1. Utility Incentives for Solar Energy in Arizona

2. Arizona Public Service - EPS Credit Purchase Program Incentive Type: Utility Rebate Program Incentive Type: Utility Rebate Program Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics Applicable Sectors: Commercial, Residential Applicable Sectors: Commercial, Residential Rebate: Rebate: Grid-tied: $4/W up to 50% of eligible costs; Grid-tied: $4/W up to 50% of eligible costs; Off-grid (<5 kW) $2/W; Off-grid (<5 kW) $2/W; Solar Water Heating: $700 Solar Water Heating: $700 Website:http://www.aps.com/my_community/S olar/solar_35.html Website:http://www.aps.com/my_community/S olar/solar_35.htmlhttp://www.aps.com/my_community/S olar/solar_35.htmlhttp://www.aps.com/my_community/S olar/solar_35.html APS information current as of November 18, 2005

3. APS Program - summary Arizona Public Service (APS) offers customers who install photovoltaic and solar hot water systems the opportunity to sell the credits associated with the energy generated to APS. Arizona Public Service (APS) offers customers who install photovoltaic and solar hot water systems the opportunity to sell the credits associated with the energy generated to APS. For grid-tied photovoltaic systems of any size, the credit amount is $4/Watt-DC up to 50% of installed cost. For grid-tied photovoltaic systems of any size, the credit amount is $4/Watt-DC up to 50% of installed cost. For off-grid photovoltaic systems, which must be less than 5 kW, the credit amount is $2/Watt-DC. For off-grid photovoltaic systems, which must be less than 5 kW, the credit amount is $2/Watt-DC. For solar hot water systems, credit amounts are $700 per installation. For solar hot water systems, credit amounts are $700 per installation. Funds are assigned through a reservation process. Funds are assigned through a reservation process. All necessary forms can be downloaded from the program website. my_community/Solar/solar_35.html All necessary forms can be downloaded from the program website. my_community/Solar/solar_35.html my_community/Solar/solar_35.html

4. APS - Summary APS is purchasing solar credits to help the company meet the state's Environmental Portfolio Standard, which encourages APS to generate 1.1 percent of its energy through renewable sources, 60 percent through solar. APS is purchasing solar credits to help the company meet the state's Environmental Portfolio Standard, which encourages APS to generate 1.1 percent of its energy through renewable sources, 60 percent through solar. Participating customers receive a one-time EPS Energy Purchase Credit (based on the manufacturers rating) for purchasing and installing systems. APS will have access to the credits for the life of the EPS program. Participating customers receive a one-time EPS Energy Purchase Credit (based on the manufacturers rating) for purchasing and installing systems. APS will have access to the credits for the life of the EPS program. APS has recently committed additional EPS funds of $1,000,000 toward the residential credit purchase program, and $1,000.000 toward the commercial credit purchase program for 2005. This brings the overall total for 2005 to $4,250,000. APS has recently committed additional EPS funds of $1,000,000 toward the residential credit purchase program, and $1,000.000 toward the commercial credit purchase program for 2005. This brings the overall total for 2005 to $4,250,000.

5. APS Program – Qualifications PV Customers must purchase a new photovoltaic solar system. Customers must purchase a new photovoltaic solar system. Installations must meet APS interconnection requirements and customers must sign an interconnection agreement with APS. Installations must meet APS interconnection requirements and customers must sign an interconnection agreement with APS. The system must use UL-rated components and meet IEEE 929 specifications. The system must use UL-rated components and meet IEEE 929 specifications. A licensed contractor must install the system. A licensed contractor must install the system. The system generation must be metered separately and the kWh credits may, at APS' option, be recorded annually. The system generation must be metered separately and the kWh credits may, at APS' option, be recorded annually. The meter (not provided by APS) must be placed adjacent to the existing meter and marked "solar meter". The meter (not provided by APS) must be placed adjacent to the existing meter and marked "solar meter".

6. APS Program Qualifications Solar Water The hot water system must replace an electric water heater. The hot water system must replace an electric water heater. The system owner must sign an agreement assigning rights to the EPS credits associated with output. The system owner must sign an agreement assigning rights to the EPS credits associated with output. The system must have obtained certification under the Solar Rating and Certification Corporations OG-300 system rating test. Solar thermal collectors for commercial and large residential systems must have obtained the Solar Rating and Certification Corporations OG- 100 rating. The system must have obtained certification under the Solar Rating and Certification Corporations OG-300 system rating test. Solar thermal collectors for commercial and large residential systems must have obtained the Solar Rating and Certification Corporations OG- 100 rating. Commercial systems must be designed in accordance with ASHRAE design standards. Commercial systems must be designed in accordance with ASHRAE design standards. The system design and installation must meet all applicable UPC requirements. The system must meet all state and local building codes. The system design and installation must meet all applicable UPC requirements. The system must meet all state and local building codes. The system must be successfully inspected by the building official having jurisdiction. Proof of inspection must be provided to APS. The system must be successfully inspected by the building official having jurisdiction. Proof of inspection must be provided to APS. The solar panels must be substantially unshaded during peak sun hours. The solar panels must be substantially unshaded during peak sun hours. The installer must be licensed, bonded and insured. The installer must be licensed, bonded and insured.

7. Salt River Project EarthWise Solar Energy Incentive Type: A rebate program designed to help reduce the cost of installing a new solar PV or solar water heating system for homes and businesses Incentive Type: A rebate program designed to help reduce the cost of installing a new solar PV or solar water heating system for homes and businesses Photovoltaics Photovoltaics Rebate of $3/watt, up to 3 kW for residential systems Rebate of $3/watt, up to 3 kW for residential systems Rebate of $3/watt, up to 10 kW for commercial systems Rebate of $3/watt, up to 10 kW for commercial systems Must be UL listed and located in SRP service territory Must be UL listed and located in SRP service territory Solar water heating Solar water heating SRP offers a payment of $750 SRP offers a payment of $750 Must of OG-300 rated and located in SRP service territory Must of OG-300 rated and located in SRP service territory All new solar systems must be installed by a licensed contractor All new solar systems must be installed by a licensed contractor In exchange for payment, the customer allows SRP to retain the green energy credits for the system In exchange for payment, the customer allows SRP to retain the green energy credits for the system Payments are set to decrease to $2.70/watt, beginning 1/1/2007 and will continue to decrease at $0.30/watt each year until 2010 Payments are set to decrease to $2.70/watt, beginning 1/1/2007 and will continue to decrease at $0.30/watt each year until 2010 For more information or to download applications: www.srpnet.com/solar For more information or to download applications: www.srpnet.com/solar www.srpnet.com/solar SRP information current as of November 18, 2005

8. Tucson Electric Power SunShare Summary Incentive Type: Utility Rebate Program Incentive Type: Utility Rebate Program Eligible Renewable/Other Technologies: Photovoltaics from 1kW to 10kW in size Eligible Renewable/Other Technologies: Photovoltaics from 1kW to 10kW in size Applicable Sectors: Commercial, Residential Applicable Sectors: Commercial, Residential Rebate: Rebate: $2,000 per AC kW ($2/watt) $2,000 per AC kW ($2/watt) $2,700 per DC kW ($2.70/watt) $2,700 per DC kW ($2.70/watt) Website:http://www.greenwatts.com/pages/sunshare. html Website:http://www.greenwatts.com/pages/sunshare. htmlhttp://www.greenwatts.com/pages/sunshare. htmlhttp://www.greenwatts.com/pages/sunshare. html TEP information current as of November 18, 2005

9. TEP – SunShare Options Option 1 - TEP will provide a rebate of $2,000 per kW of verified AC output for photovoltaic systems purchased on your own. Option 1 - TEP will provide a rebate of $2,000 per kW of verified AC output for photovoltaic systems purchased on your own. Option 2 - Customers receive a $2,000 discount on a 1-kW AC output photovoltaic kit purchased from TEP. The kit includes panels, inverter, supports, meter, and meter socket. Option 2 - Customers receive a $2,000 discount on a 1-kW AC output photovoltaic kit purchased from TEP. The kit includes panels, inverter, supports, meter, and meter socket. Option 3 - Customers purchase their own photovoltaic equipment and the rebate amount is based on the installed solar generating capacity, or DC capacity. With this option TEP will provide a rebate of up to $2,700 per kW of rated DC solar generating capacity. To receive the higher rebate, the system must be operational within 180 days after receipt of the agreement (systems are reserved for 180 days until the 200 kW ceiling is reached in each year). The rebate amount will be $2,700 per kW of DC capacity in 2005 and up to $2,400 per kW of DC capacity in 2006. Option 3 - Customers purchase their own photovoltaic equipment and the rebate amount is based on the installed solar generating capacity, or DC capacity. With this option TEP will provide a rebate of up to $2,700 per kW of rated DC solar generating capacity. To receive the higher rebate, the system must be operational within 180 days after receipt of the agreement (systems are reserved for 180 days until the 200 kW ceiling is reached in each year). The rebate amount will be $2,700 per kW of DC capacity in 2005 and up to $2,400 per kW of DC capacity in 2006.

10. TEP SunShare SunShare program cap is 200 kW calculated on an AC basis, which is about 300 kW on a DC basis (this is the APS or SRP equivalent measure). SunShare program cap is 200 kW calculated on an AC basis, which is about 300 kW on a DC basis (this is the APS or SRP equivalent measure). SunShare customers assign their environmental credits to TEP through 2012 for Option 1 and 2 or through 2016 for Option 3. The customer is free to sell their credits on the REC market after those dates. (This factor in some measure accounts for the subsidy amount differences between the utilities.) SunShare customers assign their environmental credits to TEP through 2012 for Option 1 and 2 or through 2016 for Option 3. The customer is free to sell their credits on the REC market after those dates. (This factor in some measure accounts for the subsidy amount differences between the utilities.) TEP offers true net metering to all solar and wind systems of capacity up to 10 kW AC. TEP offers true net metering to all solar and wind systems of capacity up to 10 kW AC. There is a system-wide cap of 500 kW AC on this program, currently subscribed at about 120 kW AC. There is a system-wide cap of 500 kW AC on this program, currently subscribed at about 120 kW AC.

11. TEP – Outside SunShare Outside the SunShare program, PV systems larger than 10 kW AC capacity are eligible for a negotiated subsidy payment and we have 103 kW DC rated capacity of those in our system now, and have had discussions for at least 2 MW more capacity. Outside the SunShare program, PV systems larger than 10 kW AC capacity are eligible for a negotiated subsidy payment and we have 103 kW DC rated capacity of those in our system now, and have had discussions for at least 2 MW more capacity. Those larger systems are not included in the annual 200 kW AC program cap. Those larger systems are not included in the annual 200 kW AC program cap. The installations can be residential or commercial. The installations can be residential or commercial. TEP also offers a community based GreenWatts subsidized program for community based facilities that can pay the full cost of material and labor for qualifying installations. Schools, museums and other non profit organizations benefit from this program. These installations are also outside the SunShare program and its annual cap. TEP also offers a community based GreenWatts subsidized program for community based facilities that can pay the full cost of material and labor for qualifying installations. Schools, museums and other non profit organizations benefit from this program. These installations are also outside the SunShare program and its annual cap.