dear dr. doe - energyperiscopedear dr. doe we are pleased to submit a proposal for your solar...

June 30, 2017

John Doe1 Main streetSanta Rosa, CA 95402

Dear Dr. Doe

We are pleased to submit a proposal for your solar electric energy system.

We are proposing a system that achieves the best energy cost savings for you. And we believe this represents a goodinvestment for your future well-being. In this proposal, we have taken into account your particular needs and desires, yourenergy requirements, and included a summary of any available local, state and federal incentives.

We are committed to a quality installation and to ensuring your total satisfaction with our products and service. The next step isto sign the necessary agreements so we can reserve your rebates and begin the engineering and permitting processes.

We look forward to helping you achieve more energy independence, providing a good investment for years to come, andhelping you make a more positive environmental impact. I will follow-up with you shortly to review our proposal in more detailand to answer any questions you may have.

This proposal is valid for 30 days.

Sincerely yours,

Scott JonesEnergy MattersP.O. Box 4352Santa Rosa, CA 95402Phone: 707-555-1212 | Email: [email protected]

Performance & Financial Analysis

Prepared June 30, 2017 for

Dr. John Doe

1 Main street, Santa Rosa, CA 95402

Prepared by Scott JonesEnergy Matters, P.O. Box 4352, Santa Rosa, CA 95402

Phone: 707-555-1212 | Email: [email protected]

1) This is for informational purposes only, using estimates for utility rates, system production and projected incentives. Please consult withyour tax accountant.

of 25 John Doe - June 30, 2017 Proposal is Valid for 30 Days. (JobID: 13999)

Executive Summary

Performance Summary

Energy Efficiency Improvements: Appliance & Lighting Upgrade. Reduce annual energy use by 10%

Solar Electric (PV) System: 9.1 kW DC (8.691 kW AC, 7.668 kW CEC) producing 13,123 kWh/Year.

Utility Savings over System Life (25 years)

Total: $181,638

Investment Performance

Customer`s Profitability Index: 4.7

Cashflow Payback: 5.2 years

Internal Rate of Return (IRR): 21.3%

Cash Gained over System Life: $154,016

Property Value Appreciation: $90,260

CO2 Saved over System Life: 324 tons

Electric Utility Savings: Anticipate a savings of approximately $4,339 in electric bills (60%) at current utility rates in the firstyear. Savings will grow as electric utility rates are expected to rise 4.00% a year. The purchase of electric energy (kWh)from your utility is expected to be reduced by 59%. Your electric rate has Tiered and Time-of-Use attributes, and this projectwill reduce your average utility electric cost from $0.27 to $0.25 per kWh.

Purchase Price & Net Cost

Contract Price: $34,400

Incentives to Customer: ($9,570)

Net Purchase Cost: $24,830

Installation Incentives:Federal Tax Credit (30% of Net Cost at Installation): $9,570

Finance: Cash

Page 3 of 25 John Doe - June 30, 2017 Proposal is Valid for 30 Days. (JobID: 13999)

The Cost of Doing Nothing

Your Hedge Against Utility Inflation: Your investment in this project will protect you from utility rate inflation.

Utility Cost by Month


Finance Options

Cash

Scenario

Loan

Scenario

Op Lease

Scenario

PPA

Scenario

Net-Cash at Install (invested or received): ($24,830) ($14,830) ($2,500) ($3,000)

Incentives in Later Years: $0 $0 $0 $0

Wealth Created Over System Life (NPV): $92,905 $89,697 $69,613 $78,750

Cash Gained Over System Life: $154,016 $152,152 $112,947 $125,068

Return on Initial Cash Invested (IRR): 21.3% 20.5% 11.3% 106.5%

1st-Year Utility Savings Less FinancePayments:

$4,513 $3,937 $2,113 $2,545

Property Value Appreciation: Yes Yes Not Expected Not Expected

Terms of Finance Options:

Loan: "Fully-Amortized". $10,000 at 4.000% apr. Repaid: $48 monthly over 360 months. Interest tax deductible.

Lease: Type: Operating. Covers: PV . Due at Signing: $0. Payment: $200. Term: 240 months. Annual Escalator: 3.00%.Fair-Market Value at end of Term: $1,000 (est). Present Value of Lease Payments: $47,138 (used to estimate IRR, MIRR,LEC)

The value capitalized by the Lease is estimated to be: $24,418. This is the system gross cost less incentives and tax benefitsassumed by Lessor plus operational costs assumed by Lessor. With a monthly payment of $200 for 240 months (escalated at3.00%), this is equivalent to a loan charging 10.1% interest (apr)

PPA: Type: Power Purchaser. Covers: PV Electricity Generated by System. Due at Signing: $500. Rate: $0.15000 per kWh.Term: 240 months. Annual Rate Escalator: $3.00%. Fair-Market Value at end of Term $2,000 (est).


Levelized Energy Cost (LEC)

Your Hedge Against Utility Inflation: Your investment in this project will protect you from utility rate inflation. Levelized EnergyCost (LEC) analysis provides us with a "hurdle rate" (the levelized energy cost) which can be compared to the expectedchange in utility rates (by way of utility rate inflation). LEC is the average lifetime cost of energy produced by a particularsystem. We can compare the LEC to the current utility rate and its expected change in price as time goes on. In this mannerone can judge the investment as a "better bet" than utility rates to contain energy costs. Represented below is the averagecost of utility energy versus the cost of energy produced (LEC) by your system over time.

Electric: Levelized Energy Cost (LEC)


Carbon Footprint

Your carbon footprint will be reduced. Over the life of your system 324 tons of carbon dioxide (CO2) will be eliminated fromyour footprint. Equivalent to:

Planting 7,549 trees.

Driving reduced by 648,000 auto miles, or 33,048gallons of gasoline.

Recycling 1,024 tons of waste instead of sending itto landfill.

315,713 pounds (157.9 tons) of coal burned.

and you will help avoid the use of up to7,914,000 gallons of water by ThermoelectricPowerplants.


Your New Solar Home

Permit package included


Your New Solar Home

Designed to Accommodate your new EV


Energy Efficiency Summary

Energy Efficiency Improvements

Appliance & Lighting Upgrade. Reduce annual energy use by 10%

Contract Price Summary: Energy Efficiency Improvements

Contract Amount: $2,500

Net Cost at Install (after incentives): $2,500


Solar Electric (PV) System Summary

Tilt: 30o Azimuth: 180o 1" Air GapShade reduces production: 0%

PV Panels: 70 x Centrosolar America, Model: DP36 130

Inverters: 3 x SMA America, Model: SB3000US (240V)

Included: Permits, Planning & Taxes:* Building Permit: $250

Total Panel Area: 762 sq-ft

System Peak Power: 9.1 kW DC (8.691 kW AC, 7.668 kW CEC)

Annual Production: 13,123 kWh. Supplying 49% of annual electric use

Contract Price Summary: Solar Electric (PV) System

Contract Amount: $31,900 ($3.51 per watt DC)

Less added cost items (as included): $3.48 per watt DC

Incentives available to Customer in 1st Year

Federal Tax Credit (30% of Net Cost at Installation): ($9,570)

Net Cost at Install (after incentives): $22,330

Net Installed Price per Watt: $2.45 per watt DC ($2.57 per watt AC)

Less added cost items (as included): $2.43 per watt DC ($2.54 per watt AC)


Sensitivity Analysis: Utility Rate Inflation Scenarios

Sensitivity Analysis is a process of analyzing possible future events by considering alternative possible outcomes.

The average change in utility rates (inflation) over the system life is perhaps the variable which may most affect the return onyour investment. The following table summarizes how utility rate inflation may impact your investment. The project, asquoted, is compared to utility rate inflation that averages -5%, 0% and +5% over the system life.

As Quoted -5% Inflation 0% Inflation +5% Inflation

Total Utility Savings: $181,638 $58,234 $105,364 $209,915

Cash Gained over Life: $154,016 $30,612 $77,742 $182,293

Return on Initial Cash Invested (IRR): 21.3% 10.5% 16.5% 22.5%

Wealth Created Over System Life (NPV): $92,905 $17,136 $46,961 $109,555

Utility Inflation, as Quoted: Electric Rates: 4.00%


How to Interpret Financial Ratios and Measures

A Measure of Security: Cashflow Payback: 5.2 years - 5.2 years (modified)

The most common measure of the security of a proposed investment is its payback, defined as the length of time until onegets one`s money back. Cashflow Payback is when cumulative cash flow stays positive for good. Modified Cashflow Paybackis when the cumulative cash in-flows exceed the total of all cash out-flows over the system life; future maintenance expensesare accommodated.

Profitability Index: 4.7

What PI Means: Generally, if PI > 1 then accept the project. If PI < 1 then "qualitative" factors may justify the project.

Profitability Index (PI) is a measure of investment efficiency. It identifies the relationship of investment to its return. ProfitabilityIndex (PI) is calculated as: (Net-Present Value of the Returns plus the Initial Investment) divided by the Initial Investment. Forexample: $24,830 is invested and the NPV of the returns is $92,905, then the PI = ($24,830 + $92,905)/$24,830 = 4.7, or moregenerically, for every $1 invested you received $4.7 in return.

Net Present Value (NPV): $92,905.

What NPV Means: NPV is an indicator of how much value (wealth) an investment adds to the customer. If NPV is positive thenthe investment would add value. If NPV is zero or negative then other "qualitative" factors may be of adequate value to justifythe project (for example, lengthening a swimming pool season). Net Present Value (NPV) is one way to account for the timevalue of money. NPV calculates the current value of each future cash flow. For example, $1.00 received two years from nowis equivalent to something less today, if it can be invested now at some interest rate. This allows us to "discount" the cashflows (whether positive or negative) that the proposed investment is expected to generate at various times in the future back totheir equivalent value today (that is, their "present value"). If one then subtracts the cost of the proposed investment from thesum of the present values of the ongoing cash inflows, one obtains the net present value (NPV) of the investment.

Internal Rate of Return (IRR): 21.3%

Internal Rate of Return (IRR) is a common measure of investment efficiency. Equivalent to the yield to maturity of a bond. Theinternal rate of return (IRR) is the annualized effective compounded rate of return earned on the invested capital.


Measures of Predictability: Using "hurdle rates" Levelized Energy Cost (LEC)

Solar Electric (PV): $0.1 per kWh

Another dimension of concern about a proposed investment is the predictability of its anticipated costs and returns, whichrequires measures of the uncertainty associated with them. Levelized Energy Cost (LEC) analysis provides us with a "hurdlerate" (the levelized energy cost). LEC is the average lifetime cost of energy produced by a particular system. We can compareLEC to the current utility rate and its expected change in price as time goes on. In this manner one can judge the investmentas a "better bet" than utility rates to contain energy costs.

Assessing Option Value: The option value of a proposed investment represents the value of future opportunities that wouldbe made available only if the investment were made. Like the ante in a poker game, the investment may promise no returnother than the opportunity to look at the cards being dealt, at which point one can either fold or "exercise the option" by makingadditional investments in an attempt to win the pot. To realize future value here new investments are not necessarily requiredto "exercise the options" - ownership is enough. In the case of renewable energy systems in general, there are primarily twoopportunities, or options, which may have future value: Property value appreciation, and Renewable energy certificates (RECsor SRECs):

Property Value Appreciation: $90,260

Installing a renewable energy system can result in increased property valuation. The (few) papers on this topic assume that bydecreasing utility bills (operating costs) the property owner`s cash flow can accommodate higher loan-to-value ratios. In otherwords, by reducing monthly expenses, a property owner can afford to take on more debt. According to one report by theAppraisal Journal a home`s value can increase by $20,000 for every $1,000 reduction in annual operating costs due to energyefficiency improvements. This assumes a 5% cost of money ($20,000 x 5% interest = $1,000).

Property value appreciation is estimated to be:

$90,260 = 1st-year utility savings of $4,513 x 20 years

(Note: If system life is expected to be more than 20 years, then 20 years is used.)

The following factors should be kept in mind:

1. The annual savings will not be the same every year. Utility inflation rates, assuming the renewable energy system is gridconnected, will alter the annual savings over time - more savings with utility rate inflation, less if utility rate deflation occurs.

2. At some point in the system`s life, its value as a "saleable" asset will start to reduce to zero as the system comes to its endof life.

3. Property valuations are based upon many variables (external factors), many of which are location-specific and/or contingentupon macro-economic and micro-economic factors such as interest rates, the economy, new developments, changing lifestyleand living patterns, etc. A property`s value can change by many percentage points as a result of these external factors andone needs to consider the amount of value a renewable energy system may add to a property vis-a-vis the overall property`svalue.

Renewable Energy and/or Carbon Credits or Certificate (REC or SREC): Renewable Energy Certificates (sometimes called"solar renewable energy credits/certificates" - SRECs, S-RECs, or simply RECs) are a new and evolving method to ascribefuture financial value to a renewable energy system. RECs represent the bundle of legal rights to the "green" part of each unitof energy produced by a renewable energy system. This green part can be sold for a value, which generates additionalrevenue for the seller. These certificates can be sold and traded or bartered and the owner of the REC can claim to havepurchased renewable energy.


Utility Energy Summary: Electric

Electric Utility Rates

Current Rate Post Project Rate

Pacific Gas & Electric Co: E-6 Residential TOU (territory X) Pacific Gas & Electric Co: E-TOU Residential Option A (territory X)

Average Cost: $0.266 per kWh Average Cost: $0.254 per kWh

Tiered Rate: Yes Tiered Rate: Yes

Time-of-Use Rate: Yes Time-of-Use Rate: Yes

Demand Charges: No Demand Charges: No

Summary of Utility & New Source Electricity

Electric by Month (kWh) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Entered into Software (historical)

Monthly Use 1,500 1,500 1,500 1,700 2,000 2,500 2,500 2,500 2,500 2,000 1,700 1,500 23,400

Historical Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Estimated by Software at Current Rates (Includes any planned energy increases)

Estimated Use 1,810 1,780 1,810 2,000 2,311 2,800 2,810 2,809 2,800 2,310 2,000 1,810 27,050

Current Cost $433 $427 $433 $481 $656 $799 $794 $801 $797 $654 $481 $433 $7,189

Baseline Use after Efficiency and

Use Change

1,629 1,602 1,629 1,800 2,079 2,520 2,529 2,528 2,520 2,080 1,800 1,629 24,345

Baseline Cost after Efficiency and

Use Change

$389 $384 $389 $432 $544 $663 $665 $665 $663 $544 $432 $389 $6,159

PV Production (608) (654) (847) (1,352) (1,555) (1,475) (1,516) (1,459) (1,313) (1,044) (785) (515)

Post Project Use 1,021 948 782 448 524 1,045 1,013 1,069 1,207 1,036 1,015 1,114 11,222

Post Project Cost $239 $222 $175 $88 $107 $306 $295 $312 $362 $243 $238 $263 $2,850

Production Self-Consumption Percent: (Non-bypassable charge of $0.02329 per kWh for energy not self-consumed)

77% 80% 68% 53% 55% 70% 67% 67% 70% 69% 73% 91%


Electric Utility: Tiered Pricing Attributes

Tiered electric rates change based upon how much electric energy (kWh) is purchased. The graph below displays the energy(kWh) portion of your electric bill by Tier. Costs shown assume retail energy (kWh) rates. Actual amounts will be differentdepending upon meter fees, taxes, net-meter credit methods and other billing specifics. See "Utility Energy Summary: Electric"for total estimated bills.

Time-Of-Use (TOU) electric rates change based upon when (the hour) electric energy (kWh) is purchased or credited ("sold")to the utility. The graph below displays the energy (kWh) portion of your electric bill by TOU.

Winter & Summer TOU Patterns: Here is how electric use is distributed across a typical day.


Cash Flow Details for the System

Cash Flows in Year 0 1 2 3 4

Gross Cost: Efficiency (2,500)

Gross Cost: PV (31,900)

O&M Cost: PV 0 (82) (84) (86) (88)

Gross Cost: TOTAL (34,400)

O&M Cost: TOTAL 0 (82) (84) (86) (88)

Utility Bill Savings with Inflation Applied 0 4,513 4,682 4,858 5,040

Solar Electric (PV) Incentives

Federal Tax Credit (30% of Net Cost at Installation) 9,570 0 0 0 0

Total Incentives 9,570 0 0 0 0

Net Annual Cash Flow (24,830) 4,431 4,598 4,772 4,952

Cumulative Cash Flow (24,830) (20,399) (15,801) (11,029) (6,077)

Net Annual Cash Flow is the sum of values in gray lines.


O&M Cost: PV (90) (92) (95) (97) (100)

O&M Cost: TOTAL (90) (92) (95) (97) (100)

Utility Bill Savings with Inflation Applied 5,229 5,424 5,628 5,839 6,057

Net Annual Cash Flow 5,139 5,332 5,533 5,742 5,957

Cumulative Cash Flow (938) 4,394 9,927 15,669 21,626


O&M Cost: PV (102) (105) (107) (110) (113)

O&M Cost: TOTAL (102) (105) (107) (110) (113)



Cumulative Cash Flow 27,808 34,223 40,880 47,787 54,954


Cash Flow Details for the System


O&M Cost: PV (116) (118) (121) (124) (127)

O&M Cost: TOTAL (116) (118) (121) (124) (127)





O&M Cost: PV (131) (134) (137) (141) (144)

O&M Cost: TOTAL (131) (134) (137) (141) (144)





O&M Cost: PV (148) 0 0 0 0

O&M Cost: TOTAL (148) 0 0 0 0

Utility Bill Savings with Inflation Applied 10,904 0 0 0 0

Net Annual Cash Flow 10,756 0 0 0 0

Cumulative Cash Flow 154,016 0 0 0 0


Other Assumptions Used in this Analysis

Customer Type: Residential.

Tax Effects Applied to Utility Savings: As a residential customer, we have assumed Post-tax (net income) dollars aresaved. Therefore no tax effects are assumed.

Electric Vehicle (EV) Charging for 30 miles driven per day (average in a month). It is assumed each mile driven consumesan average of 0.33 kWh of electricity and nighttime charging is used (Midnight to 6AM) 90% of the time.

System Life: PV System: 25 years. Inverters: 25 years.

PV System Derating (Losses)- PVWatts references: Derating: 0.868 (System Losses: 9.11%, Inverter Efficiency: 95.50%).

Performance Degradation and O&M Costs: We have assumed performance will degrade by 0.75% per year due to soilingand general wear. Annual operating and maintenance (O&M) costs are inflated 2.50% per year, and are estimated as apercent of gross system price, as follows: Solar Electric (PV): 0.25%.

Income Tax Rates: Federal: 28.00%, State: 9.00%

Annual Inflation Rates: Consumer price index: 2.50%, Electric Rates: 4.00%

Energy Metering Type: Net Metering

Net Excess Generation (NEG): Monthly NEG credited at Utility Rate less Non-bypassable charges of $0.02329 per kWh,which also apply to energy produced and not self-consumed (fed to grid). Monthly NEG may be carried forward to the nextmonth for application to future utility bills. Annual NEG Not sold.

Discount Rate: 3.00%. Used to estimate net present value of future cash flows.

Carbon Dioxide (CO2) Calculations: The following assumptions are used to calculate carbon dioxide (CO2) reductions:Electricity: 1.64 lbs. CO2 per kWh. Natural Gas: 0.12 lbs. CO2 per cubic foot (12 lbs. per Therm). Fuel Oil: 22.29 lbs. CO2 pergallon. Propane: 12.17 lbs. CO2 per gallon. Trees Planted: 0.0429 tons CO2 per Tree planted (23.3 Trees/Ton CO2).Automiles Saved: 1 lb CO2 per mile for medium passenger car (2,000 Miles/Ton CO2). Gallons Gasoline: 0.009812 tonsCO2/gallon (102 Gal/Ton CO2). Landfill Tons: 3.16 tons CO2 per ton of waste recycled instead of landfilled. Single-familyHomes (electric use): 8.82 tons CO2/home (0.11 Homes/Ton CO2). Tons of Coal Burned: 2.0525 lbs. of CO2 per lb. of Coal(2,000 lbs. per ton). Source: www.epa.gov/cleanenergy/energy-resources/refs.html

Water used by Thermoelectric Powerplants: Depending upon the technology used, natural gas and coal power plantswithdraw up to 20 gallons of water for every kWh of energy produced and consume (via evaporation) about 0.47 gallons perkWh produced. Sources: http://nrel.gov/docs/fy04osti/33905.pdf andhttp://www.wri.org/resources/charts-graphs/typical-range-water-withdrawals-and-consumption-thermoelectric-power-plantswhich summarizes the Electric Power Research Institue`s report Water & Sustainability (Volume 3): U.S. Water Consumptionfor Power Production - The Next Half Century

This is for informational purposes only, using estimates for utility rates, system production and projected incentives. Pleaseconsult with your tax accountant.


PV Production by Year

PV system production will vary according to weather patterns, changes in obstacles that may shade the PV panels, and thelike. Over time system production may also "degrade" due to general soiling and other effects of aging. The table belowprovides a range (+/- 20%) of typical annual production values for the system, by year, with an annual performancedegradation of 0.75% included. The "Typical" values were used to provide this report.

Year Low Typical Typical High Typical

1 10,498 kWh 13,123 kWh 15,748 kWh

2 10,420 kWh 13,025 kWh 15,629 kWh

3 10,341 kWh 12,926 kWh 15,511 kWh

4 10,262 kWh 12,828 kWh 15,393 kWh

5 10,183 kWh 12,729 kWh 15,275 kWh

6 10,105 kWh 12,631 kWh 15,157 kWh

7 10,026 kWh 12,532 kWh 15,039 kWh

8 9,947 kWh 12,434 kWh 14,921 kWh

9 9,868 kWh 12,336 kWh 14,803 kWh

10 9,790 kWh 12,237 kWh 14,685 kWh

11 9,711 kWh 12,139 kWh 14,567 kWh

12 9,632 kWh 12,040 kWh 14,448 kWh

13 9,554 kWh 11,942 kWh 14,330 kWh

14 9,475 kWh 11,844 kWh 14,212 kWh

15 9,396 kWh 11,745 kWh 14,094 kWh

16 9,317 kWh 11,647 kWh 13,976 kWh

17 9,239 kWh 11,548 kWh 13,858 kWh

18 9,160 kWh 11,450 kWh 13,740 kWh

19 9,081 kWh 11,351 kWh 13,622 kWh

20 9,002 kWh 11,253 kWh 13,504 kWh

21 8,924 kWh 11,155 kWh 13,385 kWh

22 8,845 kWh 11,056 kWh 13,267 kWh

23 8,766 kWh 10,958 kWh 13,149 kWh

24 8,687 kWh 10,859 kWh 13,031 kWh

25 8,609 kWh 10,761 kWh 12,913 kWh

Totals 238,839 kWh 298,548 kWh 358,258 kWh


Renewable Resources

The following renewable resource assumptions were used to develop estimates for the project location. These are typicalvalues based upon observed data over several decades. Actual values (and system performance) will vary from month tomonth, and from year to year, in accordance to weather and climate pattern changes.

Weather station referenced: "SANTA ROSA (AWOS)" (California)

Solar Resources: Flat-Plate, South-facing Tilted at Latitude

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

kWh/m2/day 2.877 3.485 3.879 6.301 6.971 6.824 6.852 6.773 6.55 5 3.948 2.575


Sales & Service Contract

This Contract is made by and between Energy Matters located at P.O. Box 4352, Santa Rosa, CA 95402 with Licenses:General: #C-12345, Electrical: #E-54321 (Contractor) and:

Customer

Correspondence & Work Location

Dr. John Doe1 Main streetSanta Rosa, CA 95402

Major Equipment to be Installed

Solar Electric (PV) System

South Roof

PV Panels: 70 x Centrosolar America, Model: DP36 130

Inverters: 3 x SMA America, Model: SB3000US (240V)

Included: Permits, Planning & Taxes:* Building Permit: $250

Payment Schedule

Down Payment $1,500 Due at Signing

Equipment Delivery $6,580 Due about week 4

Contract Balance $26,320 Due upon Completion

Contract Total $34,400


Sales & Service Contract

General Terms and Conditions of SaleOur business relationships with our customers shall be based on our General Terms and Conditions of Sale, as defined below:

1. Turn Key Service: Contractor is providing a "turn key" system which includes all applicable standard hardware, materials,supplies and services required to provide a fully-operational system.

2. Compliance to Building Codes: All work shall be completed in a workmanship like manner and in compliance with allbuilding codes and other applicable laws.

3. License Status: To the extent required by law all work shall be performed by individuals duly licensed and authorized by lawto perform said work.

4. Use of Subcontractors: Contractor may at its discretion engage subcontractors to perform work hereunder, providedContractor shall fully pay said subcontractor and in all instances remain responsible for the proper completion of this Contract.

5. Liens and Waivers of Liens: Contractor shall furnish Customer appropriate releases or waivers of lien for all work performedor materials provided at the time the next periodic payment shall be due. To protect Customer against liens being filed byContractor, subcontractors and providers of materials, Contractor agrees that Final payment to Contractor shall be withheldby Customer until Contractor presents Customer with lien waivers, lien releases, or acknowledgment of full payment fromeach subcontractor and materials provider.

6. Change Order (Mid-Performance Amendments): The Contractor and Customer recognize that Contractor`s original costand time estimates may prove too low due to unforeseen events, or to factors unknown to the Contractor when the contractwas made; Customer may desire a mid-job change in the specifications that would add time and cost to the specified workpossibly inconvenience the Contractor; or Other provisions of the contract may be difficult to carry out because of unforeseenevents, such as a materials shortage or a labor strike. If these or other events beyond the control of the parties reasonablerequire adjustments to this contract, the parties shall make a good faith attempt to agree on all necessary particulars. Suchagreements shall be put in writing, signed by the parties and added to this contract. Failure to reach agreement shall bedeemed a dispute to be resolved as agreed herein.

7. Liability Waiver: Contractor warrants it is adequately insured for injury to its employees and others incurring loss or injuryas a result of the acts of Contractor or its employees and subcontractors.

8. Permits and Approvals: Contractor shall at its own expense obtain all permits necessary for the work to be performed.

9. Surety Bond: Prior to beginning job, Contractor shall be required to obtain a surety bond covering Contractor`s obligationsunder this contract, in the amount of $ __________________.

10. Taxes: Unless otherwise indicated, no taxes are included in the prices. Customer agrees to pay any taxes which are paidor payable, or assessed in connection with this Work.In the event Customer shall fail to pay any periodic or installmentpayment due, Contractor may cease work without breach pending payment or resolution of any dispute.

11. Dispute Resolution: All disputes hereunder shall be resolved by binding arbitration in accordance with the rules of theAmerican Arbitration Association.

12. Force Majeure: Contractor shall not be liable for any delay due to circumstances beyond its control including strikes,casualty or general unavailability of materials. Any starting or completion dates stated by Contractor shall be subject toclarification of all technical details. Moreover, Contractor`s obligation to meet any deadlines shall be based on the punctualand proper fulfillment of the customer`s obligations. In the event of strikes, lockouts, Force Majeure, delayed shipments bysuppliers or subcontractors or other causes hindering punctual Completion for reasons that Contractor are not accountablefor, Contractor shall be entitled to extend the Completion date(s) by a reasonable amount of time.

13. Materials: All materials shall be new, in compliance with all applicable laws and codes, and shall be covered by a


manufacturer`s warranty if appropriate.

14. What Constitutes Completion: The work specified herein shall be considered completed upon approval by Customer,provided that Customer`s approval shall not be unreasonably withheld. Except for any "retainage amount" (not to exceed10%), substantial performance of the specified work in a workmanlike manner shall be considered sufficient grounds forContractor to require final payment by Customer, except as provided in Liens and Waiver of Liens clause herein.

15. Limited Warranties:Contractor will complete the specified work in a substantial and workmanlike manner according tostandard practices prevalent in Contractor`s trade. The specified work will comply with all applicable building codes andregulations.

Contractor warrants that the labor and materials provided as part of the specified work will be free from defects for a periodof five (5) years from the date of completion.

Major equipment as supplied by third-party(ies) manufacturer(s) shall be warranted in accordance that manufacturer`swarranty.

Additional warranties offered by the Contractor are as follows: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Contractor disclaims any liability for direct or indirect damages due to improper modifications, alterations or repair attempts,inappropriate use or operation, insufficient ventilation of electrical equipment, non-compliance with relevant safety standards orregulations, flood, lightning, over voltage, storm, fire (acts of nature).

Contractor will not be liable for any direct, indirect or consequential damages, losses, costs or expenses however arising incontract or tort, including without restriction any economic losses of any kind, any loss or damage to property, any personalinjury, any damage or injury arising from or as a result of misuse or abuse, or the incorrect operation of the equipment.

16. Site Maintenance: Contractor agrees to be bound by the following conditions when performing the specified work:

Contractor shall perform the specified work between the following hours: ____________________________________

At the end of each day`s work, Contractor`s equipment shall be stored in the following location: ___________________________________________________________________________________________________________________________________________________________________________________________________________________

At the end of each day`s work, Contractor agreement to clean all debris from the work area and leave all appliances andfacilities in good working order except as follows:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Contractor agrees that disruptively loud activities shall be performed only at the following times: __________________________________________________________________________________________________________________________________________________________________________________________________________________

Contractor agrees to confine all work-related activity, materials and products, including dust and debris, to the following areas:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

17. Right of Cancellation: Customer may cancel this Contract within three (3) days after signature by notifying Contractor ofsuch in writing.


18. Other Terms:Customer and Contractor additionally agree that:_______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________

All agreements between Customer and Contractor related to the specified work are incorporated in this Contract.Any modification to the Contract shall be in writing.

I have read and agree to the above Sales Contract:

CUSTOMER:Signature________________________________________________ Date______________________

CONTRACTOR:Signature________________________________________________ Date______________________


dear dr. doe - energyperiscopedear dr. doe we are pleased to submit a proposal for your solar...

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