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From Technology to Product
Small Solar Growing Big

                          Slide ‹#›
                          SolarCity CONFIDENTIAL
History




Slide 2
Conservation




Slide 3
Sustainability




Slide 4
Cleantech




            “Abundance by Design” -RMI


Slide 5
Context




Slide 6
The Energy Imperative

                    100000




                                                                         United States
                     10000
   GDP Per Capita




                     1000
                                Ethiopia




                       100
                          100              1000                  10000                   100000                     1000000
                                                         Energy Use Per Capita


                                                  Sources: World Resources Institute; International Monetary Fund




Slide 7
Increasing Energy Demand
                  800

                  700

                  600
Quadrillion Btu




                           Renewables
                  500
                           Nuclear
                  400      Coal
                           Natural Gas
                  300
                           Liquids
                  200

                  100

                    0
                     80

                     84

                     88

                     92

                     96

                     00

                     04


                  20 8
                      E

                      E

                      E

                      E

                      E
                     0
                    12

                    16

                    20

                    24

                    28
                   19

                   19

                   19

                   19

                   19

                   20

                   20

                   20


                  20

                  20

                  20

                  20
                           Source: EIA


Slide 8
A Changing Climate




                     Source: UNEP


Slide 9
Rising Electricity Costs


                   Average CA Electricity Prices

           18

           16

           14

           12

           10                                                           Residential
                                                                        Commercial
            8

            6

            4

            2

            0
            1960   1970     1980      1990         2000        2010

                                                          Source: CEC


Slide 10
The Solar Opportunity




Slide 11
Energy Reserves: Solar is Abundant




                               Source: Schuco



Slide 12
Solar is Abundant




                    Source: SEIA




Slide 13
High Value Energy




Slide 14
Investment in Solar

                          $9.0

                          $8.0

                          $7.0

                          $6.0
           Billions ($)




                          $5.0                                          Solar
                          $4.0                                          Cleantech

                          $3.0

                          $2.0

                          $1.0

                          $-                                 Source: cleanedge.com
                                 2004   2005   2006   2007   2008




Slide 15
Solar Technology Improvement




                               Source: NREL


Slide 16
Market Expansion

•               Solar adoption accelerating
•               More states becoming solar friendly
                                               US Grid Connected Installations                                                                Global Solar PV Market
                        350                                                                                                            7000



                        300                                                                                                            6000




                                                                                                                  MEGAWATTS PRODUCED
 MEGAWATTS INSTALLED




                        250                                                                                                            5000



                        200                                                                                                            4000



                        150                                                                                                            3000



                        100                                                                                                            2000



                         50                                                                                                            1000



                          0                                                                                                              0




                                                                                                                                              E

                                                                                                                                              E
                                                                                                                                            97

                                                                                                                                            98

                                                                                                                                            99

                                                                                                                                            00

                                                                                                                                            01

                                                                                                                                            02

                                                                                                                                            03

                                                                                                                                            04

                                                                                                                                            05

                                                                                                                                            06

                                                                                                                                            07
                                                                                                     E


                                                                                                              E
                            97

                                   98


                                          99

                                                 00


                                                        01


                                                               02

                                                                      03


                                                                             04


                                                                                    05

                                                                                           06


                                                                                                   07




                                                                                                                                           08

                                                                                                                                           09
                                                                                                  08

                                                                                                           09




                                                                                                                                          19

                                                                                                                                          19

                                                                                                                                          19

                                                                                                                                          20

                                                                                                                                          20

                                                                                                                                          20

                                                                                                                                          20

                                                                                                                                          20

                                                                                                                                          20

                                                                                                                                          20

                                                                                                                                          20
                          19

                                 19


                                        19


                                               20

                                                      20


                                                             20


                                                                    20

                                                                           20


                                                                                  20

                                                                                         20


                                                                                                 20




                                                                                                                                         20

                                                                                                                                         20
                                                                                                20

                                                                                                         20




                                                                      YEAR                                                                             YEAR

                       Sources: Prometheus Institute, DOE, SolarBuzz, Michael Rogol, Navigant Consulting



Slide 17
Headroom




           Source: EIA



Slide 18
Small Solar Going Big




Slide 19
SolarCity At-A-Glance

Quick Facts                       Innovations
•   Founded July 4, 2006          •   Community Programs
•   100’s of employees            •   SolarLease
•     States—
    3 States—CA, AZ, OR           •   SolarBid
•   1000’s of customers           •   SolarGuard
                                  •   SolarWorks
                                  •   Canopy Mounting System

 SolarCity provides solar power system design, financing,
            installation and monitoring services

Slide 20
Product Innovations




Slide 21
Soleo Platform




 Slide 22
Soleo Platform—Energy Service Management
              SolarBid (Provides accurate, traceable customer bids)
              • Models energy production (shade, orientation, efficiency)
              • Calculates detailed financial return (utility bills & ROI)
              • Presents concise graphical summary to customer

              SolarWorks (Tracks every job from design to installation)
              • Tracks status of every job in progress
              • Scheduling of resources and inventory
              • Detailed reporting on metrics


              SolarGuard (Monitors every system installed)
              • Wireless platform enables ease of installation
              • Backend system management and customer portal
              • Expanded to mobile platforms and demand monitoring

Slide 23
SolarLease Calculator




Slide 24
Monitoring Enabled Performance Guarantee


Transparency Key to
 Solar as a Service

• Installation Status
• Savings Generated
• Electricity Output
• Environmental Impact
• Mobile Access
• Sharing Functionality




Slide 25
Mounting Systems




Slide 26
Canopy Mounting System

•   Significant cost reduction
•   Improved aesthetics
•   Improved performance




                                                  CLEAN, AESTHETICALLY
                                                  PLEASING LOOK
                            MOUNTING HARDWARE
                            SPEEDS INSTALLATION


Slide 27
SolarLease Financing




Slide 28
Turn Sunshine into Savings

Provide clean power to homeowners
at a cost less than the utility

                                       $200
•   Reduces upfront cost
•   Savings from day one               $150

•   Hedge against rising electricity                        SOLARLEASE
                                              OLD UTILITY    PAYMENT
    costs                              $100
                                                 BILL

•   SolarCity takes care of
    everything for the customer for    $50                  NEW UTILITY
    the life of the system                                     BILL

                                         $0



Slide 29
Principles of Design




Slide 30
Product Design Methodology
      Culture
      • Empowerment. Inverted hierarchy.
      • Continuous improvement
      • Action orientation


      Customer Voice
      • Field time and direct observation
      • Customer feedback
      • Sales input


       Prototyping
       • Field trials. Employee discount.
       • Fail fast. Iterate. Succeed sooner
       • Focus

Slide 31
Slide 32
Ben Tarbell
                        Director of Products
                        ben@solarcity.com



           8 8 8 .S O L .C IT Y   I   888.765.2489 I SOLARCITY.COM




Slide 33

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From Technology to Product

  • 1. From Technology to Product Small Solar Growing Big Slide ‹#› SolarCity CONFIDENTIAL
  • 5. Cleantech “Abundance by Design” -RMI Slide 5
  • 7. The Energy Imperative 100000 United States 10000 GDP Per Capita 1000 Ethiopia 100 100 1000 10000 100000 1000000 Energy Use Per Capita Sources: World Resources Institute; International Monetary Fund Slide 7
  • 8. Increasing Energy Demand 800 700 600 Quadrillion Btu Renewables 500 Nuclear 400 Coal Natural Gas 300 Liquids 200 100 0 80 84 88 92 96 00 04 20 8 E E E E E 0 12 16 20 24 28 19 19 19 19 19 20 20 20 20 20 20 20 Source: EIA Slide 8
  • 9. A Changing Climate Source: UNEP Slide 9
  • 10. Rising Electricity Costs Average CA Electricity Prices 18 16 14 12 10 Residential Commercial 8 6 4 2 0 1960 1970 1980 1990 2000 2010 Source: CEC Slide 10
  • 12. Energy Reserves: Solar is Abundant Source: Schuco Slide 12
  • 13. Solar is Abundant Source: SEIA Slide 13
  • 15. Investment in Solar $9.0 $8.0 $7.0 $6.0 Billions ($) $5.0 Solar $4.0 Cleantech $3.0 $2.0 $1.0 $- Source: cleanedge.com 2004 2005 2006 2007 2008 Slide 15
  • 16. Solar Technology Improvement Source: NREL Slide 16
  • 17. Market Expansion • Solar adoption accelerating • More states becoming solar friendly US Grid Connected Installations Global Solar PV Market 350 7000 300 6000 MEGAWATTS PRODUCED MEGAWATTS INSTALLED 250 5000 200 4000 150 3000 100 2000 50 1000 0 0 E E 97 98 99 00 01 02 03 04 05 06 07 E E 97 98 99 00 01 02 03 04 05 06 07 08 09 08 09 19 19 19 20 20 20 20 20 20 20 20 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 YEAR YEAR Sources: Prometheus Institute, DOE, SolarBuzz, Michael Rogol, Navigant Consulting Slide 17
  • 18. Headroom Source: EIA Slide 18
  • 19. Small Solar Going Big Slide 19
  • 20. SolarCity At-A-Glance Quick Facts Innovations • Founded July 4, 2006 • Community Programs • 100’s of employees • SolarLease • States— 3 States—CA, AZ, OR • SolarBid • 1000’s of customers • SolarGuard • SolarWorks • Canopy Mounting System SolarCity provides solar power system design, financing, installation and monitoring services Slide 20
  • 23. Soleo Platform—Energy Service Management SolarBid (Provides accurate, traceable customer bids) • Models energy production (shade, orientation, efficiency) • Calculates detailed financial return (utility bills & ROI) • Presents concise graphical summary to customer SolarWorks (Tracks every job from design to installation) • Tracks status of every job in progress • Scheduling of resources and inventory • Detailed reporting on metrics SolarGuard (Monitors every system installed) • Wireless platform enables ease of installation • Backend system management and customer portal • Expanded to mobile platforms and demand monitoring Slide 23
  • 25. Monitoring Enabled Performance Guarantee Transparency Key to Solar as a Service • Installation Status • Savings Generated • Electricity Output • Environmental Impact • Mobile Access • Sharing Functionality Slide 25
  • 27. Canopy Mounting System • Significant cost reduction • Improved aesthetics • Improved performance CLEAN, AESTHETICALLY PLEASING LOOK MOUNTING HARDWARE SPEEDS INSTALLATION Slide 27
  • 29. Turn Sunshine into Savings Provide clean power to homeowners at a cost less than the utility $200 • Reduces upfront cost • Savings from day one $150 • Hedge against rising electricity SOLARLEASE OLD UTILITY PAYMENT costs $100 BILL • SolarCity takes care of everything for the customer for $50 NEW UTILITY the life of the system BILL $0 Slide 29
  • 31. Product Design Methodology Culture • Empowerment. Inverted hierarchy. • Continuous improvement • Action orientation Customer Voice • Field time and direct observation • Customer feedback • Sales input Prototyping • Field trials. Employee discount. • Fail fast. Iterate. Succeed sooner • Focus Slide 31
  • 33. Ben Tarbell Director of Products ben@solarcity.com 8 8 8 .S O L .C IT Y I 888.765.2489 I SOLARCITY.COM Slide 33