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SOLAR PRESENTATION

Angel Wind Energy IncYour partner in commercial

energy solutions

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MISSION STATEMENT

To bring clean renewable energy sources to the public. By using 21st century technology, we strive to lower utility costs, reduce pollution, and bring the power of renewable energy to the masses.

Providing clean energy to the American people and saving them money.

Associations:

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RE BENEFITS

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RE BENEFITS

Natural Gas, Fuel & Electric Rates consistently going up

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SOLAR BENEFITS

Average utility rates are $.11/kWh in Illinois. Most ARES(alternative retail electric suppliers) and utilities are going up 9% annually

AVERAGE RATES

Monthly Usage

Co

st

pe

r k

Wh

$.38

$.33

$.28

$.23

$.08

$.03

$.13

$.18

Average Utility kWh Rate

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SOLAR BENEFITS

HAVE YOU NOTICED YOUR ENERGY RATES INCREASING?

…planned average 9% hike ….Expected to go higher every year! Legislation provoked rise

…3rd year in a row Ameren and Com Ed have asked for rate increase!

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SOLAR BENEFITS

THE ENERGY MIX IS CHANGING

“Cheap” coal is going away, and more expensive fuels are replacing it.

More rate hikes ahead!

• Average cost of new coal plant: $4-5 BILLION Dollars

• Cost to produce Electricity the first 19 years after going online: $0.33 cents per kWh!

• Who pays the difference?

• YOU DO!

• 3 old coal plants closed down at the start of 2011 nationally, many closures planned for Illinois.

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SOLAR BENEFITS

PROJECTED ENERGY COSTS

$175

$275

$375

$475

$575

2009 2012 2015 2018 2021 2024

Monthly Energy Bill over 15 years7% Increases

$175

$675

$1,175

$1,675

$2,175

2009 2012 2015 2018 2021 2024

15% Increases

Based on an energy bill of $200/mo:

In fifteen years with average rate hikes of just 7%, your energy bill will be $551/month!

Your average bill will be $359/month!!

If rates increase 15% each year, your energy bill goes to

$1,628…each month!

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SOLAR BENEFITS

WHY SHOULD YOU GO SOLAR NOW?

Take control of your electricity rates.

Protect yourself from future rate hikes!

Reduce dependence on foreign energy

Help the earth

Improve the environment

Create local jobs to make America stronger

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SOLAR BENEFITS

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SOLAR BENEFITS

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SOLAR SYSTEMS

SOLAR ELECTRIC SYSTEMSEnergy from the sun is converted into electricity for the home.

NET METERING

Energy you don’t use is credited to you as it passes through your utility meter and into the utility grid.

14 sq ft62” x 32”

UTILITYGRIDNet

Metering

INVERTERDC In ► AC Out

HOMEELECTRICAL

PANEL

UTILITYMETER

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SOLAR PANELS

WHAT SHOULD I KNOW ABOUT SOLAR SYSTEMS?

• No Annual Maintenance

• 25 year warranty on panels/25 year warranty on Inverters

• New efficiency= less space to produce more power

• Unmatched reliability

• Premium materials, high performance

• Industry-leading appearance

• 40+ year system design life!

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SOLAR BENEFITS

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SOLAR BENEFITS

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SOLAR BENEFITS

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INVESTMENT OPTIONS

GOING SOLAR VS TAXABLE INVESTMENTSHIGH RETURN, LOW RISK, NON-VOLATILE & TAX FREE

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Solar ThermalCommercial Applications:

• Domestic HotWater• Space Heating• Cooling – Using an Absorption Chiller• Pool Heating (For Year-Around Heat, such as Hotels)

Solar Thermal Business Incentives:• Cut Operating Expenses – and Cut Reliance on Cost-Increasing Fossil Fuels• Better Social & Community Responsibility• Becoming a “Green” Company – Attracting More Customers• Initial Cost Offset by various Government Incentives•30% Federal Tax Credit•50% MACRS Depreciation in first year(2012)

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FEDERAL SOLAR TAX CREDIT

HOW MUCH IS THE FEDERAL TAX CREDIT?

• 30% of the solar system cost• No Maximum• New as of January 1, 2009

• Consult with a tax advisor when filing your return

• Credit is calculated after other rebates & credits• Carry forward until 2016• Also offsets Alternative Minimum Tax• Credit is available until 12/31/2016• Filed on IRS form 5695• Does not reduce the $500 home improvement tax credit• Hot water systems do not have a $2,000 credit cap•1 Year MACRS 50% Depreciation•Non-taxable Savings

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ILLINOIS SOLAR REBATE

WHAT ARE THE ILLINOIS INCENTIVES?

Renewable Energy Credit(REC)• Details being worked out currently, will be available in 2013.•Will probably range from $50-$350 a credit(1,000 kWhs)

Solar and Wind Rebate Program• Opens in September 2012 for 2013 program•Can provide up to 30% rebate on installed system cost•Details to be release very soon, only $1.5 million available for funding

Non-profits and schools•IL Clean Energy Grants•Solar Schools Program provides up to 90% of 1kw system cost

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ILLINOIS SOLAR REBATE

WHAT ARE THE ILLINOIS INCENTIVES?

Renewable Energy Credit(REC)• Details being worked out currently, will be available in 2013.•Will probably range from $50-$350 a credit(1,000 kWhs)

Solar and Wind Rebate Program• Opens in September 2012 for 2013 program•Can provide up to 30% rebate on installed system cost•Details to be release very soon, only $1.5 million available for funding

Non-profits and schools•IL Clean Energy Grants•Solar Schools Program provides up to 90% of 1kw system cost

Installing a Small Wind Energy System

Presented By:Ben Harroun

www.awenergy.com

Understanding the Technology of Small Wind Systems

•What is considered Small Wind?

–Any wind turbine system less than 100kW

•Types of small wind turbines

–Horizontal

•Down wind

•Up wind

–Vertical

–Darrieus (eggbeaters)

•Savonius

Reviewing the Prerequisites to Installing a Wind Turbine

•Wind resources available

•Proper sighting of the system

•Local zoning and permitting

•State & Federal incentives

The above points will make a project either feasible or not

Determining Your Wind Resources

•Wind maps

•Climatic and meteorological data

•Griggs-Putnam Index

•Anemometer and Data Logger

Wind Maps

www.nrel.orgwww.awea.orgwww.windatlas.cawww.energy.gov

Wind Maps

Climatic and Meteorological Data

•Data collected at weather observation stations such as NOAA stations. Data is in “raw” form

www.noaa.gov

Griggs-Putnam Index

The Griggs-Putnam index is a method of estimating the prevailing wind direction and speed at a site by observing the growth patterns of trees

Anemometer and Data Logger

The only way to accurately predict turbine performance is to carry out a full 12 months (minimum) wind assessment.

Requires data logger and wind instruments

This is expensive though and may not be worthwhile for small machines.

Proper Sighting of the System•The cost effectiveness of any wind system is more sensitive to initial cost and annual energy output than any other factor. That is why proper siting is so critical to maximizing electricity generation.

—Paul Gipe; Wind Power

•Each installation is likely to be different! You MUST evaluate EACH site for its unique qualities.

•Avoid large obstructions. Turbine MUST be in the clear

Proper Sighting of the System•Open space with prevailing wind

•Turbulence

•Features—trees, buildings, landscape

•20/250 rule (20’ above any obstacle within 250 feet)

Natural Features

Coast or Lakeside Ridge top Cliff

Local Zoning and Permitting

•A wind turbine is a tall structure that will normally require a building permit. Regulations often limit the height, location and other characteristics of structures

•It is always best to let your neighbors know what you are doing

•HOAs (Home Owner Associations)

–Typically the most difficult to overcome

•City and/or County rules

–Zoning ordinances often do not have provisions for small wind. Tower height restrictions may limit what can be installed.

•Zoning and planning committees have been doing the same thing the same way for years. They often don’t have the time or resources to re-write their ordinances.

–Educate—send a clear, consistent message about renewable energy and small wind systems, and why they are important especially in light of rising energy costs.

•Once zoning committees understand the reasons behind tall towers for residential wind systems, most will entertain height exemptions for these structures as well.

State & Federal Incentives

•This map is an interactive map of the DSIRE site. DSIRE is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency

http://www.dsireusa.org/

There is now a 30% Federal Tax Credit for Residential and a 30% Grant for AG & Business

State & Federal Incentives•Incentives available in IL

–Business Deduction

–USDA REAP Grant of 25%

–Property Tax Exemption Incentive

–State Rebate Program

Working With Your UtilityBoth of Illinois large investor owner utilities: Ameren and Commonwealth Edison are required to allow Net Metering and Interconnection.

Current Limit is a 40kw system, exemptions are made for some larger turbines.

Ameren must provide you a credit for your excess electricity at the current retail rate.

IE if you are charge $0.10 per kWh, you will receive a credit of $0.10 per kWh on your next bill.

Interconnection applications are easy to fill out and costs are relatively low.

CO-OP Utilities have their own rules for Net Metering and Interconnection.

It’s always wise to contact the utility first, then proceed with an installation.

We have worked with several utilities in IL, MO, and IN and will be able to simply the process for you.

Choosing the TurbineDo your homework!

There is no 1 size fits all

We will look at your individual needs, goals, & budget.

Sometimes the more expensive turbine has a faster payback then the cheaper units, thus making it more economical overall.

Look at the RATED wind speed of the turbine(ie 28mph) and compare the estimated power production not size rating

This enables you to compare them on a level playing field

The industry standard is 11m/s (~25mph) if someone rates at a higher speed then they are trying to oversell their turbine.

Look at the cut-in wind speed

This is when the blades will start spinning

Look at the cut-out wind speed

This is when the turbine will shut down (Kingspan, Kestrel, and Evance turbines never shut down)

Which Turbine Would You Choose?

● 10 Kw Turbine•Price: $20k Installed

•Rated wind speed:29 MPH

•Cut In Speed: 8 MPH

•Cut Out Speed: ~ 55 MPH

•Annual Energy Output

–8MPH – 1500 kWh

–10MPH – 3000 kWh

–12MPH – 4500 kWh

● 2.4 Kw Turbine

•Price: $70k Installed

•Rated wind speed: 27 MPH

•Cut In Speed: 5 MPH

•Cut Out Speed: None

•Annual Energy Output

–8MPH – 5000 kWh

–10MPH – 9600 kWh

–12MPH – 16000 kWh

Choosing the Tower•Guyed Towers

–Least expensive option

–Can generally only support the smaller units

–Needs more land for the guyed wires

•Lattice Towers

–Can go to heights of 140’ or more

–Can support even the heaviest machines

–Moderately priced

–Require the most amount of labor to assemble and erect

•Monopole Towers

–Most esthetic tower

–Easiest to get a permit for

–Require least amount of land

–Generally most expensive tower

Tower Height

Wind speed increases with height above ground, and increasing speed increases wind power exponentially. Thus, relatively small investments in increased tower height can yield very high rates of return in power production.

Wind speed and wind power are both affected by height

For every 10 feet, power goes up by 1/7.

Purchasing the Turbine•Make sure you choose a reputable dealer that specializes in wind

•Ask lots of questions

•Make sure you are getting the right turbine for your needs, goals, & budget

•See if they have any 3rd party training or certifications outside of 1 brand of turbine

•The towers need to be specifically engineered for the turbine. DO NOT BUY 3RD PARTY OR USED TOWERS.

•Towers have a design life and if it’s cheap there is a reason.

•Verify the manufacturers claims against real world data

•Develop a working relationship with your dealer

–They can be a wealth of information and experience

Installing the Turbine•Make sure the dealer is trained in installations

•Make sure you are not their training ground

•Make sure they have the proper equipment for both assembly and erection of turbine / tower

•Go over the installation procedures several times with your dealer so you know the process

•Make sure everyone is aware of proper safety procedures (Never stand under the tower while it is being raised)

•Wait the needed amount of time for the foundation to cure (21-30 days)

•It is wise to let the trained professionals install your system for both production and longevity.

EconomicsThe cost effectiveness of any wind system is more sensitive to initial cost and

annual energy output than any other factor. That is why proper sighting is so critical to maximizing electricity generation.—Paul Gipe; Wind Power

•The installed cost of a wind system is simply the cost of the wind turbine, tower, wiring, and installation—less any state or federal tax credits. Tax credits effectively reduce the initial cost.

•One of wind energy’s chief advantages over generating electricity by conventional means is that the fuel (wind) is free.

•Once paid for, the energy produced costs little over the remaining life of the system. Conventional generation consumes nonrenewable fuels whose cost continues to escalate.

Repair, maintenance and Longevity

Yearly maintenance costs

•Look at possible maintenance costs and procedures when looking at which system is best for you.

•Most the larger turbines have a yearly visit

•Smaller turbines are designed to last longer without maintenance visits.

•Most turbines today are designed to last 25-30 years.

The Verdict?• Renewable Energy, Allowing your Company to:Advertise being “Green”•More and more consumers are concerned about:• Rising Fuel & Living Costs, Ever Depleting Fossil Fuels, and Our EnvironmentStudies show that over 50% of Americans have strong attitudes towards being

ecofriendly,and by extension, buying from companies friendly, who are eco-friendly.• When consumers were asked about what “green” means to them, with regards towashing machines, the top responses were:• Using less energy• Using less water• Using less electricity• Being more efficientConsumers are showing a trend: They are becoming increasingly more likely to buyFrom a green company – even if it means paying a little more – than purchase from a

non-green company. Business Incentives:• Cut Operating Expenses – and Cut Reliance on Cost-Increasing Fossil Fuels• Better Social & Community Responsibility• Becoming a “Green” Company – Attracting More Customers• Initial Cost Offset by various Government Incentives

Questions?Contact Info

Ben HarrounAngel Wind Energy Inc

815-383-7509ben@angelwindenergy.com

www.awenergy.com