1. Solar*Rewards/MN Bonus Budget Solar Rewards (Rebate budget, $4.6M annually 2010, 2011, 2012) 2010: Dollars Allocated $2,378,272 (12/10) 2011: Dollars Allocated $831,437 (6/11) 2011: Dollars Reserved$2,171,886 (6/11) 2011: Total Dollars Committed$3,003,323 (6/11) MN Bonus (Rebate budget*, $2M 2011, $4M 2012) 2011Dollars Reserved$1,738,325 (2/11) 2011Waiting for Reservation$1,426,803 (6/11) * MN Bonus budget is on a fiscal budget – FY 2011 is June, 30, 2010 – July 1, 2011

2. Less than Full Depreciation Applicant agrees that it will not use, or by contract or other agreement permit another entity to use, federal depreciation tax benefits that exceed the federal tax imposed on rebates awarded under this application.

3. 120% Rule 120% Rule for kWh Output: The rule sizes the maximum kWh output of the PV system to less than 120% of the premise’s previous year’s kWh consumption. This rule is also used in the Colorado Solar*Rewards program. The rule better allocates the funding to customers seeking to offset their own energy consumption with renewable energy. This will apply to all future applications without acknowledgment letters following PUC approval.

4. Waive Net Metering Option to Waive Net Metering: For PV projects where the kWh output is dwarfed by the 24/7 load at the premise, the installation of a bi- directional meter serves no purpose. If approved by the PUC, giving the customer the option of waiving net metering eliminates the up-front and on-going cost of unneeded equipment. Customers should be aware that by waiving net metering they are also waiving their right to sell power back to the utility.

5. Premise = Customer The Solar*Rewards program had conflicting language related to the number of systems that a customer may install. The new rule is that a customer may have one less-than 40 kW system per premise, unless the premise is tied to a totalized bill then it would only be one per bill.