CED Greentech Residential Financing Overview Residential financing terms

CED Greentech Residential Financing Overview

Residential financing terms (recap. ) Loan programs 1. 2. 3. Secured – Equity required Unsecured – No equity required Homeowner owns solar system and receives all rebates/tax benefits Solar Lease 1. 2. 3. 4. Fixed payment by the month Annual escalator (2. 5%) Leasing company owns equipment and receives all rebates/tax benefits Flexible options ($0 down, pre-pay, extra benefits) Solar PPA (Power Purchase Agreement) 1. 2. Fixed payment by the k. Wh Same features as Solar lease, no tax on monthly payment PACE (Property Assessed Clean Energy) 1. Financing is secured by deed, stays with property

Residential financing 80% of US homeowners have FICO above 640 50% of home improvement projects over $5 k are financed 7% of US homeowners have scores between 600 -640 Ability to offer financing increases the sales closing ratio an average of 20% • Offering multiple financing options can also increase closing ratio • • • No Silver bullet – PPA/Lease/Loan • Contractors have to be well versed at ALL options! § Payment buyers – need the lowest monthly payment § Challenged credit – 40% of applications can not be approved by “A” paper lenders (FICO 680+) § No tax appetite

• • • 25 -year PPA program – formerly Sun Cap-NRG Offering in CA, NM, HI, AZ, TX, NY Customer - Sunnova – Contractor - No distributor involvement Approved products: Hanwha, LG, Phono, Suniva, UP Solar, SMA, Fronius, Enphase, Power-One, Solar. Edge $0 down, low-upfront options ($0 -$5, 000) Monitoring, production guarantee, full system warranty, repair service and insurance included Min. FICO – 650 – lowest on market Ability to transfer contract to new homeowner at same terms End of term options: – Remove equipment at no cost to homeowner – Renew contract for 5 years – Purchase at fair market value • White-labeled customer proposal • Cash-flow positive PPA payment is lower than power bill (approx. 20%)

Sunnova vs. Lease/PPA competition Sunnova Sun. Run Solar City CPF Sungevity Structure PPA PPA/lease PPA Lease Length 25 years 20 years Min. FICO 650 700 680 700 Available to contractors Yes No No Yes No After 5 years No Option to purchase equipment No $0 down/prepay Yes Yes Yes Varies PD, Real Goods, Verengo, 1 st Light Energy, Heliopower, 1 BOG, REC Solar, Solar Universe Solar City only, Home Depot Soligent, Solar. World Sungevity only Lowes Partners After 5 years

• • Electric & Gas Industries Association members only CED Greentech EGIA is non –profit, promoting energy efficiency and renewable energy Contractor has to be fully approved – Application package www. egia. org/cedgreentech Process: 1. Apply for credit – paper and paperless application (online or phone) 2. Get Pre-Approved: Instant credit decision (unsecured). Credit center explains terms and Conditions to customer in one call 3. Get Stipulations: Customer supplies required stipulations (picture, email, fax, mail) 4. Get Funded: Customer is provided the documents via notary or email. Fund are electronically transferred to contractor’s bank within 24 -48 hours.

EGIA Secured Financing (Power. Saver loan) When to use? • • Homeowner has equity Homeowner is fine with 2 nd mortgage – 100% LTV max. Homeowner can write off loan interest Low monthly payment beats the monthly electricity bill Secured Installment Loan (FHA): q q q 660 minimum FICO $7, 500 min. , $25, 000 max. amount 15 and 20 years terms 6. 125% - 9. 24% interest rates No contractor loan fees No appraisal, title fees q 1% of loan due at close q Drive-by appraisals only q Owner-occupied single-family homes and HUD approved condos are eligible q Must own residence for 1 year q Lowest possible monthly payment

EGIA Unsecured Financing When to use? • Homeowners with no equity • Homeowners who do not want to encumber their property with 2 nd mortgage or refinance • Homeowners wary of leasing / PPAs • Homeowners who want to cover rebates and tax credits • Cash buyers who prefer “same-as-cash” options Highlights: q q Unsecured loans to $40 k No proof of income Terms to 10 years Fixed APRs starting at 3. 99% q No interest-no payment options for 6/12 months q No interest with minimum payment options for 6/9/12/18 months q No interest with equal payment options for 36/60 months

Solar Step Down program q q q No equity or appraisal required $25, 000 credit-secured loan 650 minimum FICO 100% upfront funding No prepayment penalties q Terms up to 20 years q Fixed rates q One-time loan re-amortization at no cost within the first 24 months q Online pre-qualification form Plus 1 program – Qualified buyers can borrow up to $15 k Save Now, Pay Later Loan • • • $15, 000 max. loan amount No interest if paid within 18 months No payment necessary during first 18 months Unsecured, no collateral 100% upfront funding No pre-payment penalties Pay As You Go Loan • $15, 000 max. loan amount • First payment due 30 days from funding • Unsecured, no collateral • 100% upfront funding • No pre-payment penalties

• PACE financing, currently available in Sacramento, more areas coming soon • Contractors have to be certified by Ygrene (training program) • 100% financing for energy efficiency, renewable energy projects • Financing is repayable over 5 – 10 - 20 years via property taxes @6. 95% • No credit check - simple, online process • Minimum $2, 500 project cost • Mortgage notification letter – lenders are notified about financing • Maximum of 10% of property value can be financed • Homeowner must be current on mortgage, property taxes for last 36 months, can not be in Bankruptcy • Loan can not take property over 95% LTV • Funding upon project completion • 3% contractor fee, $650 district fee, $50 application fee