SunFunder - Financing Solar Beyond the Grid Audrey Desiderato (Co-Founder/ COO) October 28, 2015

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1 SunFunder - Financing Solar Beyond the Grid Audrey Desiderato (Co-Founder/ COO) October 28, 2015

2 SOLAR = An Enormous Market Opportunity 2.5billion NO / BAD ELECTRICITY 600million NO PHONE CHARGING

3 Technologies Business Models FINANCE

4 Unlocking New Sources of Capital ANGEL INVESTORS / HNIs IMPACT INVESTORS / FAMILY FUNDS / FOUNDATIONS GOVERNMENT / DFIs CAPITAL MKTs / PENSION FUNDS / ENDOWMENTS DISTRIBUTORS PREPAID SOLAR MICRO-GRID COMPANIES C&I SUPPLIERS

5 Market segments and loan products RESIDENTIAL Current market focus 5-500W systems kerosene replacement COMMERCIAL (R&D) KW systems diesel replacement INVENTORY loans to distributors, manufacturers, prepaid solar 6-12 months STRUCTURED asset securitized loans to prepaid solar months CONSTRUCTION loans to developers 6-12 months DIRECT loans/leases to end-users months

6 Geographies E & S Africa Current market focus Tanzania, Kenya, Uganda, Rwanda, Ethiopia, Zimbabwe South Asia R&D India West Africa R&D Ghana

7 Overcoming Challenges #1 Limited track record/ chicken or the egg Start small, short-term, relationships matter #2 Subcritical deal size/ high transaction cost Local & sector expertise, data, monitoring

8 Growing Relationships SolarNow- Customer since October 2013 (planned) $2M + new structure $40k $385k

9 SunFunder Solar Notes - CLOSED REPAID fully drawn fully drawn drawn Aug 2015 closed Aug % 1.5yr 3.5% 2yr SENIOR DEBT (protected by first loss layer) 3.5% 2yr SENIOR DEBT (protected by first loss layer) 5% 3yr SENIOR DEBT (protected by first loss layer) 5% 3yr SENIOR DEBT (protected by first loss layer) DEBT 5% 2yr JUNIOR DEBT (15%) 7% 2yr JUNIOR DEBT (15%) 9% 3yr JUNIOR DEBT (15%) 9% 3yr JUNIOR DEBT (20%) $.25M $1.1M $1.35M $1.8M $3.7M SEF I 18A SEF II 24A SEF II 24B SEF II 36A SEF II 36B

10 Solar Notes Investors Institutional Investors Individuals + 20 MORE INDIVIDUALS

11 Solar Notes - OPEN SunFunder 3-yr Serengeti Series (closing date: Nov 15) SENIOR DEBT (50% of note series) fully committed 8% MEZZANINE DEBT (44% of note series) JUNIOR DEBT + EQUITY (6% of note series) fully committed $10M

12 THANK YOU!

13 ANNEX

14 $35m portfolio by $1bn by $50m $50m Solar Notes Closed $18m $16m profitable $35m portfolio $14m $18m Solar Notes Closed $12m $10m $7.5m Solar Notes Closed $10m portfolio $8m $6m $4m $2m $50k funded $0.5m Solar Notes Closed $1.2m Solar Notes Closed $4m portfolio $0m Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

15 Distributors $1.7m 46% of portfolio $65k avg loan size 11% avg interest rate Tanzania $1.12k 31.4% of portfolio $65k avg loan size 11% avg int rate SUNFUNDER TOTAL PORTFOLIO FY12-To Date $3.8M total ($2.2M outstanding) across 19 customers and 54 solar project loans Inventory Installer $1M 28% of portfolio $138k avg loan size 11% avg interest rate Kenya $837K 23.4% of portfolio $93k avg loan size 11% avg int rate Supplier $936k 26% of portfolio $151.6k avg loan size 7.8% avg interest rate Uganda $789k 22% of portfolio $50k avg loan size 12.25% avg int rate Construction Micro-Grid $30k 1.5% of portfolio $30k avg loan size 13% avg interest rate Ethiopia, Rwanda. Zambia $790.5k 22% of portfolio $200k avg loan size 10% avg int rate C&I $0k 0% of portfolio $0k avg loan size 0% avg interest rate India & Philippines $34k 0.9% of portfolio $10k avg loan size 12% avg int rate Structured/Term DIVERSIFICATION 19 customers 5 customer segments 8 geographies 3 loan products PORTFOLIO AT RISK 1.1% Portfolio At Risk - 30 days 0.0% Portfolio At Risk - 90 days IMPACT 400k ppl impacted 3.5M kg CO2 avoided annually $4.5M Energy cost savings annually $2.37m 66% of portfolio $65k avg loan size 10.5% avg interest rate $0k 0% of portfolio $0k avg loan size 0.% avg interest rate $1.2m 33% of portfolio $75k avg loan size 12.17% avg interest rate