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THESE MATERIALS ARE CONFIDENTIAL AND THE SOLE EXCLUSIVE PROPERTY OF UPTOWN SOLAR ANY USE OF TRADEMARK LOGOS, GRAPHICS, OR CONCEPTUAL SCREEN SHOTS ARE FOR ILLUSTRATIVE PURPOSES ONLY. THESE DOCUMENTS ARE NOT INTENDED FOR RE-DISTRIBUTION OR PUBLICATION. CONFIDENTIALITY IS

EFFECTIVE UNTIL IF AND WHEN NOTIFIED IN WRITING.

• Global Solar Marketplace• US Marketplace• Federal/State/Utility Program• System Components• Solar Applications• Project Financing• Lifeline Solar

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Agenda

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“I’d put my money on the sun and solar energy. What a source of power!

I hope we don’t have to wait till oil and coal run out before we tackle that.”

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Solar Grid Tied SystemCommercial

Global Solar Marketplace

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Chicago, IllinoisLatitude: 41.90Longitude: 87.65

Berlin, GermanyLatitude: 52.32Longitude: 13.25

Chicago, Illinois Solar Hours: 3.14Berlin, Germany Solar Hours: 2.73

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• US ranks 4th in both New Capacity & Cumulative Capacity

• US trails Germany in 1st , Italy 2nd, Japan 3rd

• US Grid Tied PV Systems (28% steady growth since 2006)

• US will become largest solar energy market in 2011; but will be surpassed in 2015 by China

Global Solar Marketplace

• U.S. solar energy industry grew— both in new installations and employment.

• U.S. solar electric capacity from photovoltaic (PV) and concentrating solar power (CSP) technologies climbed past 2,000 MW, enough to serve more than 350,000 homes.

• Solar industry revenues also surged despite the economy, climbing 42 percent in 2010.

• A doubling in size of the residential PV market helped lift the U.S. solar electric market 37 percent in annual installations over 2008 from 351 MW in 2008 to 481 MW in 2010.

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US Solar Marketplace

• General Electric plans to close its Newark, DE, solar module facility at the end of 2009 and lay off 82 employees.

• Evergreen Solar told investors that it will stop making solar panels at its Devens, MA, plant and start making them in China by mid-2010.

• GE and Evergreen join BP Solar in closing U.S. facilities. In March, the British firm said it would end module assembly at its facility in Frederick, MD.

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US Solar Marketplace

• Federal• State• Rebates• Grants• Production Incentives-Feed In Tariffs• Solar Renewable Energy Credits

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Solar Incentives Components

• An RPS requires the State’s utilities to have a certain percentages of electric power produced by renewable sources of energy, such as solar and wind power, over X number of years.

• RPS requirements vary widely by state.

• National RPS as part of the Cap and Trade legislation, all States would be required to generate some portion of their electric energy through renewable resources by a certain time.

• Currently, there are 29 States plus DC that have adopted a Renewable Portfolio Standard (RPS)

• An additional 7 States have established Renewable Goals, which is 1 up from 2009. These are the next States to follow up suit with RPS adoption.

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Renewable Portfolio Standards

Renewable Portfolio Standards

State renewable portfolio standard

State renewable portfolio goal

www.dsireusa.org / August 2010

Solar water heating eligible *† Extra credit for solar or customer-sited renewables

Includes non-renewable alternative resources

WA: 15% x 2020*

CA: 33% x 2020

NV: 25% x 2025*

AZ: 15% x 2025

NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops)

HI: 40% x 2030

Minimum solar or customer-sited requirement

TX: 5,880 MW x 2015

UT: 20% by 2025*

CO: 30% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*

MT: 15% x 2015

ND: 10% x 2015

SD: 10% x 2015

IA: 105 MW

MN: 25% x 2025(Xcel: 30% x 2020)

MO: 15% x 2021

WI: Varies by utility; 10% x 2015 statewide

MI: 10% + 1,100 MW x 2015*

OH: 25% x 2025†

ME: 30% x 2000New RE: 10% x 2017

NH: 23.8% x 2025

MA: 22.1% x 2020 New RE: 15% x 2020

(+1% annually thereafter)

RI: 16% x 2020

CT: 23% x 2020

NY: 29% x 2015

NJ: 22.5% x 2021

PA: ~18% x 2021†

MD: 20% x 2022

DE: 25% x 2026*

DC: 20% x 2020

VA: 15% x 2025*

NC: 12.5% x 2021 (IOUs)10% x 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales x 2012;

(2) 20% RE & CHP x 2017

KS: 20% x 2020

OR: 25% x 2025 (large utilities)*5% - 10% x 2025 (smaller utilities)

IL: 25% x 2025

WV: 25% x 2025*†

29 states + DC have an RPS

(7 states have goals)

29 states + DC have an RPS

(7 states have goals)

DCOK: 15% x 2015

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• State RES carve-outs will set the baseline demand for solar over the next 15 years.

New Solar Capacity Required to Meet State RPS Carve-Outs

Federal Business Energy Investment Rebate-Credit *• American Recovery and Reinvestment Act of 2009 removed a provision which

reduced the basis for the tax credit to the extent “subsidized energy financing” was used, and created a mechanism for eligible projects to receive a cash grant from US Department of Treasury in lieu of the tax credit. There is no maximum limit to the credit. If the credit is not used entirely in the year the equipment is placed into service, then the remaining credit may be carried back one year or forward 20 years.

Federal Accelerated Depreciation • MACRS-5 year accelerated depreciation cycle.

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Federal Incentives - Commercial

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• Rebate Programs• Production Incentives• Corporate Tax Credits• Personal Tax Credits • Grant Programs • Ind. Recruitment/Support • Loan Programs • Property Tax Incentives • Sales Tax Incentives

• Public Benefits Funds (PBFs) • Renewable Portfolio Standards (RPSs)• Solar/DG Carve-Outs • Net Metering• Interconnection Standards• Solar Access Laws • Contractor Licensing

State Financial Incentives State Regulatory Policies

“Traditional” State Solar Policy Options

• Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar facilities connected to the local distribution grid in that state.

– The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created on behalf of the solar owner and sold to electric suppliers to meet their solar RPS requirement. All electric suppliers are required to use the SREC program to show compliance with this part of the State’s Renewable Portfolio Standard.

• Increasing state focus on solar renewable energy certificates (or equivalent) SRECs as a financial incentive

• SRECs provide solar owners with an economic incentive to investing in solar electric systems which improve the electric distribution grid.

• 1000 kW produced, equals one SREC

• To date, 16 of the 29 States with RPS Policies have a provisions for a Solar carve-out; 2 of the 7 States with Renewable Goals have a solar provision.

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State SREC Programs

• SRECs are in fact a “credit” for the amount of clean solar energy that your solar panels produce. Utilities in some states need a certain amount of these credits in order to comply with the State’s RPS.

• How do utilities get these credits? Generally, two ways: They either build solar or wind farms and/or they pay you for the clean power your solar panels produce. And how much cash is that credit worth?

• Note; you are selling the “environmental benefit” of your solar panels to someone else, like the utility. You get paid for these credits.

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Solar SREC (RECS)

SRECs in Vogue

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Data Sources: PJM-EIS GATS, Xcel Energy, Arizona Public Service, Tucson Electric Power, Public Service New Mexico, El Paso Electric

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NJ PA DE DC MD NC VA WV OH

My System is in…

NJ X

PA X X X X

DE X X X X

DC X X X

MD X X X X

NC X X X

VA X X X

WV X X X X

OH X X X X

I can sell my SRECs in …

SRECTrade Interstate Trade Metrix

• 93% of Americans Surveyed Support Solar

• 12% understand how solar works

• 75% do not know where to go for solar information

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US Solar Marketplace

International Renewable Energy Council (IREC) – Solar Power International Survey October 09

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Parking Lot Structure

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Proposed Solar Tree Energy Plant 96kW

Eight 12kW Trees

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PA Solar Tree Incentives: Federal Tax Credit Model

96kW Eight 12kW Tree’s Photovoltaic(PV) System $720,000

Federal Tax Credit 30% ($216,000)

State Rebate Program*(max. $52,500) ($52,500)

Sun Rebate*($100 per panel) ($38,400)

Net Cost After Rebates $413,100

Notes: *Rebates paid approximately 60 days after installation is complete* Sales Tax not included* Finance Option’s available:

*384 panels in 96kW System

Based on install price of $7.50 per wattPer Rebate Program, amount of incentive varies based on system size ($.50 - $.75 / W DC)

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Cost Recovery Sources: Credit

PA Solar Tree Incentives: Federal Tax Credit Model

Notes: * Based on very conservative $0.10 per kwh as cost of power over the first 7 years * Modified Accelerated Cost-Recovery System with effective tax savings at 34% corporate rate * 126 SRECs per year, SRECs valued at $200

* Nominal Annual Rate used for sample purposes only* SREC traded with Edge Energy

Power Savings

Sun Rebate

Federal Tax

Credit

State Tax

Rebate

Solar Renewable

Energy Credits

Standard Depreciation

Total Savings and Credits

1stYear $12,648 $38,400 $216,000 $52,500 $25,200 $106,304 = $451,052

2ndYear $12,648 $0 $0 $0 $25,200 $28,347 = $66,195

3rdYear $12,648 $0 $0 $0 $25,200 $17,008 = $54,856

4thYear $12,648 $0 $0 $0 $25,200 $10,205 = $48,053

5th year $12,648 $0 $0 $0 $25,200 $10,205 = $48,053

6thYear $12,648 $0 $0 $0 $25,200 $5,102 = $42,950

7thYear $12,648 $0 $0 $0 $25,200 $0 = $37,848

$88,536 $38,400 $216,000 $52,500 $176,400 $177,171 $749,007

Cost Recovery Recap: Credit

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With No

Financing Financing

Total Project Cost $ 720,000 $ 720,000

Interest Rate

Cost of Financing (5 year term) 6.10% $ 117,180 $ -

Gross Cost to Customer $ 837,180 $ 720,000

Less Power Saving, Depreciation, SRECs & Incentives $ 749,007 $ 749,007

Total out of pocket investment first 7 years $ 88,173 $ (29,007)

PA Solar Tree Incentives: Federal Tax Credit Model

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PROJECT FINANCING

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Equipment Finance

Lifeline Equipment Finance 25 Years of Industry Experience as a Company5th Largest Bank Owned Company

Credit Requirements3 Years in Business (NO START UPS)Only Commercial Companies (NO RESIDENTIAL)Deals up to $100K application only (SEE NEXT SLIDE)Deals over $100K require financial package (SEE NEXT SLIDE)

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Equipment Finance

Benefits of Financing Equipment

Typically We Can Provide 100% FinancingLow up front costUsually just 1st payment and documentation fee due up front

Fast Turn AroundApplication only deals less then $100K usually approved within 1-2 business daysLarger deals usually are approved within 3-4 business days

Tax BenefitsPossible depreciation of equipment (BEST TO CHECK WITH YOUR ACCOUNTANT)

Ability to Finance Soft CostTypically up to 20% of a transaction can include soft cost, which can include:

Installation ServicesMaintenanceWarranty

continued

• HQ-Houston

• Leading edge grid connected solar systems– 25 year warrantee panels– UL Listed– California Solar Institute Listed

• http://www.gosolarcalifornia.org/equipment/pvmodule.html

– Florida Solar Energy Center Listed• http://www.fsec.ucf.edu/en/industry/testing/PVmodules/pv_flashtest_list.htm

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Uptown Solar

• “Turn-key” business system• Leading edge solar systems and components• Nationwide deployable program• Comprehensive training program for distributors• Solar training for installers and system designers• Green Finance options

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Lifeline Advantage

CONTACT US TODAY

THESE MATERIALS ARE CONFIDENTIAL AND THE SOLE EXCLUSIVE PROPERTY OF UPTOWN SOLAR. ANY USE OF TRADEMARK LOGOS, GRAPHICS, OR CONCEPTUAL SCREEN SHOTS ARE FOR ILLUSTRATIVE PURPOSES ONLY. THESE DOCUMENTS ARE NOT INTENDED FOR RE-DISTRIBUTION OR PUBLICATION. CONFIDENTIALITY IS

EFFECTIVE UNTIL IF AND WHEN NOTIFIED IN WRITING.

Thank you for your time and consideration. To request additional information please contact one of our representatives. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -