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Municipal Solar Financing

Challenge: Cities Cannot Access Solar Incentives

* Solar investment tax credit/depreciation only apply to tax liability
* Outright purchase would typically require 15-20 year payback
¢ Many cities cannot afford up-front cost or cash flow impact

Solution: Solar Power Purchase Agreement (PPA)

¢ City licenses roof/land to third-party finance partner for solar
¢ Finance partner builds, owns, and operates solar array for 5+ years
« Finance partner sells power from solar to City at a discount

¢ Beginning in year 6, City may purchase solar array at a discount to
maximize long-term savings (optional)

(Q) REVISION ENERGY

Solar PPA Structure

ReVision Impact Investor City of Nashua

> Provide capital and form solar LLC > License roof/ground space for solar
> Build, own, operate array 5+ years 4
» Recoup investment through:

* Federal tax credit, depreciation

.> Purchase solar electricity produced on
site at below-market rates
"> Purchase solar array in year 6 or later

¢ Energy payments from nonprofit (optional) at significant discount
« REC sales, rebates (if applicable) _» Maximize electricity cost savings by
> Pass on savings by selling array to - owning and operating solar array for
nonprofit in year 6 or later (optional) ~ full 40+ year lifespan
Finance Partner(s) Special Purpose LLC Host Municipality
¢ Tax Investor b& + Build solar project 4 « Lease space for solar
¢ Major Donor al ¢ Own, operate for 6+ yrs. =» ¢ Buy solar power
¢ ReVision Energy ¢ Sell power to host org. ¢ Option to buy array

(Q) REVISION ENERGY

Solar Financial Overview

Cost to Build (investor partner) $502,800
Upfront Cost to City of Nashua $0

PPA Rate for City of Nashua 8.8 cents/kWh
PPA Rate Escalator after Year 1 2% per year
Year 6 Optional Buyout Cost $301,680

25 Year Net Savings (incl. buyout) $483,000

40 Year Net Savings (incl. buyout) $1.27 million

(Q) REVISION ENERGY

City of Nashua Solar Arrays - Phase 1
Long-lerm Cost Savings vs. Utility

$1,400,000

— Solar PPA (Yr 6 B/O
$1,200,000 ar PPA (Vr

eee Term PPA

$1,000,000
$800,000
$600,000
$400,000

$200,000
$0
($200,000)

Savings vs. Utility

0 5) 170 15 20 25 30 35 40

Year of Ownership

QD detalii

City of Nashua: 5 Site Aggregate PPA
40-Year Cost of Solar vs. Grid Electricity

$0.203
$0.20
Solar Utility
$0.16
= $0.123
~ $0.12
cc)
o. $0.085
O ———
$0.04
$0.00
Solar PPA Solar PPA Solar Utility Utility
(Yr6B/O) (Term) Purchase (2.5% Esc.) (0% Esc.)

(Q) REVISION ENERGY

ReVision Solar Impact Partners

¢ ReVision Solar Impact partners
(RSIP) builds on ReVision’s decade
of experience bringing solar PPAs
to over 120 local nonprofits

e To overcome the financial barrier,
RSIP aggregates private tax equity
financing and low-cost debt to
scale nonprofit solar projects

e RSIP helps mission-driven investors
accomplish their financial goals
while providing local nonprofits
access to solar below-market rates

(Q) REVISION ENERGY

Board of Aldermen Page 14
April 12, 2016

Alderman McGuinness

Alderman Siegel, are we subordinating to a greater amount of money that already exists? We are in third
position now and we are going to become second.

Alderman Siegel

We don't have a lien position; we are a cut out here. It’s the Department of Housing and Urban Development
that we are doing this on behalf of. We are going from third position to second position and it has no material
effect on the city’s finances other than if we do this we get $500,000 minimum, it could potentially be larger so
again this would be nuts not to do.

Alderman Lopez

Based on what | am hearing | can’t imagine a scenario where it would make sense to force one of our largest
housing provider’s downtown to pay $11 million to HUD so | am in favor of this. | also appreciated the attention
to low income housing, which is something we have a shortage of downtown. Everything that | am hearing
suggests that this is a benefit to the city; we are due to bring in money with no risk to our own budget so | am in
favor of it.

Alderman Wilshire

The other aspect of that is that there are 55 affordable units in this property that they will retain and that’s
important for our city.

MOTION CARRIED
Resolution R-16-020 declared duly adopted.

R-16-021
Endorsers: Alderman Richard A. Dowd
Alderman-at-Large Lori Wilshire
APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN THE
NASHUA BOARD OF EDUCATION AND THE NASHUA ASSOCIATION OF SCHOOL PRINCIPALS
FROM JULY 1, 2015, THROUGH JUNE 30, 2018
Given its second reading;

MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-16-021

ON THE QUESTION

Alderman Dowd

This contract has been approved by the Board of Education. The yearly cost increases are very low, the
funding has already been allocated within the school budget and as you heard, some of the other unions might

not be in as good of a positon. The principals have bargained in good faith and kept the increases at a very
reasonable level. With that also the Budget Review Committee recommends final passage.

Alderman Siegel

| think it is more than reasonable. There are no increases, it’s flat lined. The only large number in this contract
is one that is the speculative pension number in the last year of the contract and it’s based on a guesstimate of
what’s going to happen with the adjusted pension costs. You can’t ask people for anything better than don’t

Community Engagement

(Q) REVISION ENERGY

Marketing Partnership Options

ReVision believes telling your clean

nergy story advances your mission mex MARKETING PARTNERSHIP OPTIONS
e ° We want to help you grow your business by using your solar Project to attract new customers
and ours. We're eager to help with: srs yeu.

ig customers, ReVision Energy has 5 proven techniques

to help you make the most of your solar investment:

Say Hello to our 25,000 Friends o.oo.

F Every month we connect with 25,000 members of the ReVision
e Fy Energy community through our industry-leading newsletter ‘Under
ibb ttings and public events tei

‘ture your business anc. your solar project in
Our communications as soon

as possible after installation!

Good Times & Good People.

Tate

e Press releases and media attention

to clean energy. We want to bring the
we'll do most of the work to get them there!

Eye-Popping Solar Displays & Signage =
e . :

e n . Your solar project is great news and we want to help you shout it from
c , -t | I Y ) e I Y ) O n | O r | . a the rooftops. Let us help design beautiful signage that introduces the
@ | g n a g e a n re a ; i | solar project to €veryone who sets foot in your business. We can also

include real-time performance Monitoring that tells everyone exactly
how much clean solar energy you are Producing, and you can access
that data from anywhere in

e Display boards and info cards inte SarlTs Wirt Stand Out

We have found that peo
sometimes you and yout
questions yourself. Han
Questions and inspire y:
effort to save money a:

ple are intensely curious about solar and

ir staff may not have time to answer all their
dy info cards can help answer all those

our people to consider joining you in the
ind become more energy independent,

e Interactive education events

e Sponsorships and joint-marketing

Times, Boston Globe, numerous local outlets, blogs, and industry
websites. We are also adept at staging events to attract media

attention on broadcast outlets fike Maina Public, NHPR, and local
television affiliates,

e We welcome your ideas!

ENERGY
RAY REVISION

Ribbon Cuttings & Public Events

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OYSTER RIVER

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nee
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CA) REVISION ENERGY