Renewable Energy as an Airport Revenue Source (2015)

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E-1 A P P E N D I X E Solar Feasibility Assessment— Monterey Regional Airport

MONTE So REY RE lar Fea GIONA sibility L AIR Study PORT

MONTERE TABLE EXECUTIV SITE ASSE AERI ECONOM TARIFF ARRAY ENERGY NEM RES SOLAR FINANC CASH POW PPA CONCL Y REGIONAL OF CONT E SUMMARY SSMENT ...... AL VIEW OF I IC ASSESSME STRUCTURE SIZE ............. BILL SAVING OPTION...... BCT OPTION SYSTEM COST ING OPTION PURCHASE – ER PURCHAS with EARLY B USION.......... AIRPORT – S ENTS .................... ..................... DENTIFIED LO NT................ ..................... ..................... S ANALYSIS ..................... ..................... ................... S .................. SELF OWNE E AGREEMEN UYOUT – HYB ..................... OLAR FEASI ..................... ..................... CATIONS .... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... RSHIP .......... T – THIRD PA RID SELF AN ..................... BILITY STUDY ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... RTY OWNER D THIRD PAR ..................... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... SHIP ........... TY OWNERS .................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... HIP ............... ..................... Pag ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... e | 2 ...... 3 ...... 4 ...... 5 ...... 6 ...... 6 ...... 7 ...... 7 ...... 8 ...... 8 ...... 9 ...... 9 ....10 ....11 ....12 ....13

MONTERE EXECU As part of a solar demonstr value of financing We looke analysis is lots are b the exisn future dev Our analy assumpo is a Powe opmize only to pr in Year 6. Locaon a receive bi Net Energ building. The table opons: *5 ** ** 1 30% Inve 2 Renewab Y REGIONAL TIVE SUM ACRP 01 24 installaon a ate the finan solar under opons. d at building based on ex eing consider g terminal b elopment. sis shows t n that it can r Purchase the financing ivate tax equ vailability an ll credit for t y Metering below prov Financi Cash Purchase – PPA with Early B PPA with Early B PPA % Discount Rate u Assuming FAA fun *50% of the Buyo stment Tax Cre le Energy Self AIRPORT – S MARY , “Renewable t Monterey cial benefit o different ta roof mounte isng condit ed as part o uilding could hat the airp access FAA g Agreement ( cost, as i) it ity investors d suitability he solar inst (NEM), whic ides a summ ng Method Self Ownership uy Out Opon* uy Out Opon sed for Net Prese ding will cover 50 ut value is funded dit Generaon Bi OLAR FEASI Energy as a Regional A f on site sola riff structure d systems, ca ions. We un f the airport be used in p ort can ma rants and iss PPA) with a can access, and ii) can us will determin allaon. As o h would req ary of the ** 30 year TNPV of S ** 30 year TNPV of S 30 year T NPV of S 25 year T NPV of S nt Value analysis % of the project c with an FAA gran ll Credit Transf BILITY STUDY n Airport Rev irport and r generaon s and evalu rports and g derstand tha master plan. lanning for o ximize savin ue tax exemp n Early Buyo indirectly, th e low cost ta e the rate ta ur analysis s uire a rooo expected sa otal Net Saving avings* otal Net Saving avings otal Net Saving avings otal Net Saving avings* ost t er enue Source conducted . In our analy ated ancip round moun t a new term The informa n site solar gs through t revenue b ut opon, t e federal tax x exempt fin riff, under w hows the op p and carpo vings under NEM Ta s $5,636,29 $2,330,48 s $5,157,87 $2,083,53 s $3,593,14 $1,355,97 s $1,260,43 $663,96 ”, we assesse an econom sis we esma ated saving ted systems inal building on that we generaon in a cash pur onds. The sec hrough whic benefits1, w ancing to pu hich the airp mal tariff s rt installao different ta Tariff Opon riff RES B 3 $3,27 2 $1,30 1 $3,04 5 $1,19 1 $1,97 5 $69 3 $36 5 $19 Pag d the potent ic assessme ted the econ s under diff at the airpor and new pa present belo conjuncon chase, unde ond best sce h the airpor hich are ava rchase the sy ort will be a tructure wou n at the ter riff and fina CT Tariff2 7,844 9,949 4,973 0,685 7,746 4,452 1,154 0,247 e | 3 ial of nt to omic erent t. The rking w for with r the nario t can ilable stem ble to ld be minal ncing

MONTERE SITE AS We comp areas that cost of th for a gro potenal Terminal Build Terminal Build Terminal Build Terminal Build Northeast Gro The termi proximity building i and some be availab edge shou be approx accommo The parki needed. T will provid In the eve a solar ins in detail i ground in 3 Assumes 2 Y REGIONAL SESSMEN leted a high are suitable e solar syste und installat capacity in ea SITE ing Roof ing – Parking Lo ing – Parking Lo ing – Parking Lo und Area nal building to the termi s approximat obstrucons le for the so ld be approx imately 20 f date a 117 kW ng lot at the w wo single an e an addio nt that the s tallaon at t n the followi stallaon at t 0% panel efficie AIRPORT – S T level site as for rooop, m, by selec ion. The tab ch locaon. TOTAL ARE 10 t 1 6, t 2 16 t 3 4, 180 meter is the nal building t ely 18,000 s on the west lar installao imately 6 fee eet. Assumin dc system. est side of t d one doubl nal 486 kWdc tructural inte he terminal ng secon) to he flat area a ncy OLAR FEASI sessment of carport and ng areas that le below pr USABLE A (2) ,800 000 ,000 000 ,653 G largest mete hat could be quare feet. H side of the n. For a roof t, while the g high efficie he terminal b e canlever c . grity of the r building proh offset gene t the northe BILITY STUDY Monterey R ground solar are either c ovides a sum PRODUCT TYPE Rooop Carport Carport Carport round Fixed Tilt r on site, so used to inst owever, due roof we esm top system in set back from ncy solar pa uilding can a anopies, nin oof or the un ibive, the a raon charge ast side woul egional Airpo systems. Ou lose to the d mary of th MODULE High Effic Pane High Effic Pane High Effic Pane High Effic Pane High Effic Pane we looked at all a solar sy to required ated that a a new build the building nels, we esm lso be used e feet high, t derground s irport can u s in all mete d opmize la rt’s main lo r goal is to op esired mete e idenfied TYPE WA iency ls3 iency ls iency ls iency ls iency ls all possible stem. The ro set backs fr bout 11,000 ing, the set b for a carpor ate that the to meet the a lted ten deg oil condion se the RESBC rs on site. U nd usage and Pag caons to id mize the o r locaon or locaons an TTS/FT2 PO CA ( 12.4 18.7 18.7 18.7 9.1 areas within of of the ter om the roof square feet w ack from the t structure s exisng roo ddional cap rees to the s make the c T tariff (expl nder this opt solar econo e | 4 enfy verall allow d the TENTIAL PACITY kWdc) 117 112 299 75 1,644 or in minal edge ould roof hould f can acity south ost of ained ion, a mics.

MONTERE AERIAL V Y REGIONAL IEW OF IDE AIRPORT – S NTIFIED LO R NORTHEA OLAR FEASI CATIONS ROOF ECOMMENDE ST GROUND L BILITY STUDY RECOMME TERMINAL BU TOP & CARPO D OCATION NDED ILDING RT LOCATIONS Page | 5

MONTERE ECONO For the ec O A U C p Po PV El A A TARIFF There are Regional A Net Energ the termi In other w transmiss Since the electricity meter. Renewab governme geograph exported meters (b account m In the cas ground m the energ generao 4 hp://ww 5 Local Gov district, poli powers aut individual c campus) of Y REGIONAL MIC ASSE onomic asse pmal tariff s rray size base lity bill savin apital cost of erming st construct technology ectricity pric vailable subs vailable finan STRUCTU two tariffs u irport: y Metering nal meter on ords, with n ion charges, w terminal m cost, we op le Energy Se nt enty to ic boundary, to the ulity enefing ac ay or may no e of Monte ount installa y that is ex n credits, w w.cpuc.ca.gov/P ernment is defi cal subdivision hority, the stat ommunity colle the University o AIRPORT – S SSMENT ssment we to tructure d on annual gs as a resul the solar sy ion costs suc type, system e inflaon idies or incen cing structur RE nder which t (NEM): allow ly and to rece et energy m hich compr eter represe mize the so lf Generatio install up t offset any co grid to credit counts) of t t have elect rey Regional on that sep ported to th hich are all UC/energy/Dist ned as a city, c , or other local e or any agenc ge campus, in f California or t OLAR FEASI ok into acco energy dema t of the on si stem, includ h as operao configurao ves es he solar dev s the airport ive the full b etering, the ise the total e nts 76% of lar economi n Bill Credi o 5 MW of incident usa s that can be he same Loc rical usage on Airport, PG& arately meas e grid. The ocated prop Gen/netmeteri ounty, whethe public agency, i y or departme dividual Califor he California Sta BILITY STUDY unt the follow nd and space te solar gene ing pre const n and mainte n and energy eloper could to size the s undled retai airport rece nergy charge the total air cs by offsett t Transfer ( renewable g ge at the ge used to offs al Governm it. E will instal ures both th metered exp oronally to ng.htm r general law o f authorized by nt of the state, nia State Unive te University. ing: constraints raon rucon cost nance output proj interconnect olar generat l rate for gen ives credit fo per kWh. port load a ing the elect RES BCT): a eneraon (g nerator site, et generao ent or gover l a generan e electricity d orts to the the airpor r chartered, cit law to generate other than an rsity campus, s such as sit econs the solar sy ion to meet eraon that r generaon nd 70% of t ricity bill in t llows a Loca enerang a and convert n charges at nment ent g account m rawn from t grid are used t’s 23 elect y and county, electricity, but individual "Ca or individual U Pag e preparao stem at Mon the annual lo offsets that , distribuo he airport’s his main ter l Governme ccount) with excess elec one or more y. The gene eter close t he ulity gri to calculat ric accounts special district, shall not mean mpus" (defined niversity of Ca e | 6 n and terey ad at load4. n and total minal nt5 or in its tricity other rang o the d and e the . The school a joint as an lifornia

MONTERE generao accounts. The follow Given tha terminal preferable condion mount so ARRAY The Site A idenfied thorough expected and need determine Monterey the table T N R ENERGY As meno based on bill saving Y REGIONAL n credits are The generat ing chart illu t under this meter repre . However, i s make the co luon provid SIZE ssessment w locaons. I analysis of t energy prod ed capacity a the capacity Regional Air below. ARIFF POT EM ES BCT BILL SAV ned above a the airport’s s from the on AIRPORT – S allocated s ing charges re strates the re tariff structu sents such f, as menon st of a solar e a viable alte e completed n addion to he electricity ucon do not re taken int the host (th port’s load a ENTIAL CAPACI (kWp) 603 2,113 INGS ANA detailed ene load profile site solar ge OLAR FEASI o that they present roug la onship b re the airpor a large perc ed earlier, th installa on a rna ve. allows us to the site as consump o exceed the o account in e airport in t nd available a TY CAPACITOFFSET LYSIS rgy bill analy as well as th neraon. BILITY STUDY offset only hly 50% of t etween gene t can offset entage of t e structural t the termina determine sessment, p n on site to airport’s ene determining his case) can reas permit Y NEEDED TO Z GENERATION (kWp) 561 442 sis was cond e post solar r the generat he total elect rang and be generaon c he total loa integrity of th l building pr the solar cap roper sizing ensure that rgy needs. B the system fit on its prem op mal sizin ERO BILL/ CREDITS R ucted to dete ate schedule ion charges ricity bill cos nefi ng acco harges only a d, a NEM i e roof or the ohibi ve, RES acity we can of the sola the propose oth the total size, as space ises. g of the solar ECOMMENDED (kWp 561 442 rmine the o that will ma Pag in the respe t. unts. nd given tha nterconnecti undergroun BCT via a gr fit in each o r system req d solar arra potenal cap limitaons array as sho CAPACITY ) pmal system ximize the e e | 7 cve t the on is d soil ound f the uires y and acity o­en wn in size nergy

MONTERE NEM OPT The analy were prov an averag Under the rate sche maximum the availa secure th following 1. It 2. It $0 co 3. U of av h Pa a kW The table the solar RES BCT The analy by Monte electricity and trans approxim Through o the first y 6 Producon Y REGIONAL ION sis was base ided by Mon e electricity c NEM opon dule, during demand at t bility of A 6 r is favorable r reasons: has zero dem aributes a .566/kWh. incides with nder NEM, fseng billin erage $0.15 our is worth rt/Off Peak higher perce h). below summ project and t OPTION sis was based rey Regional cost of $218 mission char ately $111,00 pmizaon ear of opera esmates wer AIRPORT – S d on 12 mon terey Region ost of $0.146 , we recomm the intercon he terminal ate, we belie ate schedule and charges large monet This is bene a period of t any billing c g debits inc 4/kWh. This about 3.6 hours. This “ ntage of thei arizes the en he opmal ra on 12 mon Airport. The ,535. Out of ges. Thus th 0. of the RES BC on will gen e made using PV OLAR FEASI th billing dat al Airport. Th /kWh, based end that the necon pro meter does n ve that mel . The A 6 rat and higher e ary value to ficial, as the ime when the redit genera urred during means 1 kW mes the m arbitrage” re r electricity b ergy bill bef te structure. th billing dat billing data this, roughl e value of av T rate struct erate gross s Sim, a proprieta BILITY STUDY a from the m e billing data on May 1st, airport switc cess. The se ot exceed 49 y project exe e is maximizi nergy charge the Summe Summer On proposed so ted during Winter/Sum h of surplu onetary val sults in a un ill ($ value) r ore and ae a from the 23 shows a tota y 51% is gen oidable gene ure, a 442kW avings to the ry PV simulao ain termina shows a tot 2014 PG&E r hes the main rvice accoun 9kW. While cuon will en ng the energ s. r On Peak h Peak hours lar system p the Summer mer Part and s producon ue of 1 kW ique situao elave to the r solar and th acve mete l usage of 1.6 eraon charg raon charg p system pr airport equ n soware l meter (Met al usage of 1. ates. terminal me t is eligible regulatory ch hance the a y bill savings ours, which (May 1 –Oc roduces the On Peak ho Off Peak ho during the h during the n where the energy offs e energy sav rs located o million kW es and the es through oducing abo ivalent of $0 Pag er # 0677R6 2 million kW ter to PG&E for A 6, sinc anges may im irport’s chanc post solar fo are approxim t 31; 12pm most energy urs goes to urs, which a Summer On Winter/Sum airport may et (as measu ings as a res n site, as pro h and total a rest is distrib RES BCT wou ut 740,000 kW .15/kWh, th e | 8 ) that h and ’s A 6 e the pact es to r the ately 6pm) . ward re on Peak mer offset red in ult of vided nnual uon ld be h in ereby TARIFF NEM METER # O S 0677R6 RIGINAL RATE CHEDULE PRO SCH A S E 19S POSED RATE EDULE FTER OLAR ORIG ENE USA (kW A 6 1,200 INAL RGY GE h) SOL ENER PRODU (kW ,443 884, AR GY CTION h)6 % OF ENERG OFFSE BY SOLA 082 74% Y T R ORIGINAL ENERGY BILL ($) $174,987 ENERGY BILL AFTER SOLAR ($) A SA $656 $1 NNUAL VINGS ($) % ENE B OFFS SO 74,330 99 OF RGY ILL ET BY LAR SAVIN PER kWh ($/kW .6% $0.19 GS h) 7

MONTERE providing airport’s t The table TARIFF M RES BCT m SOLAR The table opons. T TARI NEM RES BCT FINANC There are i) ii) iii) The table Solar System Payments Payment Ba Term Tax Incenv REC Owner 7 This is ba carport sys 8 This is ba opmal sit Y REGIONAL $111,000 of otal electricit below summ ETER # PROP RA SCHE AFTER All eters A SYSTEM C below summ he cost is pre FF Term Nort ING OPTI three financ Cash purch Power Pur PPA with E below summ Owner Ai Up sis NeCo Sy (u e Owner N/ Ai sed on an est tem, assuming sed on an es e and soil cond AIRPORT – S ulity bill r y bill. arizes the ut OSED TE DULE SOLAR ENE USA (kW 6 1,571 OST arizes the es liminary and LOCATION inal Building heast Open Fie ONS ing opons th ase (Self Ow chase Agreem arly Buyout ( arizes the dif CASH rport front goated nstrucon Mile stem Useful Life sually up to 30 3 A rport imated averag opmal site a mated average ions. Costs r OLAR FEASI educon and ility bill savin RGY GE h) ENERG BILL ($) ,525 $218,5 mated cost based on op SYSTEM Rooop & ld Ground Fi e airport cou nership); ent (PPA; Th Hybrid of Sel ferences am I M stones E 5 years) 2 I N e system pric nd soil condit system price elated to envi BILITY STUDY offseng 1 gs under the Y SOLAENERG PRODUC (kWh 35 740,0 of the solar mal assump TYPE SY Carport xed Tilt ld consider f ird Party Ow f and Third P ong these thr PPA nvestor onthly, Variab nergy Produco 5 years nvestor egoated e of $4.10/W, ions of $3.84/W fo ronmental per 00% of the RES BCT opt R Y TION ) SOL GENERA CRED ($ 35 $111 system unde ons on site STEM SIZE 561 442 or this proje nership); an arty Owners ee opons: Inv Ai le In n En Th Va Sy (u Inv Ne for a 120kWd r a 442kWdc ming, such generaon c ion. AR TION ITS ) % OF BILL O SO ,091 50 r each of the and soil con ESTIMATED PRODUCTION 884,082 740,035 ct: d hip) PPA WITH estor for the fi rport thereaer Year 6 of the PP ergy Produc on e higher of neg lue or Fair Mark stem Useful Life sually up to 30 3 estor go ated c rooop syst ground fixed t as CEQA, are e Pag omponent o ENERGY FFSET BY LAR S P ( .8% above ment di ons. SYSTEM $2,300,0 $1,700,0 EARLY BUYOUT rst 5 years; A term for the first 5 y o ated Early Bu et Value in Yea 5 years) em and a 441 ilt system, ass xcluded. e | 9 f the AVINGS ER kWh $/kWh) $0.150 ioned PRICE 007 008 ears; yout r 6 kWdc uming

MONTERE CASH PU Under sel of financi operaon underpro potenal Financing Improvem below pro expected Exp 1st Year 5 Year N 10 Year 30 year Net Pres *Under the **5% Disco Exp 1st Year 5 Year N 10 Year 30 year Net Pres *Under the **5% Disco The saving Under thi Currently any REC v Y REGIONAL RCHASE – S f ownership ng to fund and maint ducon or ov energy saving the cost of ent Program vides a summ net present v ected FAA Fund Net Nominal Sa et Cumulave S Net Cumulave Net Cumulave ent Value of Sa current Airport Im unt Rate used for ected FAA Fund Net Nominal Sa et Cumulave S Net Cumulave Net Cumulave ent Value of Sa current Airport Im unt Rate used for s presented s opon the there is no v alue, so if the AIRPORT – S ELF OWNER the airport a the solar sys enance and erproduco s realized th the solar in funds and T ary of the e alue under d ing 5 vings avings Savings Savings vings** provement Prog Net Present Valu ing 5 vings avings Savings Savings vings** provement Prog Net Present Valu above are ba System Size (kW Energy Yield (k Ulity Bill Savin Ulity Price Inf Solar Energy D O&M Cost – Ye O&M Cost Esca Revenue Bond Revenue Bond airport would alue for REC re is any valu OLAR FEASI SHIP nd its financ tem. The ai takes prod n. Moreover, rough the so stallaon ca ax Exempt R xpected 1st y ifferent FAA NE 0% of project c $72,07 $406,45 $937,84 $5,636,29 $2,330,48 ram (AIP), Monte e analysis RES 0% of project c $33,88 $197,95 $473,29 $3,277,84 $1,309,94 ram (AIP), Monte e analysis sed on the fo dc) Wh/kWdc) gs per kWh laon egradaon Rate ar 1 laon Interest Rate Term own the Re s generated e for the RE BILITY STUDY ial advisor w rport, as the ucon risk, upon full de lar project un n be achiev evenue Bond ear and 30 y funding scen MOpon ost 75 9 1 9 3 2 rey Airport would BCT Opon ost 75 5 6 7 4 9 rey Airport would llowing assu NEM Opt 5 1,5 $0.1 0.2 $10,0 newable Ene in California Cs in the futu ould idenfy owner of t or the po bt repayme l the end o ed through s or Tax Exe ear nominal arios. % of project cos $118,219 $637,148 $1,399,244 $6,559,083 $2,905,482 be eligible for an % of project cos $67,988 $368,471 $814,328 $3,959,906 $1,734,949 be eligible for an mpons: ion RES BC 61 77 97 3% 5% 00 3% 5% 20 rgy Credits (R . The above re this will be the most co he system, tenal losse nt, the airpo f the system’ a combinao mpt Lease Fi savings as w t 90% FAA grant up to 9 t 90% FAA grant up to 9 T Opon 422 1,674 $0.150 3% 0.25% $9,000 3% 5% 20 ECs) generat analysis has an upside fo Page st efficient s is responsib s or gains rt is entled s useful life. n of FAA A nancing. The ell as the pro of project cost* $145,902 $775,567 $1,676,080 $7,112,757 $3,250,482 0% of the project of project cost* $88,450 $470,780 $1,018,947 $4,369,143 $1,989,949 0% of the project ed by the sy not accounte r the airport | 10 ource le for from to all irport table ject’s cost cost stem. d for .

MONTERE POWER P Under thi The airpo in the Pow allows hi MACRS). O of the PPA removal. contract. well as th The saving Under th generated has not ac The differ systems. close to t Under ea to achieve 9 This analy be eligible starng Jan Y REGIONAL URCHASE A rd party own rt’s sole resp er Purchase m to ulize ver the life term, the a PPA terms v The table be e project’s ex 1st Year Net N 5 Year Net C 10 Year Net 25 year Net Net Present *5% Discount R s presented is opon the by the syste counted for ence betwee The NEM Op he Terminal ch of the abo up to 20% a sis is based o for 30% ITC. uary 2017. AIRPORT – S GREEMENT ership the s onsibility is t Agreement the federal of the contra irport has the ary between low provides pected net p ominal Savings umulave Savin Cumulave Savi Cumulave Savi Value of Savings ate used for Net P above are ba System Size (kW Energy Yield (k Ulity Bill Savin Ulity Price Inf Solar Energy D PPA Rate PPA Rate Escal third party m. Currently any REC valu n the above on, as men Building. The ve tariff opt nnual electri n the assumpt Based on the OLAR FEASI – THIRD P olar project o pay for the (PPA). The inv Investment ct, the invest opon to p 20 and 25 y a summary resent value gs ngs ngs * resent Value ana sed on the fo dc) Wh/kWdc) gs per kWh laon egradaon Rate aon system ow there is no v e. stated PPA oned earlie se structures ions we have city bill savin ion that the pr current regu BILITY STUDY ARTY OWN is owned by energy gene estor funds Tax Credits or also pays o urchase the s ears. For thi of the expec under a PPA NEM Opon $35,75 $188,85 $405,07 $1,260,43 $663,96 lysis llowing assu NEM Opt 5 1,5 $0.1 0.2 $0.1 ner would o alue for RECs rates is drive r in this rep are more ex selected the gs. oject will be o latory framew ERSHIP a third party rated by the the construc (ITC)9 and a peraon an ystem at fai s project we ted 1st year a . 6 7 0 3 5 mpons: ion RES BC 61 77 97 3% 5% 57 3% wn the Ren generated i n by the dif ort, assumes pensive tha product typ peraonal by ork, ITC is exp , usually a ta system, at th on costs of ccelerated d d maintenanc r market valu have assum nd 30 year n RES BCT Opon $10,2 $54,1 $116,0 $361,1 $190,2 T Opon 422 1,674 $0.150 3% 0.25% $0.136 3% ewable Ener n California. T ference in th a rooop a n the ground e that would the end of 20 ected to dro Page x equity inv e rate negot the project, w epreciaon e fees. At th e or to reque ed a 25 yea ominal savin 45 13 66 54 47 gy Credits ( he above an e cost of the nd carport sy mount stru allow the a 16 and investo p from 30% t | 11 estor. iated hich (5 yr e end st its r PPA gs as RECs) alysis two stem cture. irport rs will o 10%

MONTERE PPA with A PPA con contract t including exempt fi project. T negoate to opmiz to private nominal s have inclu buyout va 1st Year 5 Year N 10 Year 30 year Net Pre *5% Disco The saving Under th generated Currently any REC v Y REGIONAL EARLY BUY tract gives t erm: One us the 5 yr MAC nancing to p he system p d Early Buyo e the financi tax equity in avings as we ded also a s lue. Net Nominal Sa et Cumulave Net Cumulave Net Cumulave sent Value of Sa unt Rate used for s presented is opon the by the syst there is no v alue. AIRPORT – S OUT – HYB he opon to ually aer Y RS, and one urchase the b urchase price ut Value, as s ng cost, as it vestors. The ll as the proj cenario, und B w vings Savings Savings Savings vings* Net Present Value above are ba System Size (kW Energy Yield (k Ulity Bill Savin Ulity Price Inf Solar Energy D PPA Rate PPA Rate Escal O&M Cost – Ye O&M Cost Esca Esmated Buyo Revenue Bond Revenue Bond third party em during t alue for REC OLAR FEASI RID SELF A the energy o ear 6, when at the end o alance of th at Year 6 w pecified in th accesses, ind table below ect’s expecte er which the NEM uyout Funded ith Tax Exempt Financing $35,756 $188,857 $416,788 $3,593,141 $1,355,975 analysis sed on the fo dc) Wh/kWdc) gs per kWh laon egradaon Rate aon ar 6 laon ut Value Interest Rate Term system ow he first six y s generated BILITY STUDY ND THIRD P ff taker to p the investor f the PPA te e system cos ill be the h e PPA contra irectly, the f provides a su d net presen airport coul Opon 50% of Buy Funded with Grant $35,75 $188,85 $729,73 $5,157,87 $2,083,53 llowing assu NEM Opt 5 1,5 $0.1 0.2 $0.1 $10,0 $1,950,0 ner would o ears and th in California ARTY OWN urchase the s has monez rm. The pub t aer Year 6 igher of the ct. Under su ederal tax be mmary of th t value unde d use the FA out FAA Buyo with T Fi 6 $ 7 $ 4 $ 1 $1,9 5 $6 mpons: ion RES BC 61 77 97 3% 5% 57 3% 00 3% 00 $1,3 5% 20 wn the Ren e airport wo . The above ERSHIP ystem at tw ed all the fe lic enty can and resume Fair Market ch structure nefits, which e expected 1 r a PPA with A grant to fu RES BCT O ut Funded ax Exempt nancing 10,245 54,113 145,882 77,746 94,452 T Opon 422 1,674 $0.150 3% 0.25% $0.136 3% $9,000 3% 30,000 5% 20 ewable Ener uld own the analysis has Page o mes durin deral tax ben use low cos ownership o Value or the the airport is are available st year and 30 Early Buyou nd poron o pon 50% of Buyou Funded with FA Grant $10,245 $54,113 $359,327 $3,044,973 $1,190,685 gy Credits ( RECs there not accounte | 12 g the efits, t tax f the pre able only year t. We f the t A RECs) aer. d for

MONTERE CONCLU Based on as the gro Upon com benefits: offset of 561kWdc to 442kW tariff is m the A 6 ra Following the capita FAA grant the RES B discount the airpor term bene Y REGIONAL SION the above an und area in t pleon of th The NEM tar generaon c based on the dc based on ore cost effe te structure. our analysis l cost of the , which could CT system. A in the airport t has the opt fits of on sit AIRPORT – S alysis we co he northeast e site assess iff that allow harges in a usage on th the total gen cve, prima Ulity bill sa on the econ system. Fin result in a 4 lternavely, ’s ulity bills ion to purch e solar gener OLAR FEASI nclude that t side of the a ment we eva s full bill cre ll accounts o e Terminal m eraon usag rily due to th vings are $17 omic value o ancing opo to 7 year pa the airport and require ase the syste aon. BILITY STUDY he Terminal irport provid luated two d dit in a singl n site. Unde eter, and un e in all airpo e higher ul 4,330 under f solar we lo ns depend p yback for the could consid s no up fron m at the rem Building and e viable sites ifferent tariff e meter and r the NEM der the RES rt meters. Ou ity bill saving NEM versus oked at diffe rimarily on o NEM system er a PPA, wh t capital inve aining fair m the nearby for solar gen opons tha the RES BCT opon we s BCT opon r analysis sh s, driven by $111,091 und rent financin pportunity a and a 4 to ich would re stment. At t arket value, Page parking lot a eraon. t provide diff tariff that a ized the arr we sized the ows that the full bill credi er RES BCT. g opons to ssociated wi 8 year payba sult in up to he end of ye and reap the | 13 s well erent llows ay to array NEM t and fund th an ck for 20% ar six long