1. January 25, 2012 CSI Program Forum

2. California Solar Initiative Agenda Welcome & Introductions CSI Year-end Statistics California Legislative Update on SB585 Regulatory Update for 2012 SB585 Implementation Upcoming CSI Program Handbook Changes Proposals for Cost per kWh Reporting Lunch – Offsite M&E- Market Transformation Study SASH Program Update Q&A Break CSI-Thermal Metrics Recent Program Changes Marketing and Outreach Low-income CSI-Thermal Future Program Expansion Q&A Closing Comments and Adjourn

3. California Solar Initiative 2011 in Review

4. California Solar Initiative 4 CSI General Market Progress in 2011  California has 1,060+ MW installed customer-side PV at 105,146+ locations  Over 60% are CSI projects  A record 262 MW installed in 2011 alone.  GM Program is 63% of the way towards its goal InstalledPendingRemainingTotal Goal Capacity (MW)699 MW411 MW640 MW1,750 MW Goal (% of Total)40%23%37%100% Projects (Number)63,16512,797~~ Incentives ($ Million)$1,217M$381 M$350M$1,948 M Data includes only CSI Genera Market Program. Data through January 3, 2012.

5. California Solar Initiative Aug 2011: Record number of apps received 3,530 apps rec’d

6. California Solar Initiative Nov 2011: Record number of MW installed 35.5 MW

7. California Solar Initiative Legislative Update on SB585

8. California Solar Initiative Legislative update SB 585 Authorized an additional $200 million to CSI budget. Adjusted the PBI incentive rates Requires the CPUC to establish cost-caps based on state and national data D.11-12-019: Adopted by the CPUC per SB 585 Updated the CSI non-residential incentive budget Adjusts utility revenue requirements Modified PBI incentive rates Directed CPUC Energy Division to monitor cost caps and adjust as needed.

9. California Solar Initiative Regulatory Update for 2012

10. California Solar Initiative What’s new for 2012 Virtual Net Metering Expansion D.11-07-031: Expands VNM to all multi-tenant and multi- meter properties. Utilities filed tariffs to expand VNM in Fall 2011. Energy Division to issue a resolution on VNM tariffs in Q1 2012 CSI Phase II/III modifications A ruling requesting comments on “medium” and “low” priority modifications to CSI Program in December 2011. Ruling also requested comments on the methodology for calculating the NEM cost cap. Comments due in Jan 2012. A proposed decision expected in the first half of 2012.

11. California Solar Initiative 2011 in Review

12. California Solar Initiative SB585 Implementation Allocation of Additional $200 million

13. California Solar Initiative SB585 Implementation Reduced PBI Incentive Rates

14. California Solar Initiative 14 Upcoming CSI Program Handbook Changes

15. California Solar Initiative CSI Program Handbook Changes Modification of the Extension Request submittal process to allow greater flexibility in determining if an extension will be granted Modification of applicant response time for incomplete reservation requests from 20 to 14- calendar days Clarification of criteria for complete incentive claim forms Removal of signed field verification form;

16. California Solar Initiative 16 Proposals for Cost per kWh Reporting

17. California Solar Initiative Revising CSI Cost Data Reporting 17 Since program inception, the CSI Program has looked at cost data via $/Watt

18. California Solar Initiative Revising CSI Cost Data Reporting 18 The increase in third party owned residential systems has grown substantially since 2007: 2007 = 7% 2008 = 15% 2009 = 15% 2010 = 32% 2011 = 54% Lifetime of Program = 31%

19. California Solar Initiative Revising CSI Cost Data Reporting 19 CSI Program Proposal Identify the issues i.e. collecting kWh cost data that is an apple to apples comparison of all systems feedback from industry on what costs should be included to determine the kWh cost data Next Steps: Cost Reporting Workshop held February 15 at PGC

20. California Solar Initiative Lunch -Offsite

21. California Solar Initiative M&E- Market Transformation Study

22. California Solar Initiative CSI M&E Study Plan for 2012 22  Market Assessment for Third-party Owned (TPO) Solar Q2 of 2012  Solar PV Roofing Study Q2 of 2012  CSI Market Transformation Study Q3 of 2012  Solar Performance Data Collection for 2011-12 Impact Evaluation Ongoing

23. California Solar Initiative 23 2012 CSI M&E Study Overview Market Assessment of 3 rd Party Owned Solar o Characterization the market for TPO PV o Analysis of economics and service cost reporting of TPO and customer owned systems o Surveys/interviews of customers for general experiences with TPO system installations, overall system functionality, maintenance, repair, early termination, etc. Solar Roofing Study o Characterization of market for rooftop solar mounting/racking systems and practices o Surveys/interviews of customer general experiences with site roof issues during PV and post- installation

24. California Solar Initiative 24 CSI Market Transformation Study o Characterization the market for customer-side solar PV o Description of policy interventions that reduce market barriers and support the development of solar PV o Identification of Solar Market Transformation Indicators o Assess the effects of CSI and other policies in reducing the barriers to greater deployment of solar o Assessment of the growth of California’s solar market given rapidly declining incentives or post-CSI and other subsidies 2012 CSI M&E Study Overview Project Status: Final SOW for studies complete CPUC will issue RFP in early Q2 of 2012

25. California Solar Initiative SASH Program Update

26. California Solar Initiative 26 SASH Program Update GRID Alternatives Presenter: Cathleen Monahan, SASH Program Officer 1/24/2012 Phone: 510-731-1332 Email: SASH@gridalternatives.org or cmonahan@gridalternatives.orgcmonahan@gridalternatives.org Web: www.gridalternatives.org/sash

27. California Solar Initiative 27 GRID Alternatives SASH Program Manager Non-profit 501(c)(3) organization Licensed solar electrical contractor Installation model centered around workforce development Mission: To empower communities in need by providing renewable energy and energy efficiency services, equipment, and training.

28. California Solar Initiative 28 SASH Program GRID Locations GRID has 7 regional offices serving all IOU territories Oakland: serves greater Bay area/N. California Carson: serves greater L.A. Fresno: serves Central Valley San Diego: serves San Diego area San Luis Obispo: serves Central Coast Riverside: serves Inland Empire Chico: serves North Central Valley

29. California Solar Initiative 29 SASH Program A Comprehensive Low-Income Solar Program Higher incentives than general market CSI Program Energy Efficiency Workforce Development Volunteers and Community Engagement

30. California Solar Initiative 30 SASH Program SASH Applications per Quarter

31. California Solar Initiative SASH Program 31 Completed and Interconnected Projects

32. California Solar Initiative 32 SASH Program Applications by Status and Service Territory (thru Q4 2011) Application Status Number of Applications Total kW, (CEC- AC) Total Incentives, PG&ESCESDG&ETotals$ Millions STEP 1: 254182474831,207.5*$7.26* Applications under review STEP 2: Confirmed Applications/ Reservations10910511225749.5$4.71 STEP 3: Completed/Installed61341016211853,417.2$22.18 TOTALS (All applications and projects ) 97669722018935,374.20$34.15

33. California Solar Initiative 33 SASH Program Longer-term Impact Install PV- solar electric systems for 4,000-6,000 low-income CA families thru 2016 Utilize Sub-Contractor Partnership Program to meet installation targets Create market transformation by providing opportunities for green jobs training, and help foster a sustainable solar industry in CA

34. California Solar Initiative 34 SASH Program Thank You CONTACT: Cathleen Monahan SASH Program Officer Ph: 510-731-1332 Email: cmonahan@gridalternatives.org 1171 Ocean Ave. Suite 200 Oakland, CA 94608 Web: www.gridalternatives.org/sash Sign up for GRID’s newsletter!

35. California Solar Initiative Q&A

36. CSI-Thermal Program

37. California Solar Initiative Agenda CSI-Thermal Metrics Recent Program Changes Marketing and Outreach Low-income CSI-Thermal Future Program Expansion Q&A

38. California Solar Initiative CSI-Thermal Metrics www.csithermal.com/public_export

39. California Solar Initiative Residential Application Volume

40. California Solar Initiative Commercial/Multi-family Application Volume

41. California Solar Initiative Expected Annual Therm Savings Data from Program Inception – December 31, 2011 (Residential & Non-Residential Received)

42. California Solar Initiative Expected Annual kWh Savings Data from Program Inception – December 31, 2011 (Residential and Non-Residential Received)

43. California Solar Initiative Avg Incentive: Single-family Residential Natural Gas Data contains Paid Projects

44. California Solar Initiative Avg Incentive: Single-family Residential Electric Data contains Paid Projects

45. California Solar Initiative Commercial/Multi-family Distribution

46. California Solar Initiative CSI-Thermal Tracker Monitor available funding in each step (Live) Monitor allocated incentive totals by: Program Administrator Customer Class (res vs. commercial) Fuel Type (natural gas vs. electric/propane) Helpful when approaching a decrease in incentive step level Available at: www.csithermal.com/tracker

47. California Solar Initiative Recent Changes www.gosolarcalifornia.ca.gov/documents/CSI- Thermal_Handbook.pdf

48. California Solar Initiative Propane Eligibility Propane water heating customers were originally prohibited from CSI-Thermal Participation Interpretation of “displacing electric usage” from Decision 06-12-033 CPUC determined that the exclusion could create unintended consequences May prevent customers from choosing propane when installing a SWH system Could increase electricity usage by customers choosing to go from propane  electric water heating

49. California Solar Initiative Propane Eligibility Propane water heating customers eligible starting February 7, 2012 Must be electric customers of PG&E, SCE, or SDG&E Propane displacing systems will receive electric incentive rate and limited to electric funding availability Eligible for systems installed after June 14, 2011

50. California Solar Initiative Equipment Eligibility Expansion of residential equipment eligibility to include SWH systems certified by the International Association of Plumbing and Mechanical Officials (IAPMO) CSI-Thermal application database now contains IAPMO systems (currently one manufacturer) Opportunity for others to be accepted as qualified SWH system equipment certifiers

51. California Solar Initiative Concentrating Solar Collectors Now included in the CSI-Thermal Incentive Calculator! www.solar-rating.org

52. California Solar Initiative Commercial Electric Status CSI-Thermal Electric shares its incentive budget with CSI PV PG&E and CCSE exhausted their CSI PV non-residential incentive budgets in 2011 Therefore, CSI-Thermal commercial electric incentives for PG&E and CCSE were not available for much of 2011 SB 585: Signed in September 2011, modifies the CSI Budget CPUC approved the Decision to implement SB 585 and increased the budget by $200 Million

53. California Solar Initiative Commercial Electric Status CSI-Thermal commercial electric re-opened to PG&E and CCSE on December 2, 2011 UtilityPercentageAdditional Budget Allocation (in millions) PG&E57%$114 SCE32%$64 SDG&E11%$22 Total100%$200 Above allocations are not dedicated to CSI-Thermal

54. California Solar Initiative Marketing and Outreach Updates

55. California Solar Initiative Key Dates/Milestones February 2011 – RFP issued for Statewide Marketing Agency June 2011 – Statewide Marketing Agency Selected August 2011 – Statewide and Local M&O Plans presented by Program Administrators at Public Workshop in San Francisco August 2011 – Advice Letters for Statewide and Local Plans filed for approval October 2011 – Statewide and all Local Plans approved October 2011 – March 2012 – Creative development, Media/PR planning April 2012 – Campaign launch 55

56. California Solar Initiative Goals The goals of the Statewide Market Facilitation Plan are to work in conjunction with the Local Market Facilitation Plans to build awareness and increase understanding of: Solar water heating and the California Solar Initiative – Thermal Program Solar water heating technology The advantages and availability of CSI-TP rebates The advantages of adopting streamlined permitting processes, minimal fee structures and financing solar hot water systems to increase the number of rebate applications statewide. 56

57. California Solar Initiative Strategies Conduct pre-campaign research to assess consumer awareness and understanding of SWH technologies Establish metrics for goals Develop and implement statewide paid and earned media campaigns Participate in local consumer, trade and community outreach events Conduct and assess post-campaign research to track and evaluate changed awareness levels, attitudes and behaviors 57

58. California Solar Initiative Target Markets Contractors and installers Commercial enterprise operators Industrial facilities managers Multifamily property owners Single-family residence homeowners 58

59. California Solar Initiative Tactics Develop campaign plan that delivers messaging to various customer segments through multiple touch points 59 PRINT TRAINING DIGITAL CRM/DIRECT DIRECT CUSTOMER EVENTS FORUM/ SPONSORSHIP SEARCH

60. California Solar Initiative Low-income CSI-Thermal

61. California Solar Initiative Low-income $ 25 Million dedicated incentives Natural Gas water heating customers only Projects that have already received CSI-Thermal incentives are not eligible Handbook filed on January 4 th, 2012 Tentative launch month: March 2012 Incentives will be calculated using the existing CSI-Thermal Calculators

62. California Solar Initiative Low-income Budget PA Budget Allocation Total Incentive Budged (in millions) PG&E 39.0%$9.75 CCSE 10.0%$2.5 SCG 51.0%$12.75 Total 100.0%$25 *Incentive budget is separate from the $180 million allocated for the mainstream CSI-Thermal Program.

63. California Solar Initiative Low-income Incentive Structure (Single- family) Step Single-Family Low-income Incentive per therm displaced Single-Family Low-income Projects Incentive Caps 1$25.64$3,750 2$20.52$3,000 3$15.38$2,250 4$9.40$1,376 200% of current incentives

64. California Solar Initiative Low-income Incentive Structure (Multi-family) Step Multi-family Low-income Incentive per therm displaced Multi-Family Low-income Projects Incentive Caps 1 $19.23$500,000 2 $15.39$500,000 3 $11.53$500,000 4 $7.05$500,000 150% of current incentives

65. California Solar Initiative Single-family Low-income Eligibility Site must be occupied by the homeowner System must be owned by the homeowner Registered in a Commission approved and supervised gas corporation Energy Savings Assistance Program (ESAP) The property will be required to remain low-income for at least 10 years from the time of the SWH system installation

66. California Solar Initiative Single-family Low-income Eligibility The property at which the system will be installed must meet one of the following conditions: a resale restriction between the homeowner and a public entity or a qualifying nonprofit affordable housing provider; an equity sharing agreement for which the homeowner does not receive a greater share of equity than described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code, between the homeowner and a public entity or a qualifying nonprofit affordable housing provider; a presumed resale restriction that exists because the residence is located in an enterprise zone, including Targeted Employment Areas (TEAs), as determined by the California Department of Housing and Community Development; or a presumed resale restriction that exists because the property is located in an area that was included in a neighborhood revitalization strategy as part of the local municipality’s consolidated community development plan filed with the federal Department of Housing and Urban Development.

67. California Solar Initiative Multi-family Low-income Eligibility The benefits of the SWH system must be passed to the low-income residents through reduced energy costs Applicant will need to provide an Affidavit explaining how Property Must meet one of the following: Definition of low-income residential housing in Public Utilities Code (PUC) Section 2861(e) At least 50 percent of all units in the multi-family housing structure are occupied by ratepayers that are participating in a Commission approved and supervised gas corporation ESAP

68. California Solar Initiative Multi-family Low-income Eligibility cont. Public Utilities Code (PUC) Section 2861(e)2 A residential complex in which at least 20 percent of the total units are sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, and the housing units targeted for lower income households are subject to a deed restriction or affordability covenant with a public entity that ensures that the units will be available at an affordable housing cost meeting the requirements of Section 50052.5 of the Health and Safety Code, or at an affordable rent meeting the requirements of Section 50053 of the Health and Safety Code, for a period of not less than 30 years.

69. California Solar Initiative Multi-family Low-income Eligibility ESAP Participation (50%): Property must remain low-income for 10 years from the time of installation And…

70. California Solar Initiative Multi-family Low-income Eligibility The property at which the system will be installed must meet one of the following conditions: a resale restriction between the homeowner and a public entity or a qualifying nonprofit affordable housing provider; an equity sharing agreement for which the homeowner does not receive a greater share of equity than described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code, between the homeowner and a public entity or a qualifying nonprofit affordable housing provider; a presumed resale restriction that exists because the residence is located in an enterprise zone, including Targeted Employment Areas (TEAs), as determined by the California Department of Housing and Community Development; or a presumed resale restriction that exists because the property is located in an area that was included in a neighborhood revitalization strategy as part of the local municipality’s consolidated community development plan filed with the federal Department of Housing and Urban Development.

71. California Solar Initiative Multi-family Low-income Process Affidavit: How benefits passed to tenants ESAP Participation (50% of Units) Property must remain low- income for 10 years (signed commitment) 1. Resale Restriction between homeowner and public entity 2. Equity Sharing Agreement 3.Resale Restriction b/c property in enterprise zone 4. Resale Restriction b/c neighborhood revitalization Low-income: PUC Code 2861e

72. California Solar Initiative Consideration For Future Program Expansion Load Side Heat Exchangers into the Commercial Calculator Solar thermal end-uses that are currently ineligible Solar space heating Solar cooling/chilling Process loads where heated water is used as a medium Residential combi-systems Metering in collaboration with the Environmental Protection Agency’s (EPA) efforts

73. California Solar Initiative Call for Photos and Stories Showcase your CSI Thermal-funded solar projects throughout the state! The California Solar Initiative Program Team is seeking photos and stories of CSI Thermal-funded solar systems for use in future newsletters or other related publicity http://energycenter.org/calec/index.html

74. California Solar Initiative Q&A