1. 0 Welcome to PG&E’s Interconnection Webinar We will be starting the webinar momentarily The slides for today’s presentation can be downloaded/printed at www.pge.com/solareducation

2. PG&E California Solar Initiative (CSI) & Net Energy Metering (NEM) Interconnection Webinar July 16, 2009 The slides for today’s presentation can be downloaded/printed at www.pge.com/solareducation

3. 2 Goals Update of PG&E’s CSI incentive program Overview of PG&E’s NEM interconnection process What you need to know about NEM interconnections Why systems over 30 kW need to be identified Helpful resources to reduce Interconnection turnaround time Q&A

4. 3 PG&E and our Business What we do: Deliver safe, reliable, and environmentally responsible gas and electricity to approximately 15 million Californians Electric and gas distribution customers 5.1 MM electric 4.2 MM gas Electric transmission circuits18,610 miles Gas transmission backbone6,136 miles Electric generation capacity6,000 MW

5. 4 PG&E as a Partner and Solutions Provider PG&E Portfolio Solution Reduce Energy Use Renewable Power Supply ClimateSmart Partnership Education Outreach

6. 5 PG&E’s 2008 Electric Delivery Mix --on average over 50% of the energy PG&E delivers comes from sources that emit almost no carbon dioxide

7. 6 We’re Committed to Energy Efficiency 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 1960 1962 19641966 1968 1970 1972 1974 1976 1978 1980 19821984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 California United States Over the past 30 years, California per capita energy use has remained relatively flat compared to the 50% increase in U.S. per capita energy use. Source: California Energy Commission

8. 7 PG&E Customer-side Solar Activities Management of the California Solar Initiative Management of the New Solar Homes Partnership Partnering with Habitat for Humanity to build solar communities Teaching children through our Solar Schools program Creating clean solar energy at our own facilities Helping create Major League Baseball’s first solar ballpark Connected more solar customers than any other utility in the county

9. 8 CPUC Existing Residential Existing Commercial Commercial New Construction Residential New Construction 4. New Solar Homes Partnership (NSHP) PG&E PG&E Program Administrators CEC SB 1 – 3000 MW Goal Program Administrators Low Income Solar (LISP) 1. California Solar Initiative (CSI) 3. Single Family2. Multi-family Existing Low Income Grid Alternatives

10. 9 What is California Solar Initiative (CSI)? The California Solar Initiative provides a financial incentive for the installation of solar on a home or business. CSI incentives vary by incentive type, customer segment and system size. Incentive amounts gradually reduce over time. First funding is reserved, then once installation is complete, the incentive payment is made.

11. 10 CSI Incentive Rates (Original Allotment) Incentive structure: 10 step program with a predetermined number of MegaWatts dedicated to each Step Level Rebates automatically decline based upon reservations reserved Higher rebates for non-taxable entities PG&E (MW)EPBB Payments (per Watt)PBI Payments (per kWh) StepResNon-ResResidentialCommercial Gov't / NonprofitResidentialCommercial Gov't / Nonprofit 1--n/a 210.120.5$2.50 $3.25$0.39 $0.50 314.429.3$2.20 $2.95$0.34 $0.46 418.738.1$1.90 $2.65$0.26 $0.37 523.146.8$1.55 $2.30$0.22 $0.32 627.455.6$1.10 $1.85$0.15 $0.26 73162.9$0.65 $1.40$0.09 $0.19 836.173.2$0.35 $1.10$0.05 $0.15 941.183.4$0.25 $0.90$0.03 $0.12 1050.5102.5$0.20 $0.70$0.03 $0.10 Res Non-Res

12. 11 What’s New in CSI? New Energy Efficiency Requirements Additional documentation required per California Energy Commissions (CEC) guidelines Promotes energy efficiency improvements and highest energy production per ratepayer dollar Field Verification Ensure system is operating properly New Testing Method for PV Modules New PTC calculations for SB1 compliance Removal of Original signature and Required Documents: Proof of PMRS, Project Cost Breakdown Worksheet, System Description Worksheet (Non-Res >10kW) and others. For more information, we will be hosting a webinar on Wednesday, July 22th and July 29th. Go to www.pge.com/solarclasses

13. 12 Solar to Date PG&E territory represents more grid-tied solar systems than any other utility in the United States CSI Program success… Approximately 15,000 Applications Received Over 10,000 Projects Completed totaling over $125 Million in incentives paid Continuous improvements made to streamline process Reduced paperwork by 50%

14. 13 Generation Interconnection Services (GIS) Point of contact for customer (or authorized agent) to interconnect any generation. Coordinates interconnection activities, including engineering reviews, metering, access issues, and customer contracts. Issues Permission To Operate. Provides for two main types of solar interconnections: NEM and non-NEM options for the customer. Initiates NEM Billing Process through the interconnection process.

15. 14 Interconnection Application vs. CSI Application The Interconnection Application is a separate, but parallel process to CSI Application. Submit CSI Application Submit Interconnection Application Incentive Paid Interconnect to grid, Issue PTO Review & Approve

16. 15 Net Energy Metering Support for Solar Net Metering Exports to utility grid are valued at retail electricity rate No standby charges No interconnection study fees Exemption from Nonbypassable Charges

17. 16 Cumulative PG&E Solar Interconnections  Over 30,000 grid tied solar installations  More interconnections of grid tied systems in US than any other utility.

18. 17 Total Monthly PG&E Solar Interconnections

19. 18 Interconnection Application/Agreement The CPUC approved a new NEM Interconnection Application and Agreement. The new application is online and should be used immediately. Old forms will no longer be accepted after March 31, 2009

20. 19 Field Inspection Check system to ensure built as designed on Single Line Diagram (SLD) (Expanded NEM Projects only). Verify that meter location/disconnect is safe for PG&E personnel access (free from unrestrained animals, locked gates, etc…). Verify installation of AC disconnect and appropriate signage (Expanded NEM). Install bi-directional meter (NEM customers). Install Net Gen Output Meter (NGOM) for PBI, if requested.

21. 20 Timeline and commonly missed items NEM projects – –Over 96% of systems are interconnected within 12 business days upon receipt of all required paperwork and project passes first inspection. What can slow an application down? –Project size (over 30 KW) does not qualify for Standard NEM. –Meter must match that which is tied to application. –Final building permit (BP) does not match application address. –Single Line Drawing (SLD) has no equipment information: make, model, rating, or… how many PV modules are connected to each inverter.

22. 21 Items that slow down the process Disconnect Access –Customer’s bi-directional meter must be installed in a safe, 24/7 PG&E-accessible location, unobstructed by locked gates or pets. –Meter access must be maintained at all times for reading/system maintenance. –Any animals owned by the customer, including pet dogs, should not have access to these areas to avoid hindering PG&E service personnel from completing their work.

23. 22 Other items that slow down the process Application has no rate schedule. Name on application does not match PG&E Bill account name. –Call:1-800-743-5000 to add/change name on acct Account number does not match PG&E Bill. Meter access issues: unrestrained animals, gates, locked doors. (No self-read meters for Time of Use rates). Reprogram cost of $228 for Time of Use (TOU) not included.

24. 23 Systems over 30 kW All PV systems require an engineering review Systems over 30 kW or multiple homes may impact the local electric circuit operations; requiring PG&E equipment changes Infrastructure changes may require long lead items or construction Advise PG&E of planned installation time and get system in the queue

25. 24 PG&E GIS Acronyms NEM: Net Energy Metering NGOM: Net Generation Output Meter PTO: Permission To Operate SCSC: Solar Customer Service Center BP: Signed Off Building Permit POI: Proof of Insurance AC Disco: Alternating Current Generator Disconnect (Not DC or Inverter Disconnect) SLD: Single Line Drawing TOU: Time of Use Rate or Meter ESP: Energy Service Provider OAS: Otherwise Applicable (rate) Schedule

26. 25 PG&E Resources Standard NEM: http://www.pge.com/standardnem/ Expanded NEM: http://www.pge.com/expandednem/ PG&E Solar Website: www.pge.com/solar PG&E CSI Website: www.pge.com/csi GIS Hotline: Email: gen@pge.com, or (415) 972-5676 Solar Customer Service Center (SCSC): (877) 743- 4112

27. Questions or Comments? Thank you for joining us today. Please take a moment to provide us your feedback on today’s webinar.