1. PV situation in Spain By José Donoso, General Director of UNEF May, 2013

2. Evolution of Spanish PV market PV Situation in Spain May, 2013 PV Power connected to the grid (AC data) Yearly PV Power (AC data)

3. PV Situation in Spain May, 2013 Total regulatory uncertainty and retroactive measures 13 laws / royal decrees since 2007, some very damaging for PV market and investment confidence: - Royal Decree 1578/2008. One year market paralysis: employment destruction: from 60.000 to 14.000 workers. - Royal Decree-law 14/2010. Retroactive hourly production limits to Feed-in Tariff (FiT): 30% FiT reduction in 2011, 2012 and 2013, and 10% reduction for next 25 years. - Royal Decree-law 1/2012. Undefined moratoria for renewable sources, started at January 2012 and still ongoing. - Law 15/2012. Discriminatory 7% tax for electricity production + State budget and CO 2 auctions to pay FiT. - Royal Decree-law 2/2013. Arbitrary change of the index-linked FiT to a special Consume Price Index: 2,7% FiT reduction only in 2013, and more losses in coming years. Renewable companies and associations are taken Government to national and international courts

4. Critical situation for PV in Spain PV Plants have 35%-40% less income than expected - Due to retroactive measures, PV installations cannot afford finance costs. PV Producers (companies and people) have to renegotiate with banks (if they can) and face lost of PV installations and guarantees of the loans. Government will do more cutbacks to PV Plants - Government is reforming the electricity sector and will do more cutbacks to renewable energy sources. - There are rumours about payment of back up services, prolonging the 30% FiT reduction due to hourly production limits… Even It’s said the Government will expropriate the PV plants. PV Companies are failing - Due to moratoria, manufacturers, installers, distributors, engineers… are going to bankruptcy or abroad (if they can). More than 50% of Spanish PV companies are disappeared since 2008. - Lost of employment (From 60.000 workers in 2008 to less than 7.000 now), knowledge and technology. Government don’t approve a net-metering scheme - PV is already profitable in self consumption models, but the Government don’t promulgate the necessary regulation. A net-metering scheme should have been published one year ago. - The self-consumption scheme will develop a new market for PV without FiTs or other supports schemes. PV Situation in Spain May, 2013

5. UNEF net-metering proposal key points - Exchanges of energy. Rollover for 12 months. No payment for surpluses. - PV systems size limited to the power contracted with utility. - Shared net-metering for consumers in the same building or code land registry. - Possible different owner for surface and PV installation in order to allow ESCO business. - No tolls for direct self consumption + Reduced tolls for net-metering, according to the use of the grid. - Yearly power caps: 200 MW – 300 MW – 400 MW thereafter (less than 1% of electricity demand at year five). PV Situation in Spain May, 2013

6. Benefits of UNEF net-metering proposal PV Situation in Spain May, 2013 Business amount Energy imports avoided Tax incomes Economical expected evolution in 1 year / 3 years / 5 years Direct jobs

7. Unión Española Fotovoltaica Calle Velázquez, 18. 7º izda. 28001 Madrid. Tel.: +34 917 817 712 Fax: +34 917 816 443 info@unef.es www.unef.es info@unef.es