Integrating Solar Inverters Into the Smart Grid Brought to you by Integrating Solar Inverters Into the Smart Grid Tom Tansy SunSpec Alliance June 24, 2014

Today’s Presenters Tom Tansy SunSpec Martin McCue Moxa

Agenda Introduce the SunSpec Alliance U.S. solar market outlook Trends driving the smart inverter market Opportunities for integrators Q & A

Now 60+ members strong, SunSpec has com a long way. In the past four years, we have approved and published 10 specifications, and have several new ones in the works. SunSpec’s latest contributions to the industry include specifications for cybersecurity, inverter control, and plant data reporting. All specifications are available for free download and implementation from SunSpec.org, I am happy to report that SunSpec standards have been adopted both commercially and in the international standards community. We are united in our effort to establish a common language for the industry.

SunSpec Information Standards Inverter Bulk Data Exchange Meter Finance Risk Assessment String Grid Operations Plant Controller Internet VPN Module Data Store Cloud SCADA Storage Regulatory Reporting Enviro Custom Apps Tracker Solar Plant End-To-End Security Monitoring & Control Applications

Standards Drive Innovation and Value Performance Cost Complexity Risk Plant Operations Grid Control Risk Assessment

Audience Poll # 1 What is your role in the solar industry?

U.S. Solar Market Outlook

More PV Installed in Q4 2013 Than All of 2011 So More PV Installed in Q4 2013 Than All of 2011 2013: 4,751 MW 140,000 installations $13.7B market size Source: Greentech Research, April 2014 Source: GTM Research/SEIA U.S. Solar Market Insight

National Market Is Forming Source: Greentech Research, April 2014 Source: GTM Research/SEIA U.S. Solar Market Insight

But Concentration Remains In A Few States 2013 Installations Residential Non-Residential Source: Greentech Research, April 2014 Source: GTM Research/SEIA U.S. Solar Market Insight

Audience Poll #2 How big was the U.S. solar market in 2013?

Trends Driving The Smart Inverter Market

Professional Investing Era Has Started “SolarCity Securitization Deal Jolts Solar Energy Industry” “NRG Yield IPO ‘could transform access to capital’” “SolarCity Announces Pricing of Second Securitization” “SunEdison up 9% on ‘yieldco’ IPO news”

U.S. RE Industry Needs A Lot Of Capital Source: Financing U.S. Renewable Energy Projects Through Public Capital Vehicles: Qualitative and Quantitative Benefits (2013); Mendelsohn, M. Feldman, D. http://www.nrel.gov/docs/fy13osti/58315.pdf

Most Capital Unavailable to RE Investment Source: The CityUK Source: The CityUK

Public Capital Vehicles Could Lower LCOE 8-16% Source: Financing U.S. Renewable Energy Projects Through Public Capital Vehicles: Qualitative and Quantitative Benefits (2013); Mendelsohn, M. Feldman, D. http://www.nrel.gov/docs/fy13osti/58315.pdf

Early Commercialization Finance Gap Transitional Assistance Needed

Solar Access To Public Capital Initiative Goals Cover early commercialization gap Investigate way to expand capital base Lower costs of RE financing Results Identified public market mechanisms Securitization Master Limited Partnerships Delivered standard documents & processes Engaged 250 investors & developers Initiated “mock” securitization Download: http://www.nrel.gov/docs/fy12osti/55021.pdf

Concerns About Grid Imbalances Are Growing

California Rule 21 Changes Coming Rule 21 defines how solar plants connect to the grid New revision permits smart inverters To “support” the grid Enable new services & revenue streams Set stage for U.S. rollout

Smart Inverters & Storage Coming Together Demand Response Storage Generation Wider Operating Range (lower Pmin) Voltage Support Regulation Fast Ramping Frequency Response Dispatchable Solar/Wind Over Generation Mitigation Dispatchable Quick Start Load Shift Peak Load Reduction

EPRI/SunSpec California Solar Initiative Smart Inverter Test & Certification Program Supported by leaders SMA, Fronius SCE, SMUD Sandia, UL Demo full integration Technical controls Market signals Utility networks Enables broad deployment Sets stage for U.S. roll out Harmonizes safety standards

Opportunities for Integrators

Early Smart Inverter Projects Cooperate with utilities Build revenue models Showcase expertise

Last Mile Network Integration Private Cloud Inverter Grid Operations Meter Utility/ISO Plant Controller String Module Public Cloud Storage Plant Controller IPP O&M Enviro Tracker Solar Plant End-To-End Security, Monitoring & Control Applications

PV + Storage Solutions California mandate to add 1,325 MW storage by 2020 Cal ISO enabling “Flexible Ramping” product sales “Second Life” EV batteries driving economics

Summary Smart inverter era has started Opportunities emerging New deployment scenarios New revenue & product/service opportunities Broader utility cooperation Act now to lead this exciting field

Information Standards for Distributed Energy Questions & Answers Brought to you by Information Standards for Distributed Energy Tom Tansy - tom@sunspec.org - +1 831-227-1073