© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

the trusted source for solar

truSolar®August 2013

Affiliate Webinar

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

2

Agenda

ITEM TIME

Introduction 5 minutes

truSolar Mission and Timeline 10 minutes

Credit Screen Introduction & Roundtable 15 minutes

Affiliate Program Overview 15 minutes

Q&A 15 minutes

~ 1 hour

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

3

The Industry Noise

too many failed deals

underperforming projects

1000s of parties originating projects

misalinged risks and costs

wasted resourcessunk costs on failed deals

NO standard project evaluation methods

confused investors

Bankability Knowledge gap

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

4

VISION

Expand the market with standardized financing methods

Consistent screening of projects aligned with pricing of risk

Standardized evaluation of Credit and Pricing of Risk will:

- lower transaction costs

- reduce the weighted avg. cost of capital

- better assure risk adjusted returns

- improve the project and portfolio quality

- Increase deal velocity AND project volume

MISSION

truSolar™ to be an industry-wide, WG-created, credit screen for C&I projects

Credit screen to be: transparent, broadly accessible, and widely available

Created for industry by industry:

equity and debt investors, developers, value-chain participants, and platform providers

truSolar Vision and Mission

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

5

2013-2014 Program Schedule

Phase 1: Alpha Development

Phase 2: Beta DevelopmentCredit Screen

Testing on Project Sites

Testing & Validation of Scoring Methodology

Phase 3: Operational Release

Operational Release & Establishment of Permanent

Stds. Body

(Jan ‘13 – Jun ‘13)

(Jun ’13 – Q1 ‘14)

(Q1 ’14 – Q2 ‘14)

Beta Program Definition

Credit Screen Development

Credit Screen Interviews &

Feedback

Credit Screen Refinement & S&P

Review

Alpha Credit Screen Release to WG

Data Collection & Credit Screen

Design

Development of Credit Scoring Methodology

Credit Screen Refinement

Preparation for Release to Standards Body

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

The truSolar Credit Screenapplicable across the phases of project development

Project Origination

Site/Offtake Pre-development

Development EPC FinanceCredit &

EnhancementUnderwriting

Ratings Agency

Asset Management

O&M

Is this a real deal?

What’s the real risk and how do we

price it?

How good is the deal?

Has the risk changed?

6

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

The truSolar Credit Screena comprehensive framework for evaluating and scoring risk

TECHNICALDESIGN & SYSTEM

PERFORMANCE

CONTRACTUAL TERMS &

COUNTERPARTIES

POLICY & REGULATORY

ISSUES

Site Conditions

Land condition

Roof condition

Solar resource

Policy & Regulation

Net metering eligibility

Interconnection

Permitting

Tax Matters

Tax expenses

ITC Eligibility

Contracts

Site lease

Property rights documentation

Revenue contract

Inventive contract(s)

Mortgage on bldg. / property

Module supply agreement

Inverter supply agreement

EPC contract

O&M contract

Purchase agreement contracts

System

Panels

Inverters

Racking

BOS

System design

Developer

Experience

Financial Positioning

7

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

8

The truSolar Credit Screenrisk assessment scoring

Project Level

Section

Category

Sub-Category

Risk Element

Simplicity

Detail

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

9

The truSolar Credit Screenrisk assessment sample: racking

Project Score

Section: Technical Design & System

Performance

Category: Equipment

RackingSub-Category: Racking

Wind load capacity

Rooftop Weight Restrictions

Snow Load

Geotechnical Analysis

Geotechnical analysis complete; reviewed and confirmed by 3rd party

engineer

Geotechnical analysis complete; NOT reviewed

and confirmed by 3rd

party engineer

Geotechnical analysis underway

Geotechnical analysis not

started

Unsatisfactory geotechnical analysis;

or unknown

Etc.

Sample Racking Risk

Elements

Geotechnical Risk Mitigation

Options

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

10

Affiliate Program Overview

Drive collaborative market development

Improve project quality, accelerate deal flow, and help

accurately price risk

True partnership with leading industry stakeholders

BenefitsBuild truSolar

ecosystem

Goal

Need

Data Projects

Expertise Validation

Seed Funding

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

11

truSolarTM Affiliate Program – Overview

Phases & Roles

WG Founder

WG Strategic Advisor

Charter MemberStakeholder/Subscribers

Goals

Information Available

UponRequest

Current Focus of Discussion Q4’13

Criteria

Why get involved?

Member rights

Launch

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

12

truSolarTM Charter Members

Overview Charter Member

GoalsLeverage C&I project data and investor inputs

Criteria• Performance / design data• Leader in project analytics• Share / access failure modes

Why get involved?

• Encourage industry accountability, accelerate deal flow, and demonstrate value of data

Member rights*

• Co-branding on truSolarTM

website• Propose specifications• Participation in ops.

Committees• Beta testing results

1. Technical input into truSolar standards development

2. Thought leadership

3. Integrated business benefits

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

13

The Market SignalsUS non-residential solar project originators survey

9out of 10say

CONVENTIONAL UTILITY BUSINESS

MODEL WILL FAIL IN <10 YEARS

COMMON SCREENING PRACTICES ARE

VITAL TO INDUSTRY GROWTH

4out of 5say

6out of10say

DISTRIBUTED GENERATION WILL ACCOUNT FOR

MOST NEW GENERATION CAPACITY THRU 2020

8out of10say

TODAY’S LEADERS IN TAX EQUITY WILL NOT BE TOMORROW’S LEADERS IN SOLAR FINANCE

UNIFORM SCORING METHODS WILL

INCREASE ACCESS TO LOW COST CAPITAL

19out of 20say

TO BECOME AN AFFILIATE OR CHARTER

MEMBER OF THE TRUSOLAR INITIATIVE

3out of 5want

© 2

013

Dis

trib

ute

d S

un

LLC

–

All

Rig

hts

Res

erve

d.

14

Get involved

www.trusolarscore.com

Technical Committee (Monday’s 1-2pm PST)

MarComm Committee(Friday’s 10-11am PST)