1. Self-Generation Incentive Program 1 California Solar Initiative Update

2. Self-Generation Incentive Program 2 Content  Incentive Rates, Trigger Tracker  Applications Received  Marketing/Outreach Update  TOU Requirement  Metering Requirements  Phase II CSI 1

3. Self-Generation Incentive Program 3 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 210.120.5$2.50n/a $2.50n/a 314.429.3$2.20n/a $2.20n/a 418.738.1$1.90 $2.65$0.26 $0.37 523.146.8$1.55 $2.30$0.22 $0.32 627.455.6$1.10 $1.85$0.15 $0.26 73162.9$0.65 $1.40$0.09 $0.19 836.173.2$0.35 $1.10$0.05 $0.15 941.183.4$0.25 $0.90$0.03 $0.12 1050.5102.5$0.20 $0.70$0.03 $0.10 2

4. Self-Generation Incentive Program 4 http://www.sgip-ca.com 3

5. Self-Generation Incentive Program 5 CSI Applications Received (as of 5/31/07) 4 Total AppsTotal MW Under Review Total MW Reserved Total MW Received Non-Residential2386.69136.49343.184 Residential11272.1302.6954.825 Grand Total13658.82039.19848.009

6. Self-Generation Incentive Program 6 CSI Applications Received by Customer Class 5

7. Self-Generation Incentive Program 7 Marketing & Outreach Upcoming Solar Events/Workshops:  June 15: CSI Workshop for Solar Installers  Location: Pacific Energy Center, San Francisco  July 9: CSI Workshop for Solar Installers  Location: Pacific Energy Center, San Francisco  August 10: CSI Workshop for Solar Installers  Location: Pacific Energy Center, San Francisco  September 24-27: Solar Power 2007 Convention  Location: Long Beach, CA Watch our web page (pge.com/solar) for more event postings 6

8. Self-Generation Incentive Program 8 Time of Use (TOU) Rate Requirements Update  Starting in January 2007, CSI customers are required to take electric service under applicable TOU tariffs  The CPUC is expected to issue a decision on June 7 th that would allow customers a choice between TOU and non-TOU rates until more solar-friendly TOU rates are developed  Customers who were required to take service under a TOU tariff will be allowed to switch to a non-TOU tariff and will receive a credit for any difference in charges  The Legislature is working on emergency clean-up legislation that will postpone the mandatory TOU requirement until more solar-friendly rates are developed 7

9. Self-Generation Incentive Program 9 Meter Requirements  All Systems Must Have Metering & Performance Monitoring Meters are separate from utility revenue meters Must have 5-yrs of performance monitoring service Subject to certain exemptions (See Table 16 in CSI Handbook)  Meter Costs Customer must bear all costs for metering and 5 years of data communication and performance monitoring service Costs not to exceed 1% of system costs for 30kW and below, 0.5% above 30kW (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 8

10. Self-Generation Incentive Program 10 Meter Requirements  Additional 2% Meter Requirements Must provide Certificate from manufacturer for accuracy test Must be capable of recording 15-minute interval data Must have remote communication capability  All Meters Must Be Listed by CEC Must state that meter is eligible for 2% requirement  Meter Warranty Requirements 2007: One-Year Warranty 2008+: Five-Year Warranty

11. Self-Generation Incentive Program 11 CSI Handbook Refer to CSI Handbook, Section 2.8 and Appendix B 9

12. Self-Generation Incentive Program 12 Meter Data Requirements Two Separate Data Streams:  Performance Data to Customer Daily, hourly or “real-time” performance data to customer Data maintained by Performance Monitoring & Reporting Service (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 Submitted via approved “Performance Data Provider” (PDP) Program Administrators developing PDP requirements Electronic Data Interchange (EDI) 867 format (proposed) 10

13. Self-Generation Incentive Program 13 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 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, MDMA & PMRS services to avoid delays, minimize cost and ensure compatibility. 11

14. Self-Generation Incentive Program 14 Meter Requirements Update  Petition to Modify submitted on March 5th (PG&E, SDREO, CalSEIA, PV Now, Vote Solar Initiative, SMA America)  If approved, Petition would modify CSI as follows: All EPBB customers allowed to use 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 independent of solar vendors & installers.  Awaiting CPUC action

15. Self-Generation Incentive Program 15 Meter & PMRS Links  Eligible Equipment, MSP’s, MDMA’s, and PMRS Listings Eligible Meters – Listed on CEC website: http://www.consumerenergycenter.org/cgi- bin/eligible_meters.cgi MSP – Listing on CPUC website: http://www.cpuc.ca.gov/static/energy/electric/electric +markets/metering/msps.htm MDMA – Listed on CPUC website: http://www.cpuc.ca.gov/static/energy/electric/electric +markets/metering/mdmas.htm PMRS – Listed on CEC website: http://www.consumerenergycenter.org/erprebate/mo nitors+rsp.html 12

16. Self-Generation Incentive Program 16 CSI Policy Perspective  CSI Phase II Topics Affordable Housing/Low Income Single Family Low Income PD expected in August, 2007 Multifamily Low Income PD expected by end of 2007 RDD&D – draft Proposal issued; PD expected by August Measurement & Evaluation – No action yet CSI Marketing, Education & Outreach Interim Ruling issued to allow for activities prior to final Phase II decision; PD expected before end of 2007  CSI Program Forum – June 29 th, Irwindale (SCE)  Non-PV Solar Technologies – PA Proposal submitted June 1  SDREO Solar Water Heating (SWH) Pilot Program $3M Pilot Program approved for San Diego area only (July launch) 13

17. Self-Generation Incentive Program 17 PG&E Contact Information  Website: www.pge.com/csi  Email Address: solar@pge.com  Contact Person: Program Manager, Telephone: (800) 743-5000  Fax: (415) 973-8300  Mailing Address: PG&E Integrated Processing Center California Solar Initiative Program P.O. Box 7265 San Francisco, CA 94120-7265 14

18. Self-Generation Incentive Program 18 Website Resources PG&E Solar Website: www.pge.com/solar PG&E CSI Website: www.pge.com/csi CPUC Solar Website: www.gosolarcalifornia.ca.gov Locate Solar Installers: www.findsolar.com CEC PV Eligible Technologies: http://www.consumerenergycenter.org/erp rebate/equipment.html 15