Renewable Program 2009 Proposed Plan

1. Renewable Program2009 Proposed Plan Renewable Energy Distributed Generation Acceleration Program (REDGAP)

2. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

3. Goals • Solar MWh per RPS carve out target • Biopower and Wind MWh based on forecast tied to incentive budget • Rebate approvals, checks, and inspections, and REC verifications • Market development and acceleration • Market data input and reporting • Website interface for applications & status checking

4. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

5. 2009 Program Description Renewable Distributed Generation Program Biopower Budgets Solar Wind < 50kW > 50kW S < C (a) S < C (a) Incentives Rebate SREC Rebate REC Rebate REC Residential Other a) System output less than consumption

6. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

7. 2009 Target Market Renewable Distributed Generation Program Solar Wind Biopower Target Markets • Residential • Commercial • Industrial • Gov’t/Non-Profit • With good solar • resource • Shore & Highlands • Communities & • Businesses • Wastewater Treatment • - Food manufacturers • Wood manufacturers • Universities/Schools • Theme Parks

8. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

9. Proposed Program Design Changes • Integrating market services for CORE, SREC-only Pilot, RECs Facilitation • REDI administered by OCE • Redesigning incentive structure for solar • Minor adjustments for Wind & Biopower • Linkage with efficiency • Increasing upstream market development activities • Inspection process evolution

10. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

11. Bio Power Rebate Design • Maintain Capacity Based Buy-down in 09 • Maintain similar incentives for sustainable biomass and fuel cells using sustainably generated hydrogen • Establish declining block incentive • Maintain technology neutral incentive structure • Support feasibility studies and other catalyzing activity • Support on-site systems that are >2 MW

13. Wind Rebate Design • Maintain Expected Performance Based Buy-down in 09 • Establish declining block incentive • Support feasibility studies and other catalyzing activity • Support on-site systems that are >2 MW

15. Solar Rebates Common Language • Capacity Block – approvals for installed capacity. Looking at 5 MW blocks for all technologies • Funding Cycle – Three budget cycles (four months each) per year (solar only) • Rebate Tier – Different rebate levels according to project characteristics (e.g. standard vs no efficiency, or system size) • Rebate Reduction – a reduction in rebate levels triggered by end of capacity block or < 2 month subscription of a funding cycle budget • Budget Category – allocates budget funds to market segments (e.g. residential)

16. Solar Market Segments • Residential < = 10 kW • Less than annual consumption • All Others - includes affordable, municipal, non-profit and private • Less than annual consumption • Rebate tiers based on size (<= 10kW, > 10kW up to 50kW)

17. Annual Budget Funding Cycles Capacity Block $12 Million Divided by $2.40/Watt = 5 MW capacity. If subscription for each Cycle > 2months  Maintain $2.40/Watt Reduction at end of Capacity Block to $2.16 5 MW $4M Jan 1 May 1 $4M $4M Sep 1

18. Annual Budget Funding Cycles If subscription for any Cycle < 2months  Reduce rebate level by $0.10/Watt. If cycle 1 subscribed Before March 1st then cycle 2 rebate level = $2.30/Watt Reduction at end of Capacity Block to $2.16 Capacity Block 5 MW $4M Jan 1 May 1 $4M $4M Sep 1

19. Solar Rebate Design • No applications accepted before date established for each funding cycle (likely 2 weeks before start of cycle) • No queues – applications returned for resubmission at the start of next funding cycle • Funding cycle and capacity block subscription levels available on line, and with email notifications sent as thresholds are reached (contract modifications pending) • If applications received on any day are greater than available budget then random number selection. • Standard levels available to projects meeting efficiency requirements

20. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

21. Capacity Blocks Note that Block 6 is expected to be 5 MW based on budget made available over time due to non- Standard incentives and/or incentive reductions due to funding cycle subscriptions.

22. DRAFT 2009 Rebate Budgets

23. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

24. Renewable Market Acceleration:General Strategies • Focus on target markets (by technology) • Transparency – Market Analysis & Reporting • Public presence – speakers’ bureau, events • Trade Ally Network Development • Alliances with other players • State – EDA, DEP, DCA, Agriculture, Commerce, OEG • Utilities – support/coordination for utility initiatives • Energy Efficiency • Account Management for key markets • Public information easily available • Website, press kit, standard assumptions, consumer education

25. Solar Technology:Shaping Market Development • Industry infrastructure is comparatively mature • Support policy development, implementation and communication • GATS transition, net metering, Community Energy • Trade Ally Network • Training – program & technical • Facilitate EE/RE integration • Training, networking meetings, agreement templates • Acknowledge success in the marketplace • Awards, Case Studies, Signage

26. Wind Technology:General Strategies • Work through existing trade associations and non-profits • Support local permitting and zoning processes • Work upstream – meetings, presentations, trainings, workshops, networking events(Municipal training June 2008) • Build industry network (wind site assessor training in late 2008) • Target shore municipalities

27. Wind Technology:Two Paths to Success • Small wind (< 100 kW) • Customer awareness building • program workshops, website • Large wind (1.5 – 3.6 MW per turbine) • Regulatory adjustments needed

28. Biopower Technology:Getting a Foothold • Most complex projects, least developed market infrastructure • Target short term low hanging fruit, fill long term pipeline • Build industry network - upstream acceleration • Meetings, presentations, trainings, workshops, networking events (Biopower Working Group) • Work through existing trade associations and non-profits

29. Plan Components • Program Goals & Renewable Generation • Program Description • Target Markets & Eligibility • Proposed Program Design Changes • Offerings • Budget • Market Development and Marketing • Quality Control & Quality Assurance

30. RE Inspection Process - Quality Control Quality Control serves as a check to ensure specific parameters of renewable energy installations have been achieved. • Installer registration process • Inspection Process • Installation particular monitoring and evaluation Proposed for continuation into the 2009 program.

31. 2009 – 2012 RE Project Inspection Quality Assurance Model (<100% Inspection Ratio*) Modeled after the EnergyTrust of Oregon 2009 Program Activity

32. RE Inspection Process – QC - Summary Quality Control provided on the after the system has been installed. • Registered Installer • Demonstrated three successful installations • HIC license for residential applications • All installed RE systems require an inspection and a PASS status • Proposed for continuation into 2009

33. RE Inspection Process - Quality Assurance Quality Assurance define processes to ensure quality standards. • Certification process • Inspection process • Monitoring and evaluation process Would be initiated in 2009 for 2010 program implementation

34. 2009 – 2012 RE Project Inspection Quality Assurance Model (<100% Inspection Ratio*) Modeled after the EnergyTrust of Oregon Tiered Inspection Ratio’s 0-50kW – 15% 50-100kW – 35% >100kW – 100% 2009 Program Activity 2010 -2012 Program Activity

35. RE Inspection Process – QA - Summary Quality Assurance is provided throughout the program lifecycle to ensure quality standards. • Certification of installers • Training requirements • Insurance requirements • Migration of system installation inspections from 100% to random selection of <100% • Monitoring and evaluation to provide feedback • Actionable measures resultant from evaluation