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California Solar Initiative Welcome to the California Solar Initiative Program Forum July 30, 2010 1 Online Participation: Via WebEx https://energycenter.webex.com/energycenter/j.php?ED=1516 79082&UID=1157294122&PW=NMDU5YWE1YmMy&RT=MiM0 Audio Conference Details: Participant dial in (toll-free)*: (712) 432-3900, enter meeting code: 7503423 PLEASE MUTE YOUR PHONE WHEN ENTERING THE CONFERENCE

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California Solar Initiative CCSE Vision: Creating a Sustainable Energy Future Energy Efficiency Renewable Energy Green Building Climate Change Transportation

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California Solar Initiative

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Housekeeping Restrooms Phones Off WebEx Attendees Mute Phone Maps available for offsite lunch Shhhh... Quiet in Hallway Close Door Carefully

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California Solar Initiative 5

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CSI General Update: CSI Progress toward Program Goals 7

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California Solar Initiative CPUC Solicits Comment on Budget July 9 CPUC issued an ACR Soliciting comment on changing incentive levels for PBI and Govt/Non-Profits Temporary suspending issuance of new confirmed reservations for certain projects July 29 CPUC issued an ACR Lifting temporary suspension of issuance of new confirmed reservations Expect a draft decision in August 2010, to be voted on by CPUC in September 2010

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California Solar Initiative CPUC Issued CSI Staff Proposal July 26 CPUC issued a CSI Staff Proposal that proposed revisions to CSI program (other than incentives modifications) Solar Tariff Modifications (NEM, VNM, BCT) General Market Program Modifications Measurement and Evaluation (M&E) program modifications Marketing and Outreach (M&O) program modifications MASH and SASH program modifications Program budget and rate collection modifications Comments on prioritization of issues due on August 6, 2010 Pre-hearing conference on August 12, 2010 After pre-hearing conference CPUC will establish schedule for handling issues in CPUC staff proposal

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California Solar Initiative CSI Annual Program Assessment Released June 2010 Program is 42% of the way towards goals 20% installed 22% pending Record number of applications in 2010 300+ MW since Jan. 134 MW in April alone Complete and pending projects expect over $1.4 billion in incentives

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California Solar Initiative Installed Solar Projects (#) by Year thru 2009 Data: Installed Solar PV projects at Customer-Sites by year in Californias Investor-Owned Utility (IOUs) Territories (PG&E, SCE, SDG&E). Does not include projects in publicly owned utility territories or small IOUs. Does not include wholesale PV projects or any projects used to directly serve utility load, such as Renewable Portfolio Standard projects. Source: California Public Utilities Commission, April 2010.

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California Solar Initiative Installed Solar Capacity (MW) by Year thru 2009 Data: Installed Solar PV megawatts (MW) at Customer-Sites by year in Californias Investor-Owned Utility (IOU) Territories (PG&E, SCE, SDG&E). Does not include projects in publicly owned utility territories or small IOUs. Does not include wholesale PV projects or any projects used to directly serve utility load, such as Renewable Portfolio Standard projects. Source: California Public Utilities Commission, April 2010.

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California Solar Initiative Statewide Solar Installations to date AreaData Source & DatesMWsProjects IOU area Solar Installations in California IOU Interconnections 1993-2009541 MW57,649 IOU Interconnections 2010, based on CSI Program Data, Jan 2010 July 2010 75 MW8,589 POU area Solar Installations in California POU Installation Data (1999-2009, collected by CEC) 54 MW6,238 Total California Solar Installations670 MW66,214

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California Solar Initiative CSI Program Data (thru 6/9/2010) All CSI Projects Installed Projects Applications31,799 Capacity (MW)342 MW Incentive $million$738 M Pending Projects Applications10,065 Capacity (MW387 MW Incentive $million$661 M Total CSI Activity Applications41,864 Capacity (MW)729 MW Incentive $ million$1,400 M

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California Solar Initiative Other APA Highlights CSI Incentives support Economic Activity With $1.4 billion in incentives program has helped support solar investments of $5.1 billion Decline in System Costs Systems Under 10 kW declined 15%; Over 10 kW declined 10% Incentives Decline Incentives have declined up to seven times across the state Increase in Third-Party owned systems Participants install more en. efficiency measures than non-participants Large number of contractors participate in program 1,400 contractors, but 80% of installed capacity in 5% of firms (74 firms) Contractors are key communicators of the availability of rebates Program outreach milestones Over 7,000 individuals trained in solar classes Over 8,000 newsletter subscribers

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California Solar Initiative Average System Cost for Completed Host-Customer Owned Systems, Based on Quarter of Application (2009 $) Note: The data is inflation adjusted to 2009 dollars. Source: Itron, CSI 2009 Impact Evaluation, June 2010.

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California Solar Initiative System Cost Breakdown (2007-2009) for Installed Systems by Reservation Date

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California Solar Initiative 2009 CSI Impact Evaluation June 2010 APA included highlights from 2009 CSI Impact Evaluation: CSI statistics by customer grouping, geography, etc. Energy Impacts Avoided GHG emissions and other emissions Capacity Customer Bill Impacts Solar customer load profiling Energy Efficiency Transmission & Distribution impacts of installed solar System Performance Performance Monitoring and Maintenance Customer Satisfaction & Participant Motivation

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California Solar Initiative CSI Impact on Peak

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California Solar Initiative Impact on Peak by Utility Program PV Systems Impact Peak Hour Capacity Factor Administra tor(n)(MW) (kWh/kWp) PG&E12,939139.5 MW87.2 MW0.62 SCE5,00582.8 MW43.3 MW0.52 SDG&E2,19822.6 MW13.6 MW0.60 All20,142245.0 MW144.0 MW0.59

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California Solar Initiative Expected vs. Actual Production

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California Solar Initiative 22 CSI Project Cost Data Preliminary- Draft Notes: 1) Data from CSS Working Data Set 7-14-2010 2) Average cost per watt calculated as simple average 3) Western Urban Quarterly BLS CPI Data used to adjust for inflation

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California Solar Initiative 23 Error Bars indicate +/- 2 Standard Deviations

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California Solar Initiative 24 Error Bars indicate +/- 2 Standard Deviations

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California Solar Initiative CPUC Regulatory Update 27

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California Solar Initiative Q&A 28

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California Solar Initiative Lunch 29 Lunch A CCSE - 8760 Balboa Avenue B 94 th Aero Squadron - 8885 Balboa Ave. C Gallegos Mexican Caf - 5375 Kearny Villa Rd. D Filippis Italian Rest. 5353 Kearny Villa Rd. E Mrs. Rice 5375 Kearny Villa Rd. F Sipz Vegetarian Fusion Caf 5501 Clairemont Mesa Blvd. G Aladdin Medit. Caf 5420 Clairemont Mesa Blvd. H Studio Diner 4701 Ruffin Rd. I Bankok West Thai 9119 Clairemont Mesa Blvd. J The Butcher Shop 5255 Kearny Villa Rd. K Black Angus 5247 Kearny Villa Rd. L Starbucks Coffee 4240 Kearny Mesa Rd.

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California Solar Initiative CSI Project Suspension During Application Processing: How Suspensions Can be Reduced or Avoided 30

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California Solar Initiative 2008 2010 RRF Percent of Total Projects Suspended (Program Wide) 31 Total RRFs received: 2008: 11,370 2009: 15,255 2010: 12,475

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California Solar Initiative 2008 2010 ICF Percent of Total Projects Suspended (Program Wide) 32 Total ICFs received: 2008: 8,400 2009: 13,425 2010: 8667

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California Solar Initiative 33 Reducing Suspended Projects - SCE Incorrect, Incomplete, or Missing Energy Efficiency Audit or Title-24 Energy Efficiency Disclosure Agreement is missing or incomplete One or more EPBB Calculators not submitted with application Incorrect, Incomplete, or Missing Field Verification Form ICF does not match array information EPBB System Size Justification Issues Purchase/Installation Contract and/or Lease Agreement is incorrect, incomplete or lacks signatures PMRS/PDP documentation is incorrect, incomplete, or missing RRF Total Project Cost Issues, does not match EPBB, HC/Owner/Applicant clarification

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California Solar Initiative 34 Reducing Suspended Projects - CCSE 2009 Suspension Reasons (Reservation Request Stage) 1.SDG&E Account and Meter # - not allowing for access to Energy Waves 2. Energy Efficiency Audit or Title 24 Report 3. Issues with the Installation Contract 4. Letter of Authorization to Receive Customer Information or Act on a Customers Behalf 5. Load Justification 6. EPBB mismatch or incorrect information 7. Reservation Request Form not Executed 8. Missing Email Address 9.Energy Efficiency Disclosure Form 10. Issues with Contractor Licensing

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California Solar Initiative Reducing Suspended Projects 35 2010 Suspension Reasons (Reservation Request) 1.SDG&E Account and Meter # - not allowing for access to Energy Waves 2.Reservation Request Form not Executed 3.Issues with the Installation Contract 4. Energy Efficiency Audit or Title 24 Report 5. Load Justification 6.EPBB mismatch or incorrect information 7.Issues with Contractor Licensing 8. Letter of Authorization to Receive Customer Information or Act on a Customers Behalf 9.Energy Efficiency Disclosure Form 10.Host Customer email address missing

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California Solar Initiative Reducing Suspended Projects 36 2009 Suspension Reasons (Incentive Claim Stage) 1.Interconnection 2.Project Cost Breakdown 3.PMRS Requirement 4. EPBB mismatch or incorrect information 5.Field Verification Form 6.Incentive Claim form is incomplete (missing signature, page, payee, etc.) 7.Warranty 8.Contract 9.Host Customer email address missing

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California Solar Initiative Reducing Suspended Projects 37 2009 Suspension Reasons (Incentive Claim Stage) 1.Interconnection 2.Cost Breakdown 3.PMRS 4.EPBB mismatch or incorrect information 5.Field Verification Form 6.Incentive Claim form is incomplete (missing signature, page, payee, etc.) 7.Warranty 8.Contract 9.Host Customer email address missing

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California Solar Initiative Reducing Suspended Projects 38 2010 Suspension Reasons (Incentive Claim Stage) 1.Interconnection 2.Cost Breakdown 3. Incentive Claim form is incomplete (missing signature, page, payee, etc.) 4.EPBB mismatch or incorrect information 5.Field Verification Form 6.PMRS 7.Excel based Incentive Claim Form was submitted 8.Incentive Claim Form doesnt match Powerclerk 9.Warranty initials were not given by System Owner

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California Solar Initiative 39 Reducing Suspended Projects PG&E Incentive Claim submitted prior to Interconnection Accounts for a large majority of Suspended Incentive Claims Projects must be interconnected prior to submitting Incentive Claim Projects that are not interconnected will be returned to Applicant If Reservation Expiration is approaching ask for an extension

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California Solar Initiative 40 Future Changes to CSI Program 100% PowerClerk Submission - Eliminating Mail-in Option Reduces Admin Costs for Applicant and Program Administrators Facilitates more efficient application processing than using mail Transparency during Step Changes Projects are Time Stamped Implementation Date : November 2010

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California Solar Initiative 41 Future Changes to CSI Program 1 Step Application Process (Residential) HIGH PRIORITY No Reservations Submit Claim when Project is Interconnected Reducing application processing costs for Applicants and Program Administrators 2 Step Application Process (Non-Residential) Commercial Projects Submit Reservation Request with Signed Contracts Submit Incentive Claim when Project is Interconnected Government/Non-Profit Projects Submit Reservation with RFP Submit Signed Contracts Submit Incentive Claim When Project is Interconnected

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California Solar Initiative 42 SB1 Update Field Verification Form Operating Current has been substituted for the measurement of short circuit Inverter Testing Requirements July 1, 2011 all eligible inverter-integrated meters must be tested to 5% accuracy by NRTL

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California Solar Initiative CSI Program Handbook: Review of June Handbook Changes 43

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California Solar Initiative Limitations on Installed Cost (Soft Cap) 44 The PAs have seen a limited number of Applications that have exceeded the Cost Cap since the June 2010 Handbook release (less than 2% of projects) The PAs will be contacting the Applicants/Host Customer for justification of the high $/Watt cost As the PAs acquire additional information, it will be made public

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California Solar Initiative New Go Solar California Web Site 45

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California Solar Initiative New Go Solar California site New site feedback welcome! Still a work in progress.

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California Solar Initiative CSI Low Income Update: SASH & MASH 47

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California Solar Initiative 48 SASH Program GRID Alternatives Presenter: Stan Greschner, Director SASH Program Phone: 510-652-4730 ext. 322 Email: SASH@gridalternatives.org or sgreschner@gridalternatives.org

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California Solar Initiative 49 GRID Alternatives SASH Program Manager Non-profit 501(c)(3) organization Licensed solar electrical contractor Mission: To empower communities in need by providing renewable energy and energy efficiency services, equipment, and training.

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California Solar Initiative 50 SASH Program GRID Locations GRID has 5 regional offices serving all IOU territories Oakland: serves greater Bay area/N. California Carson: serves greater L.A. Fresno: serves Central Valley San Diego: serves San Diego area San Luis Obispo: serves Central Coast 2 additional offices opening by mid-2011

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California Solar Initiative 51 SASH Program A Comprehensive Low-Income Solar Program Higher incentives than general market CSI Program Energy Efficiency Workforce Development Volunteers and Community Engagement

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California Solar Initiative 52 SASH Program Who Qualifies Owner-occupied residence Electric service from IOUs Household income