July 29th, 2016

Quantifying the Economics of Net Energy Metering in Nevada

SolarCity Confidential Slide 2 2

Distributed Energy

Resources in NV

Quantifying the net benefits of

distributed energy resource

SolarCity Confidential Slide 3 3

To update discussion, SolarCity and NRDC repeated

2014 independent analysis with updated data

SolarCity Confidential Slide 4 4

Methodological Principles

•

•

Nevada NEM Public Tool Updated Inputs for 2016+

SolarCity Confidential Slide 5 5

Methodological Principles

•

•

SolarCity Confidential Slide 6 6 Source: Analysis utilizing E3 Nevada Public Tool and specified inputs and methodologies

$0.016

$0.034

$0.00

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

Benefits Costs Net Benefits(Excl.

Environmental)

EnvironmentalExternalities

Net Benefits+ Environmental

2015 L

eveliz

ed

$ /

kW

h

When full benefits are measured, NEM saves ALL customers Full cost/benefit analysis performed by SolarCity and NRDC utilizing methodology as

specified by PUC Nevada working group

SolarCity Confidential Slide 7 7

Detailed Results

SolarCity Confidential Slide 8 8

‒

‒

‒

Energy

Avoided Energy Adjustment

Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-2043

Adjustment -41% -30% -33% -35% -35% -34% -32% -31% -29% -27% -26%

SolarCity Confidential Slide 9 9

‒

‒

‒

‒

‒

‒

‒

‒

Generation Capacity

SolarCity Confidential Slide 10 10

Voltage Support

SolarCity Confidential Slide 11 11

Conservation Voltage Reduction (CVR)

SolarCity Confidential Slide 12 12

CVR Methodology and Calculator

Energy Efficiency Enabled

by Distributed Solar PV via

Conservation Voltage

Reduction

A methodology to calculate the benefits of

distributed PV with smart inverters in

providing conservation voltage reduction

solarcity.com/gridx

SolarCity Confidential Slide 13 13

Thank you