Consumers Energy Small Business Solutions 2016 Program Year Kickoff Marina Escobar January 11,

Today’s Topics 2015 Program Summary 2016 Goals Trade Ally Participation Top Trade Ally Awards Research Results 2016 Program Overview Program Reminders 2

2015 Achievements Total Projects1,320 MWh Savings26,750 Incentives$5.16M Average Incentive $3,900 Small Business Trade Allies helped over 1,300 customers save more than $3.2M in

Trade Ally Participation Our top three trade allies contributed 47% of the total savings for the program for

2016 Goals Total Projects1,455 MWh Savings30,000 Incentives$5.6M With your help we will meet our goals for the 2016 Program Year 5

2015 Trade Ally Awards 6

Top Trade Allies for 2015 Hudsonville, MI Saved 8,493 MWh Grandville, MI Saved 2,302 MWh Davison, MI Saved 1,880 MWh 7

Research Results Marina Escobar 8

SB Program Satisfaction Satisfaction with the program remains extremely high at 93% for Wave 2 The Wave 1 and Wave 2 surveys had similar distributions 23

Satisfaction with Program Elements Participants were very satisfied with all program elements 23

Quality Requirements High usage (100+ hrs/week) and high wattage fixtures continue to be main risk for realization rate 11

2016 Consumers Energy Small Business Solutions Program Overview Marina Escobar 13

Processing Time Improvements Pre-Inspection times have decreased each year due to faster processing times. Has gone down by five days.

Processing Time Improvements Post-Inspection times have improved every year due to additional inspection staff. Has gone down by five days.

Processing Time Improvements The average number of days to payment has been reduced by five days 16

Program Changes A facility may participate three times throughout the life of the program, up to $10,000 total incentives Total ProjectsTotal Incentives Project$5, Projects$7, Projects$10,000 17

Quality Inspection Bonus Bonus for passed Pre-Inspections Assessed semi-annually in June and December Minimum of five projects completed within each six month time period CriteriaBonus Amount 80%-89% Pass Rate$25 per passed inspection 90% Pass Rate$50 per passed inspection 100% Pass RateAdditional $5,000 18

Program Reminders Mindie Graszler 19

LED Updates LED Costs Market conditions indicated a decline in cost for LED lighting technologies A per unit material cost decrease was implemented Database reflects cost decrease LED Approval 8 foot LEDs are no longer approved for use Only 4 foot LEDs will be accepted 20

Lighting Requirements Fixtures must be listed by one of these organizations Design Lights Consortium (DLC) ENERGY STAR ® Consortium for Energy Efficiency (CEE) Cannot accept rebranding unless listed 21

Submitting Documents Checklist Participation Agreement Customer has initialed both waiver sections Document is signed Send in all pages of the document Project Completion Form Project scope changes noted Document is signed Permit or permit waiver is included 22

Miscellaneous Reminders Pre-qualify using Customer Look-Up tool Utilize the Search functions Brochures can be requested at any time Dispose/recycle old equipment Collection of co-payments Insurance Requirements The Small Business Solutions Program has limited funding and incentives will be paid until allocated funds are depleted. This program may be modified or terminated without notice. 23

Tube LED Program Program Overview Program staff installs linear LEDs up to 20% of compatible fixtures Program Staff instructs the customer to contact Small Business contractor for remaining fixtures in facility Objectives Establish relationship with a larger small business customer base Introduce customers to LED lighting Increase the number of customers served by the Small Business Energy Efficiency Program from 1,320 to 1,455 in

Questions 25

Contact Us Administrative team Mindie Graszler Office: ext Cell: Marina Escobar Office: ext Cell:

Contact Us Inspection team Samm Van Houten Office: ext Cell: Josh Smith Office: ext Cell: Mark Pruchniewski Office: ext Cell:

Thank You! We can do this WITH YOU! For more information contact the Consumers Energy Small Business Energy Efficiency team Webtools.dnvgl.com/Projects/cepm 28