1. New Jersey Board Of Public Utilities Office of Clean Energy Air Innovations - Chicago August 10,2004 NJBPU - OCE New Jersey’s Solar Program An Integrated Approach Plugging into the Sun for Clean Emission-free Energy

2. New Jersey has Good Solar Relatively High Rates Persian Gulf of Flat Roofs Integrated Program to Support and Advance Solar Why - Solar Air Innovations - Chicago August 10,2004 NJBPU - OCE

3. Societal Benefit Charges Incentives and Financing Net Metering and Interconnection Standards Renewable Portfolio Standards Renewable Energy Certificates New Jersey’s Integrated Approach Air Innovations - Chicago August 10,2004 NJBPU - OCE

4. New Jersey’s Societal Benefits Charge Air Innovations - Chicago August 10,2004 NJBPU - OCE Non-By-passable charge on all electric use Average Funding Level - $ 124 Million per year - 4 th year 75% for EE and 25% for RE $ 14/HH/yr Rebate for Capital Cost < 10kW system up to 70 % rebate Grants and long term financing for EE/RE projects Grants and long term financing for RE Power Plants

5. Up to 2 MW – 125% of Annual Use Small Commercial Business Up to 10 MW peak < 10 kW Inverter-based - No fee Reduce barriers Limit timeframe for review New Jersey’s Net Metering and Interconnections Standards Air Innovations - Chicago August 10,2004 NJBPU - OCE

6. New Jersey’s RPS Renewable Portfolio Standard – Requirement that all suppliers provide a certain percentage of their electricity generated by renewable energy Renewable Energy Certificate – Represents the attributes of the renewable energy separate from the electrons Alternate Compliance Payment – Safety value Air Innovations - Chicago August 10,2004 NJBPU - OCE

7. New Jersey’s RPS Doubled the Current RPS from 2% Class 1 in 2008 to 4% in 2008 Established a Solar Set Aside of the Class 1 at 120,000 MWh (90 MW) Class 2 remains at 2.5% Established a 20% by 2020 Class 1 target Air Innovations - Chicago August 10,2004 NJBPU - OCE

8. New Jersey’s RPS Technology Class I Solar (PV), Wind, Landfill Gas, Sustainbly Grown and Harvested Biomass, Wave, Tidal. Class II Resource Recovery (MSWI) Small Hydro (< 30 MW) Air Innovations - Chicago August 10,2004 NJBPU - OCE

9. New Jersey’s RPS Pricing and Liquidity Class I REC Proxy $15/MWh - ACP $50/MWh Solar REC Proxy $150/MWh – SACP $300/MWh Lifetime 1 year - June 1 – May 31 3 month true up period Air Innovations - Chicago August 10,2004 NJBPU - OCE

10. New Jersey’s RPS YearClass 1SolarClass 2Total % MWh X 1000 % MWh X 1000 % MWh X 1000 % MWh X 1000 20040.745350.017.22.518103.252,352 20083.842,8950.161202.51,8856.54,900 Best Engineering Estimate 202019.4116,4800.595002.52,12322.519,103 2003 Total Energy Usage 72,000,000 MWh increases at approx 1% per year Air Innovations - Chicago August 10,2004 NJBPU - OCE

11. New Jersey’s RPS Value of RECs Year Class 1 – Class 2 and Solar RECs Solar RECS 2004$ 14,009,400$ 1,448,000 2008$ 48,746,600$ 15,080,000 2020$ 131,275,800$ 35,000,000 Air Innovations - Chicago August 10,2004 NJBPU - OCE GHG Credits$25 - $10$250 - $100

12. RPS Bill Cost to the NJ Customers YearHouseholdCommercialIndustrialRate $ per year$/kWh 2004$ 1$ 10$ 125$ 0.00019 2008$ 5$ 50$ 550$ 0.00065 2020$ 10$ 120$ 1400$ 0.00155 Air Innovations - Chicago August 10,2004 NJBPU - OCE

13. 3 MW Installed Over 30 MW Committed Funding Payments with SREC 5-7 years 100 – 250 MW by 2008 (REC price) $ 5.50 / HH / Yr - $20/ HH/ Yr Results Air Innovations - Chicago August 10,2004 NJBPU - OCE

14. Information on New Jersey’s Clean Energy Program: www.njcleanenergy.com Evaluation Reports Rutgers’ Center for Energy, Economics and Environmental Policy (CEEEP) http://policy.rutgers.edu/ceeep/images/ NJ_REMA_Final_8-04.pdf New Jersey’s Integrated Approach For Promoting and Advancing Clean Emission-free Solar Electric Air Innovations - Chicago August 10,2004 NJBPU - OCE

15. NEXT STEPS Generate Renewable Hydrogen From Solar On-Site – Distributively Generated and Stored Less Wires - More Reliability Less Pipes - More Security Less Mess - More Jobs New Jersey’s Integrated Approach For Promoting and Advancing Clean Emission-free Solar Electric Air Innovations - Chicago August 10,2004 NJBPU - OCE

16. James E. McGreevey, Governor NJ Board of Public Utilities Office of Clean Energy MAKE POWERFUL CHOICES