Revolving Program Overview, Loan Process & Sales Support Materials

1. EGIA Corporate Overview For Service Partners September 3, 2010 Revolving Program Overview, Loan Process & Sales Support Materials

2. Financing Resources For Service Partners Revolving Program Overview, Loan Process & Sales Support Materials

3. About EGIA www.egia.org

4. Energy Efficiency Financing • Consumer/ Business Financing • Residential Long-Term Financing • Residential Short-Term Loans • Commercial Leasing • Contractor Business Development • Business Expansion Financing • Diagnostic Equipment & Training EGIA, through its portfolio of GEOSmart financing options has facilitated home and building upgrades on over 50,000 projects totaling over $700 million over the past 5 years alone

5. Top-Tier Contractor Traits • Diversification-Sells more then one product to help prevent seasonality and drive more profits through add-on sales. • Sales Consistency-Has pitch book or laptop in-home presentation that keeps salespeople consistent and helps overcome hidden objections. • Diverse Marketing-Spend money on mix of traditional advertising and social media outreach with a clear call-to-action message. • Sales Culture-Start with receptionist to installation team • Financing-Offer low monthly payment and/or “same as cash” options Top-Tier Contractors have the tools and training to close the sale “at the kitchen table”

6. Consumer Buying Habits Financing Overcomes Key Market Barrier To Whole House Retrofit • Over 50% of homeowners who completed home improvement projects of $5,000 borrowed the money • Only 10% of homeowners cancel projects when offer and pre-qualify homeowner for financing • 65% of homeowners who say they will get their own financing never close the deal EGIA Has Funded Over $700 Million In Home Upgrades In Past 5 Years, Becoming One Of Nation’s Most Successful Energy Efficiency Financing Programs

7. Preferred Payment Options for Energy Efficiency Improvements Cash -Better return-on-investment than any other investment Home Refinance or Equity Line-of-Credit - Lowest interest rate and longest payment term (longer than life of improvement itself) Subsidized Loan -Interest rate buy downs and same-as-cash promotions and from government, utility, manufacturers… or the contractor Market Loan – Credit Card type (revolving) with variable payment/rate to Car Loan type (installment) with fixed payment/rate (better payback than other purchases) Doing Nothing is the most common choice for homeowners when facing an energy-saving investment

8. Homeowner Financing Close More Deals By Providing Homeowners With a Nationally- Available Home Performance Financing Solution • Loans Up To $25,000 for 100% of Installed Cost • Contractor Ability To Buy-Down Fixed Interest Rate To 13.9%, 11.9%, 9.9%, 7.9%, 5.9%, 3.9% or 0% APR with Fixed Payment • Contractor Ability to Stretch Terms up to 10 Years To Align Monthly Customer Payments with Energy Savings • Quick In-Home Approvals; Available Nationwide • Interest Buy Down Costs You In 4% - 12% Range • Direct ACH Funding Within 24 Hours Of Job Close (minus buy down fee)

9. Simple Customer Application Submittal and Approval Process It’s As Easy As… • Contractor Simply Calls The Toll Free Phone Number & Receives An Instant In-Home Approval • Once Job Is Completed Contractor Faxes Signed Documents To GE Money • Contractor Receives Wire Transfer Funding In 24 Hours 1. 2.

10. GEOSmart Homeowner Loan Program Summary for Sponsors

11. GEOSmart Financing Qualified Measures

12. Loan Interest Rate Buy Down Metrics

13. Program MechanicsFor $10,000 Loan with 7.9% Rate Buy Down with $200 min. monthly payment Contractor submits $10,000 creditapplication directly to GE Money 2. If approved, contractor completes sales slip with 7.9% interest rate 3. Contractor schedules & completesenergy efficient installation 4. Contractor faxes application, sales slip, completion certificate to GE Money for funding 5. GE Money wire transfers $9,100 loan proceeds directly to contractor ($10,000 - $900 fee)

14. Program Branded Marketing Materials • Branded Program Collateral • EGIA Provides Extensive Contractor Sales Training & Tools • How to Sell Financing” Program • Sales Pitch Book Development • Webinars & Ongoing Sales Training

15. GEOSmart Contractor Resource Center www.egia.org/GEOSmart

16. Contractor Training Contractor Program Kick-Off Meetings, Ongoing Webinar Training, One-on-One Contractor Phone Consultation, Online Training Library and Train - the -Trainer Activities

17. Rebate Processing/ Rebate Aggregation Revolving Program Overview, Loan Process & Sales Support Materials

18. Rebate Program Administration EGIA has over three decades of experience in providing utilities and government with rebate program administration and rebate processing services. EGIA has processed over 3 million rebate applications and distributed nearly $400 million dollars in rebate checks and incentives.

19. Home Star Rebate Aggregation EGIA is uniquely positioned to be the leading nationwide Rebate Aggregator should Home Star be adopted. We will initially target our over 2,500 home improvement contractor member companies, nearly 15,000 EGIA Energy Partner affiliated companies and over 8,000 top-tier contractors currently using GE Money financing services.

20. Sample Mail-In Application • The Application Is Part Of An Integrated Rebate Processing System • Clearly Communicates Program Requirements • Easy For Customers To Navigate • Communicates Multi-Measure Information • Communicates Varying Rebate Levels • Designed For Ease Of Use and Operational Efficiency

21. Online Application Submittal Based On Our Experience, When Given A Choice Approximately 40% Of Customers Will Choose Online Application Submittal Over Mail-in

22. CSR Desktop Application EGIA’s Data Entry Portal And Database Management System Tracks Every Aspect Of Program Implementation

23. Auto Generated Problem Letters and Follow-up System Rebate Processing Would Be Easy If All Applications Were Perfect And Complied With All Program Requirements. Unfortunately 25-35% Are Not!

24. Most Common Reasons for Denial Automated Safeguards Reduce Deliberate Or Unintentional Misuse Of The Program. Problem Letter Generation/ Follow-Up System Assures Maximum Customer Participation Automated Fraud Detection Is Required To Protect The Rebate Aggregator. DOE Will Hold Aggregators Financially Accountable For Safeguarding Home Star Program Funds.

25. Fraud Prevention • EGIA Uses An Assortment Of Different Methods To Prevent And Detect Fraud, Based On The Source Of The Potential Fraud. • Consumer Fraud Potential • Customer/ Contractor attempts to get more than one rebate on the same device • Customer copies receipt and gives it to another person to claim a rebate • Customer/ Contractor alters rebate check with a bogus dollar amount • Controls • Database track customers by name, address and measure making it virtually impossible to receive more than one rebate on the same measure • We capture a receipt # or invoice # to catch duplicate receipts being used • To prevent check alteration we use Positive Pay, a Wells Fargo tool that compares every check presented for payment to a file of issued checks

26. Real-time Online Reporting Secure Real-Time Program Performance Information Available 24/7/365. Pre-formatted Online Reports, Full Data Downloads and Report Customization

27. Rebate Aggregation Requirements Rebate Processing General Requirements • Review Rebate Application For Completeness And Accuracy • Verify Qualified Measures • Deliver Data To The Federal Data Processing Center (FRPC) Consistent With Required Data Protocols • Deliver Funds Received From DOE To Contractor, Vendors Or Others Processing Turn-Around Requirements • Submit Application To FRPC Not Later Than 10 Days After Date Of Receipt • Distribute Funds To The Contractor Not Later Than 10 Days After Receipt From The FRPC Established Rebate Processors Given Preferential Approval Along With Aggregators That Can Process Rebates From All Qualified Contractors Within A Defined Geographic Area

28. Rebate Aggregation Requirements Contractor Screening • Verify Contractor Has Met All Required Licensing Requirements • Verify Contractor Carries At Least $1,000,000 General Liability Insurance • Verify Contractor Provides Warranty As Required • Verify Standard Work Order And Contract Stipulates That The Rebate Will Be Applied As A Discount To The Consumer • For Gold Star Rebates, Verify That The Contractor Is Accredited By BPI Or Other Qualified Organization

29. Rebate Aggregation Services • Contractor Direct • Complementary EGIA Membership Once A Minimum Of 20 Approved Rebates Are Submitted • Contractor provided with “EGIA Bucks” for each rebate paid that can be redeemed for any EGIA service requiring a fee (training, member benefit programs etc.) Energy Partner Sponsored • Instant EGIA Membership Eligibility For All Sponsors Contractors • $5 Promotional Fee Provided To Sponsor By EGIA For Each Paid Rebate From The Sponsor Contractor Network. • Sponsor Branded Website For Contractor Sign-up And Program Information • Sponsor Branded Rebate Application • Sponsor Specific Quarterly Rebate Program Training Webinar For Their Contractor Network

30. Service Partners and EGIAMakeover Contest Collaboration September 3, 2010 Revolving Program Overview, Loan Process & Sales Support Materials

31. Home Energy Makeover Contests EGIA Provides Support Services Ranging From Design Consulting To Full Program Administration

32. Contest Components • Homeowners compete to win a prize packages with up to $10,000 or more in energy efficiency improvements.  • Homes selected that best demonstrate energy savings potential, using whole house approach • Sponsors receive recognition in promotional materials, product placement, website coverage

33. Makeover Contest Goals • Demonstrate the value of “whole house” approach to energy savings • Educate homeowners about the benefits of pro-actively retrofitting their homes  • Promote local contractors supported by regional/national suppliers • Collaborate with utilities, govt., sponsors, • Create Demand across the region for energy-saving products and services ALL Contest Entrants motivated to do their own home energy makeovers!

34. Winner Selection Process • Contest entry forms and rules online • Homeowners enter: • Name and address • Email and phone • Home age and square footage • Permission to access annual energy use from utility • Entrants “ranked” based on energy use per square foot • High energy users pre-screened by phone • Finalists selected to receive comprehensive home energy analysis • Winner(s) selected from finalist audit reports

35. And the Winner is… • Best potential to demonstrate comprehensive home energy savings • Typical home with higher-than-average energy use • Typical homeowners representative of community • Eager to have media coverage • Common home energy problems with no major construction/electrical needs • No home-based, energy-intensive businesses

36. Key Success Factors • Pick a typical home and savvy homeowner • Award prizes based on B.S. (building science) rather than “luck” or “need” • Cultivate traditional and social media • Focus media on winner AFTER measures installed • Showcase energy and non-energy benefits • Help losers do their own home energy makeover • Collaborate with contest sponsors, maintain quality control for accurate representation of energy savings

37. Role of Utility/Govt. as Contest Host • Provide strategic direction and oversight • Execute agreements with utilities for data access • Execute afreements with contest sponsors for in-kind donations • Plan and execute contest promotion

38. Role for Service Partners as Tech. Advisor • Provide assurance that winning homes deliver honest energy savings and “do no harm” - Assure that materials/services are provided by organizations that agree to BPI national standards • Supervise home energy audits in contest finalist homes • Oversee installation of comprehensive home energy improvements in the winning home(s) • Provide content and support for case studies • Integrate case studies with consumer workshop activities

39. Role for EGIA as Administrator • Program consultant to host • Recruit sponsors, home auditors, and partners • Turnkey contest administration, to include: • Contest entry acceptance online and by mail • Contest entry ranking based on home energy intensity • Contest entry screening through telephone survey • Coordination of finalist and winning home selection • Produce case studies that document energy (and non-energy) benefits while showcasing sponsors’ roles

40. Milestones • Plan Contest, Recruit Sponsors (1-2 months) • Promote and Screen Entries (1-2 months) • Select Finalists, Pick Winners (1 month) • Improve Homes, Document Results (1 month) • Highlight Winning Home(s) (1 month) • Educate Homeowners (on-going)

41. Energy Partners Program withBusiness Development Training September 3, 2010 Revolving Program Overview, Loan Process & Sales Support Materials

42. EGIA Member ServicesDriving Sustained Growth & Profitability

43. Increase Profitable Sales • Website Development • Job Cost Quoting Tools • GEOSmart Financing Program

44. Reduce Operational Costs Reduce Operational Costs • Business Insurance and Employee Benefits • Payroll Processing and Tax Compliance • Collections and Debt Recovery

45. Business Development Training EGIA Plans and Produces Activities Where Contractors and Energy Partners Learn and Network Regarding Best Practices In Energy Efficiency, Renewable Energy, Customer Service, Marketing/Sales and Enhanced Business Operations

46. WEBINARS AND WORKSHOPS CONDUCTED BY SEASONED PROFESSIONALS TO HELP SENIOR MANAGEMENT DEVELOP MORE PROFITABLE BUSINESSES • “Business of Building Science” • Marketing Home Performance (September 9th) • Sales Management 101 • Social/ Internet Marketing • Financial Management – Accounting Basics • Dynamics of Leadership • 21st Century Service Manager • Positioning Your Company as The Quality Contractor • Effective Team Building & Problem Solving

47. Sample List of Current Energy Partners

48. Energy Partner Branded Website/ Program Materials

49. Silver Energy Partner ($3,000 annually) 1 Customized Webinar on Topic of Your Choice Up to 25 Contractor Memberships (additional at $150 each) Dedicated Webpage with access to all EGIA Member Benefit Programs Gold Energy Partner ($5,000 annually) 2 Customized Webinars on Topic of Your Choice Up to 50 Contractor Memberships (additional at $150 each) Dedicated Webpage with access to all EGIA Member Benefit Programs Platinum Energy Partner ($10,000 annually) 2 Customized Webinars on Topic of Your Choice 1 On-Site Workshop/Presentation/Consultation (plus travel reimbursement) Up to 100 Contractor Memberships (additional at $150 each) Dedicated Webpage with access to all EGIA Member Benefit Programs Energy Partner Program Benefits

50. Contact Information Bruce Matulich CEO & Executive Director (916) 480-7314 bmatulich@egia.org Ed Thomas VP, Utility & Government Services (970) 209-8347 ethomas@egia.org Stephen M. Self V.P., Partner Relations (720) 771-1708 sself@egia.org