Related Party Transactions

Our results of operations included the following related party transactions (in thousands):



	Six Months Ended June 30,
	2019		2018

Total revenue from related parties	$	93,204	$	30,925
Consulting expenses paid to related parties (included in general and administrative expense)	102		102
Interest expense on debt to related parties	3,218		5,299

Bloom Energy Japan Limited

In May 2013, we entered into a joint venture with Softbank Corp., which is accounted for as an equity method investment. Under this arrangement, we sell Energy Servers and provide maintenance services to the joint venture. We recognized related party service revenue of $0.8 million for the three months ended June 30, 2019 and related party revenue of $1.7 million, comprised of service revenue of $0.2 million and installation revenue of $1.5 million, for the three months ended June 30, 2018. We recognized related party service revenue of $1.6 million for the six months ended June 30, 2019 and related party revenue of $30.9 million, comprised of service revenue of $0.3 million, product revenue of $28.3 million, and installation revenue of $2.3 million, for the six months ended June 30, 2018. Accounts receivable from this joint venture was $9,800 as of June 30, 2019 and $3.3 million as of December 31, 2018.

Diamond State Generation Holdings, LLC

On June 14, 2019, we entered into a transaction with SP Diamond State Class B Holdings for the PPA II upgrade of Energy Servers. In connection with the closing of this transaction, SPDS was admitted as a member of Diamond State Generation Partners, LLC ("DSGP"). DSGP, an operating company was a wholly owned subsidiary of DSGH prior to June 14, 2019. As a result of the PPA II upgrade of Energy Servers transaction, we determined that we no longer retain a controlling interest in PPA II and therefore it will no longer be consolidated as a variable interest entity, or VIE, into our condensed consolidated financial statements as of June 30, 2019. DSGP is considered to be a related party as regards to our PPA II upgrade of Energy Servers transaction for which we recognized related party revenue of approximately $91.6 million, comprised of product revenue of approximately $87.7 million and installation revenue of $3.9 million, for the three and six months ended June 30, 2019. We determined that we have retained significant influence over DSGP and consequently recognize our remaining interest in DSGP as an equity investment as of June 30, 2019. See Note 12 - Power Purchase Agreement Programs - PPA II Upgrade of Energy Servers. We had no accounts receivable from DSGP as of June 30, 2019.

Consulting Arrangement

In January 2009, we entered into a consulting agreement with General Colin L. Powell, a member of our board of directors, pursuant to which General Powell performs certain strategic planning and advisory services for us. Pursuant to this consulting agreement, General Powell receives compensation of $125,000 per year and reimbursement for reasonable expenses.

Debt to Related Parties

The following is a summary of our debt and convertible notes from investors considered to be related parties as of June 30, 2019 (in thousands):



	Unpaid Principal Balance		Net Carrying Value
	Unpaid Principal Balance		Current		Long- Term		Total

Recourse debt from related parties:
6% convertible promissory notes due December 2020 from related parties	$	27,734	$	—	$	27,734	$	27,734
Non-recourse debt from related parties:
7.5% term loan due September 2028 from related parties	39,317		2,889		32,643		35,532
Total debt from related parties	$	67,051	$	2,889	$	60,377	$	63,266

The following is a summary of our debt and convertible notes from investors considered to be related parties as of December 31, 2018 (in thousands):



	Unpaid Principal Balance		Net Carrying Value
	Unpaid Principal Balance		Current		Long- Term		Total

Recourse debt from related parties:
6% convertible promissory notes due December 2020 from related parties	$	27,734	$	—	$	27,734	$	27,734
Non-recourse debt from related parties:
7.5% term loan due September 2028 from related parties	40,538		2,200		34,119		36,319
Total debt from related parties	$	68,272	$	2,200	$	61,853	$	64,053

Regarding non-recourse debt from related parties, we repaid $0.4 million and $0.7 million of principal and interest in the three months ended June 30, 2019, and we repaid $1.2 million and $1.5 million of principal and interest in the six months ended June 30, 2019, respectively. No other significant changes have occurred in total debt from related parties since December 31, 2018. See Note 6 - Outstanding Loans and Security Agreements for additional information on our debt facilities. During the three months ended June 30, 2019 and 2018, interest expense on debt from related parties was $1.6 million and $2.7 million, and during the six months ended June 30, 2019 and 2018, interest expense on debt from related parties was $3.2 million and $5.3 million, respectively.