1. State Allocation Board Hearing Solar Energy and Energy Efficiency Project Options for California Schools
Mark Johnson, Energy Solutions Manager - Schools Segment Pacific Gas & Electric Company
Kim Ngo, Program Manager – Solar and Customer Generation
Pacific Gas & Electric Company
December 5, 2011

3. Progressive Energy Policy
Long-standing State policies lower carbon footprint
30+ years of energy efficiency programs facilitated by “decoupling” of rates
California Energy Action Plan’s preferred loading order:
1. Customer Energy Efficiency and Demand Response
2. New Renewable and Distributed Generation
3. Clean gas-fired plants

4. PG&E Energy Efficiency Programs Impact on Schools Segment
YEAR
PEAK KW SAVINGS
KWH SAVINGS
THERM SAVINGS
PAID INCENTIVES
2010
7,801
33,290,453
767,643
$ 6,811,483
(9 months)
5,888
39,858,766
3,520,687
$ 10,953,148
Total
13,689
431,878,119
4,288,330
$ 17,764,631
From January 2010 – September 2011
Represents EE programs only (does not include DG programs)
PG&E system wide, all projects under Schools segment NAICS codes.

5. Energy Efficiency Integrated with Solar
Demand Response
Self - Generation
Carbon Offsets
Solar projects typically take 2 – 3 times longer to payback verses Energy Efficiency projects.
The “blended” financials (EE + Solar) typically result in EE making Solar more affordable when evaluated as an integrated project.
Solar / DG size and cost can be reduced ( less power required ).
This can result in lower overall project costs, less risk due to better financials, greater comfort & control usually result too!

6. PG&E Retrofit Incentive Programs
Energy Savings Rebates
The fastest and easiest approach for common retrofits
Customized Retrofit Incentives
Calculated approach for more comprehensive projects
Retrocommissioning incentive program
Focuses on “tuning up” controls
Third Party Programs
Over 80 select programs with offerings that address specific needs of a market segment (i.e. schools) OR a specific technology (i.e. lighting, HVAC, etc).

7. Energy Efficiency Supporting Programs
Energy Efficiency Financing Program
Bill Neutrality – Loan payments equal to estimated energy savings
Zero Interest - no cost to customer for life of the loan
Public Schools/Gov. - Up to 10 yr loan term, $250,000 per meter
Large Integrated Audit Program
Investment grade integrated energy audits for larger facilities (i.e. High Schools) that address evaluating Energy Efficiency, Demand Response, Solar, Distributed Generation.
Project Engineering & Calculation Assistance
Specialized local engineering support for project and energy saving calculation assistance.

8. California Solar Initiative Program
Kim Ngo, Program Manager – Solar and Customer Generation
Pacific Gas & Electric Company

9. Integration of EE and Renewables
EE should be considered prior to Renewables
Why?
California’s loading order encourages that EE be implemented prior to DG
EE is typically much more cost-effective than Renewables
Decreasing a facility’s consumption with EE reduces the size (and cost) of a Renewable system necessary to offset facility’s load
The capital investment on EE projects are typically a lot less and easier to implement than a large solar deployment.
Energy Efficiency should be recommended prior to DG.
EE is more cost-effective than DG and it is California’s loading order which means EE should be implemented prior to DG
EE reduces the size and cost of the DG system necessary to offset the facility’s load
Also note that PG&E has defined EE goals that we have to meet and we do not have explicit DG goals 9

10. The California Solar Initiative
PG&E began administering program in 2007
PG&E will provide $1 billion in incentives over life of the program
Statewide Objective: 3,000 MW by (PG&E’s goal MW)
Customers must perform energy efficiency audit to be eligible for incentives
Includes retrofit, low income, and new homes elements
PG&E CSI
Received more than 39,000 applications Since January 2007
Completed over 33,000 projects for a total of over 365 MW (CEC AC)
Data as of 11/21/11

11. The California Solar Initiative
Expected Performance-Based Buydown (EPBB)
Performance-Based Incentive
(PBI)
Payment basis
PV system size and design
(expected production)
PV system actual energy output
System size
< 30 kW
Any
Payment frequency
One time, up-front
Monthly for 5 years

12. The California Solar Initiative
Senate Bill 585:
Increases the total cost of the CSI Program funded by customers of PG&E, Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E) by $200 million statewide
Revises the PBI payment rates for Steps 8, 9, and 10 for all new CSI applicants (both residential and non-residential) to incorporate a 4% discount rate rather than the 8% rate previously incorporated into PBI payments

13. CSI Schools (K-12) Participation
Approximately 29% of Completed K-12 Projects are PPAs
*Active includes reserved and projects under review

14. 14
Questions ?
Thank You !

15. Appendix

16. Customer Financing Overview
Financing Option
Cash
Solar Lease
Power Purchase Agreement
Upfront cost to school
Borrow $ or pay cash
Low down payment
Low down payment or pre-payment options
System Ownership
School
Solar Company
Payments
Down payment and final payment upon completion
Down payment and Monthly lease payments
Monthly PV electricity payments
Operations & Maintenance
Federal Tax Credit
N/A
Performance Guarantee
None
Offered by Solar Company
Term of Financing
Up to 20 Years
Approximately 29% of Completed K-12 Projects are PPAs

17. Financing Options Full Purchase (Cash or Financing) School District
Solar Company
Owner of system
Borrow money or pay cash
Full payment up front
Maintain and monitor system
Economics:
Cash / total savings
Loan pmt. / monthly savings
Design and install
Sell
Honor warranties (equipment & labor) $ 17

18. Common Financing Options for Schools
PPA
School District
Solar Company $
Low or no money down
Monthly power payment
Possible buyout in the future
Economics:
Monthly pmt. / monthly savings
Owner of system
Design and install
Sell power
Maintain and monitor system
Honor warranties (equipment & labor)
Remove system at end if needed 18