January 26, 2011

1. California Solar Initiative Program Forum January 26, 2011

2. California Solar Initiative Program Forum Agenda • Welcome & Introductions • CSI Program Update - Statistics • CSI Budget Status • Non-Residential Wait List Process • CSI Program Handbook Updates • Regulatory Updates • Q&A • Lunch • M&O Update • M&E Update • RD&D Program Update • Low Income Update • Q&A • Break • CSI Thermal Update • CSI Thermal Q&A • Closing Comments and Adjourn

3. California Solar Initiative Statistics Melicia Charles CPUC Garen Grigoryan PG&E

4. CSI Statistics CSI Stats • Achieved 49% of capacity goals through 2010 (CEC AC) • Installed Projects account for 24% (438MW) • Pending Projects account for 25% (415MW) • Expected Incentives for Installed/Pending $1.435 Billion • Received Projects account for 2% (37MW) • 2010 Applications Received • 466 MW (+187% LY) • $558MM (+97% LY) • ~23K projects (+61% LY) • 2010 Applications Installed • 153 MW (+14% LY) • $231MM (-14% LY) • ~17K projects (+29% LY)

5. CSI Statistics Applications by Month

6. CSI Statistics Solar Contractor Stats: Highest Capacity (MW) Notes: Table only includes installers with 10 or more installations and only includes completed projects (projects in Pending Payment, Completed, or PBI In Payment status in PowerClerk). Data as of 1/19/11.

7. CSI Statistics Solar Contractor Stats: Most Completed Projects Notes: Table only includes installers with 10 or more installations and only includes completed projects (projects in Pending Payment, Completed, or PBI In Payment status in PowerClerk). Data as of 1/19/11.

8. CSI Statistics Solar Contractor Stats: Highest $/Watt Notes: Table only includes installers with 10 or more installations and only includes completed projects (projects in Pending Payment, Completed, or PBI In Payment status in PowerClerk). Data as of 1/19/11.

9. CSI Statistics Solar Contractor Stats: Lowest $/Watt Notes: Table only includes installers with 10 or more installations and only includes completed projects (projects in Pending Payment, Completed, or PBI In Payment status in PowerClerk). Data as of 1/19/11.

10. California Solar Statistics Website Demo

11. California Solar Initiative Budget Status Garen Grigoryan PG&E

12. CSI Quarterly Budget Update

13. Weekly Budget Report

14. California Solar Initiative Non- Residential Wait List Process Katrina Morton CCSE

15. CSI Non-Residential Wait List Process Current Wait List Status • CCSE Non-Residential • Applicable for all projects received after October 8, 2010 • Number of Wait List projects as of 1/18/2011 – 54 • Total MW – 4.26 MW • Total Incentive $ - $3.85 million • www.energycenter.org/apply • PG&E Non-Residential • Applicable for all projects received after December 23, 2010 • Number of Wait List projects as of 1/19/2011 – 74 • Total MW – 11.49 MW • Total Incentive $ - $6.95 million • www.pge.com/csi → Click “What’s New”

16. CSI Non-Residential Wait List Process

17. CSI Non-Residential Wait List Process Wait List Process Flow

18. CSI Non-Residential Wait List Process Wait List Requirements & Rules • RRF and supporting documentation must be complete to be added to wait list • Application Fees will be invoiced after funds for the project become available • System size increases for Reserved or Confirmed Projects will not be incentivized • System Owner sector changes from Commercial to Gov’t/Non-Profit will be allowed only before the project has been Confirmed. • A project on the wait list is not eligible for a CSI incentive if the solar system has been interconnected for more than 12 months.

19. California Solar Initiative Handbook Update Kim Ngo PG&E

20. CSI Handbook Update CSI GM Proposed Handbook Changes • December 3rd, 2010 Proposed Changes Include: • Mandatory One-Step Application Process • Application Fees must be submitted within 14 days of invoicing • Reducing “cure” time from 20 days to 14 days • RES-BCT (AB 2466) • AB 2724 • RFP requirement removed for gov’t/non-profit and public entities

21. CSI Handbook Update CSI GM Proposed Handbook Changes • January 18th, 2011 Proposed Changes Include: • Details of CSI Program Budget • Mechanisms to Forecast Remaining Budget Funds • Expended Budget Guidelines • Wait List Procedures • System Increases • Policy on System Ownership Changes

22. California Solar Initiative Regulatory Update James Loewen CPUC

23. CSI Regulatory Update Staff Proposal for CSI Program Modifications: • Is part of the CPUC’s CSI/DG Rulemaking (R.10-05-004) • Staff Proposal issued on July 26,2009 • Parties filed comments on the individual items, recommending, high, medium, or low prioritization • On November 9, 2010 the Assigned Commissioner issued a Scoping Ruling • The Commission is now considering these issues • Parties have filed comments on these issues • A Proposed Decision is expected in the next couple months

24. CSI Regulatory Update Commission now considering these issues: • Net Energy Metering, VNM, Billing Transfer Credits • General Market Program Administration Procedures • Measurement and Evaluation • Marketing and Outreach • Low Income Programs • Program Budgets and Rate Collections

25. California Solar Initiative Program Forum Q&A

26. California Solar Initiative Program Forum Lunch Break

27. California Solar Initiative 2011 Marketing & Outreach Strategies Go Solar, California! Monthly e-Newsletter CSI Consumer Guide

28. California Solar Initiative 2011 Marketing & Outreach Strategy For Consumers Stronger Buying Decisions: Calculators Finance Info Contracting Energy Management Consumer Satisfaction: Consumer protection System Performance & Maintenance For Professionals Quality: Application Quality Design & Installation Quality Educational Intensives Best Practices Service/Support:Promote Consumer Info/Demand        Sales & Marketing Resources        For the Market Costs: Robust Data Reporting “Moving to $1/Watt” Sustainability: Regional Market Barriers Workforce Development Regulatory Transparency

29. California Solar Initiative 2011 Marketing & Outreach Strategy • CCSE’s 2011 strategy is to address regional solar market barriers through… • Outreach: Permitting agencies, real estate agents, lenders • Solar Finance Education: Educating lenders and consumers • Energy Efficiency & Solar: Integrated demand-side management • Consumer Protection: Watchdog groups, industry & business associations

30. California Solar Initiative 2011 Marketing & Outreach Strategy Key Tactics Training & Education: Solar for Homeowners part 1 & 2 implementing bid comparison form Online Training: For contractors and homeowners who can’t attend at the center Marketing Collateral: Bid comparison form, case studies and workshop direct mail calendar Direct Mail and Digital Direct Mail: To promote workshops to new audiences Radio Tags: To promote workshops to new audiences Interactive Outreach: Web based solar tool kit of resources and links plus social media to promote workshops Alliances & Co-Promotions: Host focus groups and join associations for outreach to stakeholders

31. California Solar Initiative 2011 Marketing & Outreach Strategy PG&E’s 2011 Strategy: • Improve consumer understanding of the process and options for going solar, meet expectations of solar system performance and address post-installation matters. • Engage with the solar industry to facilitate market improvements that reduce barriers to solar adoption.

32. California Solar Initiative 2011 Marketing & Outreach Strategy Key tactics: • Education and training classes for consumers, contractors and industry • Consumer tools and resources • Solar Welcome Kits • Billing Tutorials • Solar Analysis Tool • Safety and Maintenance Guide • Financial Resource Center (online) • Contractor Resource Center (online) • Social media marketing • YouTube videos • Facebook/Twitter updates • Industry engagement • Permitting, Safety and Maintenance Forums • Organization memberships • Event sponsorships

33. California Solar Initiative 2011 Marketing & Outreach Strategy SCE’s 2011 Strategy: • Continued outreach to all customer segments to increase participation in CSI program • Provide more intensive education, tools and resources to solar contractors to improve the quality of applications received.

34. California Solar Initiative 2011 Marketing & Outreach Strategy Key tactics • Bundled marketing communication using IDSM approach • CSI Message Integration with Edison SmartConnect™ • Bill Onsert Messaging • Monthly newsletter to nonresidential customers • Solar Energy Management Success Stories (case studies) • Event Sponsorships & Tradeshows • Solar Power International, World Ag Expo, West Coast Energy Management Congress, local Earth Day events, Mobile Education Unit • Education & Training • Contractors, Homeowners, Solar Fairs, Nonresidential Customers, Financing • Media Opportunities • Targeted print promoting classes, Solar Energy Awareness Month • Multimedia effort including Eye On Green campaign • Social media

35. California Solar Initiative 2011 Marketing & Outreach Strategy Feedback: Questions, comments & suggestions

36. California Solar Initiative Measurement & Evaluation Update Daniel Hopper SCE

37. California Solar Initiative Measurement & Evaluation Update Goals of CSI Measurement & Evaluation • To measure and document effects of the CSI program on the solar market • To evaluate how the program is functioning and provide recommendations for improvement

38. California Solar Initiative Measurement & Evaluation Update • 2007 through 2009 Impact Evaluations • Estimates of energy and environmental impacts of CSI systems • NEM and CSI Cost-Effectiveness Study (2010) • Analyzes the cost-effectiveness of California’s investment in solar • CSI Process Evaluations (2009-2010) • Evaluates how well the PAs in administer the CSI • Solar Metering Study (2009) • Market analysis of solar system performance meters CSI M&E Studies

39. California Solar Initiative Measurement & Evaluation 2009 Impact Evaluation Summary of Findings • CSI-funded projects generated 390,000 MWh of electricity • Enough energy to power 66,000 homes for a year • Reduced CO2 emissions by an estimated 180,136 tons • the equivalent of taking 31,000 cars off the road • Substantial increase in the proportion of 3rd party-owned to customer-owned over previous years • Customer survey of barriers and motivations for going solar • Characterization of interactions between solar systems and EE actions

40. California Solar Initiative Measurement & Evaluation Update Program Evaluation Reports are available at the “Go Solar California” website http://www.gosolarcalifornia.ca.gov/ under “Resources” “CSI Program Documents”

41. California Solar Initiative Measurement & Evaluation Update • On-going and Future Research • Solar Market Transformation Study • Overcoming existing market barriers • Identifying and addressing potential long-term issues in the solar market • 2010 Impact Evaluation Study

42. California Solar Initiative Measurement & Evaluation Update We want to hear your solar market research ideas or needs!!! Dan Hopper, SCE Daniel.Hopper@sce.com James Loewen, CPUC loe@cpuc.ca.gov

43. California Solar Initiative RD&D Program Neal Reardon CPUC

44. CSI RD&D Program Collaboration with U.S. Department of Energy High-Penetration Solar Forum March 1st and 2nd • The US Department of Energy and California PUC are partnering to support research aimed at better integrating high levels of solar energy into the grid • Both the DOE and CPUC issued RFPs focused on grid-integration; they have co-funded three research grants and individually funded three grants each • On March 1st and 2nd, the DOE and CPUC will hold a High Penetration Solar Forum at the Scripps Institution of Oceanography in San Diego • The purpose of this forum is to present research foci and preliminary findings • Principal investigators will present preliminary findings of research and hold Q&A session • Target audience: utility planners, CAISO schedulers, grid engineers, scientists, energy professionals • Visit the High Penetration Solar Portal to sign up to receive e-mail updates and information about both DOE/CPUC collaborative efforts and the High Penetration Solar Forum:http://www1.eere.energy.gov/solar/high_pen/

45. California Solar Initiative MASH Update Robert Chan PG&E

46. MASH Update MASH Snapshot for January 2011

47. MASH Update MASH Program Statistics

48. MASH Update MASH Program Statistics

49. Increasing Incentives for Sold Out MASH Track 1 Reallocation of Track 2 Incentives Adjust program funds between SASH and MASH Reduce Track 1A and 1B Incentives MASH project access to CSI General Market Funds Remove 2 yr occupancy requirement MASH Update OIR PHASE I MASH Items Decision Expected end of Q1 2011

50. Jan-Mar 2011 4th Cycle Track 2 Postponed MASH PA’s requested postponement of Track 2 cycle as a result of the Scoping Memo On January 4, 2011, Commission postpones cycle until April 29, 2011 MASH Update MASH Updates