Proposal prepared for Dan Glaser - CASSK-13-00932

Summary
Customer Site Address Mailing Address Company Contact
Dan Glaser - 4650 Adohr Ln. 4650 Adohr Ln.
CASSK-13-00932 Camarillo, CA 93012 Camarillo, CA 93012 We turn sunlight into power
SolarWorld USA SolarWorld Americas
CA

25 Year Financial Analysis

$315,206
Utility Savings Over Initial Term
$1,051 / mo (avg)

Payback Period 9-10 years

Total Life-Cycle Payback
247%
(Cash Flow compared to Net Cost)

Rate of Return on Cash Invested 10.3%

Levelized Cost of Solar Energy $0.076 / kWh

Cost Breakdown
Installer Contract Cost $237,600 ($4.00/watt DC, $4.59/watt AC)
Federal Tax Credit/Tax Impact ($71,280)
Net Cost (year of installation) $166,320 ($2.80/watt DC, $3.22/watt AC)
MACRS Depreciation ($86,843)
CA Performance-Based Incentive (PBI) Step 9 ($14,836)
Net Cost (all years) $64,641 ($1.09/watt DC, $1.25/watt AC)

System Description
Total System Size 59.400 kW DC Power (STC) / 51.728 kW AC Power (CEC)
Estimated Annual Production 94,698 kWh
PV Panel Description Qty. 220 - SolarWorld Model: SW270 Mono
Inverters Qty. 4 - Power-One Model: PVI-10.0-I-OUTD-x-US-480-y-z
 Proposal prepared for Dan Glaser - CASSK-13-00932

Energy Analysis
Your historical energy usage was used to help size your solar system. Based upon the system size suggested, the expected
electricity bill savings over a 25 year period are provided. In addition, the first-year electricity bill savings you can expect are
provided together with a chart of the monthly solar system output (PV production) you can expect.
 Proposal prepared for Dan Glaser - CASSK-13-00932

Assumptions: Post-Solar Electric Rate Schedule for Southern California Edison (SCE) is General Service - Option B, (3-Phase, 2-50 kV) (Rate
Code: GS-2 TOU) Annual utility inflation: 6.70% (assumed). Energy Bill Savings are actual, without any tax effects applied.
 Proposal prepared for Dan Glaser - CASSK-13-00932

Energy Bill Estimate

The following energy bill estimate is without any tax effects applied.

The Energy Bill Savings line does not include the opportunity cost of no longer being able to take energy bill expense
deductions on corporate income taxes. See the Energy Bill Savings line in the cash flow for this tax impact.
(kWh) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
SCE Usage without Solar 11.7k 20.6k 18.1k 18.7k 19.8k 19.0k 19.3k 19.3k 19.0k 18.7k 20.6k 20.6k 225k
Solar Production 5,242 6,222 7,960 8,880 10.1k 9,935 10.6k 10.2k 7,900 7,039 5,613 5,004 94.7k

SCE Usage with Solar 6,507 14.3k 10.1k 9,784 9,710 9,063 8,716 9,132 11.1k 11.6k 14.9k 15.6k 131k

(Cost) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
SCE Bill without Solar* $1,683 $2,600 $2,371 $2,376 $2,273 $3,361 $3,369 $3,369 $3,276 $3,278 $2,389 $2,394 $32.7k
SCE Bill with Solar* $1,197 $1,971 $1,673 $1,612 $1,410 $2,207 $2,156 $2,198 $2,321 $2,098 $1,843 $1,907 $22.6k
SCE Bill Savings $486 $629 $698 $764 $863 $1,154 $1,213 $1,171 $955 $1,180 $546 $487 $10.1k
*Includes utility rate increase of 6.70%
 Proposal prepared for Dan Glaser - CASSK-13-00932

Financial Analysis
The first chart summarizes the cash flow you can expect from the system quoted. Key financial measures are also provided.

Financial Summary
Utility Savings Over Initial Term $315,206
Average Monthly Utility Savings $1,051 (over system life)
Net Cost
$166,320
(In year of installation)

Payback Period 9-10 years

Rate of Return on Cash Invested 10.3%
Total Life-Cycle Payback
247%
(Cash flow compared to Net Cost)

Levelized Cost of Solar Energy

$0.076 / kWh
(Net Cost / lifetime energy production)
 Proposal prepared for Dan Glaser - CASSK-13-00932

Environmental Impact Analysis

Your solar system will generate significant environmental benefits. These come primarily from avoided power plant emissions.
Below is a summary of environmental benefits your solar system will provide.

Your New, Lower Carbon Footprint

Your solar system will reduce Green House Gas emissions by 1,622 tons of CO2
(Over 25 years)

Equivalent CO2 Reductions

Small Car: 5,497,288 miles
Medium Car: 2,948,545 miles
SUV: 2,065,860 miles
Air Miles: 3,343,711 miles
Trees Planted: 64,868 trees planted
CO2 from Trash & Waste: 2,949 persons
 Proposal prepared for Dan Glaser - CASSK-13-00932

Cost Detail & System Description

This is a summary of the cost and a description of the solar system we are quoting.

Net Cost Detail

Major Equipment & Labor

PV Panels: Qty. 220. SolarWorld, SW270 Mono, 270W Monocrystalline Module $237,600

Inverter: Qty. 4. Power-One, PVI-10.0-I-OUTD-x-US-480-y-z, 10 kW (480Vac) Inverter, x

$0
may be S- y either PG or NG z may be 12A

Balance of System $0

Labor $0

General & Administrative $0

Adders, Allowances & Sales Tax

Gross Cost $237,600

Incentives Received in Year of Installation

Federal Investment Tax Credit (30%) ($71,280)

Total Incentives:
($71,280)
(In year of installation)

Net Cost:
$166,320
(In year of installation)

Contract Cost: $237,600

Other Cash Incentives:
$14,837
(In later years)

System Description
59.400 kW DC Power (STC)
Total System Size: 53.328 kW (PTC)
51.728 kW AC Power (CEC Size)

$2.80 / Watt DC Power (STC)

Net Cost per Watt: $3.12 / watt (PTC)
$3.22 / watt AC Power (CEC Size)

Estimated Annual Production: 94,698 kWh

Array 1

Proposed Array Sizes (STC): 59.400 kW

Number of PV Panels: 220

PV Panel Description: SolarWorld Model: SW270 Mono 270W Monocrystalline Module

Inverters: Qty. 4 Power-One Model: PVI-10.0-I-OUTD-x-US-480-y-z

10 kW (480Vac) Inverter, x may be S- y either PG or NG z may be 12A

Output due to Shade Factors: 100%

EPBB Design Factors: 100%

Roof Mount: 9,434 sq-ft

Array Area & Orientation:
Tilt: 10°, Azimuth: 180° (S)
 Proposal prepared for Dan Glaser - CASSK-13-00932

Cash Flow by Year

The following table of estimated cash flows includes any tax effects, rate and cost inflation and other time-related cash flow
factors. Refer to the Disclaimers & Assumptions section (below) for further clarification.

Year: 0 1 2 3 4
MACRS 5-year Accelerated Depreciation (Fed & State Tax Avoided) $0 $52,106 $13,895 $8,337 $5,002
CA Performance-Based Incentive (PBI) Step 9 $0 $3,009 $2,988 $2,967 $2,946
Federal Investment Tax Credit (30%) $71,280 $0 $0 $0 $0
Net Energy Bill Savings
$0 $5,783 $6,127 $6,492 $6,879
(Reduced by lower income tax deduction)
Installation, Operation & Maintenance Costs ($237,600) ($239) ($242) ($244) ($247)

Total Annual Cash Flow ($166,320) $60,659 $22,768 $17,552 $14,580

Cumulative Cash Flow ($166,320) ($105,661) ($82,893) ($65,341) ($50,761)

Year: 5 6 7 8 9
MACRS 5-year Accelerated Depreciation (Fed & State Tax Avoided) $5,002 $2,501 $0 $0 $0
CA Performance-Based Incentive (PBI) Step 9 $2,926 $0 $0 $0 $0
Federal Investment Tax Credit (30%) $0 $0 $0 $0 $0
Net Energy Bill Savings
$7,289 $7,722 $8,182 $8,669 $9,185
(Reduced by lower income tax deduction)
Installation, Operation & Maintenance Costs ($249) ($252) ($254) ($257) ($259)

Total Annual Cash Flow $14,968 $9,971 $7,928 $8,412 $8,926

Cumulative Cash Flow ($35,793) ($25,822) ($17,894) ($9,482) ($556)

Year: 10 11 12 13 14
MACRS 5-year Accelerated Depreciation (Fed & State Tax Avoided) $0 $0 $0 $0 $0
CA Performance-Based Incentive (PBI) Step 9 $0 $0 $0 $0 $0
Federal Investment Tax Credit (30%) $0 $0 $0 $0 $0
Net Energy Bill Savings
$9,732 $10,311 $10,925 $11,575 $12,264
(Reduced by lower income tax deduction)
Installation, Operation & Maintenance Costs ($262) ($265) ($267) ($270) ($273)

Total Annual Cash Flow $9,470 $10,046 $10,658 $11,305 $11,991

Cumulative Cash Flow $8,914 $18,960 $29,618 $40,923 $52,914
 Proposal prepared for Dan Glaser - CASSK-13-00932

Year: 15 16 17 18 19
MACRS 5-year Accelerated Depreciation (Fed & State Tax Avoided) $0 $0 $0 $0 $0
CA Performance-Based Incentive (PBI) Step 9 $0 $0 $0 $0 $0
Federal Investment Tax Credit (30%) $0 $0 $0 $0 $0
Net Energy Bill Savings
$12,995 $13,768 $14,588 $15,456 $16,376
(Reduced by lower income tax deduction)
Installation, Operation & Maintenance Costs ($275) ($278) ($281) ($284) ($287)

Total Annual Cash Flow $12,720 $13,490 $14,307 $15,172 $16,089

Cumulative Cash Flow $65,634 $79,124 $93,431 $108,603 $124,692

Year: 20 21 22 23 24 25
MACRS 5-year Accelerated Depreciation (Fed & State Tax Avoided) $0 $0 $0 $0 $0 $0
CA Performance-Based Incentive (PBI) Step 9 $0 $0 $0 $0 $0 $0
Federal Investment Tax Credit (30%) $0 $0 $0 $0 $0 $0
Net Energy Bill Savings
$17,351 $18,384 $19,479 $20,638 $21,867 $23,169
(Reduced by lower income tax deduction)
Installation, Operation & Maintenance Costs ($289) ($292) ($295) ($298) ($301) ($304)

Total Annual Cash Flow $17,062 $18,092 $19,184 $20,340 $21,566 $22,865
Cumulative Cash Flow $141,754 $159,846 $179,030 $199,370 $220,936 $243,801
 Proposal prepared for Dan Glaser - CASSK-13-00932

Disclaimers & Assumptions

Operation, Maintenance, and Inflation Rates
This estimate assumes the following system operation, maintenance and inflation rates:

System Life: 25 years

Operation & Maintenance: 0.10% of system cost per annum
PV Degradation: 0.70% per annum
Estimated Inverter Life: 15 years
O&M Inflation Rate: 1.0% per annum
Inverter Replacement Inflation Rate: 1.0% per annum

System Size Ratings & Performance

There are three methods commonly used to rate PV system size: STC, PTC and CEC. The Standard Test Condition rating
("STC" also called "DC" or "nameplate") assumes a standard set of optimal operating conditions. The STC rating is most often
used by manufacturers to classify the power output of PV modules. The PV-USA Test Condition ("PTC") and California Energy
Commission ("CEC") ratings were designed to approximate system performance in more realistic operating conditions.

The Energy production for the first year is based on PVWatts Version 1. To calculate the system's energy production for any
future year, the expected degradation in system performance is included (See "PV Degradation", in table above).
 Proposal prepared for Dan Glaser - CASSK-13-00932

Tax Credits & Deductions

Income tax rate assumed: 43.00% (Federal 35.00% - State: 8.00%)

To calculate the estimated cash flow in this proposal, our analysis used these tax rates. We should stress that we cannot provide
tax or investment guidance. You should consult your tax preparer or investment adviser for these services. This analysis
calculates the cash flows based only on the assumptions entered into the proposal.

This analysis assumes Federal income Tax is not applied to any rebates. Therefore, the basis for the Federal ITC is the
installation cost less 100% of any and all rebates.

Commercial:

In calculating the cash flow, our analysis assumes that your business' utility expense is tax deductible. Since your utility bill will
be reduced by installing the solar energy system, the resulting tax deduction is similarly reduced.our analysis takes this into
account.

It also assumes that when you install your solar energy system, you will be able to receive tax benefits from the investment tax
credit, depreciation of the equipment, annual maintenance expense, and interest used in financing. Unlike a residential system,
the financing does not have to be secured by real estate in order for the interest to qualify as a tax deduction.

MACRS Depreciation: Any commercial entity that invests in or purchases qualified solar energy property may use the Modified
Accelerated Cost Recovery System (MACRS) accelerated depreciation schedule: Year 1=20.00%, Year 2=32.00%, Year
3=19.20%, Year 4=11.52%, Year 5=11.52%, Year 6=5.76%.

This analysis assumes Federal income Tax is not applied to any state or local incentives. Therefore, the basis for depreciation is
the installation cost less 50% of any Federal energy tax credits less 100% of any and all state or local incentives received in year
0.

See IRS Publications 946 and 587.

In this analysis, year 0 is the year in which the solar energy system is installed. Our analysis assumes that you will benefit from
the Investment Tax Credit in year 0 (by knowing you won't have to pay as much tax), though you apply for it in year 1.

For all following years, tax deductions are applied to the year in which they occurred. The tax effect of deductions in year 1 are
applied to year 1, and so forth.

(Net) Energy Bill Savings

For an individual, electric bills are not usually deductible against income taxes.

For a business, electric bills are usually deductible against income taxes. If an income tax rate is defined, the cash flow displays
a "Net" Energy Bill Savings line item which is the Energy Bill Savings less the loss in tax deduction due to the PV system's
lowering of the electric bill. Cost inflation for the utility rate and degradation of system performance are also taken into account.

Average Monthly Utility Savings

"Average Monthly Utility Savings" is the average monthly (Net) Energy Bill Savings expected over the system life. This takes into
account utility rate inflation and any expected degradation in system performance. This estimate has not assumed any changes
in the amount or timing in your building's energy use.

Rate of Return (IRR) on Cash Invested

"Rate of Return on Cash Invested" (also called "Internal Rate of Return" or "IRR") is the annual compounded rate of return that
the cash flows (savings, incentives, tax benefits, etc.) bring based upon the net cash invested in the year of installation ("Year
0"). In financial math terms, IRR is the discount rate required to make the sum of the present values of each annual cash flow
equal zero. If you financed your system 100%, IRR does not apply since you did not actually invest cash.
 Proposal prepared for Dan Glaser - CASSK-13-00932

Total Life-Cycle Payback

"Total Life-Cycle Payback" is the total cash flows (savings, incentives, tax benefits, etc.) for all years after installation as a
percentage of the net cash invested in the year of installation ("Year 0"). This ROI calculation is not adjusted for inflation or the
time-value of money.

Levelized Cost of Energy

"Levelized Cost of Energy" (or LCOE) is an approximation of the average cost of energy from your solar system ($/kWh). To
determine LCOE, the system Net Cost ($ in the installation year) is divided by the amount of energy produced (kWh) over the
system life (years). For this calculation, energy produced over system life is limited to the annual energy consumption of the
building times the system life in years. The Net Cost does not include incentives which may materialize in later years, such as
tax credits or deductions or production rebates. This calculation is not adjusted for the time-value of money.

Environmental Analysis
CO2 gas emissions avoided per passenger via various travel methods:

Travel Method Emissions / mile

Small Car .59 pounds
Medium Car 1.10 pounds
SUV/4 Wheel Drive 1.57 pounds
Airplane (Boeing 747) 0.97 pounds
Air travel average USA capacity.

Tree offset calculation is based on a tree planted in the humid tropics absorbing on average 50 pounds (22 kg) of carbon dioxide
annually over 40 years - each tree will absorb 1 ton of CO2 over its lifetime; but as trees grow, they compete for resources and
some may die or be destroyed - not all will achieve their full carbon sequestration potential. This calculator assumes that 5 trees
should be planted to ensure that at least one lives to 40 years or that their combined sequestration equals 1 ton.

General waste is based on the USA average carbon dioxide emission equivalent of 1,010 pounds per person per year.

Sources: Sightline Institute, Trees for the Future and USA Environmental Protection Agency

Electric Utility Rates & Assumptions

Utility: Southern California Edison (SCE)
Rate Name (Post Installation): General Service - Option B, (3-Phase, 2-50 kV)
Rate Code: GS-2 TOU
Annual Inflation: 6.7% (assumed)
 Proposal prepared for Dan Glaser - CASSK-13-00932

About Utility Average Costs

Time-Of-Use Rates: Solar can reduce average cost of electricity by taking advantage of time-of-use rates. Electric rates are
usually higher during peak daytime periods. This is when solar systems produce peak output and can "spin your meter
backwards".

Each day (weekday or weekend) is broken into four (4) areas: Off-Peak (base rate), Morning Part-Peak, Peak, and Afternoon
Part-Peak. We have defined the times each rate starts and used the current rate applicable for that time period. Your utility may
change these rates or the time periods applied. TOU charges can account for a large percentage of your utility bill and the
assumptions used in these estimates may not be accurate for your particular situation.

Demand Rates: With "demand rates" a portion of your utility bill is a demand rate times the peak demand measured in the
month. You may find that solar does reduce your demand charges. However, for this analysis it is assumed that solar will not
reduce the measured peak demand, and thus demand charges will not change with solar installed. Please note, demand rates
can come with high monthly metering fees. In this case, the average cost per kWh may actually be higher since the metering
fees must now be allocated across the smaller amount of electricity you purchased from the utility after a solar installation.

Annual Electric Bill "True-Up" (Reconciliation): This analysis assumes you will receive a cumulative credit from your electric
utility at the end of the year for each month your system produces more energy value to the grid than you consumed. Sometimes
this is referred to as a utility bill "true up". This action balances your bill across the year: often in summer months your solar
system may provide excess electricity ("spin the meter backwards"), compared to winter months. So you receive billing "credits"
in summer for excess energy generated (aka Net Excess Generation). At the end of the year these credits may be applied to
charges incurred in months where you purchased electricity (usually winter months) assuming your utility provides Net Metering.
This analysis assumes your total annual utility bill will not be less than any minimum utility customer charges, as applicable.

Utility Electric Rate Inflation: Historical References

California Rates: In 2009, the average retail electric rate was 13.24 cents per kWh(14.74 cents residential). Investor-owned
utilities averaged 14.15 cents per kWh. Since 1970, electric rates in California have increased 6.7% annually.

National Averages: In 2009, the average retail electricity price for all customers across the United States rose to 9.83 cents per
kWh, a small increase over 2008. Over the two year period though, from 2007 to 2009, the average retail price rose 7.7 percent.

Average commercial prices decreased one tenth of a cent per kWh from 10.36 to 10.26 cents per kWh. Average industrial prices
decreased 0.02 percent from 6.83 cents per kWh in 2008 to 6.70 cents per kWh in 2009.

See the following Dept of Energy source for more detail on regional and state inflation patterns.

Source: http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html