Solar for your Home and Business Earth Wind and Fire Energy Summit Addison Texas October 4, 2014 Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014

Independent consulting firm specializing in renewable energy, particularly distributed generation Services Clients Renewable energy programs Education and training Project development Technical and market analysis Advocacy End-use energy consumers, Engineering and construction firms, Clean energy project developers, Utilities, Government agencies, and Regulators Clean Energy Associates

3 Top distributed solar installer in Texas with offices in DFW+Austin+San Antonio Successful contractor for recent Solarize Garland project Goal: To be the be the best installer of the best solar equipment at the best prices for the best customers in Texas Our Recent Growth: 2009 – 32 kW 2010 – 104 kW 2011 – 242 kW 2012 – 1134 kW 2013 – 1676 kW 2014 – 2024 kW YTD Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014

How Solar Integrates with a Home or Business Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014

Solar Panel Technologies Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Types of Solar Cells Crystalline Silicon (~88% of worldwide market) – Poly (~60%) – Mono (~18%) Thin Film (~10%) – Cadmium Telluride (Cd-Te, ~5%) – Copper Indium Gallium Diselenide (CIGS ~2%) Multi-junction, Nanocrystal, Organic, Plastic, Polymer, Quantum Dot, etc. (~2%) Advice Don’t get too caught up in the latest developments and industry press Best selling technology is so because it’s bullet proof Longest warranties of any product (25 years) means you should look to strong companies with proven track records And for good values

Stand-Alone or String Inverter Benefits – access, simplicity, strong track record, low cost Drawbacks – slightly less efficient under certain circumstances, less granular performance data Microinverters and AC Modules Benefits – slightly more efficient under certain circumstances, highly granular performance data Drawbacks – access, higher cost, finicky data integration DC Optimizers Benefits – slightly more efficient under certain circumstances, highly granular performance data Drawbacks – access, higher cost, finicky data integration Common Inverter Technologies Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Advice Don’t get too caught up in the latest developments and industry press Best selling technology is so because it’s bullet proof

Using Solar Energy Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Solar electricity feeds to home on your side of the utility electric meter It flows to wherever it’s needed – lights, appliances, etc. Utility-provided electricity will supplement to match your needs If you’re generating more than you’re using, energy flows back to the utility Advice Use it any way you like Be aware of contractual relationships regarding “green” or renewable energy credits

Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Inflow-Outflow Metering (competitive market, most common in DFW area) Wires company meters inflows and outflows separately, passes data to retailers for billing Retailers have no obligation to purchase or credit customer for outflows Green Mountain Energy, TXU, and Reliant, and have buyback offers for residential customers us/Content/Resource/Selling-Renewable-Power Net Metering (many coops and munis) Value (full retail, wholesale energy), rollover policies Value of Solar (Austin only, so far), FiT or PPA (someday) VOS: Utility charges you for all your consumption, regardless of whether it came from your solar or their wires; utility then credits you for all solar production, regardless of whether you used it in your home or exported it as excess energy to the grid FiT/PPA: Utility contracts directly with customer for solar production Realizing Value for Solar Energy

Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 The US Solar Market is Growing Rapidly… …and Growth is Becoming More Widespread

Solar Prices are Declining… U.S. …and are Relatively Low in Texas Texas Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014

Grid Parity… At $3.22/w-dc with no incentives

Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Grid Parity… At $3.22/w-dc with 30% Federal ITC

Solar Incentives are Declining… U.S. Texas Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, % Federal ITC expires at the end of 2016 unless extended

Key Drivers of Customer Decisions Motivations for Going Solar Environment, legacy, interest/hobby, network/ peer effects, independence, conservation theology, simple economics Economics – Price of solar – Price of traditional power (current and forecasted) – Asset and property value – Value of money – Incentives and tax credits (Utility rebates, federal tax credit) Constraints Cash or credit rating Electricity usage Available roof area Shading Alternatives to solar Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014

Buying Solar Cash – most common in Texas, straightforward purchase, cash payment then tax credit Loan – can help match payment flow to energy bill reduction, customer owns the system Lease – can help match payment flow to energy bill reduction, third party owns the system Others (PPA, ESPC, PACE) The “ rule of thumb” (for cash only) 10c/kWh electricity price + $2/w-dc net installed cost of solar (after rebates, tax credits, etc.) Yields 10 year simple payback Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Choosing a Solar Company Quality/Thoroughness of Bid Credentials and Experience Licensed electrical contractor NABCEP certified installers Knowledgeable/Attentive Sales Staff Online Reviews Going Solar

Sample Economics – Oncor 2014 Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 For sample purposes only – not a quotation! System offsets 72% of customer’s electricity usage $6,300 net cost after rebates and tax credits Financed $1550 down yields net zero cash flow (monthly savings = monthly payment)

Steve Wiese, Clean Energy Associates and Longhorn Solar for the Earth Wind and Fire Energy Summit, October 4, 2014 Some Final Thoughts Policy and Incentives Tweaking the Economics – Rebates – Tax credits – Rate structures – Financing Removing Barriers to Competition – HOA rules – Solar access – Consistent, predictable, efficient permitting processes Big Questions and Issues – Declining incentives – Increasing electricity prices – Utility rate structures – Utility participation model

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