2. A Funded Solar, Battery, Heat and Smart Home Solution with zero CAPEX cost option
Working to save OPEX costs for landlords, and up to 45% in energy and heating costs for customers

3. What do our customer ask for? This is what they said…….
“Fully Serviced, and maintained system with warranty for 7 years”
“Fuel cost savings for tenants”
“Remote monitoring”
“Finance and Funding Options”
“Reduced Carbon Emissions”
“Compliant Procurement Route”
“Solution for ‘On gas’ areas”
“Marketing Leading Products”
“Eliminate compliance issues of CP12”
“Eliminate Carbon Monoxide Risks”
“Eliminate Fuel Deliveries”
“Quality Installation”
“Low rate electricity for tenants”
So here are our solutions…………… 3

4. The issue
Research shows that Registered Social Landlords (RSL’s) incur significant maintenance costs to ensure safety, access, proper maintenance and efficiency of their existing heating and hot water systems:
Some RSLs have quoted legal bills of in excess of £100,000 per year, just for lawyers fees to get access to building to conduct gas safety checks
The gas safety checks alone would accrue to £ £3000 per property over a 20 year period.
Gas boilers have a short life span of just 7 – 12 years before replacement is required.
Also homes with non-sustainable LPG and solid fuel solutions create logistical problems and have high costs.
There is pressure on RSL’s to commit budget to new build projects and increased capacity leaving reduced resources to address the heating efficiency issues of existing stock. 4

5. Innovation through technical solutions
With the ASHPs being powered by electricity, no other form of power is required for heat supply in a home.
Solar power on its own is not available when the home needs the heat in early morning or evening.
The eBox integrated Solar, Battery, Heat, Smart Home Solution uses self-sufficient energy sources when the heat and power demand is required.
Working with our partners, Together Energy, we can access grid electricity prices at the cheapest time taking advantage of the eBox self sufficient energy capability at peak times minimising expensive grid costs.
Night
Morning
Lunch
Afternoon
Evening
Solar Power
Battery charge source
Battery status
Battery use
Energy Source
Off-peak night time grid energy purchase + eBox Self Sufficient Home Energy = UK Fuel Poverty Issues Addressed!! 5

6. The Approach Consult Option appraisal Agreement & Delivery
Meet with RSL decision makers to understand issues
Identify priority customers
Review housing stock and initial customer engagement
Identify RSL OPEX avoided cost transfer and opportunity for future savings *Key Action Gateway 1*
Identify customer savings and contribution from energy bill savings *Key Action Gateway 2*
Option appraisal
eBox to workshop various costing models, operating models and legal structures with RSLs
RSL to decide on: Self funding v eBox funding *Key Action Gateway 3*
RSL to decide on scope (Full solutions v ASHP Only v Solar PV and Battery Only) *Key Action Gateway 4*
Agreement & Delivery
Agree commercial model *Key Action Gateway 5*
Complete due diligence and legal documentation
Financial Close *Key Action Gateway 6*
Agree programme for delivery
Start on site
Informed and Transparent Engagement Process working in Partnership with the RSL from Inception to Delivery 6

7. Innovation through financial solutions
Cost for supply and installation of a full Solar/Battery/Heat system is c.£13,500 per home
Cost for supply and installation ASHP only is c.£8,500 per home
Full Service, Parts and Labour package included with MMSP package.
Rather than the RSL fund the entire cost upfront and then recover costs invested through RHI payments, alternative options can be adopted which include:
Option 1: Fully funded CAPEX for Solar, Battery & ASHP by Ebox with 20 years OPEX repayment from RSL; Ebox take asset risk and replacement over 20 years.
Option 2: Fully funded CAPEX for Solar, Battery & ASHP with 7 years OPEX Contract
Option 3: RSL funded full CAPEX for Solar, Battery & ASHP with 7 years OPEX Contract
Option 4: Ebox funded ASHP Only 7 Year OPEX Contract
Option 5: RSL funded ASHP Only 7 Year OPEX Contract
Option 6: Part Capex Contribution by RSL at Outset, with remaining funding by Ebox
By shifting repayments from a new and additional CAPEX cost to the reallocation of existing OPEX costs, the eBox financial solution can enable installation of a major scale programme with minimal exposure to an RSL budget 7

8. Sharing the funding repayment burden
Original Energy Bill
Resident Contribution
Resident Saving
New Energy Bill
Total Annual Saving
Resident contribution to repayments through savings
Resident / Customer Contribution from Savings Y1 Y2 Y3 Y5 Y6 Y7
Capex 100% paid upfront with 80%+ repaid by eBox
RSL OPEX Avoided Cost Contribution
CAPEX
OPEX 7
OPEX 6
OPEX 5
OPEX 4
OPEX 3
OPEX 2
OPEX 1
RSL Contribution from OPEX
In addition to Opex cost contribution, savings on Customer / Resident Energy Bills will be so great that it will allow a part contribution from the resident to pay for the eBox funding over time 8

9. RSL Avoided cost Contribution Resident saving / Contribution*
The Approach
Option
Scope
RSL Avoided cost Contribution
Resident saving / Contribution*
Risk Owner
Risk
Benefits to RSL
Benefits to Customer
Option 1:
Full CAPEX installation of Solar, Battery & ASHP with 20 years OPEX Contract
eBox fund install and replace key equipment and guarantee for 20 years. Include battery and ASHP replacement where required
£13.75* / month
£16.67* / month
eBox
eBox hold all risk for equipment replacement and performance for 20 years
New assets at no upfront cost
Potential savings to OPEX Avoided Cost
Improved asset value over 20 yrs at no risk
Significant long term savings
Smart / Assisted living
Warmer and healthier long term
Option 2:
Full CAPEX installation of Solar, Battery & ASHP with 7 years OPEX Contract
eBox fund and install new Solar, Battery , Heat equipment on year 1 and guarantee for 7 years
eBox hold the equipment replacement and performance risk for 7 years with installation at Year 1 only (Note eBox hold Solar for 20 years)
Improved asset value
As above
Option 3:
RSL fund and eBox design, supply and install only full Solar, Battery, Heat equipment
£13,500 upfront cost + £8.35* / month to cover repayment of RSL loan repayment
£8.35* / month
RSL
Financial risk all with RSL, eBox / Mitsubishi Warranty available
Option 4:
ASHP Only 7 Year OPEX Contract
eBox fund and install ASHP only
£20* / month
£0.00 / month
eBox hold the ASHP risk; RSL does not benefit from smart energy savings
New asset at no upfront cost
More cost effective heat but reduced financial benefit
Option 5:
RSL to fund and eBox to design, supply and install ASHP only
£8,500 upfront + £16.67* / month to cover repayment of RSL loan repayment
Financial risk all with RSL, eBox / Mitsubishi Warranty available; no smart energy benefits
Option 6:
Part Capex Contribution by RSL at Outset, with main funding by Ebox
eBox to fund with partial fund contribution from RSL for full CAPEX installation of Solar, Battery, Heat equipment for 7 years guarantee
£3,750 upfront and £0.00 / month OPEX contribution; returns after payment of 7% debt split 50/50 RSL/eBox
Shared eBox/
New assets
Potential savings to
OPEX Avoided Cost
* = Figures taken as 2018 base date and to be RPI linked
** = Resident contribution is taken from savings and can be separately itemised on the energy bill as a standard fixed charge 9

10. Responsible and ethical investment from
Government RHI income received through OFGEM
Feed in Tariff received through OFGEM
Energy Sales for use in property
Energy Export to grid
eBox will use the above income source to repay its CAPEX investment and the debt finance – once eBox has repaid its liabilities and a reasonable profit earned, eBox is willing to enter into appropriate investment return agreements with RSLs and communities on a shared basis 10

11. The approach Legal and procurement
eBox ia avilable on the Fusion 21 Facilities Management Framework and fitted by Mitsubishi Business Partners
Two legal agreements will be required:
Air Source Heat Pump (Asset Share Agreement ‘ASA’ or Receivables Agreement)
Solar PV roof space License and Battery Storage License
As OFGEM require the homeowner to also be the asset owner of the ASHP there are two options that can be adopted with regard to legal structure… 11

12. The benefits of using Landlords benefit from:
An asset upgrade upgrade with the Option of a fully funded solution and therefore no CAPEX outlay
Carbon monoxide emissions elimination
Quicker turn around time for void properties
The energy generating equipment is moved outside the premises and located in a bespoke box
Conducive to meeting both local and Government targets
Deployment of Renewable Energy and reduced carbon footprint
Access to real time energy usage from tenants to inform decision making
Reduction in structural issues with buildings. The 2010 cold spell caused 3,500 repair claims a day with burst pipes (the continued ambient temperature provided by ASHP will avoid this)
Annual Maintenance and System Check included
Average 3 day install process
Improved EPC / SAP scores
Added value to the asset
High likelihood of attracting tenants 12

13. The benefits of using Customers benefit from:
Heating Bills saving up to 45% with a complete system with Solar and Battery Storage
eBox only uses energy from grid at the cheapest times, such as night time
The solar charges the battery during the day so that in the evening when there is no sunlight, the home has power for heat and electricity from cheaper renewable energy sources
If the battery is full and the energy is not required for 2.5 hours, the surplus energy in the battery can be discharged to the grid at an optimal price point
The battery comes with a Home Energy Management System, this creates a Smart home in terms of energy and providing data to customers, RSL’s, ebox and 3rd party family members where necessary to monitor heat and home use.
Customer fully controls energy requirements and future energy efficiency opportunities
The metering and measuring of moisture levels in homes will help eradicate mold and improve building life-time characteristics. It will also improve the health and wellbeing of residents.
The eBox solution has the ability to support advanced assisted living scenarios where necessary
No combustion operation happening in the house, could give extra piece of mind
Extended warranties for equipment
Minimal disruption for install and future servicing 13

14. Thank you for your attention.
Any Questions?
Peter McNaughton