Energy Storage and Distributed Energy Solutions

SolarCity Confidential Slide 2

Leader in storage technology.

SolarCity has worked with Tesla for 4+ years on batteries

Developed suite of battery products + internal software

Fully integrated grid scale and distributed storage

Over 340 batteries deployed by SolarCity with significant increased deployment

SolarCity is currently using Tesla’s energy storage systems, but continually monitors the market for best in class options

Powerpack

250kW /500 kWh blocks

Fully scalable

Powerwall

7kWh

SolarCity Confidential Slide 3

Highly versatile – Lithium-Ion batteries can address both short and

medium duration use cases

Proven technology – Lithium-Ion batteries have been proven to be a

highly reliable and safe power supply through a broad range of

applications (consumer electronics, automotive, electric utility, etc.)

Cost Advantage – As Lithium-Ion manufacturing scales notably due

to electric vehicle deployment, Li-Ion battery pricing is positioned to

benefit.

SolarCity Uses Li-ion Storage Technology

SolarCity Confidential Slide 4

Distributed storage currently focuses on customer-level

capabilities but the vision of storage is dual use cases providing

“stacked” benefits

Energy/Load Shifting Congestion reduction / Investment deferral Distribution

Congestion reduction / Investment deferral

Customer Minimize demand charges/TOU Management

Back-up Power and Resiliency

Distribution Microgrids

Customer Back-up power

Ancillary Services

Frequency Regulation

Spinning Reserves

Voltage Control

Transmission

Distribution/Transmission Support Renewable Integration/Firm Power

Customer: May Get Improved Power Quality

LSE/Utility Minimize costs from load reduction (DR)

LSE/Utility

SolarCity Confidential Slide 5

The value of load shifting.

SolarCity Confidential Slide 6

Distributed energy resources (DERs) can offset

system peak load. Johanna and Santiago Load, CA 2022

SolarCity Confidential Slide 7

GridLogic monitors and actively

controls the system 24/7, optimizing

operation for customer savings and

providing grid services

100% solar charging

Provide backup power for up to

5,000 watts (120 V / 20 Amps)

Battery charges from solar panels,

even during grid outages

SolarCity retains full control of the

storage device to provide additional

grid services

SolarCity residential application

SolarCity Solar Panels

SolarCity Confidential Slide 8

“For utilities and grid operators, the technology is designed to enable remote-aggregated control of solar battery systems.”

- Peter Rive, SolarCity Co-Founder and CTO

The future of solar + storage.

Your energy comes from centralized – and

often dirty – sources and your money goes

directly to the utility.

Clean energy is shared between you and your

neighbors, and each home has the potential

to earn money for what they produce.

SolarCity Confidential Slide 9

DemandLogic – Commercial and Industrial

Applications: solar + storage for demand charge

reduction.

12 PM

Your system is at full production,

charging your battery and

reducing your need for utility

power.

5 PM

As solar production decreases,

the battery is intelligently

discharged to reduce peak

demand charges.

10 PM

You draw power from the utility

company at night at lower off-

peak demand rates.

SolarCity Confidential Slide 10

K-12 – Original Load Profile

SCE Ratepayer – Example School – Original Load Profile

SolarCity Confidential Slide 11

K-12 – Load Profile after DemandLogic as seen by

the Utility

SolarCity Confidential Slide 12

‒ 52 MWh battery system (17 MW PV system) will feed up to 13 megawatts

of electricity onto the grid to "shave" the amount of conventional power

generation needed to meet the evening peak, which lasts from 5 p.m. to 10

p.m.

‒ By using the solar energy stored in the battery instead of diesel

generators, KIUC will reduce its use of imported fossil fuels and also cut its

greenhouse gas emissions.

Utility Control for Firm Renewable Energy Supply:

Kauai, Hawaii

SolarCity Confidential Slide 13

Proactively streamline interconnection and permitting

Establish programs to increase deployment and gain experience with storage using industry expertise and third parties

‒ Incentive Program

‒ Mandate

‒ Identify value of load shifting

‒ Flexible resource rates

‒ Value energy capacity (kWh installed)

Establish programs and markets to capture long-term avoided cost savings

‒ Flexible Resource Rates

Clarify the status of solar+storage systems in existing programs, especially net metering

Encourage third-party participation

Recommendations for encouraging energy storage

and DERs.

SolarCity Confidential Slide 14

California Energy Storage Mandate

1,325 MW of energy storage to be procured by PG&E, SCE, and SDG&E by 2020

Energy storage procurement equal to 1% of peak load by 2020 for community choice aggregators and electric service providers

California Self-Generation Incentive Program

Rebate of $1.46/W to customer-sited energy storage projects, with 2-hour minimum runtime requirement

Projects count toward utility procurement targets

144 MW of storage projects reserved or in progress

Oregon Energy Storage Mandate

5 MWh of energy storage to be procured by electric utilities by 2020

Vermont Energy Transformation Requirement

Energy Transformation Projects provide energy-related goods or services, not consisting of the generation of electricity, that result in a net reduction in fossil fuel consumption by customers, including storage of renewable energy.

Requires 2% of each retail provider’s annual retail electric sales to be met through energy transformation projects beginning in 2017 and reaching 12% in 2032

State requirements for energy storage.