Innovations in Energy Efficiency Implementation and Finance

Jeffrey EckelPresident and CEO

HANNON ARMSTRONG

Hannon Armstrong Capital,

LLC is a 31-year-old,

Annapolis, Maryland based

investment and merchant

bank focused on providing

financing for energy and

infrastructure investments in

the United States.

Hannon Armstrong ExperienceTransactions across the United States

Locations of representative transactions financed by Hannon Armstrong

State & Local (S&L) is the Oldest of the Financed EE Markets

1995 2000 2005 2010 2015 20200

500

1000

1500

2000

2500

3000

3500

4000

Millions $/Year The original

innovation in EE Finance was the Tax-Exempt Lease

Balance sheet concerns of T-E Obligors is giving rise to the Service Contract -- at a higher cost of capital

Federal Market has the Greatest Scalability Potential

1995 2000 2005 2010 2015 20200

500

1000

1500

2000

2500

3000

3500

4000

Federal ESPC Grew to a $500m market when securitization vehicles like our Hannie Mae commenced.

If and When Congress expands ESPC to include Mobile Assets, the Federal Market Will grow ten-fold

Millions $/Year

The Commercial Market Remains a Challenging Market to Achieve Scale Finance Models

1995 2000 2005 2010 2015 20200

500

1000

1500

2000

2500

3000

3500

4000

Hannon is pursuing Unsecured portfolio models for Commercial Office Buildings. It has promise but not scale.

On-Bill financing would solve many of the Security Interest Issues.

PACE remains the best way to solve Security Interest issues…if only it were possible

Millions $/Year

Hannon Armstrong Capital, L.L.C.1997 Annapolis Exchange

Suite 520Annapolis, MD 21401

410.571.9860Hannonarmstrong.com