Overview of HPG rooftop installations under Ontario's FIT program

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Rooftop Solar Arrays Under the Ontario Feed In
Tarrif By Hybridyne Power Systems Canada Inc.
ESAPRES0013
2

• HybridyneTM - the word and the symbol is an
  internationally registered trademark of
  Hybridyne Power Systems Canada Inc. and the
  Hybridyne Group of Companies. Reproduction,
  distribution or use without express written
  permission is expressly forbidden
• Information contained in this presentation may be
  proprietary in nature and or describe processes
  or technology that is patented or patent pending,
  all Hybridyne information is copyright
  Hybridyne 2005,2006,2007,2008,2009. All rights
  reserved. Duplication or Distribution in whole,
  or in part is forbidden.
• The information contained herein is for education
  and information purposes only and is not for
  reproduction or distribution without the express
  written permission of Hybridyne Power Systems
  Canada Inc.
• Hybridyne Legal May be contacted by writing to
  
• Hybridyne Power Systems Canada Inc.
• Attn Legal Dept.
• P.O. box 93001, 1111 Davis Drive , Newmarket
  Ontario, Canada, L3Y 8K3
• Email info_at_hybridynepower.ca
• www.hybridynepower.ca
• Phone [phone]

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On May 14th 2009 the Ontario Government passed
the Green Energy Act (Bill 150) to encourage
development of renewable energy generation and
ease Ontarios dependency on coal and nuclear
power generation. In support of this the Ontario
Power Authority (OPA) is providing incentives (
Feed In Tarrifs ) to encourage the construction
of rooftop photovoltaic arrays.  
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HPSC specializes in delivering turn-key rooftop
installations of Solar Power, Renewable Energy
Systems .
Through its membership in the Hybridyne Group of
companies, HPSC is able to deliver renewable
energy systems that generate electricity from
solar sources at higher efficiencies than
conventional designs - thereby offering more
cost effective solutions.
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Hybridyne has a strategic relationship with Day 4
Energy, a leading Canadian manufacturer of high
performance solar panels.   Working with Day 4
Energys product development engineers, Hybridyne
has coupled our high-efficiency inverters to form
a high efficiency, renewable energy system that
produces, on average, 30 more electricity in
similar sunlight situations. Day 4 Energy is
also a Canadian company and our combined overall
success in the PV renewable energy industry is
not only good for the environment but also
creates green collar jobs in Canada that is
ultimately good for the Canadian economy.
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The Ontario Power Authority Feed In Tarrif

• Implemented under the Green Energy Act
• Designed to bring much-needed renewable energy
  to the Ontario grid
• Specifically for small generators ( under 10
  MW )
• Encourages all sources of Renewable Energy
• 20 year contract with the OPA at a guaranteed
  rate
• Rates encourage construction of RE generation
  facilities
• Solar rooftop 10-250 KW .713 per KWH
• Solar rooftop 250-500 KW .635 per KWH
• Solar rooftop gt500 KW .539 per KWH

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• HPSC offers building owners several choices
• own the solar generating facility
• HPSC builds the facility
• the building owner purchases the turnkey
  facility
• the building owner earns the FIT revenue
• lease the space to the owner of the facility
• HPSC builds the facility
• An equity investor owns the facility
• The investor earns the FIT revenue
• The building owner earns a lease payment

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1 Own the RE Generation Facility
Due to our technology advantages, HPSC is able to
offer the highest ROI for the owner of the
facility.

• We use only
• Solar panels from Day4 Energy
• which produce about 13 more energy than
  ordinary panels
• Conversion/Inversion equipment from Hybridyne
  Power Electronics
• which generates up to 30 more electricity ( and
  income ) per year
• Proprietary racking from our own manufacturers
• which will not damage your roof like traditional
  ballasted systems
• which holds the panels at the optimum angle for
  highest yield

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2 Lease your unprofitable roof space
Due to our technological advantages, HPSC is able
to offer the most attractive lease payments to
owners of suitable buildings.
Specifically, HPSC will sign a 20 year agreement
(with option for up to another 20 years ) to
lease the owners rooftop space and pay the owner
0.70 per watt of installed solar panel. For
example, a 250KW system will earn the owner
175,000 - to be paid in full upon installation
completion
No investment is required by the owner. HPSC
will finance, build, operate and maintain the
system and sell electricity to the OPA.
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HPSC Advantages to the building owner

• Long term lease, 20 year plus typical renew
  option for up to another 20 years
• 20 year contract with the OPA
• Lease payments paid in advance
• Lease payments paid in advance for second 20
  years, ( an increase in the value of the property
  if the owner wants to sell )
• The owners building has the optics of looking
  green, which may attract optimum clientele ,
  possibly willing to pay a premium lease for this
  optic
• No investment required by owner if leasing
  rooftop to HPSCC
• No negative impact to existing insurance or
  mortgage agreements
• No negative impact to rooftop with proprietary
  Floating roof mounting system
• System does not need to be removed to repair or
  replace roof membrane
• Option to share in the investment through a JV
  and thereby participate in the ongoing revenue
  (15 ROI on invested equity)

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HPSCC Technical Advantages to the Building Owner
( and project investors)
MATURITY weve been installing successful PV
rooftop systems since 2004 PRAGMATIC APPROACH
we perform a Feasibility Study to determine
whether any building is a
suitable host for a rooftop system SUPERIOR
TECHNOLOGY our proprietary mounting system
DOES NOT rest on the roof membrane it is
connected to the building structure itself It
does not have to be moved or removed to re-roof
the structure - participants with us earn more
on their invested dollar
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Next Steps for Leasing option

• HPSC leasing partner provides preliminary lease
  offer based on site conditions
• Owner provides LOI to HPSC to proceed with
  application to OPA
• HPSC completes formal roof top feasibility study
• Owner and HPSC complete lease agreement
• HPSC files Feed in Tariff (FIT) application to
  OPA
• Approval notification by OPA
• Receipt of FIT Contract
• HPSC issue cheque to building owner for 20 year
  prepaid lease
• HPSC completes installation of rooftop system
• HPSC operates and maintains system for 20 plus
  years (no cost to owner)
• Process takes approximately 6 months

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Next Steps for Purchase option

• Owner contracts HPSC to perform formal roof top
  feasibility study
• FS provides financial case and cost estimate
• Owner provides LOI and fees to HPSC to proceed
  with application to OPA
• Approval notification by OPA
• Receipt of FIT Contract between OPA and owner
• Owner formally contracts HPSC to build rooftop
  system
• HPSC completes installation of rooftop system
• System operates for 20 plus years (HPSC can offer
  maintenance contract )
• All revenue from OPA belongs to owner.
• Process takes approximately 6 months

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Typical Installation
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• HybridyneTM - the word and the symbol is an
  internationally registered trademark of
  Hybridyne Power Systems Canada Inc. and the
  Hybridyne Group of Companies. Reproduction,
  distribution or use without express written
  permission is expressly forbidden
• Information contained in this presentation may be
  proprietary in nature and or describe processes
  or technology that is patented or patent pending,
  all Hybridyne information is copyright
  Hybridyne 2005,2006,2007,2008,2009. All rights
  reserved. Duplication or Distribution in whole,
  or in part is forbidden.
• The information contained herein is for education
  and information purposes only and is not for
  reproduction or distribution without the express
  written permission of Hybridyne Power Systems
  Canada Inc.
• Hybridyne Legal May be contacted by writing to
  
• Hybridyne Power Systems Canada Inc.
• Attn Legal Dept.
• P.O. box 93001, 1111 Davis Drive , Newmarket
  Ontario, Canada, L3Y 8K3
• Email info_at_hybridynepower.ca
• www.hybridynepower.ca
• Phone [phone]

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Rooftop Solar Arrays Under the Ontario Feed In
Tarrif By Hybridyne Power Systems Canada Inc.
ESAPRES0013