SC1 Solar Proposal-Sees

Whiteside Solar DevelopmentSee’s Candies Production Facility1760 Rollins Rd., Burlingame, CA

Feasibility Study

Michael Whiteside September 23, 2009

"Great societies are made when old men plant trees under whose shade they know they will never sit." ~Greek proverb

Agenda

The Green “Movement” – a wave of social awareness Solar PV – Motivations & Interests Electricity Cost in California – Historical & Projected See’s Burlingame Electricity Demand & Proposed

Solar System Program Management (Phase Gates) Summary

Whiteside Solar Confidential2

The Green “Movement”The Green“Movement”


September 16, 2009 Sacramento, CA, USACalifornia Raises Renewable Energy Portfolio

Standard (RPS) to 33% by 2020

GREEN MOUNTAIN COFFEE ROASTERS, INC.

makes FORTUNE'S List of 100 fastest-growing companies in the

world.Company Chief Nominated as Responsible CEO of the Year

City Council Approves Climate Action Plan Date: 7/23/2009

BURLINGAME, Calif. – June 16, 2009 – The Burlingame City Council unanimously approved the city’s first Climate Action Plan on June 15 … requires a 15 percent

reduction in GHG emissions … by the year 2020.Burlingame has adopted numerous programs to encourage "green" practices, in 2007, the City formed a Green Ribbon Taskforce to recommend sustainable

policies and programs. September 11, 2009 Fremont, CA, USA$1/2B US Energy Dept. Loan Guarantee to

Solyndra has a $2B backlog

City of San Francisco – 10,000 Solar Rooftops initiative; Clean Energy Loan Program; Solar Mapping web portal ( www.sf.solarmap.org )

Barack Obama to United Nations – September 22, 2009"We understand the gravity of the climate threat. We are determined to act, and we will

meet our responsibility to future generations."

November 5, 2008 Berkeley, CA, USABerkeley First Program - eligible homeowners finance Solar PV system

installs via 20yr Property Tax Assessment – fully subscribed in 9 minutes!

http://www.sf.solarmap.org/

Solar PV Installations


Google Campus Mtn.Vw., CA8 Rooftops; 2 Carports9212 Modules @ 210W1.9MW Fixed Tilt Systems2.64MWh & $390k Generated AnnuallyCommissioned Mar.’07

9’0” Clearance

Alameda County Building1320 Modules @ 190W251kW Tracker System437,000kWh Generated Annually40% of Electricity DemandInstalled March’05-PowerLight

EAH - Richmond, CA4323 Modules @ 210W908kW Fixed Tilt SystemkWh Generated Annually% of Electricity DemandCompletion scheduled - Oct’07

Green Mountain Coffee“Brewing a better world”600 Modules @ 210W120kW Fixed Tilt System174,000kWh Generated Annually

Placer Co.High School District2304 Modules @ 210W483kW Fixed Tilt System660,000kWh Generated Annually50% of Electricity DemandInstalled Sep’09- PPA Financed

Green Mountain Coffee“Brewing a better world”600 Modules @ 210W120kW Fixed Tilt System174,000kWh Generated Annually

Motivations & Interests

Marketing– Good Corporate Citizenship, in support of Burlingame’s Green Ribbon

Taskforce: 29.9% (26M lbs) reduction in GHG emissions by 2020– See’s Solar System, as proposed will reduce over 176k lbs CO2 annually– Parallel’s Charles See’s belief in building a business based on Quality &

Integrity and See’s corporate vision “Quality without compromise” Operations

– Overhead cost decrease – almost 1c per lollipop– Equivalent Production Equipment purchase

Purchase price: <$200k with <7 year simple breakeven 25 year life & contribute $660k after purchase and maintenance costs

– Term of current lease – almost 20yrs Finance

– Investment return 10% annual over term of building lease– Inflation hedge

Greenbranding - Standing up for, and making a commitment to, the next generation


Source – DoE (Energy Information Administration)

Commercial Rate Increases1999-2009

9.44 to 13.51 c/kWh (43%)

California Electricity Rates


•3.7% 10yr. Avg. Annual increase•8.8% Increase from ‘08 to ‘09

Max. Demand

PG&E Electric Rates Peak Part-Peak Off-PeakEff. Mar 1, 2009 Summer 10.27$ 0.16507$ 0.14066$ 0.12613$

Winter 5.76$ 0 0.11104$ 0.09938$

Eff Mar 1, 2008 Summer 8.86$ 0.14365$ 0.12361$ 0.11168$ Winter 5.00$ 0 0.09854$ 0.08898$

Energy Rates

See's Burlingame - E10 TOU Rate Changes

15.9% 14.9% 13.8% 12.9%15.2% 12.7% 11.7%

7

See’s Candy Production FacilityBurlingame, CAPG&E Rate schedule: A10 TOU

176’

88.5’

80’

77.5’

~6,200 sq.ft.

~15,600 sq.ft.

N

S

W E

Solar PV Feasibility Study - Existing Conditions

194deg

212deg

180deg

Occupied space 21,800 Sq.Ft.Building peak demand 261 kWPeak demand/sq.ft. 12 WElectric Demand Monthly 61,800 kWhElectric Demand Annually 741,600 kWhElectric Cost Annual 106,484$ 2008

114,242$ 2009PGE actualPGE actual + forecast

36mo. Maximum

36mo. Average historical36mo. Average historical

Tenant Power Demand

Solar PV Feasibility Study - Proposed


N

S

W E

Modules 500 Tilt 15 deg.Azimuth (orientation) 212 deg.MPPT 210 WArray size 105 kWAvg.Daily output (DC) 578 kWhAnnual output (DC) 210,788 kWhAnnual output (AC) 150,696 kWh

Proposed Solar Array Configuration

Structure orientationSunPower SPR 315E

5.5 sun-hours (No.Cal)

CSI-PBI

AnnualYear 1 20 Years 25 Years 40 Years

Summer 16,866$ 476,969$ 656,933$ 1,426,036$ Winter 5,806$ 164,184$ 226,131$ 490,874$

Savings 22,672$ 641,152$ 883,065$ 1,916,910$

System Generated Power Savings

Gross Cost 761,250$ CA Rebate (113,006)$ CSI applic.fee 1,130$ Fed.Tax Credit (228,375)$ 30.0% of Gross Cost

420,999$ 5yr deprec.impact (238,877)$ Net system cost 182,122$

System Cost Installed - estimated

(1% of PBI)Calculated

Simple Breakeven6yrs 11mo

Cumulative Rate of Return = >10%

annually

Concept to Commission – C2CProgram Management

Ph I: Investigation & Feasibility– Concept– Site Feasibility– Draft System Design– Pro-Forma Financial analysis

Ph II: Optimization & Planning– Requirements defined– System Design– RFQ & Supplier T&Cs– Contracts negotiated & Signed


Ph III: Pre-Installation– Project Scheduling– Supplier Staging

Ph IV: Installation– Supplier/Sub-contractor Performance

Management– Contract Administration

Ph V: System Commissioning– Inspections & Maintenance Program established– System Performance baselined

Each Phase Exit is formalized with signed approval from all stakeholders


Investigation & Feasibility

Optimization & Planning Pre-Installation Installation

System Commissioning

Energy demand analysisBuilding & Site SurveyIdentify Harvestable/Unshaded AreaLease termPreliminary System DesignPro-Forma Financial ModelingIdentify StakeholdersReview Building Dept.requirementsReview Fire Dept.requirementsProposal Presented

Energy Effic.Audit (required for CSI)Apply & Obtain CSI Rebate ReservationIdentify Short-list suppliersFinalize System design & rev. controlReview contract terms - See's stakeholdersIssue RFQ to Short-list suppliersDesign review with S-L suppliersOn-site meetings with S-LProject/Production Schedules co-ordinatedProject Schedule review with S-LBuilding/Fire Dept. on-site meetingsReview and summarize S-L bidsProposal & Recommendations Presented

Contract negotiated with finalistProject Schedule finalized & committedBusiness award communicatedSupplier/See's Stakeholders meetingMaterial staging off-siteFinal Project/Production Schedule review

Materials stagedRoof layout and mounting hardwareRacking and Modules installedCombiner boxes; Disconnects & LockoutsInverters & CabinetsWire & CableSystems tested

Building inspectionGrid tie-inCommission & TestWalk-thru' & hand-off

Investigation & Feasibility

Optimization & Planning Pre-Installation Installation

System Commissioning

Approve designApprove Supplier

& ScheduleApprove

Installation start NotificationsCertificate of Completion

Janu

ary

Phase Exit Review & Stakeholder Approval

Sept

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Nov

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Project Phases

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Summary

Proposed Solar System ROI: 6.9yrs; 10% IRR at 20yrs – Manufacturers warranty 25yrs; Anticipated/demonstrated life 40yrs– Maintenance included in Proposed System Financial data

SRECs (Solar Renewable Energy Credits)– 150 SRECs earned by Proposed System (1,000kWh/yr = 1 SREC)– Market value determined by RPS (Renewable Portfolio Standards) & pending Cap & Trade

legislation. System Monitoring

– Real-time power production – System performance management– Greenhouse Gases avoided – Environmental Responsibility

Additional Energy savings opportunities:– Energy survey & demand scheduling– LEED Certification

Next Steps– Feasibility Phase Exit Meeting – All stakeholders– Obtain LOI– Budget Approval for CSI filing & design work


Quality without Compromise



176,011 lbs CO2 Saved176,012

176,013

176,014

176,015

176,016

176,017

176,018

176,019

176,020

176,021

176,022

176,023

Quality without compromising values

Thank You


Backup


See’s Notes

Web-based system performance tracking Investment in predictable production costs Lowered production costs Founded 1921 10M lbs candy produced from Sep1-Dec15 80% of product produced from Dec 15-25 Using the freshest finest grade raw materials Margaret Moos Pick’s book:

– Charles See’s belief in building a business based on Quality & Integrity– Chuck Huggins


General Notes

Local codes– Fire– Building

Energy Efficiency Audit – PG&E Qualified Contractor on staff – CSI application Current Incentive levels

– EPBB: $1.10/W– PBI: $0.15/kWh

Reservation Confirmation letter http://www.ssfscavenger.com/Documents/ScavNL-Summer-08.pdf 210 El Camino Real, So.San Francisco, CA 94080 (Spruce & ECR) System FinancingOptions:

– Buy & rollover to landlord at year5– Power Purchase Agreement (PPA)– Tax Lease; Structured Lease


http://www.ssfscavenger.com/Documents/ScavNL-Summer-08.pdf

CA Energy Use per Capitavs. States with >5M People


Green “Pressure” Mounting


Source: North American Supply Chain Carbon & Sustainability Report.http://events.eyefortransport.com/SSC/report.shtml

Natural Gas Price TrendUS & California


System Financials – Tenant Buy & Hold Option


Investment Breakeven 6.9yrs

Years 1 2 3 4 5 6 7 10 15 20 25 40

Gross Cost (756,000) CA Rebate 22,604 24,413 26,366 28,475 30,753 Fed Tax Credit 226,800

Net Initial Cash Investment (506,596) After tax benefit of deprec. 112,366 46,821 29,342 18,855 18,855 10,990 3,124 0 0 0Energy Revenues * 22,672 23,465 24,287 25,137 26,016 26,927 27,869 30,899 36,699 43,587 51,767 86,728 Reserve - Inverter/Maintenance (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (30,000) (2,000) (2,000) (2,000)

Cash Flow: (485,924) 158,244 95,473 80,954 73,625 43,782 36,859 32,024 6,699 41,587 49,767 84,728 Cumulative Cash Flows (485,924) (327,679) (232,206) (151,252) (77,628) (33,845) 3,014 95,985 238,854 432,538 664,450 1,640,296 Internal Rate of Return -18.37% -7.53% -2.88% 0.23% 5.43% 9.23% 11.18% 12.14% 13.09%

Solar Investment Cash Flows


Years 1 2 3 4 5 6

Gross Cost (756,000) CA Rebate ($1.10/W & 81% effic.) 22,604 24,413 26,366 28,475 30,753 Fed Tax Credit (Cash Grant) 226,800

Net Cash Invested (506,596) After tax benefit of deprec. 112,366 46,821 29,342 18,855 18,855 Energy Revenues 22,672 23,465 24,287 25,137 26,016 Maintenance/Inverter Reserve (2,000) (2,000) (2,000) (2,000) (2,000) System Sale 250,000 After tax impact of Capital Gain -

Cash Flow: Annual (485,924) 158,244 95,473 80,954 323,625 18,855 Cumulative (485,924) (327,679) (232,206) (151,252) 172,372 191,228

Internal Rate of Return -36.50% -18.37% 11.55% 12.46%

Initial Investment and Resale Cash Flows

Years 6 7 8 9 10 11 15 20 25Net Cash Invested (250,000) -

After tax benefit of deprec. 44,965 18,715 11,715 7,515 7,515 1,215 0 0Energy Revenues 26,927 27,869 28,845 29,854 30,899 31,981 36,699 43,587 51,767 Maintenance/Inverter Reserve (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (30,000) (2,000) (2,000) Cash Flow: Annual (225,073) 70,835 45,560 39,570 36,415 37,496 7,914 41,587 49,767

Internal Rate of Return -17.84% -6.71% 0.80% 11.58% 16.68% 18.34%

Subsequent Investment Cash Flows

System Financials – Tenant Buy & Rollover to Landlord Option

The numbers …..

US Annual Energy Demand = 100 Exajoules = 27,800B kWh LEED Platinum Standard BofA Building – Cost of LEED 2.3%; Rent premium for LEED 9% China brings a new coal-fired power plant on-line every week 1000W/sq.m. is the solar energy hitting the earth 1 hr of solar energy hitting the earth is equivalent to the world’s annual energy demand The US is 5% of the world’s population, consumes 27% of the world’s energy US average energy consumption per person is double that of the average European California energy usage per capita has not increased since 1973 and is 70% that of the average non-

Californian . 100yrs is the time it takes for CO2 to dissipate through the earth’s atmosphere


M.Whiteside bio

Certified Solar PV Professional Supplier and Sub-contractor Performance

Management Expertise Multi-million dollar complex projects completed Whiteside name established in Bay Area since 1978

– High-end Residential Construction– Project Management

Public Company Controller background


Needs work

