1. New Jersey Community RE / Solar Programs* New Jersey Board of Public Utilities Net Metering & Interconnection Rules Stakeholder Meeting July 23, 2008 *FOR DISCUSSION PURPOSES ONLY

2. Community Solar A Community based solar program that would allow residents or small businesses to “buy” into a centrally located project as opposed to individual installation, to reduce costs while still allowing small customers to participate in the solar marketplace.

3. Community RE / Solar: Public Benefits & Opportunities Reduces installation / transaction costs Improves public access to renewables Can be sited to alleviate grid congestion in critical areas Delivers cost benefits in reducing peak load Adaptive to new market realities with new business models and financing structures.

4. Community Solar - Pilot Red Sky: Project includes multiple meters but only one customer and would entail the allocation of charges and credits among multiple meters and generating units.

5. Community Solar - Challenges Impact upon T&D Charges: NM Tariff does not differentiate between usage during daylight and nighttime hours; Impact of allowing generation in excess of consumption at an individual meter; Impact of netting generation at one tariff rate against consumption at a different tariff rate Other challenges related to Net Metering …

6. Historical Net Metering 1 Site / 1 Customer / 1 Meter Sized to Load / 2 MW Cap Meter RE / Solar Generating Facility

7. Aggregated Net Metering 1 Site / One Customer / Multiple Meters Aggregated Load Meter Community RE / Solar Generating Facility

8. Aggregated Load Aggregated Net Metering Multiple Sites & Meters / One Customer Aggregated Load / 1 Solar System Community RE/ Solar Generating Facility

9. Aggregated Net Metering Multiple Sites & Meters / Many Customers Aggregated Load / 1 Solar System Community RE / Solar Generating Facility Aggregated Load

10. Stakeholder Process Community Solar Stakeholder Group Request for Comments Draft Proposal for Review / Comment Staff Recommendations to the Board NEXT Stakeholder Meeting – Sept. 11th

11. Community Solar – Terminology Three interrelated terms: Community Solar / Community RE Aggregated (on/off-site) net metering – One customer – One or multiple sites (site = a contiguous land parcel) – Multiple meters Skye Pilot – Current demonstration project for testing aggregated onsite net metering