UtilityDemandReductionwithaCost

EffectiveandReliableEnergyStorageSystem
June25,2012

CompanyHistory&Milestones
Arista Power was originally founded as an
independent developer of a patented wind
turbine technology.
Newmanagement Receivesfirst
teambeginsto
Poweron
arrive
Demandorder

November
2009

July
2010

August
2010

Receivesfirst
MobileRenewable
PowerStation
order

2009/2010: Group of senior execs and

engineers with long track record in
energy storage and power distribution
systems combine their expertise with
the Companys patented wind turbine
technology

Makesfirst
internationalsale

December
2010

Receivesfirst
standaloneSolar
PVorder

March
2011

Changescompany
nametoAristaPower

April
2011

DeliversfirstPower
onDemandSystem

May
2011

Selectedto
developIntelligent
MicroGridfor
U.S.Army

July
2011

Formsstrategic
partnershipswith
ABB

April
2012

Formsstrategic
partnershipswith
GE

ProductLines
PoweronDemand

SolarPV

MobileRenewablePowerStation

Offgrid applications

Can set it up and start

capturing, storing, and
using renewable energy
sources within five
minutes

4.5GT wind turbine on retractable/winched

mount

DC input for solar PV/fuel cell

Multiple inputs and outputs

Wind

MarketNeed

Problem1:RisingHiddenDemandCosts

Electric bills consist primarily of two charges:

1) Consumption kWh how much energy used
2) Demand kW maximum amount of power used in the highest 15
minute window of a billing period; utility charges for the right to
access max power consumption
Demand charges are often 40% to 70% of a commercial bill
Demand charges are rising at a faster rate than consumption
charges

HighEnergyCosts+DemandCharges=
MarketNeedforAlternatives

Problem2:RisingVariableConsumptionCosts

Time of day consumption charges / load shifting

1) Resulting from smart metering / intelligent utility grid
2) Grid issues from variable generation from Solar PV, particularly SREC
markets
3) Time of day electric use in developing countries with increasing
renewable energy penetration (combined with need for reliable
power)

VariableConsumptionRates=
OpportunityforEnergyArbitrage

Challenge:ConsistentSolutions

Challenges for implementing widespread use of renewable energy

sources on the customer side of the meter:
Wind / Solar: provide a variable and somewhat intermittent energy supply
Variability causes difficulty using the energy created when it would provide superior
financial benefits
Use of a wind turbine or solar PV system does not materially reduce a customers
charges or provide energy when needed by the customer

Resistance to capital investment in alternative energy has stemmed from

high implementation costs and a long/indeterminable ROI

Utility sponsored distributed energy storage slow to be realized

Considerableincreaseinpowerdemandin
commercial,residentialandmilitarysectors

Consistentpowerneeded,withshorterROI
7

TargetPoweronDemandCustomers

Electricuserswith500kWormoreofpeakmonthlydemand
ManufacturingPlants,Hospitals,Schools,Officecomplexes,etc.
Highervariabilityinelectricusageresultsinabetterthevalue
proposition(highershorterpeaksresultinoptimalsystempayback)

LargeSolarPVinstallerslookingforimprovedpaybackthroughPPAfor
commercialcustomers

SolarSmoothingforUtilities
SRECmarketswithhighsolarconcentration

ElectricLoadShifting
Developingcountries

TheAristaPowerSolution

TheAristaPowerSolution:PoweronDemand

Developed Power on Demand system during second half 2010, began

marketing aggressively in May 2011
Proprietary, patentpending energy storage and management system designed to lower a
customers demand charges
Maximizes value of energy from wind, solar, fuel cells, and the grid
Most areas are suitable for solar and/or wind
Custom designed with options to blend in renewable energy inputs to best utilize the
resources at the customers location
Smart monitoring technology

System pricing:
Range from $200,000 to $3 million
Customer
system incentives

receives

renewable

10

PoweronDemandBenefits

Releases energy at optimal times to reduce peak

power demand
Dynamic Power Distribution

Immediate reduction in energy costs of 20%+

Return on investment as low as 2 years

11

ShavingthePeak

40%ofenergychargesoccurbetweenthehoursof7a.m.and2p.m.

AristaPowersPoweronDemandsystemeliminatesthesepeakswith
dynamicpowerdistribution

12

SystemDesign
FrontEndMonitor(FEC)
PlacedonEndUsersPowerloadtomonitor
electricalusageandcommunicatetoUC

UnifiedController(UC)
TheUCmanagesacustomalgorithmbasedon
thehistoricalandrealtimeinformation
providedfromtheFEC.
Providesexternalcommunicationand
monitoringincludingbatterystateofhealth,
powertrends,renewableenergygeneration,
andallowsremotesystemcontrol.

Grid
Power

Renewable Energy
Source(s)

Energy
Inverter(s)

Circuit
Breaker

Inverter/
Battery
Charger

Energy
Storage
System

Inverter ABBPCS100
BiDirectionaltoallowenergystoragecharging
WorksinconjunctionwiththeUCtodetermine
usageoftheenergystoragesystem

End Users
Power Load

EnergyStorageSystem(Battery)
ContainsBatteryManagementSystem(BMS)
forstateofhealthcommunication
13

EnergyStorage

Systems are Chemistry Agnostic

NaMH, Lithium (LFP), and Lead-Acid
Partnership with General Electric for implementation of
Durathon Technology
Based on application requirement
Peak Shave vs Load Shifting
Temperature
Cycle Life
Cost
Weight

Battery Management System

Power Storage and Distribution from 1kW to 1MW

Scalable from Mobile Unit to Commercial Building

EnergyStorageSystemOptions
SealedLeadAcid
LowestcostperkWh
Requires2Xsizingtomaintainoptimalcyclelife
Challengesthroughdynamiccharge/discharge

LithiumIon(LFP)
Highestcostoption,costimprovingthroughelectricvehiclevolume
Excellentratecapabilityandcyclelife(5,000cycles)
Safetymanagementrequirementand

NaMH GEDurationBattery

ModerateCostPointwithbestpotentialcost(lowcostmaterials)
SuperiorCyclelife(>7,000cycles)
FullyintegratedBMS
Goodratecapabilitythroughbatterycycle

15

StrategicPartnerships&CompetitiveAdvantages

Strategic partnerships and vendor relationships

with several leaders in alternative power

Intellectual property

StrategicPartners
&Vendors

Patent protection

Battery and power conditioning expertise

Group of engineers with unique experience in applied
alternative energy

Focus behind the meter

Head start on the competition

Only provider of an integrated Power on Demand system
Limited competition for Mobile Renewable Power
Stations
Competitors for complementary product line include: GE,
Siemens, Schneider, EnerNoc, ZBB

16

SentrySafe AnInitialSalesCycleCaseStudy

November 2010
First meeting with SentrySafe, the world leader in
fireresistant and security storage solutions for
important documents and valuables

December 2010
Review of utility bills and electrical profile

March 2011
Proposal for power management system submitted
to SentrySafe

June 2011
SentrySafe signed contract; Arista begins designing
system to meet the companys growing power
demand

January 2012
Delivered system to SentrySafe

Demonstrating 20% monthly savings in power costs

17

Intelligent Micro-Grids

IntelligentMicroGridforU.S.Army

Prime contractor on Phase I development of a new Intelligent MicroGrid

Multiphase program with Phase II expected to commence in 2012

Integrating renewable and traditional energy, provide soldiers with ability

to optimize their use of available resources at any give time/location

Objectives:
Scalability and automatic operation
Highly reliable power in areas where military operations are taking place that have a
broad spectrum of energy requirements and applications
Minimize the use of fossil fuels
Save lives by reducing the need to transport diesel fuel

Part of DoDs broadbased initiative to reduce its reliance on fossil fuels

and improve energy efficiency

Contract provides credibility and opens doors to additional military

opportunities
19

KeyTakeaways

Focused renewable integration and power smoothing system with

multiple market applications
Attractive value proposition with 20%+ immediate cost reduction and 25 year ROI

Recent Prime Vendor contract from U.S. Army provides credibility and
entry point into large military applications

Anticipate 2012 booked orders of at least $17.5 million, revenues of at

least $7.5 million

Massive market opportunity with converging energy storage and demand

rate increases

Strong management team with executive and engineering expertise in

developing energy solutions for customers

20

Investment Conclusions

Distinct Market
Need

Considerable increase in power demand in

commercial and military sectors ~ more consistent power necessary

Company Niche

Arista can considerably reduce energy costs through the installation

and management of its unique Power on Demand system

Solid Value
Proposition

Immediate reduction of 20% in annual energy costs;

Return on investment in 2 to 5 years

Recent Military
Recently awarded U.S. Army contract to be the prime contractor to
Contract for
complete Phase One activities for the development of a new
Development
Intelligent Micro-Grid.
AttheCompany:
BillSchmitz

CEO
Strong Financial
bschmitz@aristapower.comAvailable capacity to execute growth strategy; no long-term debt
Position
MarkMatthews
VPSalesandMarketing
mmatthews@aristapower.com