Florida RPS & Solar

1. Florida RPS & Solar Dick Lowry Assoc. Manager of Government Relations 7/26/07

2. 2006 Worldwide Market Share • No. 1 in worldwide production – 6 years running • Solar cell manufacturer since 1959 • 100,000+ completed residential systems operating worldwide

3. Clean Energy • No Air Pollution • No Water Pollution • No Noise Pollution • No Solid Waste • No Radiation Risk • No Transmission Lines • No Cooling Water

4. PV Market Growth Will Mitigate Carbon...and Boost Jobs EPIA / Greenpeace, Solar Generation, September 2006

5. Component Mfg Systems Integration System Installation Sales & Finance Product and System Eng’g Service & Maintenance Investment and High Quality Jobs • Estimated 23 new jobs per added MW of PV manufacturing capacity (REPP) • California - 450 companies , approximately 4,000 jobs (CalSEIA) • Germany – 3,500 companies, 20,000 jobs (German Ministry of Environment)

6. PV Market Growth Spurs Price Reduction • Costs of solar PV have dropped by 73% in the past 2 decades

7. Solar Energy is the Most Abundant U.S. Energy Resource Florida Sunshine Resource 2X Today’s Largest Market - Germany

8. Strong Public Support For Solar in Florida

9. 21 State RPS Policies *LBNL, 2007

10. What Makes an RPS Work for Solar? • Explicit solar share • Tradeable SRECs • ACP mechanism • Provision for LT contracts • Provision for small systems

11. Solar Carve-Outs and Multipliers *LBNL, 2007

12. Solar Incentive Results To Date • Credit Multipliers • WA: no real impact on solar to date, or expected • DE: no real impact on solar to date, or expected • MD: no real impact on solar to date, or expected • NM: some activity to support solar, but few results to show as of yet • Solar Carve-Outs • NJ: 18 MW PV in 2006 (27 MW cumulative) • NY: 2.7 MW PV in 2006 (9 MW cumulative) • not significantly impacted by RPS set-aside, yet • AZ: 1.8 MW PV in 2006 (16 MW cumulative); 1 MW solar thermal plant • CO: 0.9 MW in 2006 (1.8 MW cumulative) • TX: 0.7 MW in 2006 (2.2 MW cumulative) • not significantly impacted by RPS set-aside, yet • NV: 2.6 MW in 2006 (3.5 MW cumulative); 64 MW solar thermal plant • DC: no real impact, yet • PA: no real impact, yet *LBNL, 2007

13. SRECs • Tradeable RECs • Who has them? • AZ, CA*, CO, CT, DE, D.C., ME, MD, MA, MN, MT, NV, NH, NJ, NM, OR, PA, RI, TX, VT, VA, WA, and WI • How do They Work? • Utilities required to purchase pro-rata share of annual RPS requirements (REC’s and SREC’s) • Companies or individuals who purchase solar systems can sell their SRECs to the utilities • This leverages private investment to meet RPS *In Development

14. ACP – Alternative Compliance Payment • ACP • Who has one? • NJ, MD, PA, D.C., DE, CT, CO, MA, MT, RI, TX • How do They Work? • A declining penalty for not meeting RPS requirements is placed on the utilities • This sets a value for SRECs, as utilities are then willing to purchase SRECs for anything below the ACP • Without an ACP, utilities have no incentive to meet their RPS requirements

15. Long-Term Contracts • Long-Term Contracts • Who has them? • NJ, CO, MD, AZ , L.A. • How do They Work? • Utilities must purchase SRECs to meet RPS obligations • If they are only permitted to buy SRECs under long-term contracts (such as 15 years) then purchasers of solar systems gain certainty that their SRECs will be bought over the long term • This allows financing of larger systems

16. Upfront Payment for Smaller Systems • Upfront Payment for smaller systems • Who does this? • Most states that offer rebates offer them upfront, at least for smaller systems • This would not be a rebate but an upfront payment for long term SRECs • How do They Work? • The PSC would establish a present value for SRECs created by a solar system over the following 15 years • The utility would then be required to purchase these SRECs at this upfront price from small system owners, until their RPS obligation is satisfied • This will be discussed in more detail in a later presentation

17. Growth of Solar Market in FL Dependent on… • Explicit solar share • Tradeable SRECs • ACP mechanism • Provision for LT contracts • Provision for small systems