1. 22 June, London The Energy Performance Guarantee Overcoming the commercial obstaclesof PV implementation in the UK Paul Lewis Self Energy UK www.selfenergy.co.uk UK

2. Agenda UK 1. What is the opportunity – an investor / developer view of the UK FiT 2. Key Challenges to overcome 3. Lessons learnt in Europe 4. Energy Supply vs Energy Performance and the Rooftop delivery model

3. Self Energy – a modern day ESCo UK Decentralised Energy partner working with organisations across Europe to cut energy costs and carbon emissions Financing of integrated onsite, decentralised heat, power and cooling generation for the built environment. Experience of working with feed-in-tariffs and national Carbon Reduction Commitments across Europe Takes on risk and financial burden of Energy Performance Projects Techology “agnostic” but focus on PV in markets with feed-in tariff Working to overcome key barriers to implementation of Decentralised Energy: Project / Performance Risk Capital availability Operation and Maintenance expertise and capacity

5. Overcoming the challenges UK Experienced Project Developers Planning and grid issues (G59) tackled and resolved early Clear O&M Strategy technical due dilligence Proven contractors at similar project size Legal due dilligence Balanced risk/reward for project stakeholders Legal due dilligence Financial due dilligence Well resourced Contractors Access and security

7. 12% of energy from renewable sources (4.6% in UK)

9. Initial 1.4MWp, additional 1.6MWp in 2010

10. Feed-in-Tariff €0.31/kWh

11. Financial benefits of €2m for client

12. Self Energy provided the capital and will recover the investment over 25 years

14. Energy Performance Guarantee UK ESCo input: Knowledge Risk Mitigation Delivery Finance Building Operator Building Operator Total Energy savings ESCo only paid by % of net savings Total Energy Consumption (current) ESCo Total Energy Consumption (post implementation) Beyond the end of Performance Guarantee Before - Fixed term partnership period - Benefits shared during the partnership

15. Southern UK example – 350 kWp UK 50,000 square foot and a pitched roof. Project Accumulated Cash Flow Investable returns Strong end user benefits with zero end user risk

17. Strong partnering is the key opportunity to maximise returns – there is enough opportunity for everyone

18. Every project needs to assessed on its own merits

19. Opportunity to utilise ESCOs to remove risk and provide capital