1 California Solar Initiative

2 Content Overview of CSI CSI Updates Program Status CSI Application Process CSI Field Inspection Process CSI Metering Rate Information Generation Interconnection Services

3 Overview of CSI

4 CSI Eligible Projects Residential Retrofit Projects 1 Non-Residential Retrofit and New Construction Projects Minimum System Size of 1 kW Maximum System Size of 5 MW Incentives will be capped to the First MW Installed capacity at site may not exceed actual energy consumed during previous 12 months Maximum System Capacity = 12-months previous kWh usage / (0.18 x 8760 hr/year) 1) New construction residential projects administered by the CEC under the New Solar Homes Partnership Program

5 CSI Incentive Structure As of January 1, 2008, the CSI program pays: Expected Performance-Based Buydown (EPBB) incentives for PV projects < 50 kW EPBB is an up-front incentive based on an estimate of the system's future performance Performance-Based Incentives (PBI) for PV projects > 50 kW Monthly payments based on measured kWh output of solar power produced over a 5-year period

6 CSI Incentive Rates (Original Allotment) Incentive structure: Rebates automatically decline based upon reservations reserved Higher rebates for non-taxable entities PG&E (MW)EPBB Payments (per Watt)PBI Payments (per kWh) StepRes Non- ResResidentialCommercial Gov't / NonprofitResidentialCommercial Gov't / Nonprofit 1--n/a $2.50 $3.25$0.39 $ $2.20 $2.95$0.34 $ $1.90 $2.65$0.26 $ $1.55 $2.30$0.22 $ $1.10 $1.85$0.15 $ $0.65 $1.40$0.09 $ $0.35 $1.10$0.05 $ $0.25 $0.90$0.03 $ $0.20 $0.70$0.03 $0.10

7 CSI Program Update

8 Program Updates December Advice Filing by Program Administrators Improve customer experience Reduce Paperwork Sample list of Proposed CSI Handbook Revisions System Size Calculations based on square ft (<10 kw) Reduce proof of electricity utility service documentation Meter Warranty Requirements Revised EPBB Calculation Printout Requirement

9 CSI Status Update

10 Trigger Tracker (

11 Program Activity to date Over $20 million paid

12

CSI Application Process

14 Required Documents 2 Step Reservation Request *Interconnection Paperwork submitted on parallel path

15 Required Documents 3 Step Reservation Request

16 Required Documents 2 and 3 Step Incentive Claim *Updated EPBB Tool Printout

17 Application Resources Resources Energy Audit Options Apply Now -> Downloadable Forms Online Database Link EPBB Tool Link

18 Statewide Database: PowerClerk Demo Log in as applicant, installer, or seller Benefits Complete Reservation Request and Incentive Claim Forms online Check the status of application

19 Common Mistakes Reservation Request Packet Listed equipment does not match EPBB Print Out Missing Energy Audit documentation Mailing Address vs Project Site Address Incentive Claim Packet Not Interconnected Revised EPBB not submitted to reflect changes in installed equipment Missing PMRS documentation Missing 10 Year Warranty for equipment and/or installation

20 CSI Field Inspection Process

21 CSI Inspections Inspections will: Verify that equipment nameplates and counts match those submitted on the Incentive Claim Form Include measurements to verify that system tilt, orientation, and shading values are consistent with values used in the EPBB calculator and submitted along with the Incentive Claim Form Verify that system is operational and output is reasonable for conditions at time of inspection

22 CSI Inspections Coordinating Inspections Inspector will require physical access to the equipment to perform inspection. Applicant is not required to attend inspection, but it is recommended. We prefer that the applicant coordinate with customer to provide necessary access to inspectors. Upon request by the applicant, the inspector will coordinate access directly with the customer.

23 Equipment Verification Module verification If PV modules are mounted such that nameplates aren’t visible, we will request invoice to verify make and model. Number of modules installed is verified by the inspector on-site. Inverter verification Inspector needs to verify make, model, and number of inverters installed and that PV system is operational.

24 Installation Verification Verify Inputs Inspector will measure the tilt, azimuth and shading of array(s) on site and check against submitted values. Correct Inputs The EPBB design factor will be recalculated if measured values differ significantly from submitted values. Approve Inputs If submitted values are reasonable compared to measured values then the inspector will approve inputs as submitted.

25 Common Mistakes Azimuth Not corrected for magnetic declination Compass used near metal or magnet Bad compass Shading Misunderstanding of “minimal shading” Incorrect shading analysis

26 Measuring Azimuth Azimuth Lookup magnetic declination for location ( clination.jsp) Stay ft. away from metal or magnets Add magnetic declination to compass reading Check reading against tools like GoogleEarth

27 Magnetic Declination Correction

28 Measuring Shading Minimal shading requires at least 2:1 distance to height ratio (equal to 26.6° altitude angle) of any object between 80° to 280° orientation. Systems without minimal shading must submit monthly solar access for site. Solar access can be measured with tools such as the Solar Pathfinder or Solmetric SunEye.

29 Minimal Shading 40 Feet 10 Feet Object Height is 10 feet above the array. 2x Height = 20 feet Distance = 40 feet 2x Height < Distance = Minimal Shading NO SHADE IMPACT REQUIRED

30 Not Minimal Shading 25 Feet Object Height is 15 feet above the array. 2x Height = 30 feet Distance = 25 feet 2x Height > Distance = Not Minimal Shading SHADE IMPACT REQUIRED 15 Feet

31 Case Study 9 panels tilted S 21 panels S Neighbor’s tree

32 Compile Data Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Reading % of Solar Availability per month

33 Calculate Average Jan 89Jan90 Feb90Feb91 Mar92Mar92 Apr93Apr93 May94May94 June95June95 July97July96 Aug96Aug96 Sept94Sept95 Oct92Oct93 Nov91Nov92 Dec89Dec91 Array 1 Reads 1-4 Array 2 Reads 5-8

34 Calculate Impact Run EPBB tool per Array Array 1 – 9 panels Array 2 – 21 panels

35 Shade: EPBB vs PBI PBI Incentive based on kWh generated Winter shade matters Entire year’s system availability determines incentive EPBB Only summer availability determines incentive Much more forgiving of total shade impact

36 Inspection Results Inspector will communicate any discrepancies found with applicant attending inspection. Inspector will recalculate EPBB design factor if necessary and submit with report. Inspection report is submitted to the Program Administrator by the inspector. Program Administrator will contact applicant if discrepancies were found.

37 Failed Inspections For Installers with 200 or less installed systems per year 2 failed inspections = Every project inspected 3 failed inspections = Disqualified from CSI for 1 year High volume installers (> 200 installed systems per year): If the installer accumulates two strikes, the entity will be placed on probation. If no additional strikes are accumulated within the first year, their first strike is removed and they continue on probation until the second strike’s probation year ends. If they acquire no additional strikes, the second strike is removed, and they will be restored to a zero-strike status. Failed inspection for mechanical failures: 60 calendar days will be allowed to bring the system into compliance after a failed inspection, subject to re-inspection Refer to CSI Handbook, Section 2.9.1

38 Preventing Failed Inspections Make sure Incentive Claim Form and EPBB Calculators match. Make sure Incentive Claim Form and EPBB reflect “As Built System.” Updated EPBB Calculators will not be accepted by inspectors on site.

39 CSI Metering

40 Notes: 1)All metering systems are paid for at the System Owner’s expense including some form of communications, performance monitoring and reporting capability. 2)PMRS stands for Performance Monitoring and Reporting Service. 3)For systems receiving an EPBB incentive, the total cost of the metering, communication and PMRS for the first five years following final project approval shall be less than 1% of total PV system eligible project costs (exclusive of metering, communication and PRMS costs) for systems up to 30kW and less than 0.5% for larger systems. If the owner of a system receiving an EPBB incentive can demonstrate to the Program Administrator that the costs for these services exceed the caps, they may request an exemption from the communication and PMRS requirements. The System Owner requesting such an exemption must, at a minimum, install a meter with an accuracy of ± 5% of actual system output that meets all applicable parts of Section 11.1 and which includes functionality that allows the System Owner or Host Customer to observe the system performance locally. However, there are no exemptions allowed for systems paid under a PBI structure. CSI Handbook

41 Performance Meter Requirements All systems must have metering and performance monitoring Performance meter is separate from and in addition to the utility’s revenue meter All meters and performance monitoring and reporting service (PMRS) providers must be listed by the CEC Meters must have a one-year warranty Performance meters can be installed by the utility or a qualified 3 rd party See CSI Handbook Appendix B for additional requirements

42 PMRS Requirements Performance data to customer (EPPB & PBI) – for information only Applicants must submit proof that they have contracted with an eligible PMRS provider EPBB applicants requesting an exemption from the PMRS requirement must submit evidence showing costs exceed the cap See CSI Handbook, Section for documentation requirements

43 Performance Data to Program Administrator (PBI Only) Data used for calculating monthly PBI payments Performance data provider must first be qualified by each Program Administrator In most cases, the PMRS provider will also provide this service Requirements will be finalized in early 2008

44 Rate Information

45 Rates & Tariffs Basic Info Dylan Savidge – (415) Rates can be found under Electric Rate Schedules; Rule 21 and other Rules can be found under Electric Ruleswww.pge.com/tariffs Basic Terms: –Tariffs vs Rules vs Rates (Rate Schedules) –NEM – net energy metering (tariff or program name) –OAS – otherwise applicable rate –Flat rates vs. Time-of-Use (or TOU) rates –Baseline Tiers –CPUC and CEC –PG&E categorizes its Rates as Residential, Commercial (or General Service) and Agricultural.

46 Net Metering The utility grid is a two- way street! Electricity can be “sent back” to the grid by the customer. Eliminates the need for batteries. Reduces cost and maintenance. Ensures a constant supply of electricity. X Source: Andy Black

47 Sell Power to the Utility by Day Buy Power at Night and Winter Exchange at Retail Exchange at Retail Annual Cycle Annual Cycle Understanding PV Financial Analysis © 2006 Andy Black. All rights reserved. Net Metering

48 Net Metering – No Blackout Protection Unsafe to send live power into grid while workers repairing downed lines Understanding PV Financial Analysis © 2006 Andy Black. All rights reserved. X X No “voltage reservoir” means house current could fluctuate and damage appliances

49 Revised E-6 Residential TOU Rate E-6 rate changes effective January 1, 2008 E-7 closes to new customers E-1, PG&E’s flat residential rate, will still be available, until such time as the TOU requirements are revised Tiers are still in effect Minimum Charges Monthly Meter Charges

50 PV System Types Grid Interactive (“On-Grid”) Grid tie only <=Today’s FocusGrid tie only <=Today’s Focus –no batteries needed Grid tie with battery backupGrid tie with battery backup Stand-Alone (“Off-Grid”) Battery backupBattery backup

51 Will PG&E “Pay” Me for the Energy I Produce?

52 Net Metering (NEM) The intent of the NEM program is that the generation is primarily to offset part or all of the customer’s own electrical requirements. The grid acts like a “big battery” and the customer meter keeps track of the storage (debits or credits). The energy is bought and sold at the going retail rate. Cap is 1 megawatt in California per systems, other states it is lower (example Mass chutes us 60 kW)

53 Time of Use E-6 Time of Use periods and charges: Summer (5/1 – 10/31) Peak - 1 pm to 7 pm Mon-Fri Partial-Peak - 10 am to 1 pm AND 7 pm to 9 pm plus 5 pm to 8 pm Saturdays and Sundays Off-peak - All other times Winter (11/1 – 4/30) Partial-Peak – 5 pm to 8 pm All other times including holidays Holidays are New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving Day. The dates will be those on which the holidays are legal observed.

54 Baseline Tiers Created to encourage conservation among Residential customers The more energy (kWh) used, the more you are charged. Baseline is establish on what is usage within alphabet letter designated climatic zones Tiers are set at: Tier 1: % (baseline) Tier 2: 101%-130% Tier 3: 131%-200% Tier 4: 200%-300% Tier 5: Over 300% Tier kWh allocations are prorated by usage in each TOU period

55 New Rate Changes A-6 (Commercial non-demand) Rate Eligibility for NEM E-19 Mandatory Accounts Effective January 1, 2008 per PG&E’s 2007 GRC phase 2 decision Schedule E-19 is mandatory for customers with maximum billing demands > 499 kW, and < 1,000 kW for at least three consecutive months during the most recent 12 month period. A-6 option for new E-19 NEM customers who meet the criteria: Qualify for E-19 Mandatory Installs a PV system that meets at least 20% of the measured maximum demand The maximum demand facility load before the installation of any solar system. One time switch option for existing E-19 NEM customers 20 MW program enrollment cap

56 E-20 Solar Generation Demand Adjustment New Schedule E-20 language: no demand de-ration due to installed solar. Requirements: PV must be installed on January 1, 2007, or later PV must reduce demand to the point that the customer would no longer have more than 999 kWh for 3 months in the previous 12 months. The fixed reduction in demand from the interconnection agreement will be added to customer’s maximum demand for E-20 eligibility purposes No “enrollment” necessary No program cap

57 Generation Interconnection Services (GIS)

58 GIS Role Acts as a single point of contact for customer (or authorized agent) to interconnect generation. Coordinates interconnection activities, including engineering reviews, metering, special facilities, and customer contract administration. Ensures system is installed as designed and operating according to Rule 21. Provides for two types of solar interconnections: NEM and non-NEM options for the customer. Supports NEM Billing Process through GIS database.

59 Process Improvement Changes in AC disconnect requirement policy. NEM-MT (Multiple Tariff) has been approved to permit projects with solar combined with other generation technologies. (Co-gen, Fuel Cells, Bio) Application Simplification, now combined with the Agreement/Exhibit A/POI for NEMS. New Business subdivision process for change of parties and engineering design standards. Underway: New tariff interpretation regarding transformer rating and interconnected PV capacity. (Rule 21, Section D.3.d)

60 Interconnection Application/ Agreement Separate interconnection application and process from CSI. Interconnection process runs parallel with CSI/SGIP. Application must be complete and include all required documents for review and signature. Field inspection and Interconnection Agreement is complete and executed before Generator is permitted to operate (PTO).

61 Engineering Review

62 Field Inspection Check system to ensure built as designed on Single Line Diagram (SLD). Install bi-directional meter (NEM customers). Verify installation of AC disconnect and appropriate signage (if required). Install Net Gen Output Meter (NGOM), if requested. Verify that meter location/disconnect is safe for PG&E personnel access (free from unrestrained animals, locked gates, etc…).

63 Timeline NEM projects- generally less than 30 business days upon receipt of all required paperwork and project passes first inspection. Non-NEM within 60 days, if all required docs/signatures and construction is on schedule. What can slow an application down?

64 Application Common Issues Project size (over 30 KW) does not qualify for Standard NEM. Proof of Insurance (POI) not complete. Meter must match that which is tied to generator. Final building permit does not match application. SLD has no equipment information: make, model, rating, or… how many PV modules are connected to each inverter.

65 Application Common Issues Application has no rate schedule. Application does not match PG&E Blue Bill account name. (Call: to add name to acct.) Account number does not match PG&E Blue Bill. Meter access issues: unrestrained animals, gates, locked doors. (No self read meters for Time of Use rates). Reprogram fee of $228 for TOU. Website has availability and exception.

66 Common Issues System Upgrades: New Application is necessary showing additional/all generation on site. Disconnect switch for transformer rated meters not included on SLD. Fax coversheet not included when faxing docs (building permits) to GIS. Submit only one application (no more CSI pre- authorization reqs for interconnection application). F/U call should be placed to GIS once in 24 hours.

67 Common Issues PG&E is permitted 30 days from date of completed application to interconnection per Rule 21. Disconnect Access: Customer’s bi-directional meter must be installed in a safe, 24/7 PG&E- accessible location, unobstructed by locked gates or pets. Meter access must be maintained at all times for reading/system maintenance. Any animals owned by the customer, including pet dogs, should not have access to these areas to avoid hindering PG&E service personnel from completing their work.

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70 93% within 12 Business Days 4% Over 12 to 30 Business Days 3% Over 30 Business Days

71 PG&E GIS Resources NEM: Expanded NEM: Non-NEM projects: GIS Questions: or (415) Jack McDermott: GIS Sr. Program Manager: (415) or Residential Solar Questions: The Smarter Energy Line (SEL): (800) Commercial Solar Questions: The Business Customer Center (BCC): (800)

72 Website Resources PG&E Solar Website: PG&E CSI Website: CPUC Solar Website: Locate Solar Installers: CEC PV Eligible Technologies: pment.html

73 Additional PG&E Resources Pacific Energy Center and Stockton Training Center: Solar Classes: Basics of Photovoltaic (PV) Systems for Grid-Tied Applications Solar Water Heating Systems Field Verification and Diagnostic Testing of Photovoltaic Systems for HERS Raters Understanding Financial Analysis Methods for Photovoltaic (PV) Systems Diagnostic Tool Lending Library Solar Pathfinder Solmetric SunEye All tool requests must be submitted online via our online tool request form at The Request to Borrow Tools link at the top of the page brings borrower to our online tool request form. We request 2 to 3 days lead time for tool requests.

74 Meter & PMRS Links Eligible Meters & PMRS Providers – Listed on CEC’s “Consumer Energy Center” website: equipment.html Meter Service Providers & Meter Data Management Agents – Listed on CPUC “Electric Markets” website (somewhat dated): tric+markets/metering/index.htm

75 PG&E Contact Information  Website:  Address:  Fax: (415)  Mailing Address: PG&E Integrated Processing Center California Solar Initiative Program P.O. Box 7265 San Francisco, CA