2013 ADC INSTALLATION INNOVATION FORUM | PAGE 1

1

SunPower

1

>2.5 GW solar PV deployed

Nellis AFB: 14.2 MW USAFA: 6.0 MW China Lake: 13.7 MW

World Leading Technology

Financial Strength

Industry Leading Warranty 40 MWs Installed for DoD

Highest Net Present Value

2013 ADC INSTALLATION INNOVATION FORUM | PAGE 2

2

What Works & Why

Approvals: Complete NEPA in Advance

Subject Expertise: Engage DOE National Labs Early

Infrastructure: Understand Local Utility Interconnection Requirements

People: Use Experienced Legal & Contracting Officers, Obtain Base Command Support

Contracting: Proven, financeable vehicle

Evaluation: Use NPV rather than only initial PPA cost

Financing & Legal: Termination Value Schedules, Conditions Precedent, Take or Pay

2013 ADC INSTALLATION INNOVATION FORUM | PAGE 3

3

What Doesn’t Work Approvals: no environmental approvals completed; industry

required to perform

Infrastructure: unknown offtaker, unknown interconnection, unknown site access

People: Lack of command support, lack of approval chain knowledge

Contracting: failing to align with industry requirements

Evaluation: low first year PPA rate evaluation only

Financing & Legal: inflexible RFP/contract language

RECs: unrealistic expectations

Timetable: unrealistic timeline for financing

4

Dave Belote, VP of Federal Business - Nellis Air Force Base Commander, first Executive Director of DoD Siting Clearinghouse

Wade Barnes, Development Manager – Navy Surface Warfare Officer

Mark Goodwin, President – Former Naval Aviator

The Apex Federal Business Unit is uniquely qualified to work with all levels of government, from base commanders to intermediate command to the Pentagon:

Apex has a 300 MW facility in OK (energy to power 100,000 homes), a new solar portfolio in CO, and a pipeline of late-stage projects.

Apex Wind Energy

Why enter the DoD market?

• Contribution to energy independence/national security

• 30-year PPA authority: attractive to investors

• Chance to create energy-secure solutions: base commanders’ dream could benefit everyone

Why not enter the DoD market?

• Economics/pricing: growing pains for RFP writers

• Opposition by local utilities: DoD often prime customer in area

• Mission compatibility: wind 2/3 price of solar, but difficult to site

• Lack of communication in community: proponents/opponents often talk past, not to, one another