Creating climate wealth

2

McKinsey says $57T of investment by 2030

Source: US EIA

3

IEA says we need $5T more than BAU by 2020

Source: US EIA

4

Electricity Rates have risen faster than inflation

Source Electric Power Monthly, DOE/EIA-0226; and Electric Power Annual, DOE/EIA-0348.

5.56.57.58.59.5

10.511.512.513.514.515.516.5

2000 2002 2004 2006 2008 2010 2012

Ener

gy (c

ents

/kw

h)

New England Middle Atlantic PacificWest South Central South Atlantic East North CentralEast South Central Mountain West North Central

Source: US EIA

Oil Prices are persistently staying above $100/bbl

6

2009, National Academy of Sciences Study Impact of fossil fuel on healthcare system:

$120B per year

Coal and Oil:– $60B each in health impacts– 30,100 premature deaths annually– Over 5,000,000 workdays lost

Not included: environmental damage from coal mining, pollution of rivers from coal plant

smokestacks to keep the air clean.

Energy uses more water than agriculture--more water than cities or ourselves.--Energy responsible for 50% of US water withdrawals

What we believe

Global scarcity in natural resources

Transformations have begun resource extraction, use and disposal (or re-use)

Investors are over-exposed to the risks with these trends, and under-exposed to the opportunities

Solutions to these risks represent “the largest wealth creation opportunity of our lifetime” 8

100

- 100

- 50

0

50

$/to

n of

CO

2

Source: McKinsey & Co Cost Curve (over-simplified by CWR)

Focus – The Economic Opportunity

Buildings

Transportation

Manufacturing

Low-CarbonFuels

RenewableEnergy

CarbonCapture &

Storage

Other Innovations

Climate Wealth starts with the >50%

of the climate solution that makes great business sense right now…

Land Use

tons of CO2e

Renewable Electricity

Climate Wealth Law

Due to continuous technology innovation ~50% of the greenhouse gas emissions will always be profitable to eliminate – held up only by lack of effective business model and financial innovation.

Current situation: Silos + low capabilities

Future situation: Winners create new networks/structures

Capital: investors

Regulation:

policy makers

Innovation: technology challengers

Market access: incumbents

Capital: investors

Regulation: policy makers

Innovation: challengers

Market access: incumbents

Solar PV: Why we are winning$100B business in 2013

• Passionate Industry

• Activated Local Advocates

• Know how to sell small systems – avg size in 2013 in USA is 33kW

• Policymakers can smell grid parity

20% of global electricity is now more cost effective with Solar PV

Capital: 9% returns

Regulation: Diversification;Reliability

Innovation: Distributed Solar PV

Market: Fast Rising Electricity Costs

40,000 MW additional projects by 2017- 1,000,000 projects average 50kW each- $100B investment, $1B in commissions- We are short sales and business development

Who actually invests in this stuff?We are on track for $5T by 2020 and now we need another $5T into climate wealth solutions to win.

Money is not coming from divestment or impact investing, it is coming from mainstream capital

Who holds the Money?Everyone is Focused here

Leadership has come from here

Everyone should be focused here

What about Impact Investing?

Criteria Range Target

Unlevered project* IRR 12%-20% 16%

Project duration 3 -15yrs 8 yrs

Return multiple 1.5x-3x 2.5x

Project size $0.5M-$10M $5M

Total deployment per company $1M-$25M $15M

Inflation protection none Energy index

1. Make an impact on a pressing problems2. Generate compelling risk adjusted returns for

investors3. Get people to follow you at $ Billion scale

What about Impact Investing?Performance Risk Mitigation

1. Maturity of technology At least 3 yrs of commercial deployment in one location

2. Transaction Costs Preference for products vs. engineering projects

3. Predictability of revenue Our revenue is predictable and not subject to merchant commodity risk without a credit backstop

4. Vendor viability Vendor can be replaced on both parts or maintenance

5. Vendor geography Focus on US and to a lesser degree EUCollection Risk Mitigation

6. End customer viability Aligned with investment period and return profile

7. Vendor credibility Reference checks and due diligence

8. Measurability of value Sensors, online access, clear reference case

9. End customer geography Price it in or hedge it out

10. Recovery in case of failure Portfolio risk, sometimes transferable product with ability to redeploy

Project Partner Business Focus Return Amount Invested Description

SREC Aggregation and Finance

13% $1,400,000Solar Renewable Energy Credit (SREC) aggregation provider, delivering creative SREC trading solutions

to over 2000 customers and energy supplierstouching all parts of the industry

SolarThermal

18% + warrants $4,000,000

Specializing in Solar Thermal / Hot Water and Data Monitoring; Skyline is an innovative,

technology driven company with rapid growth on the

US East Coast and in the Southwest

Solar Photovoltaic

13% + warrants $1,481,773

Canadian solar company capitalizing on Ontario’s 20 year “Feed In Tariff” program; tax advantage structure.

Fund intends to liquidate this investment but as of 12/31/12no definitive agreement has been finalized.

Solar Photovoltaic 18% $1,424,049 Multiple projects with attractive cost,

solar irradiation and incentive characteristics.Energy Efficient

Hydroponic Greenhouses

15% + warrants $2,290,000

Designs, builds and manages energy efficient hydroponic greenhouses

at or near supermarket retailers.

Solar Grid Storage Battery storage for grid services

16% + warrants

$1,122,000

Enhances solar P.V. installations with batteries, inverters and proprietary controls that enhance grid

stability and provide customer benefits – such as backup power.

STEMBattery storage

for demand savings

16% + warrants $1,000,000

Provides batteries at the customer site to support a shared savings contract around costly demand

charges

Practicing what I Preach

Renewable Energy vs. EfficiencyCan Efficiency Deliver?

Same in TransportationCan Efficiency Deliver?

Opportunity in Georgia

$410B economy (#29 in the world)

22

Sector Opportunity Return DescriptionDistributed Generation $20B 9% Renewables, CHP, Water

Energy Efficiency $15B 12% Buildings, Transport, Ag

Waste to Value $15B 13% Recycling, Conversion

$50B investment opportunity from 2010-2020- 1,000,000 projects average $50,000 each- $500 million in commissions available to share- We have technologies, short on business

development