Distributed Solar Energy California´s Experience Cecilia Aguillon President Aguillon Enterprises LLC cecilia@aguillonllc.com

Layout of the Power Grid: Distributed PV Provides Customer Power Without Stages 1 to 5 Source: Edison Electric Institute, Key Facts: A Look at the Electric Power Industry, Section 3, available online at: http://www.eei.org/industry_issues/industry_overview_and_statistics/nonav_key_facts/index.htm

Economic Benefits of Distributed Generation Creates Jobs (Manufacturing, Distribution, Installation, and Service) Generates Tax Revenues Sales tax, payroll tax, etc. Decreases Spending on Procuring Energy or Fuel from Outside the Local Economy Monies Saved on Electricity Go Back into Local Economy DarMar Residence by Carlson Solar

Build-Up of PV Value In California Other Values 7.8 – 22.4 ¢/kWh Exhibit LSS-7 ¢/kWh Build-Up of PV Value In California Other Values TBD (See Write-up) Value of Health Benefits* 0.02 - 0.04 Value of Avoided NOx Emissions* 0.01 - 0.03 Value of Avoided CO2 Emissions* 0.33 - 1.77 0.01 - 0.05 Value of Avoided Water Use Value of Fossil Fuel Price Hedge 0.41 - 0.95 Value of Grid Support* 0.09 - 0.28 Value of Deployment Ease and Speed Site Specific Avoided Generation and T&D Losses* 0.52 - 1.36 Avoided Generation Fuel Cost (Natural Gas) 3.24 - 9.71 Avoided Generation Variable Operation & Maintenance Cost* 0.00 - 0.08 Avoided Distribution Cost* (All Costs Allocated to Summer Peak) 0.19 - 2.95 Avoided Transmission Cost* (All Costs Allocated to Summer Peak) 0.04 - 0.72 Avoided Generation Capacity Fixed Operation & Maintenance Cost* 0.19 - 0.44 Avoided Generation Capacity Capital Cost* (65% Effective Load Carrying Capacity applied to all Avoided Capacity Costs) 2.73 - 4.01 CPUC R1 4/13/05 RANGE OF TOTAL VALUE OF PV: 7.8 – 22.4 ¢/kWh

California Solar Initiative Program

Solar Projects installed www.gosolarcalifornia.ca.gov

How CSI Succeeded Political will Longevity Transparency Governor, CPUC, and CEC Longevity 10-yr or 3GW market 30% federal tax credit Transparency CSI Database Installed pricing Equipment installation Installer information CPUC information through utilities & California Sustainable Energy Incentive levels Installer & customer workshops Stakeholder participation California Solar Energy Industries Association (now California Solar and Storage Association) Environmental groups, communities and media Consistency & Clarity Access to financing PPAs Leases & loans Property tax based financing

Lessons Learned CSI is the most successful DG program implemented in North America Avoided building peaker plants Created up to 100,000 local jobs plus thousands others in manufacturing and services Utilities concerns with the ¨duck curve¨ and distributions issues Creating demand for batteries and electric vehicles