PV Power Plant Performance Assessment and Risk Assessment

(China)

Daniel HongCEO & President

ofClenergy (Xiamen) Technology Co., Ltd.

November 25, 2014

About ClenergyRisk AssessmentPerformance Assessment

Performance assessment of PV Power Stations4 Processes

PV Power Stations performance AssessmentProject Investment Assessment

PV Power Stations performance AssessmentPower Generation Assessment

PV Power Stations performance AssessmentIncome Assessment

FiT for Distributed Solar Projects:•Price of electricity generated and used by owners themselves = local electricity price + 0.42 Yuan (7 U.S. cents)/KWh•Price of surplus electricity feed back to the grid = coal-fire power price + 0.42 Yuan /KWh

PV Power Stations performance AssessmentFeed-in Tariffs

Benchmark FiT for PV Power Stations in Different Regions

Unit: Yuan/KWh (Tax Included)

Solar Radiation LevelBenchmark FiT for PV Power Stations

Regions

Solar Radiation Level I 0.9

Ningxia; Haixi in Qinghai; Jiayuguan, Wuwei, Zhangye, Jiuquan,

Dunhuang, Jinchang in Gansu; Hami, Tacheng, Altai, Karamy in

Xinjiang; Inner Mogolia (excluding Chifeng, Tongliao, Hinggan,

Hulunbuir)

Solar Radiation Level II 0.95

Beijing; Tianjin; Heilongjiang; Jilin; Liaoning; Sichuan; Yunnan;

Chifeng, Tongliao, Hinggan, Hulunbuir in Inner Mogolia; Chengde,

Zhangjiakou, Tangshan, Qinhuangdao in Hebei; Datong, Shuozhou,

Xinzhou in Shanxi; Yulin, Yan'an in Shaan'xi; regions in Qinghai,

Gansu, Xinjiang that are not in Solar Radiation Level I

Solar Radiation Level III 1 All other regions

Note: Benchmark FiT in Tibet will be made separately.

The new FiT, scheduled to last 20 years, will apply to all PV projects registered after September 1, 2013. Those registered before

September 2013 and connected to the grid by the end of 2013 will enjoy the previously universal FiT of 1 Yuan (16 U.S. cents) per

KWh. The distributed PV projects get a subsidy of 0.42 Yuan (7 U.S. cents) per KWh generated.

Financial Leverage

•Bank

•Fund

Investment refers to a commercial

activity or process that uses valuable

resources or assets in a project or

activity to obtain economic returns.

Financing refers to the variety of

methods that an enterprise uses to

raise funds from financial institutions or

financial intermediaries.

PV Power Stations performance AssessmentInvestment & Financing

Under current policy in China, ground-mounted or distributed solar projects can

achieve a 10% or higher ROI for 20-25 years by adopting financial leverage. In Fujian

province, for example, the IRR of a distributed solar project can be 18% or more by

leveraging.

PV Power Stations performance AssessmentROI Assessment

About ClenergyRisk Assessment

PV Power Stations Risk Assessment

Technical Risks

Construction Risks

Construction quality is an essential factor for the smooth operation of a PV power plant. Most ground

mounted PV power stations in China are located in the northwest desert area, which includes dry land and high soil

resistivity. It is difficult to maintain ground resistance under 4 ohms in this area. When ground resistance in a PV

field is high, it will directly affect the operation of inverters and communication networks, sometimes even leading to

an explosion of the inverters. The fabrication of HV cable terminals is also crucial because northwestern China has

significant wind and dust. If dust enters the cable terminals during fabrication, it may cause hidden troubles for the

safe operation of cable terminals.

Equipment Risks

PID of PV modulesCombiner box fire

Mounting system collapse Inverter explosion

Equipment Risks

About Clenergy

Clenergy, established in August, 2007, is a Sino-Australian joint-venture company. Clenergy is committed to

developing clean energy investment and solar project services. We are a solar solutions and products provider

with an international R&D, managing, marketing and service team. Clenergy has established a global

marketing and R&D network with headquarter in Xiamen as well as operations in Australia, Hong Kong, Japan,

Malaysia, Tianjin, the U.K. and the U.S.

Machine Processing Workshop Power Electronics Workshop

PV-ezRack Workshop WarehouseClenergy Technology Park

Clenergy Profile — About Clenergy

Solar Project Services

Solar Solutions & Products

2 31

Clean Energy Investment

Clenergy Profile — Business Scope

April 2013 - 300MW in Lijiang, Yunnan Province, China

Clenergy and strategic partner CGN Solar Energy Development sign an investment and

development agreement with the city of Lijiang.

May 2013 - 18MW in Binchuan County, Yunnan Province, China

Clenergy and CGN team up for their second solar investment project in Yunnan Province, an 18MW project.

Clenergy signs 100MW solar investment agreement with the city of Huludao.

December 2013 - 100MW in Huludao, Liaoning Province, China

By working closely with leading solar energy enterprises, financial groups and

investment fund companies in China and abroad, Clenergy demonstrates its

involvement in Solar Park Investments. Clenergy is committed to making clean

energy affordable and accessible in more countries and regions.

Business Scope — Clean Energy Investment

Clenergy (Xiamen) Energy Engineering Co., a wholly-owned subsidiary of Clenergy, specializes in

delivering solar project services and builds on Clenergy’s expansion in China. The new company

provides a one-stop turnkey service that includes project consultation and design, construction system

integration, operation and maintenance.

In June 2013, Clenergy, CGN and the Clean Energy Industry Alliance

begin joint efforts to develop clean energy projects in Fujian, China.

In March 2014, Clenergy cooperates with the Xiamen National Hi-

Tech Entrepreneurship Center and co-founds Clenergy (Xiamen)

Energy Investment Co. to develop distributed PV projects in Fujian,

China.

Business Scope — Solar Project Services

21

SPS Grid-connected Inverter (50-500kW)

SPH Grid-connected Inverter (1.5-6kW)

Integrated String Combiner Box

Clenergy Panorama

Business Scope — Solar Solutions & Products

Clenergy is committed to providing products with stable performance and reliable quality and professional and

cost-effective solutions for our partners. Clenergy's design and development team provides comprehensive

solutions that factor in a full evaluation of the natural factors around the construction site (e.g., meteorological

conditions such as typhoons, rainstorms and snowfall as well as geological conditions) to lower equipment

risks for our customers.

PV-ezRack Mounting Systems Resist Natural Disasters

& Reduce Risks for Customers

Clenergy’s PV-ezRack Mounting System withstands super typhoons in Hainan

Clenergy provided a mounting solution for a 20MW solar power plant in mountainous Ledong,

China, that optimized the supporting structure design and that used high-quality carbon steel to

further enhance the system strength. After completion, the project was hit by two typhoons, a pair

of natural disasters that Clenergy’s PV-ezRack mounting system survived essentially intact.

Hainan typhoons impact multiple facilities PV-ezRack mounting system withstands wind damage

Clenergy’s PV-ezRack Mounting System withstands

tornados in Australia

When a series of tornados ripped through the Queensland city of Bundaberg,

Australia on January 26, 2013, a PV-ezRack SolarTerrace III solar power system

from Clenergy survived with only minimum damage.

Tornado wrecks buildings PV-ezRack Mounting System withstands tornados

PV-ezRack Mounting Series passes multiple wind tunnel tests

Roles of Clenergy — Services we provide

Q&A

Thanks

Making the world a cleaner and safer place for future generations!

Clenergy (Xiamen) Technology Co., Ltd.999-1009 Min’an Rd, Houju Hi-tech Ind. Dev. Zone Xiang’an District,

Xiamen, Fujian, China

E-mail: marketing@clenergy.comTel: +86 (592) 311-0088, ext. 5053

Fax: +86 (592) 578-2298