Renewabuilt Final Presentation

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Renewabuilt EnergyPowering the Southwest with Solar

© Renewabuilt Energy. All Rights Reserved.

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Welcome

General Manager: Brittany McCain

Finance Manager: Ryan Lambesis

Business Development Manager: Kyle Cherrick

Marketing Manager: Rebecca Batterman

Operations Manager: Nathan Plett

“Go to Sleep, Wake up Green”

Brittany McCain

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Goals

Brittany McCain

Why invest in solar?

Why invest in Arizona ?

Why invest in ?renewabuiltenergy

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2 Main Problems

Brittany McCain

Problem 1

In 2007, 45 coal plants denied

Problem 2

Utilities lack resources to reach their Renewable Energy Standard

Projected 15% by 2025

Current 2%

Problem-Opportunity-Markets-Solution-Business Model-Competitive Advantage-Competition-Strategies-Status-Team-Financials

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Arizona Renewable Demand Forecast

0

2000

4000

6000

8000

10000

12000

14000

2007 2010 2013 2016 2019 2022 2025

Year

Existing and Planned Projects

Total Renewable DemandCreated by RES

Mandated SupplyCu

mul

ative

Gig

awatt

hou

rs

Rebecca Batterman

RES = Renewable Energy Standard

2000 GWh = 180 K homes6000 GWh = 560 K homes12000 GWh = 1.1 M homes

560,000 homes

1.1 million homes

180,000 homes


Supply

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Target Locations

Rebecca Batterman

State RES

Arizona 15% by 2020

Colorado 20% by 2020

Nevada 20% by 2015

New Mexico

20% by 2020


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Patagonia Target Market

Rebecca Batterman

Critical Findings

• 4 power outages / month

• Overall satisfaction of quality of current utility service is only 4.2 / 10

• Desire for solar power in the community is 8.8 / 10


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The SolutionDistributed Solar Grid Solution

Reliable Power SourceReduced Transmission Distance

Environmentally Friendly

Kyle Cherrick


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The Solution

Kyle Cherrick

Sulphur Springs Renewable Energy Profile

The Patagonia Project 1 produces 28% of the Sulphur Springs RES for 2009

28%28%28%


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Perspective

Kyle Cherrick

3MW power plant(6 GWh)

563 average American homes


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Business Model

Renewabuilt Energy

Financier (bank, investor)

Attribute Aggregator

Kyle Cherrick

Utility

End-user

State & Federal Government

Local Government

Monitoring Provider

Operation & Maintenance

Provider

Distribution/ Integrator

System Installer

Month 1 Month 3 Month 6 Month 12


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Month 18


Renewabuilt in Patagonia, AZ

Kyle Cherrick


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Competition

Nathan Plett

Plant Name Owner Size (MW)

Solana APS 280

Prescott Airport

APS 3.4

Springerville TEP 5.1

Saguaro APS 1

Solana

Phoenix

Tucson

Prescott

Saguaro

Springerville


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Marketing Strategies

Nathan Plett

This Town is Poweredby Solar Energy from

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Sales/Growth Plan

Nathan Plett

Year 1

Year 3

Year 5


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Year 5


Venture Status

Nathan Plett

Quarter 1-2, 2008

•Attain Series A Funding

Quarter 3-4, 2008

•Draft PPA with Sulfur Springs

•Attain Debt & Equity Financing for Patagonia

•Contract Engineering Firm to Develop Prototype

Quarter 1, 2009

•Break Ground in Patagonia

Quarter 3-4, 2007

•Met with Bellows Foundation

•Met with Patagonia Plant Landowners

•Met with Mayor of Patagonia

•Surveyed Residents of Patagonia

•Opened Relations with Sulfur Springs

•Finished Business Plan


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Management Team

Ryan Lambesis

Nathan Plett

Rebecca Batterman Kyle Cherrick

Ryan Lambesis

Brittany McCain



Financial Projections

Ryan Lambesis

Income Statement(in thousands $)

Year 1 Year 3 Year 5

Net Sales 396 7,265 16,560 Installations (3MW) 1 10 22

ExpensesLease - Solar Panels 248 3,922 8,360 Operating & Maintenance 39 900 2,025 SG&A 271 764 1,073

Total Expenses 558 5,586 11,458 EBITDA (159) 1,713 5,137


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Funding Proposal

Ryan Lambesis

Funding Request = $1.5 million

Use of Funds: Project expense – $840,000 Salaries and Wages – $285,000 O&M – $225,000 SG&A – $150,000

7-10x return after five years

$11-15 million


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Renewabuilt EnergyPowering the Southwest with Solar

© Renewabuilt Energy. All Rights Reserved.

www.renewabuiltenergy.com renewabuiltenergy


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Reference Material

3 Tier: First Look Assessment. http://firstlook.3tiergroup.com/solar

Black & Veatch. “Arizona Renewable Energy Assessment.” September 2007. 27 October 2007. <http://www.bv.com/resources/energy_brochures/renewables/rsrc_AZ_RenewableEnergyAssessment.pdf.>

Boyle, Steve. Interview. Bellow's Foundation. 1 November 2007. <http://www.bellowsfoundation.org/>.

Database of State Incentives for Renewables % Efficiency. 2007. 9 November 2007. <http://www.dsireusa.org/index.cfm?&CurrentPageID=7&EE=1&RE=1>.

Gabrielle Giffords. 2007. 15 October 2007. <http://giffords.house.gov/>.

Hathoways. Interview. 15 November 2007.

Kuz, Dan. Interview. Raytheon. 3 October 2007. <http://raytheon.com/>.

National Renewable Energy Laboratory. 2007. 3 November 2007. <http://www.nrel.gov/>.

Shah, Jigar. SunEdison. 2007. 26 November 2007. < http://www.sunedison.com>.

SSVEC. “A Vision for the Future.” 2004. 15 October 2007. <http://www.ssvec.org/documents/reports/ar2004.pdf>.


Reference Material Cont’d

Touchstone Energy Cooperatives. 2007. 1 October 2007. <https://touchstoneenergy.cooperative.com/public/index.html>.

Tucson Embedded Systems. 2007. http://www.tucsonembedded.com/home.html

UniSource. 2007. 1 October 2007. <http://www.unisourcelink.com/index.asp>.

United States International Trade Commission (ITC). 2007. 6 October 2007. <http://www.usitc.gov/>.

U.S. Electric Power Industry Net Generation. 2005. 9 November 2007. <http://www.eia.doe.gov/bookshelf/brochures/rep/images/generation%202005.png>.

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Leadership Team

General Manager: Brittany McCain

VP of Finance: Ryan Lambesis

VP of Business Development: Kyle Cherrick

VP of Marketing: Rebecca Batterman

VP of Operations: Nathan Plett

Board of Advisors Jim Jindrick – McGuire Mentor in Residence

Steve Boyle – Bellows Foundation

Presenter February 28, 2008

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Leadership Team Background

Brittany McCain (Phoenix, AZ) - Regional Sales Representative for Performance Janitorial, Inc. - Former president of the Entrepreneurship Club at The University of Arizona

Ryan Lambesis (Tucson, AZ) - Assisted companies at achieving IPO’s for Atlantic Law LLP in London, England - 3-years experience in sales and customer service at Bank of America

Kyle Cherrick (Seattle, WA) - Personally sold $130,000+ in advertising for Arizona Daily Wildcat - Co-founder of the Entrepreneurship club at The University of Arizona

Rebecca Batterman (Ivyland, PA) - Coached and evaluated 30 staff members at Sesame/Rockwood Day Camps - Helped market the camp by designing promotional give-aways

Nathan Plett (Phoenix, AZ) - Experience with generating market demand at Morgan Stanley - Asset allocation and portfolio management

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Survey1. Residents tend to become involved within their community in different ways.

How involved are you within your community in regards to making/influencing decisions, leading discussions or event, etc?

Not involved at all 1 2 3 4 5 6 7 Very involved

2. What environmental actions do you currently perform? Check all that apply.RecyclePurchase organic foodsUse energy-efficient light bulbsCarpoolUse public transportationI don’t do anythingOther _______________

3. What is your overall satisfaction with your current utility service?Not at all 1 2 3 4 5 6 7 Very satisfied satisfied

4. On average, about how much do you spend per month on your utility bill?A) Less than $50b) $51-$100c) $101-$150d) $151-$200e) More than $201f) I don’t pay the electricity bill.

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Survey5. Rank the following choices according to what you prefer if your utility was to

improve. (1=most desired preference, 4=least desired preference)___ Cleaner power production___ Controlling rising costs___ Improving quality of service___ Reducing hazardous emissions

6. About how many power outages have you experienced within the last month?_______________

7. It sometimes is bothersome when your power goes out. How much more money a month would you pay in order to avoid these power outages?

$0$1-15$16-30$31-45$46 +

8. How knowledgeable do you consider yourself on solar energy?Not knowledgeable 1 2 3 4 5 6 7 Very knowledgeable

9. On a scale from 1 to 10, how strongly do you desire more solar power to be used in your community?

I don’t care 1 2 3 4 5 6 7 8 9 10 I really want solar power used in my community


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Survey

10.Adopting citywide green initiatives would improve the economic growth of your community? (Circle one)

Strongly Agree Neither Agree nor Disagree Disagree Strongly Agree Disagree

11.Our local government should adopt solar power to provide some electricity for our community. (Circle one)

Strongly Agree Neither Agree nor Disagree Disagree Strongly Agree Disagree

12. If there were new developments within your community, which type of power source would you prefer to be used?

(-5=don’t prefer, +5=really prefer)Nuclear -5 -4 -3 -2 -1 +1 +2 +3 +4 +5Coal -5 -4 -3 -2 -1 +1 +2 +3 +4 +5Oil -5 -4 -3 -2 -1 +1 +2 +3 +4 +5Natural Gas -5 -4 -3 -2 -1 +1 +2 +3 +4 +5

Hydro -5 -4 -3 -2 -1 +1 +2 +3 +4 +5Wind -5 -4 -3 -2 -1 +1 +2 +3 +4 +5Solar -5 -4 -3 -2 -1 +1 +2 +3 +4 +5

Survey

13. Solar energy plants could provide more efficient electricity to your community. How willing are you to have a solar farm located about 8 miles outside of your city center?

Farmland Solar Farm providing more efficient electricity to your home.

Not willing 1 2 3 4 5 6 7 Very at all willing

14. How many rooms are in your home? 1 2 3 4 5+

15. How many square feet is your home? a) under 1000b) 1001-1500c) 1501-2000d) 2001-2500e) 2501-3000f) more than 3000 renewabuilt

energy

Survey Results

1. Community involvement making/influencing decisions, leading discussions or event - 4.914 (10=very involved)

2. Environmental actions you performRecycle - 0.951

Purchase organic foods - 0.7312Use energy-efficient light bulbs - 0.793Carpool - 0.156Use public transportation - 0.025I don’t do anything – 0

• Overall satisfaction with current utility service - 4.288• Avg. monthly utility bill - $151-$200• Rank order:

Improved QualityControl Rising CostReduce EmissionsClean Power

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Survey Results6. Power outages last month - 3.85

7. Amount more paid to avoid power outages - $1-$158. Knowledge on solar energy - 4.41 (7=very

knowledgable)9. Desire solar power in your community - 8.78 (really want

it)10. Adopting a green initiative would improve economic

growth - Agree11. Local government should adopt solar power for our

community - Agree12. Type of power source you prefer:

Nuclear – 2.86Coal – (-4)Oil - 3.86Natural Gas - 0.032 Hydro - 0Wind - 4.21Solar - 4.3

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Survey Results

13.How willing are you to have a solar farm located about 8 miles outside of your city center? - 6.13 (7-very willing)

14. Rooms in your house - 4.43

15.Square footage of your home - 1501-2000

16. People who live in your house - 2.1

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The Process

1. Renewabuilt works with the utility company

2. Agree to a 20-30 year Power Purchase Agreement (PPA)

3. Go to the financer

4. Decide on operating, production, monitoring companies

5. Contact local governments for inspection and permits

6. State/Federal Government in order to gain tax incentives

Presenter February 28, 2008

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Projected Income Statements RenewabuiltProjected Income Statements ($s) Year 1 Year 2 Year 3 Year 4 Year 5 SALES Gross Sales 404,712 1,851,741 7,413,952 11,260,383 16,897,898 Returns and Allowances (8,094) (37,035) (148,279) (225,208) (337,958) NET SALES 396,618 1,814,707 7,265,673 11,035,175 16,559,940 GROSS MARGIN 396,618 1,814,707 7,265,673 11,035,175 16,559,940 OPERATING EXPENSES Salaries and wages 175,000 175,000 310,000 400,000 490,000 Payroll taxes 13,388 13,388 23,715 30,600 37,485 Employee benefits 17,500 17,500 31,000 40,000 49,000 Depreciation 2,750 10,333 33,000 35,000 35,000 Bad debt expense - - - - - Rent(Apartment) Expense 18,000 18,000 18,000 18,000 18,000 Utility/Electric 1,800 1,800 3,600 3,600 3,600 Phone/Internet 1,080 1,080 1,620 1,620 1,620 Rent Upgrade(Office) Expense - - 125,000 125,000 125,000 Insurance Expense 2,500 6,000 6,000 12,000 12,000 Marketing/Sales Expense 15,543 30,000 45,000 45,000 45,000

Public Relations - 10,000 10,000 10,000 10,000 Legal Expenses 15,000 22,500 33,750 33,750 33,750 Conferences/Travel 15,000 22,500 33,750 33,750 33,750 Lease Expense - Solar Panels 41,284 1,006,298 3,921,980 5,728,155 8,360,010 Lease Expense - Land 621 7,452 7,452 7,452 7,452 Bookeeping - 15,000 15,000 15,000 15,000 Operating and Maintenance 9,000 225,000 900,000 1,350,000 2,025,000

TOTAL OPERATING EXPENSES 558,469 1,581,850 5,518,867 7,888,927 11,301,667 OPERATING PROFIT (LOSS) BEFORE INTEREST AND TAXES (161,852) 232,856 1,746,806 3,146,248 5,258,273 NET PROFIT (LOSS) (161,852) 208,005 1,135,424 2,045,061 3,417,877

EBITDA (159,102) 243,190 1,779,806 3,181,248 5,293,273

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Projected Income Statements RenewabuiltProjected Cash Flows ($s) Year 1 Year 2 Year 3 Year 4 Year 5 CASH FLOWS FROM OPERATIONS Net income (161,852) 208,005 1,135,424 2,045,061 3,417,877 Adjustments to reconcile net income to cash flows from operations Depreciation 2,750 10,333 33,000 35,000 35,000 Changes in certain assets and liabilities Accounts receivable (24,528) (74,320) (149,398) (127,144) (187,974) TOTAL CASH FLOWS FROM OPERATIONS (183,630) 144,018 1,019,026 1,952,917 3,264,904 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment (15,000) (40,000) (120,000) - - Other Assets - - - - - TOTAL CASH FLOWS FROM INVESTING ACTIVITIES (15,000) (40,000) (120,000) - -

CASH FLOW BEFOREFINANCING (198,630) 104,018 899,026 1,952,917 3,264,904

CASH FLOWS FROM FINANCING ACTIVITIES Borrowing of long-term debt - - - - - Repayment of long-term debt - - - - -

CASH FLOW BEFOREEQUITY FINANCING (198,630) 104,018 899,026 1,952,917 3,264,904

Members' Capital Contributions 1,500,000 - - - - Members' Interest Repurchased - - - - -

TOTAL CASH FLOWS FROM FINANCING ACTIVITIES 1,500,000 - - - - NET CASH FLOWS 1,301,370 104,018 899,026 1,952,917 3,264,904 CASH, BEGINNING OF PERIOD - 1,301,370 1,405,388 2,304,415 4,257,332 CASH, END OF PERIOD 1,301,370 1,405,388 2,304,415 4,257,332 7,522,236

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Utility Scale Characteristics

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The Solution

Kyle Cherrick

Problem-Opportunity-Markets-Solution-Business Model-Competition-Strategies-Status-Financials

Sulfur Springs Renewable Energy Profile

YEAR Total Energy Sales RES RE GWh Renewabuilt

2006 735 GWh 1.5% 11 -

2007 771 GWh 1.75% 13.5 -

2008 805 GWh 2% 16 -

2009 845 GWh 2.5% 21 6 GWh (Patagonia 1)

The Patagonia 1 Project producing 6 GWh is 28% of the 2.5% RES * GWh = GigaWatt Hours

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Use of Funds

Ryan Lambesis February 28, 2008

Category 1 Year 1 Year 2Salaries and wages $175,000 $175,000

Category 2 SG&AMarketing/Sales Expense $15,543 $30,000Public Relations $0 $10,000Legal Expenses $15,000 $22,500Conferences/Travel $15,000 $22,500Rent(Apartment) Expense $18,000 $18,000Utility/Electric $1,800 $1,800Phone/Internet $1,080 $1,080Insurance Expense $2,500 $6,000Office Equipment $15,000

Category 3Lease Expense - Solar Panels $41,284 $1,006,298Lease Expense - Land $621 $18,630

Category 4Operating and Maintenance $49,500 $225,000

Total 4 CategoriesBreakeven month 19 (79% of 2 years) 0.7916667

Total Funding Needed $1,493,982Seeking $1,500,000

Use of Funds

Salaries and Wages 19% $285,000SG&A 10% $150,000Solar Panels and Land 56% $840,000Operating and Maintenance on Panels 15% $225,000

$1,500,000

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Agenda

Problem

Opportunity

Markets

Solution

Business Model

Competitive Advantage

Competition

Strategies (Marketing, Sales, Research)

Venture Status

Financials

Exit Strategy

Kyle Cherrick February 28, 2008

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Land Proposal Patagonia, Arizona

Targeted area for economic development for Santa Cruz county

Rebecca Batterman February 28, 2008

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Community-Based Solar Power

• 4 kW ownership of a 3 MW Utility-scale Solar Power Plant

• Dual-axis tracking capability• 27% capacity factor• 2000 kWh/kW installed• Advanced Concentrated PV or low-cost thin-film

technologies• Economies of scale lower cost of permitting,

design, and construction• Utilities buy kWh at above retail prices in order to

meet State Renewable Energy Standard Mandates• 750 4 kW residential and small-commercial owners

of a 3 MW Solar Power Park• Located outside rural communities, suburbs, or

inside Master-planned communities• Knowledge of where your power comes from, the

Sun

• 4 kW Residential Solar Power System• No tracking capability• 18% Capacity Factor• 1300 kWh/kW installed• Standard silicon technology• Expensive custom design and

installation costs• Individual permits• Navigate Homeowner’s Associations• Concern over trees shading panels• Reimbursed at wholesale or retail price for spinning

meter backwards

Technology

Renewabuilt Final Presentation