Renewable Energy Committee Meeting Applied Energy Group, Inc. Solar Market Update Renewable Energy Committee Meeting September 20, 2016 Applied Energy Group, Inc. 317 George Street, Suite 305 New Brunswick, New Jersey 08901 Presenters: Mike Ambrosio, SVP Tammy Vanblarcom, Manager 1

Installation Report Update 2001-2014: Data reported by Honeywell (HW) based on QA/QC date 2015-2016 QA/QC: Row includes those registrations processed by HW with a QC/QA date in 2015 and 2016, with PTO dated prior to 1/1/15. 2016 w/PTO prior to 1/1/15: This row includes those registrations processed in 2016 with a PTO date prior to 1/1/2015 2015-2016: Capacity based on PTO Estimated installations: final as-built packets received that have not yet been processed 2

Monthly Installation Report Note: Prior to March 1, 2016, the month in which a solar project was reported as installed was based upon the date the final registration packet reached QA/QC status. Starting with the report in May of 2016, the month in which a project is reported as installed is based upon the date the project received permission to operate (PTO) from its electric distribution company (EDC) The change in methodology results in a more accurate representation of when a project was install. However, the monthly installations shown above include only those projects that have reported a PTO date to the SRP Processing Team. The actual amount installed in any month will not be known until all projects installed in that month submit a PTO date. Therefore, for example, the amount shown for August 2016 should not be interpreted as what was installed in August. Alternatively, it represents only the projects installed in August that have reported a PTO date as of the date of the report. Based on the above data, we are seeing a lag time of well over 2-3 months between when a project obtains a PTO and when it submits the PTO to the SRP Processing Team. The monthly installation number will be updated as additional PTO dates are reported. 3

Grid supply

Pipeline Report Update 5

Grid projects pipeline Report 6

Solar Reporting Update Installation and Pipeline Reports for August were posted on September 15th Data clean up 7

SREC Trading Statistics Energy year 2016 Current SREC Trading Statistics Energy Year 2016 – through June 2016 For SRECs created from electricity produced during Energy Year 2016, June 1, 2015- May 31, 2016, or during Energy Years 2013, 2014 or 2015. SRECs eligible for use in NJ’s RPS have vintage established by the Solar Act of 2012 but may only be retired once. EY 2016 SACP= $323. Due to low trade volume, the July 2015 trades are reported with the pricing data from the previous Energy Year Note: Information reported prior to March 2016 based on historical reports PJM-GATS is currently developing the Cumulative Weighted Average Report which will be available on their website in the near future 8

SRP Program Operations Update 9

SRP Registration Submitted * March and April totals include the 4100 registrations that were withdrawn from the pending queue and re-submitted in the online portal 5302* 3306 3098 2653 2059 1808 10

SRP Acceptance Letter Issued 3985 3110 2435 1676 1676 1286 SRP Registrations are issued SRP Acceptance letters within 2-3 days from date the registration is submitted 11

Completions NJ Certification Numbers Issued Completed YTD Totals 2015-8883 2016-11,482 2847 2673 1674 1272 542 54 Final As Built Packets submitted through 7/5 have been processed An additional 807 finals were processed and deemed incomplete 12

SREC Registration Program Updates Final submitted in paper for portal submissions Working on changes to forms and checklists High volume of incomplete finals New Drop Off Procedures

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