DMS UTILITY COST

REDUCTION THROUGH
IMPLEMENTATION OF
SOLAR TECHNOLOGY

Proposal by Last Planet Solutions

Proposed on June 24, 2019
 Table of Contents

1 Introduction..................................................................................................................3
2 Why LPS…….................................................................................................................4
2.1 Fundamental Services…..................................................................................6
3 Objectives.....................................................................................................................9
4 Plan of Action…………………………...........................................................................9
4.1 Create a Sustainable Energy Facility……………............................................10
4.2 Eliminate Load Shedding…............................................................................10
5 Project Information………………………………………………………….…….............10
5.1 System Specifications…………......................................................................11
5.2 Roof Mounted System....................................................................................12
5.3 Battery Storage System..................................................................................13
6 Cost Estimate.............................................................................................................13
6.1 Proposed Operating Lease Price....................................................................13
6.2 Cost Savings..................................................................................................14
7 Project Advantages....................................................................................................15
7.1 Benefits..........................................................................................................15
6.2 Financial Incentives........................................................................................15
8 Project Steps..............................................................................................................16
9 Terms and Conditions................................................................................................16
10 Timeline........................................... ........... .............................................................17

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1 INTRODUCTION

Last Planet Solutions (LPS) is pleased to submit this proposal for Renewable Energy solutions to
support DMS’ facility by providing reliable clean energy.

The purpose of this proposal is to monitor and track energy usage, reduce costs, and help the
automotive industries supply chain go green. LPS will design, install, maintain, and monitor
complete solar photovoltaic (PV) and energy storage systems for DMS’ high-quality,
manufacturing facilities.

According to the Center for Sustainable Systems, University of Michigan. 2016. “U.S. Energy
System Factsheet.” Pub. No. CSS03-11, Energy plays a vital role in modern society, enabling
systems that meet human needs such as sustenance, shelter, employment, and transportation.
In 2014, the U.S. spent $1.4 trillion on energy or 8.0% of the Gross Domestic Product (GDP).
When spread over the population, annual costs were $4,374 per person. Environmental impacts
associated with the production and consumption of energy include global climate change, acid
rain, hazardous air pollution, smog, radioactive waste, and habitat destruction. The nation’s heavy
reliance on fossil fuels (primarily imported petroleum) poses major concerns for energy security.
Any potential gains of energy efficiency in all sectors can be offset by increases in consumption,
leading to overall increases in energy use.

In a study by Environmental Protection Agency, Greenhouse gas (GHG) emissions from

transportation account for about 29 percent of total U.S. greenhouse gas emissions, making it the
largest contributor of U.S. GHG emissions. Between 1990 and 2017, GHG emissions in the
transportation sector increased more in absolute terms than any other sector. The transportation
industry has been long overdue for emissions reduction. Environmental impacts associated with
the production and consumption of energy include global climate change, acid rain, hazardous air
pollution, smog, radioactive waste, and habitat destruction. The entire industry fails to address
the long-term risks of continuing to power facilities in ways that impact the environment.
Addressing the climate crisis has become an economic imperative. It is no longer sustainable to
ignore the need to source renewable energy and implement it in all sectors possible.

In July 2012, Michigan's largest rooftop array, 977.6 kW, was installed in Canton on the IKEA
store. Ford Motor Company and DTE Energy built the largest solar plant in the state in 2015. It

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had a 1.04 MW solar carport at Ford's world headquarters in Dearborn, Michigan. Today, with this
5.2 MW solar array, DMS will be declared Michigan's largest rooftop array in the northern mid-
west. This marks a pivotal point in which, automotive industry, transforms itself from being the
largest pollution emitter to becoming a forerunner in the energy transformation and revolution.

LPS visualizes a world of solar users and a greener environment. With this, we look to reduce the
use of grid power across the globe by offering its low-cost solar systems to residential and
commercial owners.

2 WHY LPS

Our level of quality in products and services is unmatched by our competitors. We only install the
best-in-class components that are designed to meet the highest standards and regulations. As
our customer, you will receive the same outstanding level of product and services that all our
customers enjoy.

Research shows that across the US, reliability, and quality in solar products and services are
significantly lacking in the local solar market. For example, polycrystalline solar panels are the
most common in the market. However, LPS utilizes the higher-quality, better performing,
monocrystalline panels which last longer and are more efficient. A study by the German
Corporation for International Cooperation (GmbH) concluded that there are two main reasons why
sub-standard, low-quality solar solutions are common:

1. The level of consumer awareness of options on energy management and controls are low.
2. Consumers are still not aware of the need and benefits of high-quality products.

As a trusted company dedicated to quality, corporate responsibility, and integrity, our mission is
to provide the global solar market with innovative, top-tier renewable energy products, and
services that are designed to meet the industry’s highest standards. We ensure this by providing:

 Battery and energy management software

 Monocrystalline technology solar panels
 Hybrid, smart control, with voltage protection inverters

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  24-hour monitoring platform, management systems
 Performance, production, and consumption
 Latest in energy storage, lithium-ion batteries with an unsurpassed 15-year warranty
 Customized mounting structures, each mount is manufactured based on the layout of the
installation area
 Customized electrical wiring, all electrical wiring is protected from water damage and
severe weather
 Digital meters reporting minute-to-minute interval data

LPS is committed to rapid, cost-effective deployment of solar PV systems on the facilities that it
manage, beginning with the most viable properties in Southfield and Toledo. As part of the
strategy to reduce greenhouse gas (GHG), we provide complete solar generation storage
solutions and battery management services to our clients. As new technologies enter the solar
market, manufacturers are beginning to demand the accompanying cost-saving features— i.e.
they want their buildings to be more energy efficient, if not energy independent.

In this new market paradigm, many new industrial builders offer solar panels as an option and
some have even started to offer solar as a standard feature on all buildings. Additionally, large
companies like Google and Apple pride themselves on having 100% renewable resources.

According to Bloomberg and U.S. Department of Energy, 6 of the 10 largest US production

homebuilders, led by KB Home, D.R. Horton Homes, and Shea Homes, have started to include
solar energy solutions in their new home offerings. These builders understand that today,
individuals, factories, and businesses are seeking ways to lower their monthly operational costs
which have translated to a high demand in solar energy systems.

An energy-conscious manufacturer can gain a competitive advantage by offering cost savings

from operational efficiency and in turn lower cost of goods. By doing so, the manufacturer
immediately distinguishes itself from other companies in the market. When partnering with LPS,
the facility will also receive our unmatched, state of the art LPS Energy Management, and
Performance Guarantee which provides complete maintenance, energy analysis and monitoring
for 2-years with no additional cost. We take pride and ownership in our work so the tenant and
building owner do not have to be responsible for the upkeep of our systems.

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2.1 FUNDAMENTAL SERVICES

Design

Before a single panel is installed, an efficient and lasting solar photovoltaic (PV) system begins
with expert design. Our design and engineering team is passionate about creating a sustainable
future by carefully developing each component of the solar system to meet the strictest guidelines.
Each component of the solar solution, starting from solar cells to complete wiring is carefully
designed to assure you with an uninterrupted supply of power that meets solar industry standards
and regulations. Even our mounting systems are custom built and are designed based on
customer-specific requirements. This experience, combined with an in-depth knowledge of the
local climate, expertise in redeeming manufacturer rebates, and familiarity regarding tax
incentives will not only convert as much sunlight into electricity as possible but also cost you less
and last for decades to come.

Installation

The installation of solar regarding building, fire, and electrical codes are from the National Electric
Code (NEC) requirements. Even with our higher standards, our solar projects can be developed
and installed very quickly without sacrificing quality. Each system is carefully examined and
inspected after the install is complete. Before any system is permitted to operate (PTO), our
electrical engineering team runs several key tests to verify if the system is performing according
to the specified agreement and manufacturer’s recommendations.

Lastly, since all our systems come with 24/7 monitoring, the install team will send several signals
to the LPS Solar service team to ensure that the system is reporting correctly to our dedicated
service teams.

Maintenance

Our LPS warranties include real-time monitoring of your solar power system, real-time energy
regulation, and maintenance. LPS provides remedial services at no charge. Defective parts are

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replaced and fully covered. We carry market leading warranties like 10-years on the battery and
25-years on panels.

In addition, LPS creates an exclusive service level agreement (SLA) for each system owner. The
agreement is designed to guarantee the long-term functioning of the system. This level of
customer care is unrivaled by local competitors.

In reference to the GmbH study, it was also concluded that implementation and dissemination of
quality standards for solar are expected to lead to a reduction of price sensitivity and increase the
procurement of high-end solar products and services across the globe. We agree with GmbH,
which is why LPS is operating globally to help solar customers harness the power of the sun to
lower the total cost of ownership (TCO) of their systems with our industry-leading, design,
installation, and maintenance services.

Monitoring

At LPS, we provide long-term monitoring, energy management and tracking to ensure our
systems are performing at their peak. To ensure the longest life of the system, we assist in
operating at the highest efficiency to reduce overall wear and tear on the equipment. By doing so,
we not only extend equipment life but mitigate costly demand charges. Therefore, our interests
are aligned with yours to ensure our products are performing to maximum potential.

LPS its dedicated to bringing green, renewable, and solar energy installations to our customers.
LPS has installed 755+ kWs of solar PV. The following tables summarize LPS’s solar PV projects
in the US and Pakistan:

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New Jersey Maryland Pennsylvania
Rhode Island Massachusetts Delaware
Illinois District of Columbia South Carolina
Florida California Hawaii
Colorado Virginia

Islamabad

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3 OBJECTIVE

The objective of the project is to install the solar photovoltaic (PV) system to supplement DMS’
electrical consumption in order to reduce the monthly energy bill of the facility and contribute to
mitigation efforts of Green House Gas (GHG) emissions.

In a WHITE PAPER – Solar Energy & Commercial Real Estate by SEIA, the research found that
buildings equipped with solar technology increase capitalization rates by effectively increasing the
overall value of the building. LPS is dedicated to assisting facilities, such as this partnership with
manufacturers like DMS, in making decisions to pursue clean energy solutions while creating
sustainable and eco-friendly communities.

The project is composed of two distinct phases (i) the energy audit of the building and efficiency
optimization, to ensure energy saving through the integration of on-grid solar photovoltaic (PV)
system; (ii) energy cost reduction through energy management systems. The building is a 2-story
manufacturing facility, the architectural design and direct exposure of sun radiation contributes to
ideally hospitable and cool conditions to work efficiently. The first phase began earlier this month
with the installation of the equipment and materials set to be installed upon project approval. A
total of 15000 solar panels (PV 330) will be installed on the rooftop of the DMS building in
Southfield, MI and a Net-Meter will be installed to record the excess energy production to facilitate
recording net consumption. Preliminary data show 78% of annual consumption will be eliminated
from the facility’s needs.

4 PLAN OF ACTION

To our understanding, DMS strives to provide work that is geared towards high quality and
sustainable development. DMS offers clients with top of the line services through an upgraded
and modernized infrastructure. In partnering with LPS, DMS can benefit from our solutions by
reducing power constraints on facilities, thereby increasing the facility value, and providing a
value-added product. Our hybrid solutions are designed to maximize grid performance and
prevent costly maintenance while ensuring residents with sustainable power void of any
interruptions.

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4.1 Create a Sustainable Energy Facility

LPS uses technology that integrates effortlessly with buildings, therefore, creating a sustainable
community. Strategically installing solar on qualified facilities allows us to balance the grids
constraint during peak hours, thus, avoiding costly upgrades to keep up with the rising demand
for the distribution of electricity. The following allows us to create a community that is not
dependent on fossil fuels and other non-sustainable energy resources:

 Harnessed power of the sun through our high efficiency monocrystalline solar panels
 Panels that are connecting with our smart inverter technology
 Automated inverters that send the extra power to grid stations, to offset the current
constraint, and stores that power produced by solar energy
 LPS’ dedicated customer service teams monitor the system 24 hours a day, 7 days a week
to make sure each component of the system are in sync

4.2 Eliminate Load Shedding

LPS is dedicated to eliminating high-cost energy usage in infrastructures and replace it with
sustainable energy with our latest storage technology. Soon, load-shedding measures will be
required with the current increase of power consumption at DMS. We use lithium-ion Nano-printed
batteries tied with our monocrystalline solar panels and smart control inverters to guarantee no
load-shedding due to overconsumption. Each component of the system is carefully monitored 24
hours a day, 7 days a week to ensure there is no interruption in power consumption. For
manufacturers, interruption of power can be detrimental. With LPS we provide infrastructure and
sustainable energy coupled with state-of-the-art energy storage solutions that can provide power
when and where it is needed.

5 PROJECT INFORMATION

LPS proposes to install a solar PV system plus battery storage for the DMS with a total capacity
of 5.2 MW delivering 7,537,144 kWh of electricity in the first year. The projects will be engineered,
designed, constructed, owned and operated by LPS and its partners and will require no upfront
cost or capital expenditure from DMS. The following facility is proposed as:

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 DMS Southfield facility (Rooftop installation): 5.2 MW
DMS Southfield Facility (Battery Storage): 530.6kW

The proposed system will be evaluated with the assistance of engineering groups including DTE,
CMT Engineering, and DMS Engineering Department. It is recommended that all systems should
be interconnected to the existing utility grid to net meter electricity generated by the systems to
existing DTE electric accounts. DMS will be the Host Customer assigned to each new meter
installed by the utility. The solar + storage system will provide DMS with an impressive
demonstration of its industry leadership, forward-thinking, and commitment to reducing the
automotive industries dependence on traditional carbon-emitting sources. The roof-mounted
system at the new DMS Facility will take advantage of design considerations incorporated into
the building’s construction to support a solar PV system on its roof. The project will contribute to
the plant's economic benefit in the form of electricity cost savings, energy reduction, and
structured tax incentives to be received over the life of the system.

5.1 System Specifications

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PV:

DMS Southfield (Rooftop): 5.2 MW

Panel Type: 300 W Monocrystalline photovoltaic cells
Inverter: SolarEdge SE6000A US-S
Optimizer: SolarEdge P400
Racking: Unirac
Battery Storage: 530.6 kW
Battery Type: SMA Sunny Boy 2.0 Lithium-Ion
Inverter: SMA

Each system is carefully examined and inspected after the install is complete. Before any system
is given Permission to Operate (PTO), our electrical engineering team runs several tests to verify
the system is performing according to NEC standards, contract documents, and manufacturer’s
recommendations. Complete 6-point stress testing, system diagnostics and analysis, inverter
calibration, and heat spot checks.

5.2 Roof Mounted System

 Inside equipment/ conduit installation: All equipment and conduit at the DMS facility will
be installed inside, to maintain the aesthetics of the new structure to the extent permitted
by the electrical inspector
o Only required penetrations will be to run conduit internally, as required by NEC
codes and AHJ regulation
 No roof penetrations: Panels will be attached to the rolled roof with non-penetrating raised
bases
 No leak issues: In the event a roof leak occurs, LPS will be responsible to immediately fix
the leak
 Maintain existing warranty: The installation of the solar PV system will not void any existing
roof warranty
 System interconnection to maximize savings: System will be DC coupled and
interconnected behind of the meter in between the existing utility meter and on-site
transformer to provide maximum net metering credit value to the DMS

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5.3 Battery Storage System

LPS offers a suite of software solutions to monitor real-time electricity generation and actual
weather data with its battery storage system. The following software includes various analysis
tools available on customer’s dashboards. LPS will install software to collect energy consumption
data, manage battery discharge, track power production, to publicly display all data collected by
the BMS. Facilities may also request efforts of conservation measures added to their website to
display carbon neutrality.

 Ensure energy efficient and optimal climate containment vessel to maximize performance
 End to end battery management and energy solution
 All equipment grounding conductors shall be tested for continuity and shall be electrically
continuous

6 COST ESTIMATE

Stated below are the Proposed Operating Lease Price and estimated cost savings for solar
installation.

6.1 Proposed Operating Lease Price

7 Year Lease Price: $7,889,000

Post-Tax Lease Price: $7,505,925
Standard Tax Deduction: $2,616,600
7 Year Battery management savings: $269,478
Total Year 8 Purchase Price: $1,567,875
Post-Tax Purchase Price: $1,024,968

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6.2 Cost savings

First Year Electricity Savings: $212,212

Annual tax deduction: $375,296
Year 1 Battery management savings: $37,854

Monthly Lease Payment total: $89,356

Monthly Tax Deduction: $31,274
Total Net Out of Pocket: $58,081
Peak Shaving/EMS Benefit: $37,854

Total Net Out of Pocket W/ Solar: $20,227

DTE Unchanged Net out of Pocket: $126,180
Monthly Savings: $17,684
15 Year Average Annual Savings: $748,207

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7 PROJECT ADVANTAGES

There are different incentives, benefits, advantages, and rewards companies can get by going
solar.

7.1 Benefits

 Zero capital cost: system will be financed and owned through a third party – eliminating
the need for DMS to use its capital or company financier
 Zero operation and maintenance cost: LPS will maintain, repair, and operate the system
– eliminating this item from the DMS’s future operating budget
 Electricity price hedge the solar PV price is set by its lease for 7-years and does not vary
with the price changes in the future electricity market. The U.S. Energy Information Agency
projects Northeast retail power pricing to escalated between 3% and 7% annually between
2015 and 2040
 Improving employee satisfaction: Employees are increasingly looking to work for
sustainability-minded companies. By demonstrating your company’s commitment to solar
power, your employees will be happier, more productive, and invested in the company
mission.
 Supporting the local economy: When a business contracts with a solar company, workers
in the local market complete the installation. Greater demand for solar projects increases
the availability of high quality, good paying jobs. Those workers could become your future
customers, too.

7.2 Financial Incentives

Federal Investment Tax Credit (ITC): This is the most significant financial benefit for anyone
interested in using solar panels at their business or residence. Owners of newly installed solar
panel systems get a federal tax credit for 30 percent of the cost of the system.
Accelerated depreciation: System owners can deduct 85 percent of the value of the solar asset
from their taxes, providing another significant offset to the upfront cost of a system array.

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Predictable Rates; Solar panels can also help your business to hedge against electricity price
volatility and inflation. Locking in electricity prices and reduced reliance on an unpredictable
expense. Going solar makes it easier for companies to budget and plan for the future.
Profit Generation: Once return on investment has been realized it creates an additional profit
center. Owning a solar asset continues to generate consistent profits as long as it produces
electricity. Considering the average panel life expectancy is 25-35 years, acquiring such profit
exceeds attainability.
Winning more customers: Many current and potential customers are attracted to businesses with
a commitment to sustainability. Examples abound of businesses that have won large contracts
due to their solar investments – buyers love products and services that are sun-powered! Also, a
solar installation is a great opportunity to promote your organization and raise awareness of your
offering in the community.

8 PROJECT STEPS

 LPS and DMS will sign SLA

 LPS will submit interconnection applications
 Continue contract negotiation to achieve an executable contract
 Execute an operating lease contract as soon as reasonably possible
 Finalize permitting process
 Begin construction in early Fall 2019
 Construction completion Fall 2019
 Permission to Operate late Fall 2019

9 TERMS AND CONDITIONS

 Permits: The design and Lease price assumes that we will receive all necessary approvals
for interconnection from DTE, and all other permits and approvals from Authorities having
jurisdiction.

 Environmental Review: Our design is subject to change following an environmental review

by an independent environmental engineer. Pricing assumes Best Management Practices
to be finalized for the plant will not require any variances to the proposed design.

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  Timelines: Project timelines are subject to cooperation with DMS and DTE approval
schedules, LPS is dedicated to the rapid completion of this project in accordance with local
safety requirements and regulations.

 End of Term Purchase Price: In accordance with Internal Revenue Service (IRS)
regulations, DMS may, but is not required to, purchase the PV systems at its fair market
value price.

 Decommissioning Costs: financier includes the cost of a decommission bond as an adder

to the lease price. Our system removal cost is net of anticipated salvage value.

 Regulatory Incentives (Net Metering): We have fully incorporated all financial benefits into
our price proposals. These include Investment Tax Credit, and RPS Class I Renewable
Energy Credits, DTE net metering credits, and standard equipment leasing deduction. The
following list shows our assumptions that affect our lease price Proposal and cost savings:

o The PV System will be interconnected directly to the local utility, DTE, and qualify
as a public net metering facility with DMS as the Host Customer. The projected
savings assumes that DMS awards the project on a timely basis so that LPS can
quickly file for an interconnection application to start the interconnection approval
process, which can take months at DTE. LPS will file and pay for the
interconnection application soon after award.

 Accelerated depreciation only available for solar system owners.

10 TIMELINE

Structural analysis- 5-7 days

DTE Interconnection Audit- 10-15 days
Engineering Design 21 days
DTE IC Audit Phase 2 - 10-15
Procurement- 21 days
Permitting- 14 days
Installation- 21 days
Inspections- 5 days
Testing- 3 days
Permission to Operate-14 days
BMS System Calibration- 6 days/ongoing

On this we will talk about once yearly physical system diagnostic and physical inspection where
a technician services and makes any necessary adjustment to panels to optimize this is done
output and performance. If there are any new features or equipment that need to be integrated
into the software physically will be handled at those points additional site visits may incur
additional costs.

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