform Net metering policies SREC programs Solar tariffs ITC Extension Rate Structure Evolution Demand charges Fixed charges Time-of-use rate structures (on/off peak rates, later peaking times) Customer Preference Ownership versus leasing Financing terms (down payments vs escalators) Product Innovation Panel efficiency Product differentiation Solar solutions (e.g., smart thermostats, energy management, storage, etc.) Business Strategy (channels) Lease: retrofit vs new homes, direct vs indirect Loan: availability and loan-terms PPA? Market Competition SolarCity SunRun NRG CleanPower Finance Sungevitiy