EnerNOC (ENOC)

Property and Equipment

        Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to ten years. Leasehold improvements are amortized over their useful life or the life of the lease, whichever is shorter. The amortization of capital lease amounts are included in depreciation expense. Expenditures that improve or extend the life of a respective asset are capitalized while repairs and maintenance expenditures are expensed as incurred.

        The Company capitalizes interest on projects that qualify for interest capitalization under Statement of Financial Accounting Standards (SFAS) No. 34, Capitalization of Interest Costs, as amended (FAS 34). Capitalized interest is included within construction in progress and is depreciated over the useful life of the assets once the project is complete. For the years ended December 31, 2007 and 2006, the Company capitalized $722 and $127 of interest, respectively. No interest was capitalized for the year ended December 31, 2008.

Property and Equipment

        Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to ten years. Leasehold improvements are amortized over their useful life or the life of the lease, whichever is shorter. The amortization of capital lease amounts are included in depreciation expense. Expenditures that improve or extend the life of a respective asset are capitalized while repairs and maintenance expenditures are expensed as incurred.

        The Company capitalizes interest on projects that qualify for interest capitalization under Statement of Financial Accounting Standards (SFAS) No. 34, Capitalization of Interest Costs, as amended (FAS 34). Capitalized interest is included within construction in progress and is depreciated over the useful life of the assets once the project is complete. For the years ended December 31, 2007 and 2006, the Company capitalized $722 and $127 of interest, respectively. No interest was capitalized for the year ended December 31, 2008.

Property and Equipment

        Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the
respective assets, ranging from three to ten years. Leasehold improvements are amortized over their useful life or the life of the lease, whichever is shorter. The amortization of capital lease
amounts are included in depreciation expense. Expenditures that improve or extend the life of a respective asset are capitalized while repairs and maintenance expenditures are expensed as incurred.

        The
Company capitalizes interest on projects that qualify for interest capitalization under Statement of Financial Accounting Standards (SFAS) No. 34, Capitalization of Interest Costs, as amended
(FAS 34). Capitalized interest is included within construction in progress and is depreciated over
the useful life of the assets once the project is complete. For the years ended December 31, 2007 and 2006, the Company capitalized $722 and $127 of interest, respectively. No interest was
capitalized for the year ended December 31, 2008.

Property and Equipment

        Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the
respective assets, ranging from three to ten years. Leasehold improvements are amortized over their useful life or the life of the lease, whichever is shorter. The amortization of capital lease
amounts are included in depreciation expense. Expenditures that improve or extend the life of a respective asset are capitalized while repairs and maintenance expenditures are expensed as incurred.

        The
Company capitalizes interest on projects that qualify for interest capitalization under Statement of Financial Accounting Standards (SFAS) No. 34, Capitalization of Interest Costs, as amended
(FAS 34). Capitalized interest is included within construction in progress and is depreciated over
the useful life of the assets once the project is complete. For the years ended December 31, 2007 and 2006, the Company capitalized $722 and $127 of interest, respectively. No interest was
capitalized for the year ended December 31, 2008.

6. Property and Equipment

        Property and equipment as of December 31, 2008 and December 31, 2007 consisted of the following:

        Depreciation expense was $8,035, $3,218 and $815 for the years ended December 31, 2008, 2007 and 2006, respectively. For the years ended December 31, 2008, 2007 and 2006, $3,193, $1,694 and $580 were included in cost of revenues, and $4,842, $1,524 and $235 were included in general and administrative expenses, respectively.

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Table of Contents

EnerNOC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

6. Property and Equipment

        Property and equipment as of December 31, 2008 and December 31, 2007 consisted of the following:

        Depreciation expense was $8,035, $3,218 and $815 for the years ended December 31, 2008, 2007 and 2006, respectively. For the years ended December 31, 2008, 2007 and 2006, $3,193, $1,694 and $580 were included in cost of revenues, and $4,842, $1,524 and $235 were included in general and administrative expenses, respectively.

F-23

Table of Contents

EnerNOC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

6. Property and Equipment

        Property and equipment as of December 31, 2008 and December 31, 2007 consisted of the following:

        Depreciation
expense was $8,035, $3,218 and $815 for the years ended December 31, 2008, 2007 and 2006, respectively. For the years ended December 31, 2008, 2007 and 2006,
$3,193, $1,694 and $580 were included in cost of revenues, and $4,842, $1,524 and $235 were included in general and administrative expenses, respectively.

F-23

HREF="#bg49201a_main_toc">Table of Contents

EnerNOC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

6. Property and Equipment

        Property and equipment as of December 31, 2008 and December 31, 2007 consisted of the following:

        Depreciation
expense was $8,035, $3,218 and $815 for the years ended December 31, 2008, 2007 and 2006, respectively. For the years ended December 31, 2008, 2007 and 2006,
$3,193, $1,694 and $580 were included in cost of revenues, and $4,842, $1,524 and $235 were included in general and administrative expenses, respectively.

F-23

HREF="#bg49201a_main_toc">Table of Contents

EnerNOC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

6. Property and Equipment

        Property and equipment as of December 31, 2007 and December 31, 2006 consisted of the following:

        Depreciation expense was $3,218, $815, and $302 for the years ended December 31, 2007, 2006 and 2005, respectively. For the years ended December 31, 2007, 2006 and 2005, $1,694, $580 and $223 were included in cost of revenues, and $1,524, $235 and $79 were included in general and administrative expenses, respectively.

F-22

EnerNOC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

6. Property and Equipment (Continued)

        Construction-in-progress consists principally of demand response equipment and back-up generators that have not been placed in service. Construction-in-progress at December 31, 2007 and December 31, 2006 consisted of the following:

6. Property and Equipment

        Property and equipment as of December 31, 2007 and December 31, 2006 consisted of the following:

        Depreciation
expense was $3,218, $815, and $302 for the years ended December 31, 2007, 2006 and 2005, respectively. For the years ended December 31, 2007, 2006 and 2005,
$1,694, $580 and $223 were included in cost of revenues, and $1,524, $235 and $79 were included in general and administrative expenses, respectively.

F-22

EnerNOC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except share and per share data)

6. Property and Equipment (Continued)

        Construction-in-progress
consists principally of demand response equipment and back-up generators that have not been placed in service.
Construction-in-progress at December 31, 2007 and December 31, 2006 consisted of the following: