Copyright © 2012 groSolar. All rights reserved. Page 1

Developing Brownfields as Electricity-Producing Solar Farms

Ohio Brownfields Conference

May 23–24, 2012

Nationwide EPC Services Full-Line PV Procurement Services

Jeff Wolfe, Non-Executive Chairman

I - 2

Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 3

Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 4

Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 5

Brownfield Solar – Why?

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

• Inexpensive Land • Not Available for Many Other Uses • May Allow Reduction in Cap Costs • Often not in Residential Neighborhoods • IC Point May be Near • May Have Existing IC Point from Landfill Gas

Operation • Provides Income to Offset Cap Maintenance

Expenses

I - 6

Brownfield Solar – Why Not?

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

• Post-Closure Construction on Cap Requires Additional Permitting

• Construction on Cap Adds Costs • O&M is More Specialized • IC Point May be Remote • Field May be Used as a Recreational Area (Legally or

Illegally) • Investor Hesitancy

I - 7

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 8

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 9

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 10

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 11

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 12

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 13

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 14

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 15

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 16

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 17

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 18

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 19

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 20

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 21

Brownfield Solar Basics

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

I - 22

Brownfield Solar – Construction

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

• Existing Conditions • Slopes • Orientation vs. Drainage • Loading • Vehicles • Maintenance Access

I - 23

Brownfield Solar – EPC Selection

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94

• Brownfield Experience!

> Construction Experience

– Solar Experience

• Price / Quality / Schedule • Longevity – Long-Term O&M

I - 24

Brownfield Solar – Developer Selection

$3.4

0/w

$3.3

0/w

$3.4

0/w

3.10

/w$

$2

.25

???

$2.2

5/w

$1

.75

$2.8

5/w

$3.0

5/w

$1.7

5/w

$0

.94 • Brownfield Experience!

> Finance Methods

– Solar Experience

• Longevity – Long-Term O&M

I - 25

Solar Costs

0

0.5

1

1.5

2

2.5

3

3.5

4

2004 2005 2006 2007 2008 2009 2010 2011 2012P

S/Watt PV Module

$/Watt PV Module

$/WattPV Module

???

I - 26

0

0.5

1

1.5

2

2.5

3

3.5

4

2004 2005 2006 2007 2008 2009 2010 2011 2012P

S/Watt PV Module

$/Watt PV Module

$/WattPV Module

14% Cumulative Annual Cost Decline

???

Solar Costs

I - 27

0

0.5

1

1.5

2

2.5

3

3.5

4

2004 2005 2006 2007 2008 2009 2010 2011 2012P

S/Watt PV Module

$/Watt PV Module

$/WattPV Module

14% Cumulative Annual Cost Decline

30% Cumulative Annual Cost Decline

???

Solar Costs

II - 28

0

1

2

3

4

5

6

7

2008 2011 2012 2012Alt Coal

GMBOS/InstallRackingInveterPV Panel

Solar Costs Declining Costs & Increasing Scale

Commercial Cost Reduction Roadmap For the Years 2006-2012 ($/watt)

Avg Sale 1.5 MW

Avg Sale 200 kW

Avg Sale 10MW

…

Copyright © 2010 groSolar. All rights reserved. Page 29

Copyright © 2012 groSolar. All rights reserved. Page 29

U.S. Solar Markets

Germany

United States

Copyright © 2010 groSolar. All rights reserved. Page 30

Copyright © 2012 groSolar. All rights reserved. Page 30

US Markets

0

500

1000

1500

2000

2500

3000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

F

US PV Installations

US MW

I - 31

Commercial / Utility Scale: • Federal Investment Tax Credit

– 30%, Need Tax Liability • State Solar Renewable Energy Credit (SREC)

– 5 to 10 Year Contract – Financed (But Difficult “Market”)

• State Incentive (If Any, Changes Often, Each State Different)

• Equity Requires ~10+% Unlevered Return • 40% Debt Possible

– If Available, Adds Other Costs

Financing

I - 32

• Great Opportunity • Respect the Site • Choose Partners with the Right Experience • Solar is Feasible and Cost Effective Today

Brownfields

Jeff Wolfe, P.E. Jeffery.Wolfe@gmail.com