1 California Solar Initiative October 10, 2008

2 Content Introduction PG&E CSI Program Success Overview of CSI PG&E Interconnection Resources Questions?

3 PG&E’s Integrated Approach Reduce Energy Use Renewable Power Supply Neutralize Energy Use Energy Efficiency Solar & Wind Climate Smart

4 Before installing solar… Start with Energy Efficiency (EE) Energy Audit Required to Participate in CSI Program* –Educate yourself and your customers Analyze usage Learn what to do Encourage Customers to Take Action to be Efficient* –Saves energy and money in 2 ways Less usage = smaller energy bills Reduced load = smaller solar system = lower cost * In 2009, CSI participants may have to act on energy efficiency recommendations

5 EE Resources and Programs Residential: Smarter Energy Line or Commercial: Business Customer Center or Rebates are available for many energy efficiency measures Heating and Cooling Water Heating Lighting And many more For more info and other programs, contact PG&E’s Energy Efficiency Lines

6 PG&E CSI Program Success Almost 10,000 projects Reserved Over 5,500 completed projects –Residential incentives totaling over $50 Million paid –Non-Residential incentives totaling over $25 Million (paid and PBI) March 2008 to September 2008, average over 85% of projects reserved in less than 30 days March 2008 to September 2008, average over 78% of projects paid in less than 60 days (includes field inspection applications) 30% more payments made from Jan-May 2008 than all 2007

7 CPUC (CA Public Utilities Commission) Retrofit Residential Retrofit Commercial Commercial New Construction Residential New Construction 4. New Solar Homes Partnership (NSHP) PG&ESCE CCSE Program Administrators CEC (California Energy Commission) SDG&E PG&ESCE SB 1 Program Administrators Low Income Solar (LISP) 1. California Solar Initiative (CSI) 3. Single Family 2. Multi-family Retrofit Low Income Grid Alternatives BVES

8 CSI Eligibility Project site must be within service territory and receive retail electric service from Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (administered by the CCSE)* Retrofit Residential Projects (Single Family homes and Multifamily properties)** Retrofit and New Construction Non-Residential Projects (Commercial, Industrial, Agricultural and Government) Minimum System Size of 1 kW Maximum System Size of 5 MW Incentives will be capped to the First MW System size must be < previous 12 month usage history (kWh) Unless there is added load: new appliances, added square footage, etc. System size kW, square footage can be used (2 x square feet = annual kWh) *Municipal electric utility customers, please check with your provider for any solar incentives or CSI updates. ** New construction residential projects are administered separately under the New Solar Homes Partnership Program

9 CSI Incentive Structure There are two types of Incentives: Expected Performance-Based Buydown (EPBB) EPBB is a one time, up-front payment based on an estimate of the system's future performance ( Or… Performance-Based Incentives (PBI)* PBI are monthly payments for 5 years based on actual performance of the system as measured by a separate performance meter *Any system larger than 50 kW are required to select for the PBI Incentive **Effective January 1, 2010 any system larger than 30kW are required to select the PBI Incentive

10 CSI Incentive Rates (Original Allotment) Incentive structure: Rebates automatically decline based upon reservations reserved Higher rebates for non-taxable entities PG&E (MW)EPBB Payments (per Watt)PBI Payments (per kWh) StepRes Non- ResResidentialCommercial Gov't / NonprofitResidentialCommercial Gov't / Nonprofit 1--n/a $2.50 $3.25$0.39 $ $2.20 $2.95$0.34 $ $1.90 $2.65$0.26 $ $1.55 $2.30$0.22 $ $1.10 $1.85$0.15 $ $0.65 $1.40$0.09 $ $0.35 $1.10$0.05 $ $0.25 $0.90$0.03 $ $0.20 $0.70$0.03 $0.10 Res Non-Res

11 Trigger Tracker ( *To determine approximate MW left in step = column 9 - column 8 8*9*

12 2 Step vs 3 Step Applications 2 Step All Residential retrofit projects All retrofit and new Non- Res projects < 10 kW  Commercial  Industrial  Agricultural  Government  Non-Profit 3 Step All Non-Res retrofit and new Non-Res projects > 10 kW  Commercial  Industrial  Agricultural  Government  Non-Profit

2 Step Process and Timeframe All retrofit Residential and All Non-Res Projects < 10 kW *Missing or Incorrect information/documents cause indefinite delays. Due 1 year from date Reservation Approved for retrofit Res and Non-Res Incentive Claim Form Incentive Approval Notification PG&E Review Reservation Request Form Reservation Confirmation Notification PG&E Review Due 18 months from date Reservation Approved for Comm New Construction, Gov’t and Non-Profits

3 Step Process and Timeframe retrofit Commercial > 10 kW Due 60 Days from Reservation Reserved Proof Of Project Milestone Due 12 months from Reservation Reserved Incentive Claim Form Reservation Request Form Reservation Reserved Notification Reservation Confirmed Notification Incentive Approval Notification PG&E Review * Missing or Incorrect information/documents cause indefinite delays.

3 Step Process and Timeframe Government and Non-Profit Projects > 10 kW Due 240 Days from Reservation Reserved Proof Of Project Milestone Due 18 months from Reservation Reserved Incentive Claim Form Reservation Request Form Due 60 Days from Reservation Reserved Request for Proposal (RFP) RFP Approval Notification Reservation Reserved Notification Reservation Confirmed Notification Incentive Approval Notification PG&E Review * Missing or Incorrect information/documents cause indefinite delays.

16 Common Mistakes Reservation Request Packet Listed equipment does not match EPBB Print Out Missing or Incorrect Energy Audit documentation Mailing Address vs Project Site Address Missing Warranty Language in Contract Missing Tax Exemption and/or AB1407 (GOV’T, Non-Profit, Public Entities) Missing signatures for all parties involved Incentive Claim Packet Not Interconnected Revised EPBB not submitted to reflect changes in installed equipment Missing PMRS documentation Tax Status and Tax ID

17 How to Apply Download forms from PG&E CSI website – or… Access online database (PowerClerk) –Track status of all applications –Ability to pre-fill certain sections with stored data –pge.powerclerk.com

18 CSI Inspection Verification Inspectors will verify the following: Module & Inverter Equipment - Manufacturer - Model Number - Quantity *If module nameplate is not visible, invoice is necessary to verify manufacturer and model Installation Parameters Verified Measure: - Tilt - Azimuth - Standoff Height - Shading of array(s) Operation - System is operational, and output is reasonable for conditions at time of inspection

19 Performance Metering Performance Meter: is separate from and in addition to the utility’s revenue meter (inverter integrated) Performance Monitoring and Reporting Service (PMRS): is a service that the customer purchases to track the performance of their system Performance Data Provider: collects data that is used for calculating monthly PBI payments Data is collected once a month to determine output and payment amount

20 What is Interconnection? Interconnection is the physical connection of your solar system to the utility grid. The interconnection required with net metering allows PG&E to provide any extra electricity or back-up power that you may need. It assures that safety protocols are adhered to for the protection of the utility linemen.

21 Interconnection Application/Agreement Interconnection application is a separate, but parallel process to CSI ( Interconnection process runs parallel with CSI Interconnection Field inspection and Interconnection Agreement must be complete and executed before Generator is permitted to operate (PTO). Permanent Service must be established. (No Temp) Submit CSI app Review Submit Interconnection app Incentive Paid Interconnect to grid Review & Approve

22 Application Common Issues Final building permit (BP) does not match application or is missing Single Line Diagram (SLD) has no equipment information: make, model, rating, or… how many PV modules are connected to each inverter Name on application does not match PG&E Blue Bill account name. (Call: to add name to acct) Reprogramming fee of $228 for Time of use (TOU) not included. Website has availability and exceptions

23 Common Issues System Upgrades: New Application is necessary showing all generation on site. Fax coversheet is not included when faxing docs (building permits) to GIS.

24 #1 Issue 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.

25 PG&E Historical Interconnections

26 ClimateSmart The energy you use emits greenhouse gases, such as carbon dioxide (CO2), into the atmosphere due to the burning of fossil fuels. The ClimateSmart program allows you to pay a separate amount on your monthly energy bill to make your home energy use "climate neutral.“ –Cost is based on usage –$ per kWh and $ per therm. –Less than $5 per month for typical home. PG&E will invest 100% of your payment in independently verified greenhouse gas emission reduction projects in California: –Conserving and restoring forests –Capturing methane gas from dairy farms and landfills –Many more These projects absorb or reduce over time an equal amount of CO2 from the atmosphere, balancing out the climate impact of your energy use. This is a voluntary program for all PG&E customers For more information or to sign up please log onto

27 Resources PG&E CSI Webinars California Solar Initiative and the Investment Tax Credit Building Inspection Process and Solar (need building permit to become interconnected) Solar Power Purchase Agreements Performance Data Provider and Performance Monitoring and Recording Service Advice Letter Updates **Please refer to the Pacific Energy Center training website for the next available Internet class:

28 CSI/GIS Contacts CSI (questions on individual projects) –Voice Mail Box (415) – GIS (questions on individual projects) –Voice Mail Box (415) – Solar Customer Service Center (general solar questions)

29 Questions?