Minnesota Community Solar Garden Program
CommunitySolarGardensIn2013theMinnesotalegislaturepassedtheSolarJobsAct
with a new community‐based program that allows
homeowners, municipalities, and Companies to join and
purchase their electricity from a centrally located solar
farmintheirneighborhood,calleda“SolarGarden”.
AselectricityisproducedbytheSolarGarden,subscribers
earn Xcel electricity bill credits based on the electricity
production each month. In exchange for these Xcel
electricitybillcredits,subscriberswillbebilledbytheSolar
Garden for their share of the electricity production each
month. The total cost you pay the Solar Garden for
electricity is lower than the total savings from the Xcel
electricitybillcredits,providingthesubscribersignificant
electricity savings each month by entering into a Solar
Garden Power Purchase Agreement “PPA” with WGL
Energy.
Moreinformationcanbefoundat:
www.xcelenergy.com/Energy_Solutions/Residential_Soluti
ons/Renewable_Energy_Solutions/SolarRewards_Commun
ity‐MN
SolarProjectBenefitsOur subscribers receive significant benefit from
participatinginaSolarGarden.Wehaveoutlinedmanyof
thesebenefitsbelow.
Reductionofelectricitycosts• Morethan10%savingsonelectricitycosts
Predictableenergyrates• Fixedelectricitypricesoverthe25years
Positiveenvironmentalimpact• Reductionofgreenhousegasemissions
Positivecommunityimpact• Constructioniscompletedwithalocalworkforce,
providingjobsandpositivelocaleconomicimpactsBetterthanbuildingyourownsolarfarm• Noinitialorongoingcapitalexpenditure
• SystemOwnerresponsibleforsystemmaintenance
• SolarGardenishostedonthird‐partyland
The chart below represents the electricity savings that a
subscribercanexpecttoreceiveoverthelifeofthePPA.
Note:Estimatedbasedon3MWSolarGardenanda3.0%gridescalator.
CommunitySolarGardenTeamWGL Energy, New Energy and Innovative Power have
joinedtogethertosuccessfullycompleteaSolarGardenin
yourcommunity.Thecombinedcompanieshavecompleted
over 800 solar installations throughout the State of
Minnesotaandover1,000 installations, totalingover130
MWofsolarcapacitynationally.
WGLEnergyOverview
WGLEnergy is an entity thatdelivers a full ecosystemof
energy offerings including natural gas, electricity, green
power, carbon reduction, distributed generation and
energy efficiency provided byWGL Energy Services, Inc.
(formerlyWashingtonGasEnergyServices,Inc.).
Minnesota Community Solar Garden Program
InnovativePowerSystemsOverview
Innovative Power Systems, based in St. Paul, Minnesota
(IPS) designs, installs, and services solar electric, solar
thermal, and electric vehicle charging stations for
residential, commercial, and utility‐scale applications.IPS
has been amajor contributor in establishing Community
Solar Gardens (CSGs). IPS has installed over 800 solar
systemsthroughoutMinnesotasince1991.
NewEnergyEquityOverview
NewEnergyEquityisanationwideend‐to‐endsolarproject
developmentandfinancecompanythathasexperience in
handling all aspects of photovoltaic projects including
sourcing financing from private, public and institutional
investorsandcompleteprojectmanagement.NewEnergy
focuses on commercial and small utility scale solar
installationsthroughouttheUnitedStatesbetween40kW
and5MW.
MinnesotaProjectPortfolioThe map below shows the number of solar installations
projectscompletedbyWGL,NewEnergyEquityandIPSin
2014.
MinnesotaProjectPhotos
ThephotosbelowrepresentmanyoftheWGLEnergy,New
Energy Equity, and Innovative Power SystemsMinnesota
SolarInstallations.
ContactDetails
InnovativePowerSystems
1413HuntingValleyRoad
St.Paul,MN55108
Tel:651‐789‐5305
jamieb@ips‐solar.com
www.ips‐solar.com
NewEnergyEquity
705MelvinAvenue
Annapolis,MD21401
Tel:443‐267‐5012
www.newenergyequity.com
INNOVATIVE POWER SYSTEMS Renewable Energy Design & Installation
www.ips-solar.com
1413 Hunting Valley Road www.ips-solar.com St. Paul, MN 55108 MN General Contractors License # 20101407 651-789-5305 MN Electrical Contractors License # CA06128
About Innovative Power Systems :
Innovative Power Systems designs, installs, and services solar electric, wind
electric, solar thermal, and EV charging stations for residential, commercial,
and utility-scale applications. Innovative Power Systems has designed and
installed hundreds of solar energy systems since 1991, by far more than any
other contractor in the state. Innovative Power Systems is a NABCEP certified general and
electrical contractor for both solar electric and solar thermal systems. IPS has unparalleled
experience in the implementation of solar systems throughout Minnesota and the Midwest and
has just received a grant from the Renewable Development Fund to install 967kW of solar
projects on the light rail corridor (RDF Grant Award EP4-11).
Some of our commercial installations include:
Science Museum of Minnesota (10kW) St. Paul United Church of Christ (40kW)
Great River Energy HQ (72kW) St. Luke Presbyterian Church (40kW)
Splash Products, Inc. (40kW) Taylors Falls Elementary (40kW)
Eichten Farms (40kW) Chisago Lakes Middle School (40kW)
Pellco Machine (40kW) Becker High School (40kW)
Quality Bicycle Products (40kW) Annandale Elementary (40kW)
AGA Medical (40kW) Annandale Middle School (40kW)
Waconia Ice Arena (40kW) Waconia High School (40kW)
Lessors, Inc. (40kW) Holdingford High School (40kW)
East Side Glass (40kW) Holdingford Elementary (40kW)
Mallard Ink (40kW) People of Praise (40kW)
Please see our website at www.ips-solar.com to view other projects.
Company Overview
New Energy Equity Overview
New Energy Equity is a nationwide end-to-end solar project
development and finance company that has experience in
handling all aspects of photovoltaic projects including
sourcing financing from private, public and institutional
investors and complete project management. New Energy
Equity works with the most reputable solar construction
companies to complete engineering, permitting,
construction and commissioning of our solar transactions.
We are well positioned to guarantee a successful and
beneficial transaction for all parties involved.
New Energy focuses on commercial and small utility scale
solar installations throughout the United States between
200 kW and 5 MW. New Energy Equity has led the
successful financing of 18 solar projects throughout the
state of Minnesota in the last year. The solar installations
are savings school districts, municipalities and non-profits
thousands of dollars in electricity payments over the
contract life. Other NEE projects are located in New York,
Rhode Island, New Jersey, Georgia, and Hawaii.
Minnesota Project Portfolio The map below shows the number of installed completed by
New Energy Equity in 2014.
Minnesota Project Photos
The photos below represent many of the New Energy
Equity Minnesota Solar Installations.
Contact Details
Tel: 443- 267-5012
www.newenergyequity.com
New Energy Equity LLC
705 Melvin Avenue, Suite 100
Annapolis, MD 21401
Model Inputs
PPA Rate: 0.1099$ System Size (Watts): 2,700,000
Yearly Escalator: 0.00% Estimated Production (kWh): 3,500,000
Grid Rate: 0.1146$ Term (Years:) 25
Grid Escalator: 2.75% Degradation Factor: 0.50%
Columbia Heights Public Schools Solar Garden Cashflow
YearTotal kWh
Electricity
Rate*PPA Rate Bill Savings Solar Payments Annual Savings Cumulative Savings
Year 1 3,500,000 $0.1146 $0.1099 $400,960 $384,650 $16,310 $16,310
Year 2 3,482,500 $0.1177 $0.1099 $409,926 $382,727 $27,200 $43,510
Year 3 3,465,088 $0.1209 $0.1099 $419,093 $380,813 $38,280 $81,790
Year 4 3,447,762 $0.1243 $0.1099 $428,465 $378,909 $49,556 $131,346
Year 5 3,430,523 $0.1277 $0.1099 $438,047 $377,015 $61,032 $192,379
Year 6 3,413,371 $0.1312 $0.1099 $447,843 $375,129 $72,713 $265,092
Year 7 3,396,304 $0.1348 $0.1099 $457,858 $373,254 $84,604 $349,696
Year 8 3,379,322 $0.1385 $0.1099 $468,097 $371,388 $96,709 $446,405
Year 9 3,362,426 $0.1423 $0.1099 $478,564 $369,531 $109,034 $555,439
Year 10 3,345,614 $0.1462 $0.1099 $489,266 $367,683 $121,583 $677,022
Year 11 3,328,885 $0.1503 $0.1099 $500,207 $365,845 $134,363 $811,385
Year 12 3,312,241 $0.1544 $0.1099 $511,393 $364,015 $147,378 $958,763
Year 13 3,295,680 $0.1586 $0.1099 $522,829 $362,195 $160,634 $1,119,397
Year 14 3,279,201 $0.1630 $0.1099 $534,521 $360,384 $174,137 $1,293,534
Year 15 3,262,805 $0.1675 $0.1099 $546,474 $358,582 $187,892 $1,481,426
Year 16 3,246,491 $0.1721 $0.1099 $558,695 $356,789 $201,906 $1,683,332
Year 17 3,230,259 $0.1768 $0.1099 $571,189 $355,005 $216,183 $1,899,515
Year 18 3,214,108 $0.1817 $0.1099 $583,962 $353,230 $230,732 $2,130,247
Year 19 3,198,037 $0.1867 $0.1099 $597,021 $351,464 $245,557 $2,375,803
Year 20 3,182,047 $0.1918 $0.1099 $610,372 $349,707 $260,665 $2,636,468
Year 21 3,166,137 $0.1971 $0.1099 $624,021 $347,958 $276,063 $2,912,531
Year 22 3,150,306 $0.2025 $0.1099 $637,976 $346,219 $291,757 $3,204,288
Year 23 3,134,554 $0.2081 $0.1099 $652,243 $344,488 $307,755 $3,512,043
Year 24 3,118,882 $0.2138 $0.1099 $666,828 $342,765 $324,063 $3,836,106
Year 25 3,103,287 $0.2197 $0.1099 $681,740 $341,051 $340,689 $4,176,795* Assumes 2.75% Grid Escalator
705 Melvin Avenue | Suite 100 |Annapolis, MD 21401 Main number: 443-267-5012 www.newenergyequity.com
March 18, 2015
Columbia Heights Public Schools 1440 49th Ave NE Columbia Heights, MN 55421 Re: Columbia Heights Public Schools Community Solar Garden Subscription
Dear Columbia Heights Public Schools: This Letter of Intent (“LOI”) sets forth the preliminary terms and conditions of New Energy Equity, LLC’s (“NEE”) proposed installation of, and Columbia Heights Public Schools (“Host Customer”), purchase of a subscription to purchase solar array generated electricity, herein a “Subscription”, in one or more Community Solar Garden Projects located throughout the State of Minnesota herein the “Transaction”. For the purposes of this LOI, NEE and Host Customer may collectively be referred to as the “Parties” or individually referred to as a “Party”. 1. Transaction Description and Assumptions
NEE has made the following assumptions for the purpose of evaluating the viability of the
Transaction whereby NEE will pay for the installation and serve as the financier and long term owner
of the Transaction and Host Customer will purchase electricity in accordance with the terms
outlined below. The following is a list of information provided and/or assumptions made by NEE as
of the date of this LOI:
I. Total Subscription: 3,500,000 kWh per year
II. Power Purchase Agreement (PPA) Energy price: [$.1099 / kWh]
III. PPA Yearly Escalator: 0%
IV. PPA Term: 25 Years
The Host Customer has made the following assumptions for the purpose of evaluating the viability
of the Transaction whereby the Host Customer will purchase electricity from Community Solar
Garden Transaction under a Power Purchase Agreement as outlined in the terms below. The
following is a list of information provided and/or assumptions made as of the date of this LOI:
I. Total Subscription: 3,500,000 kWh per year
II. Power Purchase Agreement (PPA) Energy price: [$.1099 / kWh]
III. PPA Yearly Escalator: 0%
IV. PPA Term: 25 Years
V. Xcel Year 1 Community Solar Garden Credit: [$.1146]
705 Melvin Avenue | Suite 100 |Annapolis, MD 21401 Main number: 443-267-5012 www.newenergyequity.com
VI. Construction Completion: Within 12 months of signing of Power Purchase Agreement
(PPA) with Host Customer.
2. Transaction Diligence and Conditions
During the term of this LOI, NEE shall assess various additional diligence items as it relates to
construction viability and NEE’s requirements for the financing of the Transaction. Successful
completion of the Transaction will be dependent on the satisfactory review/completion of the
following items:
I. Due diligence and approval of the financial condition of Host Customer;
II. Successful negotiation and execution of Power Purchase Agreement with Host
Customer;
III. Successful application and award of a Community Solar Garden by Xcel Energy and/or
its’ affiliates;
IV. Final approval of the Transaction by NEE’s financing partners.
3. Exclusivity
NEE is aware that, prior to the date of this LOI, Host Customer may have had several discussions with one or more third parties concerning a possible transaction or transactions which may or may not be similar to the Transaction proposed by NEE. Notwithstanding the foregoing and upon execution of this LOI, Host Customer will not and will cause Host Customer’s members, officers, employees, and other agents not to at any time during the three hundred and sixty five (365) day period commencing upon execution of this LOI (the “Exclusivity Period”), directly or indirectly, (a) submit, solicit, initiate, encourage or discuss any proposals or offers from any person regarding the Transaction, or (b) enter into any agreement or commitment related to the Transaction, or (c) further participate in any negotiations regarding, or furnish to any other person any additional non-public information with respect to, or otherwise further cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other person other than NEE to do or seek any of the foregoing. If NEE notifies Host Customer that NEE will proceed with the Transaction as a result of all diligence
items being satisfied, then the Parties shall execute the negotiated Power Purchase Agreement and
this LOI shall be terminated.
4. Choice of Law
The LOI and contemplated agreements would be governed by Minnesota law, without regard to
conflicts of laws principles.
705 Melvin Avenue | Suite 100 |Annapolis, MD 21401 Main number: 443-267-5012 www.newenergyequity.com
5. Intellectual Property
Any intellectual property of whatever nature and in whatever form contained, which is owned by either Party before or during the term of this LOI, together with any and all enhancements and modifications thereof (and whether used or made available for any purpose in any way connected with the subject-matter of this LOI) shall be and remain the sole and absolute property of such Party and no other Party shall obtain any right, title or interest whatsoever to such intellectual property.
6. Fees and Expenses
The Parties will each be responsible for its own fees, costs and expenses (including, but not limited to legal, due diligence, financial advisors, commissions, advisory fees and accounting fees or expenses) incurred in connection with the contemplated Transaction.
7. Access to Information
From the date of this LOI through the termination of this LOI, the Parties shall cooperate to furnish
to each other such information as from time to time reasonably requested by any other Party for
the purpose of completing additional due diligence, preparing proposals and/or procuring the
execution and delivery of other agreements.
8. Publicity
The Parties shall advise and consult each other prior to the issuance of any public reports, statements
or releases pertaining to this LOI or its implementation, or any matters relating to the activities
contemplated by this LOI or its implementation.
9. Termination
The obligations of each Party to this LOI may be terminated as follows:
I. by mutual agreement between the Parties;
II. execution of a definitive PPA between the Parties;
10. Binding effect
Except for Sections 3, 4, 5, 6, 7, 8, 9, 11, 12 and this Section 10, this letter is not intended to be a
binding agreement between the Parties and is only intended to be an expression of mutual
understandings until definitive agreements are executed and delivered. Notwithstanding the
foregoing, Sections 3, 4, 5, 6, 7, 8, 9, 11, 12 and this Section 10 will bind and inure to the benefit of
the Parties and their respective successors and permitted assigns. The termination of this LOI or any
failure of the Parties to execute and deliver any or all the agreements contemplated by this LOI for
any reason whatsoever shall not give rise to any right whatsoever on the part of either Party to
claim for damages, whether under contract, tort, at law or in equity.
705 Melvin Avenue | Suite 100 |Annapolis, MD 21401 Main number: 443-267-5012 www.newenergyequity.com
11. Assignment
This letter may not be assigned without the other Party's prior written consent.
12. Execution in Counterparts
This LOI may be executed in one or more counterparts and by one or more Parties to any counterpart,
each of which shall be deemed an original and all of which together shall constitute one and the same
LOI. Each signer below represents that they are authorized to execute the LOI on behalf of their
respective organizations.
New Energy Equity is extremely excited to work with you to bring this Transaction to a successful close.
We look forward to building a mutually beneficial relationship that will hopefully lead to many
successful future transactions. Please do not hesitate to email or call with any questions.
Matthew Hankey
New Energy Equity LLC
(443) 267-5010 (office)
(443) 875-4049 (cell)
SIGNATURE PAGE FOLLOWS
705 Melvin Avenue | Suite 100 |Annapolis, MD 21401 Main number: 443-267-5012 www.newenergyequity.com
New Energy Equity, LLC
________________________________________
Matthew Hankey
COO
Agreed to and Accepted, as of ( ), 2015, by:
Columbia Heights Public Schools
____________________________________________
By:
____________________________________________
Name
____________________________________________
Title