By Karl Stahlkopf Project Overview After conducting an initial - PowerPoint PPT Presentation

By Karl Stahlkopf

Project Overview After conducting an initial review of available installation space at Hawaii Theatre, • the purposed project development consortium has purposed a 116 kW Solar PV system mounted on the roof of Hawaii Theatre The purpose of this meeting is for the board of Hawaii Theatre to review the • purposed realized savings , and whether the economic benefit is sufficient for the use of the Theatre’s roof space Given HT’s current true energy, and the purposed PPA at rate of $.22 / kWh, the • realized savings should be in excess of 10% within the first year, and should continuously expand into the future given the PPA escalation rate of 3% per annum and HECO’s 20 year average of 5% per annum escalation

Recommended Vendor, Inclusions & Analysis Assumptions Recommended Vendor: Hawaii Energy Connection / Kala Capital Inclusions O&M Contract for five years • Manufacturer Warranty for 25 years for panels and inverters • Manufacturer Warranty for 10 years for racking of installed system • Analysis Assumptions All roofs proposed to have a system placed in service on them are in the physical • condition to accept installation For Fair Market Value buyout NPV analysis it was assumed that Hawaii Theatre • would not lever the required capital investment for execution of the buyout

System Option #1 – “Core” System Item Name: Option # 1 - Core System Size: 116.5 kW Annual Production: 192,570 kWh Module: LG 255S1C-63 / Sharp ND-i240q2, Warranty: 25 Yr MFR Inverter: Enphase M215 Micro Inverter, Warranty 25 Yr MFR Racking: Anodized Rack / SS Hanger Blt, Warranty: 10 Yr MFR PPA Rate $ .22 Escalation 3% Estimated Nominal 20 Year Savings - PPA $ 548,215 Estimated NPV7.5 20 Year Savings - PPA $ 238,913 Estimated Nominal 20 Year Savings – EBO YR 6 $ 1,154,975 Estimated NPV7.5 20 Year Savings – EBO YR 6 $ 412,973 Estimated Nominal 20 Year Savings – EBO YR 10 $ 960,113 Estimated NPV7.5 20 Year Savings – EBO YR 10 $ 334,831 20 Yr Cumulative Nominal Savings 20 Yr NPV7.5 Cumulative Savings $1,400,000 $1,200,000 $500,000 $1,000,000 $400,000 $800,000 $300,000 $600,000 $200,000 $400,000 $100,000 $200,000 $- $- PPA 20 Yr - Core PPA 20 Yr - Core PPA 20 Yr - Core PPA 20 Yr - Core PPA 20 Yr - Core PPA 20 Yr - Core System, 5% System, EBO 6 Yr, System, EBO 10 Yr, System, 5% System, EBO 6 Yr, System, EBO 10 Yr, 5% 5% 5% 5% 20 Yr NPV7.5 Cumulative Savings 20 Yr NPV7.5 Cumulative Savings

“Core” System Layout Aerial Photo of Hawaii Theater from Google Earth

Kala Capital Qualifications

Hawaii Energy Connection – Qualifications

RECOMMENDATIONS  Subject to final review and approval of the Finance Committee the Board approve the Kala Capital financed installation of a Solar PV system on the Hawaii Theatre.  The installation would be coordinated with the installation of the new sound system to insure that Theatre operations would not be impacted.

Appendix – 20 YR PPA

Appendix – EBO Yr 6

Appendix – EBO Yr 10