2. State Solar Policy: 2007-08 Developments & Current Trends Rusty Haynes N.C. Solar Center N.C. State University IREC Annual Meeting October 13, 2008

3. The DSIRE Project www.dsireusa.org Database of State Incentives for Renewables & Efficiency Created in 1995 Funded by U.S. DOE Managed by NCSU; affiliated with IREC Project Scope: policies/programs that promote RE/EE Breakdown of Data: ~1,850 total records ~790 solar records ~715 PV records

4. Federal Update Extended to 12/31/2016 May be used to offset AMT Extended to utilities Solar ITC Residential Solar Credit Extended to 12/31/2016 $2,000 cap removed for PV (1/1/2009) May be used to offset AMT

5. RPS raised from 9.5% to 20% x 2022 (Tier I) Solar access law strengthened PV property tax exemption extended to non-rez PV S&U tax exemption for solar New IC standards Commonwealth Solar ($68M / 27 MW) Three separate energy standards (Class I: 4% x 2009 + 1%/year) New grants and loan programs (TBD) Net metering raised to 1 MW / 2 MW Long-term utility solar purchases State Highlights, 2007-08 Maryland Massachusetts

6. RPS: 12.5% RE, 12.5% “advanced” energy x 2024 Solar carve-out: 0.5% $650M fund for RE/EE $100M in incentives for homes & small biz $80M in incentives for solar economic dev $165M in incentives for non-solar RE & AE (biz, local gvt) $50M in tax credits for RE/EE/AE projects Stronger net metering (NEG) State Highlights, 2007-08 Ohio Pennsylvania

7. Rebates (new): CO (local), CT (PV), MA (PV), MN (SWH) Rebates (revised): several states adjusted amounts and/or added small wind Tax credits (new/improved): GA (35%), KY (small), OR (limit doubled), PA (15%), VT (30%) Property tax incentives: AZ, FL, MD, NC, NY RPS/RPG: MA, MD, OH, / GU, SD, UT Net Metering (improved): CO, DC, FL, HI, IL, KY, LA, MA, NY, OH, PA, RI, UT, VT Interconnection Standards (new/improved): CT, FL, IL, MD, MI, NC, NM Solar access (improved): CA, CO, FL, MD, VA Other State Developments, 2007-08

8. Rebate ProgramsPV: 18/20SHW: 11 Grant ProgramsPV: 17/24SHW: 13/15 Production IncentivesPV: 3SHW: 0 Personal Tax IncentivesPV: 18/25SHW: 16/20 Corporate Tax IncentivesPV: 22/25SHW: 17/19 Loan ProgramsPV: 27/30SHW: 24/28 Sales Tax IncentivesPV: 19SHW: 14 Property Tax IncentivesPV: 27SHW: 25 Industry RecruitmentPV: 14SHW: 8 State Financial Incentives for Solar www.dsireusa.orgwww.dsireusa.org September 2008

9. State Rebates & PBIs for PV DE: 50% $4/W CT: $4.30-5/W MA: $2-5.50/W VT: $1.75-3.50/W MD: $2.50/W $2-2.25/W $3k max ≤35% ≤$3.25/W ≤50¢/kWh, 5 yrs. $1-2.25/W 30% 15 - 54¢/kWh NY: $3-5/W 40% NJ: SRECs www.dsireusa.orgwww.dsireusa.org September 2008 ME: $2K max $2-3/W ≤$4.50/W 20 state rebate programs & PBIs* 25 state grant programs (not shown on map) 21 non-state PBIs (not shown on map) 64 utility rebate programs (not shown on map) $2.30-4.60/W * Includes RPS-inspired utility rebate programs in AZ, CO & NV

10. Varies by project $10K - $50K 10-20% up to $75K $60K - $1M $2K - $10K 50% up to $10K Direct Incentives for PV, 1997 www.dsireusa.org

11. (R) Residential; (C) Commercial; (NR) Non-Residential State Tax Credits for PV 35% 30% (Non-Corp.) ~2.7¢/kWh 10 yrs. (C) $ 3/W (R) 50% (C) 10% (NR) 25% (R) MA: 15% (R) 15% 35% 100% Deduct. (R) 25% (R) 10% (C) 50% Credits in 17 states Range: 10% - 50% FL, IA, MD, NE, OK have small PTCs (not shown on map) RI: 25% www.dsireusa.orgwww.dsireusa.org September 2008 25% VT: 30% (C) 35% $500 (R) $1K (C) 35%

12. State Regulatory Policies Public Benefits Funds (16+DC & ME) Renewables Standards/Goals (26+DC & 6 goals) Net Metering (39) Solar Access Laws (35) Green Power Purchasing Policies (10) Contractor Licensing (9)

13. Public Benefit Funds for Renewables www.dsireusa.orgwww.dsireusa.org March 2008 16 state funds + DC $6.8B by 2017 (est.) RI: $2.2M in 2008 $38M from 1997-2017* MA: $25M in 2008 $525M from 1998-2017* NJ: $102M in 2008 $637M from 2001-2012 DE: $3.5M in 2008 $49M from 1999-2017* CT: $24M in 2008 $435M from 2000-2017* VT: $6.6M in 2008 $34M from 2004-2011 PA: $950,000 in 2008 $63M from 1999-2010 IL: $5.5M in 2008 $99M from 1998-2015 NY: $9.5M in 2008 $114M from 1999-2011 WI: $5.5M in 2008 $97M from 2001-2017* MN: $16M in 2008 $264M from 1999-2017* MT: $750,000 in 2008 $8.3M from 1999-2009 OH: $3.2M in 2008 $63M from 2001-2010 MI: $1.7M in 2008 $25M from 2001-2017* ME: voluntary contributions $411,000 from 2002-2008 OR: $12M in 2008 $182M from 2001-2017** CA: $331M in 2008 $4,149M from 1998-2016 D.C.: $400,000 in 2008 $5.1M from 2004-2017* * Denotes funds that do not have defined expiration dates and do not require future reauthorization or budgetary approval in order to continue operations. (These funds are not scheduled to expire in 2017.) ** The Oregon Energy Trust is scheduled to expire in 2025.

14. Renewables Portfolio Standards State Goal ☼ PA: 18%** by 2020 ☼ NJ: 22.5% by 2021 CT: 23% by 2020 MA: 15% by 2020 + 1% annual increase (Class I Renewables) WI : requirement varies by utility; 10% by 2015 goal IA: 105 MW MN: 25% by 2025 (Xcel: 30% by 2020) TX: 5,880 MW by 2015 ☼ AZ: 15% by 2025 CA: 20% by 2010 ☼ * NV: 20% by 2015 ME: 30% by 2000 10% by 2017 - new RE State RPS ☼ Minimum solar or customer-sited RE requirement * Increased credit for solar or customer-sited RE **Includes separate tier of non-renewable “alternative” energy resources HI: 20% by 2020 RI: 16% by 2020 ☼ CO: 20% by 2020 (IOUs) *10% by 2020 (co-ops & large munis ) ☼ DC: 11% by 2022 DSIRE: www.dsireusa.org September 2008www.dsireusa.org ☼ NY: 24% by 2013 MT: 15% by 2015 IL: 25% by 2025 VT: (1) RE meets any increase in retail sales by 2012; (2) 20% by 2017 Solar water heating eligible *WA: 15% by 2020 ☼ MD: 20% by 2022 ☼ NH: 23.8% in 2025 OR: 25% by 2025 (large utilities ) 5% - 10% by 2025 (smaller utilities) *VA: 12% by 2022 MO: 11% by 2020 ☼ *DE: 20% by 2019 ☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) ☼ NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) ND: 10% by 2015 SD: 10% by 2015 * UT: 20% by 2025 ☼ OH: 25%** by 2025

15. MA (under development) AZ: 1.1% by 2007 NV: 1% by 2009 ME: 30% by 2000 IA: 105 MW by 1999 MN: 425 MW by 2002 www.dsireusa.org Renewables Portfolio Standards, 1997

16. Solar/DG Provisions in RPS Policies NM: 4% solar electric by 2020 0.6% DG by 2015 AZ: 4.5% DG by 2025 NV: 1% solar by 2015; 2.4 to 2.45 multiplier for PV MD: 2% solar electric in 2022 CO: 0.8% solar electric by 2020 DC: 0.386% solar electric by 2022 NY: 0.1542% customer-sited by 2013 DE: 2.005% solar PV by 2019; Triple credit for PV Solar water heating counts towards solar set-aside www.dsireusa.orgwww.dsireusa.org September 2008 WA: double credit for DG Note: “DG” means distributed generation NH: 0.3% solar electric by 2014 NJ: 2.12% solar electric by 2021 PA: 0.5% solar PV by 2020 NC: 0. 2% solar by 2018 (~7,550 MW by 2025) MA: TBD by MA DOER OH: 0.5% solar electric by 2025

17. Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department Largest RPS Markets for Solar in Near-Term: NJ, AZ, NM, NV, NC, CO

18. California goal of 3,000 MW equals ~ 1.5% Most Aggressive RPSs, Required Solar as % of Sales Source: LBNL Environmental Energy Technologies Division / Energy Analysis Department

19. The Solar Alliance: www.solar-alliance.org/model_policieswww.solar-alliance.org/model_policies

20. Interconnection Standards * Freeing the Grid 2008: www.newenergychoices.orgwww.newenergychoices.org IREC model: www.irecusa.org/index.php?id=87www.irecusa.org/index.php?id=87 Technical issues include safety, power quality, system impacts. Technical issues largely resolved. Policy issues include legal and procedural considerations. State approaches vary widely. Best policies adopted by IL, NJ, PA, NM, MD.*

21. Allows customers to store any excess electricity generated, usually in the form of a kWh credit, on the grid for later use. Available “statewide” in 39 states. State policies vary dramatically. Best policies adopted by CO, MD, FL, NJ, OR.* Net Metering IREC model: www.irecusa.org/index.php?id=88www.irecusa.org/index.php?id=88 * Freeing the Grid 2008: www.newenergychoices.orgwww.newenergychoices.org

22. Net Metering State-wide net metering for certain utility types only (e.g., investor-owned utilities) Net metering offered voluntarily by one or more individual utilities Net metering available in 44 states + D.C. NH: 100 MA: 60/1,000/2,000* RI: 1,650/2,250/3,500* CT: 2,000* 100 DSIRE: www.dsireusa.org September 2008www.dsireusa.org 80,000 100 1,000 50 100 40 20 2,000 1,000 10/100 25 no limit 25/300 500 VT: 250 NY: 25/500/2,000* PA: 50/3,000/5,000* NJ: 2,000* DE: 25/500/2,000* MD: 2,000 DC: 100 VA: 10/500* NC: 20/100* 30 10 100 50 varies State-wide net metering for all utility types * * * * * * * * * * * * (Note: Numbers indicate individual system size limit in kilowatts (kW). Some states’ limits vary by customer type, technology and/or system application. For complete details, see www.dsireusa.org.) 25 100 25/2,000 * 25/100 30 * 40 * * FL: 2,000* * 25/2,000 (KIUC: 50) co-ops, munis: 10/25 25 20/100

23. Solar Access Laws 14 states limit or prohibit restrictions that neighborhood covenants and/or local ordinances may impose on the use of solar-energy systems. (Solar easements allow for the rights to existing solar access on the part of one property owner to be secured from another property owner whose property could be developed in such a way as to restrict the solar resource. Transferred with property title. Most states allow these.)

25. In Conclusion… State trends: Dominance of RPS Super-sized net metering Regional solar markets Shift toward PBIs PPA model Room for Improvement: Incentives for non-taxpayers Utility rate structures REC-selling opportunities Market coordination Federal policy Wild cards: Credit markets? State budgets? Electricity rates? Technology breakthroughs?

26. S lar P rtal  Solar-Specific Incentive Information  Clickable U.S. Map for Quick Access to PV Incentives  PV Incentive Summary Maps  State-by-State Incentive Comparison Tables  Tax Credits, Rebates, Solar Portfolio Standards, Net Metering  PV Incentive Program Installation Data from IREC  # of Installations, Incentive $ Expenditures, Capacity Installed  Solar Policy Guide

27. StateProgram NameEligibilityIncentive AmountMaximum Incentive REC Ownership Eligible System SizeFunding SourceProgram Budget Expiration Date Project Pre- approval Required CaliforniaCalifornia Solar Initiative Incentives All customers of investor-owned and publicly owned California utilities Varies by sector and system size Varies by sector and administering utility Remains with project owner 1 kW minimumRate-payer funds$3.2 billion over 10 years, beginning 1/1/2007 12/31/2017Yes ConnecticutCCEF - Solar PV Rebate Program Non-Commercial customers of United Illuminating Company or Connecticut Light & Power. (Homes limited to four family residences.) Residential: $5/W (PTC rating) for first 5 kW; $4.30/W (PTC) for next 5 kW, adjusted based on expected performance; Gov't/Non-profit: $5/W (PTC rating), adjusted based on expected performance Residential: $46,500; Gov't/Non-profit: $50,000 Incentives will be subject to a maximum of the customer’s average annual or expected electric usage Remains with project owner 10 kW maximumConnecticut Clean Energy Fund (public benefits fund) $11.5M beginning 10/1/2004 When funds are exhausted Yes ConnecticutCCEF - On-Site Renewable DG Program Non-Residential Customers of United Illuminating Company or Connecticut Light & Power $5/W PTC plus $0.02/kWh for projects installed in southwestern Connecticut $2.5M (plus, potentially, $0.02/kWh for projects installed in southwestern Connecticut). Incentive funding limited to systems with a maximum capacity of 500 kW (PTC). Remains with project owner 10 kW minimum; Maximum size is limited to the difference between the most recent 12 months’ peak demand and the “base load.” System’s AC generation output may not be sized greater than 80% of the facility’s highest peak load in any one hour. Connecticut Clean Energy Fund (public benefits fund) $42.5M program budget beginning 12/1/05 NoneYes DelawareGreen Energy Program Incentives All customers of Delmarva, Delaware EC and customers of participating municipal utilities 50% of installed cost; PV system cost may not be in excess of $12/W Delmarva: Residential: $31,500; Commercial: $250,000 / Co-ops and Munis: Residential: $15,000; Commercial: $30,000 Remains with project owner No system size restrictions Green Energy Fund (Delmarva), DEC Renewable Resources Fund, Municipal Utility Green Energy Fund (public benefits fund) Delmarva: ~2.08 million; DEC: Varies by month (FY 07: 207,000); Munis: Varies by month (FY 07: 321,044 across 9 municipals) New funds allocated monthly Yes FloridaSolar Energy System Incentives Program Any resident or entity$4/watt DCResidential: $20,000; Non-residential: $100,000 Remains with system owner 2 kW minimumGeneral Revenue Funds (appropriated annually) FY 2007-08: $3.5M6/30/2010No Excerpt from State PV Rebate Comparison Table

28. DSIRE Unique Visitors, 2005-08 Feb. 2006 Feb. 2005 Aug. 2006 Aug. 2005 Feb. 2007 Feb. 2008 Aug. 2007 Aug. 2008

29. Rusty Haynes N.C. Solar Center N.C. State University rusty_haynes@ncsu.edu www.dsireusa.org www.dsireusa.org 919.513.0445 Contact: