Community Solar & Group Net Metering - Building the Diversified Grid Elijah Emerson Primmer

What is “Community” Solar? Community Solar is: Local Smaller Scale Distributed (benefits local electric grid) Driven by community needs (not industry) Benefits: sustainable, clean, more easily permitted, strengthens local electric grid. Supported by and provides benefits to those that are impacted most by its existence.

Group Net Metering Project – an eligible electric generation facility Host Members Distribution Utility PUC

Group Net Metering – Credits Energy used at host site has greatest value Monthly Payment from Utility to Host Small Customer-Generator – all kilowatt/hour rates Large Customer-Generator – default energy rate Host Transfers Monthly Payment to Members According to Agreement Annual True-Up (June 1st) If total group usage for previous year is less than output of generator for previous year

Group Net Metering - Agreement Must include requirements of PUC Rule 909.05 Essentially, Group Net Metering is a system of payments. Agreement must govern distribution of payments and payment obligations. Needs to govern relationship among the group A long-term complicated relationship How group will evolve over time.

Other Issues Taxes – Payments likely to be considered taxable income. Collective solution: Excess generation allocated to member by utility as kwh credits. Securities – If using a corporate, LLC, etc. structure, could implicate securities regulations. Collective solution: securities exemption for net metering.

Thanks! Eli Emerson PRIMMER PIPER EGGLESTON & CRAMER PC 106 Main Street | PO Box 349 | Littleton, NH 05601 Tel: 603 444 4008 | Fax: 603 444 6040 eemerson@primmer.com | www.primmer.com