Considering a Community Solar Program for Grafton Presentation to the Board of Selectmen December 1, 2015

2 Confidential and Proprietary—Do Not Distribute Introductions Who we are… –Troy Herrod, District Sales Manager –Artie Crocker, Solar Consultant –Jill Appel, MA Director of Community Programs

3 Confidential and Proprietary—Do Not Distribute Meeting Agenda What’s up with solar in MA? What are community solar programs? What are their benefits? Why run one in Grafton? Why work with Direct Energy Solar? How should we move forward?

4 Confidential and Proprietary—Do Not Distribute MA Solar Transformation

5 Confidential and Proprietary—Do Not Distribute MA Solar Transformation

6 Confidential and Proprietary—Do Not Distribute Why Has MA Become a Solar Leader? A state goal for solar power (1600MW by 2020) High electricity prices Falling equipment prices “Solarize” programs State and federal incentives –Federal tax credit –State tax credit –Net metering –SRECs (Solar Renewable Energy Certificates)

7 Confidential and Proprietary—Do Not Distribute What is a Community Solar Program? It’s not a community-SHARED solar program. Basically it’s group purchasing of solar. A community education and outreach campaign aimed at increasing solar adoption. Includes a tiered pricing structure which lowers the cost for everyone as more people sign up. Also includes a community benefit based on results. Adopted by the MA Clean Energy Center as the Solarize Mass program in 2012; communities have run own programs since 2013.

8 Confidential and Proprietary—Do Not Distribute Community Solar Program Results Between 2012 and 2014, the average purchase price was ~20% lower than the market price. 38 of 46 communities in Solarize Mass doubled the amount of solar in their communities. More than 2,500 residents and business owners have contracted through Solarize Mass for over 17 megawatts in new solar power. Many communities are now running their own programs.

9 Confidential and Proprietary—Do Not Distribute Communities with Solar Programs

10 Confidential and Proprietary—Do Not Distribute Communities Running Own Programs Concord Ashland Franklin New Bedford Dartmouth Natick Reasons communities run their own programs: Community is not eligible for Solarize MA program. Community wants more control over program process and timing. Community is comfortable with managing its own program.

11 Confidential and Proprietary—Do Not Distribute Concord Solar Challenge Results Results: 550 homeowners signed up for a free site survey (10% of households) Previous solar installations = homeowners signed contracts for 1.3MW in added solar power (500% increase) Timing: April to July 31, 2013; extended to October 31

12 Confidential and Proprietary—Do Not Distribute Why Run a Program in Grafton? Good number of previous solar installations: ~275 Number of potential new installations: ,867 households with 7% install potential -Small commercial? Prominent solar systems such as the one at Grafton High School Environmentally-conscious town Active community with many organizations, volunteer groups, etc. Significant savings will benefit residents

13 Confidential and Proprietary—Do Not Distribute Why Now? Prices are good; better with group pricing 30% federal tax incentive expires in 2016 Financing options available to enable more homeowners to participate Great financial return (>15% annually; payback periods in 4 to 6-year range for good sites) Less optimal sites still a good investment Positions homeowners for electric vehicles and heat pumps, moving away from gas and oil A tremendous benefit to your community

14 Confidential and Proprietary—Do Not Distribute What would a Grafton program look like? Grafton selects Direct Energy Solar as its installer partner. Direct Energy Solar agrees to give a group price discount on solar to residents. Pricing is tiered – the price goes down for everyone as more people go solar. Grafton in turn agrees to do significant outreach to generate “leads”. Direct Energy Solar helps lots of people go solar. Limited timeframe (usually 6 months) for the program moves people to make decisions more quickly. Local Solar Coach helps promote program and is a resource for homeowners.

15 Confidential and Proprietary—Do Not Distribute Who is Direct Energy Solar? Started as Astrum Solar in MD in 2008 Focused on excellent customer service and grew rapidly Early and regular participant in Solarize Mass program Became Direct Energy Solar in 2014 Employ over 200 people in Massachusetts; local office in Hopkinton Specialize in community solar programs Our approach is to be Simple, Friendly and Direct

16 Confidential and Proprietary—Do Not Distribute DE Solar Experience in Community Solar Across Solarize Mass programs, >2500 systems have been contracted. DES has sold more than 25% of these systems. Solarize PAB still underway, now at 110 systems sold.

17 Confidential and Proprietary—Do Not Distribute Why work with Direct Energy Solar? The most experience in community solar programs Highly successful programs Extensive marketing support Lots of information to local team to monitor progress Professional and consultative sales team High-quality installations quickly Capacity to handle significant volume We delight our customers

18 Confidential and Proprietary—Do Not Distribute Q&A and Next Steps

THANK YOU!