1 California Solar Initiative

2 Content  Overview of CSI  What’s New  CSI Status Update  CSI Field Inspection Process  CSI Metering  CSI Application Process

3 Overview of CSI

4 CSI Budget  Total authorized CPUC CSI budget is $2.165 Billion  Funded by electric distribution rates  Regional CSI incentive budgets are as follows: $223M California Center for Sustainable Energy $996MSouthern California Edison Company $946MPacific Gas and Electric Company $223M $996MSouthern California Edison Company $946MPacific Gas and Electric Company

5 CSI Eligible Customers  Eligible customer projects must be within the service territory of and must receive retail level electric service from: Pacific Gas and Electric (PG&E) Southern California Edison (SCE) San Diego Gas & Electric (SDG&E) The California Center for Sustainable Energy administers the CSI in the SDG&E Service Territory  Municipal electric utility customers are not eligible to receive incentives  Municipal electric utilities are required to have a CSI solar program for their customers starting in 2008

6 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 1 MW under SGIP and 1 MW under CSI allowed Future system expansions allowed  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) New Construction and Future Load Growth must be substantiated 1) New construction residential projects administered by the CEC under the New Solar Homes Partnership Program

7 CSI Incentive Structure As of January 1, 2007, the CSI program pays:  Expected Performance-Based Buydown (EPBB) incentives for PV projects < 100 kW EPBB is an up-front incentive based on an estimate of the system's future performance EPBB combines the benefits of rewarding PV System performance with the administrative simplicity of a one-time incentive paid at the time of project installation  Performance-Based Incentives (PBI) for PV projects > 100 kW Monthly payments based on measured kWh output of solar power produced over a 5-year period

8 Expected Performance Based Buydown (EPBB)  Applies to Systems < 100 kW  Paid upfront, based on the following incentive rates (based on current incentives reserved)  EPBB Incentive = EPBB Incentive Rate x System Rating x Design Factor  Design Factor = Simulated solar output of proposed system/Simulated solar output for optimal system Takes into consideration location, orientation, tilt and shading effects on system performance EPBB Design Factor Tool:

9 Performance Based Incentives (PBI)  Applies to systems ≥100 kW  Paid monthly over a 5-year period, based on the following incentive rates:  PBI Incentive = PBI Incentive Rate x Measured PV System Energy Output  Reservation Amount will vary by capacity factor used Reservation Amount = PBI Incentive Rate x.18 x 8760 x CSI System Size x 5 year (fixed systems) Reservation Amount = PBI Incentive Rate x.22 x 8760 x CSI System Size x 5 year (tracking systems)  Customers may opt into PBI for systems < 100 kW

10 CSI Incentive Rates 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

11 What’s New

12 What’s New  Recent TOU decision  PAs to file Advice Letter for proposed CSI Handbook changes  CSI Program Forum held on June 29 th in Irwindale (Southern California)  CSI Program Administrators hired technical experts to assess incentives and filed CSI Handbook changes on June 1, 2007  Beta testing for Statewide Database began in June

13 Update on Time of Use (TOU) Rate Requirements  TOU tariffs are now optional for CSI applicants not otherwise required to take service on TOU tariffs, until the CPUC develops requirements and approves new PG&E TOU tariffs.  Customers who have already applied for CSI rebates have the option of remaining on their TOU rate schedule or returning to their prior electricity rate schedule or an otherwise applicable flat rate schedule for which they qualify.  If customers were required to switch to a TOU rate schedule in order to receive their CSI rebate, they may be eligible to receive a credit for any difference between their bill under the TOU rate schedule and a qualifying flat rate schedule.  See the Clean Power Estimator at or/index.html

14 PAs Advice Letter - Procedures PAs intend to file an Advice Letter with the CPUC to recommend changes to CSI Handbook Proposed changes are not effective until Advice Letter is approved Regulatory procedure allows for a Protest Period

15 Proposed Handbook Changes System Description Worksheet: Eliminate this requirement for all residential systems and non-residential systems under 10 kW Proof of Insurance for Installers: Eliminate this requirement within the CSI Program Application for Interconnection: Eliminate the requirement to submit Interconnection application at the same time as the rebate application for all residential systems and non-residential systems under 10 kW (2-Step Applications) Electrical System Sizing Documentation: Eliminate load justification requirement for systems less than 5 kW Advanced Reservation prior to Interconnection: Eliminate the Handbook requirement to have an approved reservation prior to interconnection.

16 Proposed Handbook Changes Self-Installations – Revise conflicting language in handbook to allow for self-installations to be eligible for CSI incentives Copy of Executed PMRS Contract or Cost Cap Exemption Documentation – Add to final paperwork (Incentive Claim Form package) Correct Minor Typos – Please identify any you have seen! Change SDREO to CCSE Changes due to Regulatory Decisions Update MW Trigger Section on how to allocate MWs that have dropped out Updated language on EPBB calculator Update TOU Section to reflect new changes

17 CSI Status Update

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19 Statewide Trigger Point Tracker

20 Program Activity to date Customer ClassStatus Total # of Projects Total System Size (kW) Total Incentive Amount Residential Active Projects 1 1,4907, $23,876,973 Incentive Claim Projects Received $1,353,969 Completed $940,430 Non-residential Active Projects , $139,325,628 Incentive Claim Projects Received $242,968 Completed18.283$15,738 Total1,92153, $165,755,706 1 Applications currently under review or have been reserved for CSI funding 2 Incentive Claim packages submitted that are under review, waiting for additional documentation from customer, or completion of field inspection before payment can be issued

21 Program Activity to date

22 CSI Field Inspection Process

23 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

24 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.

25 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.

26 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.

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

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

29 Magnetic Declination Correction

30 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.

31 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

32 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

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

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

35 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

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

37 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

38 Shading Measurement Tips Account for tilt & azimuth in shading analysis software (Solar Pathfinder Assistant & Solmetric SunEye). This will affect results. Communicate tool and method used to inspector if possible.

39 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.

40 CSI Metering

41 Meter Requirements  All Systems Must Have Metering & Performance Monitoring Performance meters are in addition to utility revenue meters Must have 5-yrs of independent performance monitoring Subject to certain exemptions (See Table 16 in CSI Handbook)  Cost Responsibility & Caps Customer must bear all costs for performance meters & for 5 years of performance monitoring (incl. data communication) Costs not to exceed 1% of system costs for 30kW and below, 0.5% above 30kW (EPBB Only - See Table 16 for exemptions)  EPBB vs. PBI Accuracy Requirements EPBB < 10 kW: +/- 5% accurate (inverter meters allowed) EPBB > 10 kW & All PBI: +/- 2% accurate

42 Meter Requirements  Additional 2% Meter Requirements Must have Certificate from manufacturer verifying accuracy Must be capable of recording 15-minute interval data Must have remote communication capability (except EPBB systems < 20 kW that are unable to meet cost cap)  All Meters Must Be Listed by CEC CEC listing must state that the meter meets the 2% requirement to be eligible for PBI program  Meter Warranty Requirements 2007: One-Year Warranty 2008+: Five-Year Warranty

43 CSI Handbook Refer to CSI Handbook, Section 2.8 and Appendix B

44 PMRS Documentation  Customers are required to submit proof that they have contracted with an eligible Performance Monitoring & Reporting Service (PMRS) provider PMRS provider must be listed on CEC web site PMRS providers must not be “affiliated with the incentive recipient, or any solar manufacturer or installer” (D , Ordering Paragraph 17, page 124)  EPBB customers < 20 kW requesting an exemption per Table 16 must submit evidence that they cannot meet the cost cap For now, we just need an estimate from an eligible PMRS provider showing the cost exceeds the cap The Program Administrators are working on an exemption form for use in the near future

45 Meter Data Requirements Two Separate Data Streams:  Performance Data to Customer Daily, hourly or “real-time” performance data to customer Data maintained by PMRS provider per Handbook requirements Only PMRS providers listed with the CEC currently eligible  PBI Data to Program Administrator Monthly kWh produced &15-min. interval data (kW) Submitted via approved “Performance Data Provider” (PDP) Program Administrators developing PDP requirements Electronic Data Interchange (EDI) 867 format (proposed) Eligible PDPs may include PMRS providers, PG&E or 3 rd parties such as Meter Data Management Agents (MDMAs)

46 Meter Installation Options  Customers may contract with utility or qualified 3 rd party providers Can use any qualified provider for the meter installation, so long as the meter is CEC-approved & installed to NEC standards and applicable local codes We recommend using experienced meter installers for safety & reliability reasons. (See CPUC web site for certified Meter Service Providers) Customer responsible for installing meter socket for utility- provided meters  Customers should decide early in the process who will provide meter, PBI data & PMRS service to avoid delays, minimize cost and ensure compatibility

47 Meter Requirements Update  Petition to Modify submitted on March 5 th Submitted by PG&E, SDREO (now CCSE), PV Now, CalSEIA, Vote Solar Initiative, & SMA America  If approved, Petition would modify CSI as follows: All EPBB customers can use +/- 5% (inverter) meters Remove cost cap for all PBI customers & confirm 2% meter requirement for all PBI, regardless of size Remove requirement for PMRS providers to be unaffiliated with solar vendors & installers

48 Meter Requirements Update (Cont’d)  CPUC issued a Proposed Decision (PD) on June 26 th that would implement the first two issues  CPUC to issue separate PD on the PMRS issue at a later date  CPUC expected to act on first PD at July 26 th Commission meeting  We are now in the 30-day comment period  The Commission could adopt the PD as is, modify it, or reject it  PG&E to file comments in support of PD  Until/unless CPUC adopts PD, current meter requirements apply

49 Meter & PMRS Links  Eligible Equipment, MSP’s, MDMA’s, and PMRS Listings Eligible Meters – Listed on CEC website: bin/eligible_meters.cgi MSP – Listing on CPUC website: +markets/metering/msps.htm MDMA – Listed on CPUC website: +markets/metering/mdmas.htm PMRS – Listed on CEC website: nitors+rsp.html

50 CSI Application Process

51 Program Eligibility  Host Customers must perform an energy efficiency audit to be eligible for CSI incentives  CSI Installers must be listed with the Program Administrators and have an active A, B, C-10, or C-46 license  Self-Installations allowed  All systems must have minimum 10-year warranty covering the solar generating system provided for no cost repair or replacement

52 3-Step vs. 2-Step Reservation Process  3-Step Reservation Process Non-Residential System size >10 kW Subject to Application Fee of 1% of Requested Incentive Amount Customers may opt-in to Expedited 3-Step  2-Step Reservation Process Residential System of any size Non-Residential Systems <10 kW No Application Fee  Reservation Period 12-months for retrofit projects 18-months for new construction/government/non-profit All forms available at Refer to CSI Handbook, Section 4.1

53 3 Step Process Refer to CSI Handbook, Section 4.2

54 3 Step Process Refer to CSI Handbook, Section 4.2

55 3 Step Process Refer to CSI Handbook, Section 4.7.2

56 2 Step Process Refer to CSI Handbook, Section 4.1

57 2 Step Process Refer to CSI Handbook, Section 4.1

58 Avoid Common Mistakes Include host customer information If a customer is a public entity, be sure to provide the AB1407 letter If a customer is a non-profit, be sure to provide confirmation that the system will not be receiving tax benefits In the “Applicant” section, please provide a contact for the person who will be handling the paperwork and data requests. Please provide future load documentation for non-residential new construction or added load projects. Whenever possible, include the application fee check with the initial application

59 Website Resources PG&E Solar Website: PG&E CSI Website: CPUC Solar Website: Locate Solar Installers: CEC PV Eligible Technologies: ate/equipment.html

60 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.

61 PG&E Contact Information  Website:  Address:  Contact Person: Program Manager, Telephone: (800)  Fax: (415)  Mailing Address: PG&E Integrated Processing Center California Solar Initiative Program P.O. Box 7265 San Francisco, CA

62 Generation Interconnection Services

63 GIS Role One point of contact for customer (or authorized agent) with regard to interconnecting systems Coordinate various activities, including engineering, metering, and contract administration Responsible to ensure system is installed as design indicates and operating according to Rule 21 Two types of solar interconnections: NEM and non- NEM options

64 Process Improvement Change in AC disconnect requirement policy – November 2006 NEM-MT has been approved to permit projects with solar combined with other generation technologies Underway: simplification of application, to be combined with the Agreement for NEM

65 Interconnection Application and Agreement A separate application and process from CSI (recently updated) Process runs parallel with CSI/SGIP Application must be complete and include required documents for review Execute Inspection and Interconnection Agreement before a system is permitted to operate

66 Project Review

67 Inspection Check system to ensure built as designed (matches SLD) Install bi-directional meter (NEM) Verify installation of AC disconnect and appropriate signage (if required) Install Net Gen Output Meter, if needed

68 Overall Timeline NEM projects- generally less than 30 business days Non-NEM- within 60 days, if all required docs/signatures and construction is on schedule

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72 Resources Standard NEM: ator/solar_wind_generators/standard_e_net/ Expanded NEM: ator/solar_wind_generators/expanded_e_net/ Non-NEM projects: ator/retail_generators/ Contact: or