COMMUNITY SOLAR & GROUP NET METERING - BUILDING

THE DIVERSIFIED GRIDElijah Emerson

Primmer

What is “Community” Solar?

Community Solar is: Local Smaller Scale Distributed (benefits local electric grid) Driven by community needs (not industry)

Benefits: sustainable, clean, more easily permitted, strengthens local electric grid.Supported by and provides benefits to those that are impacted most by its existence.

Group Net Metering

Project – an eligible electric generation facility

Group Host Members

Distribution Utility PUC

Group Net Metering – Credits

Energy used at host site has greatest value Monthly Payment from Utility to Host

o Small Customer-Generator – all kilowatt/hour rates

o Large Customer-Generator – default energy rate Host Transfers Monthly Payment to

Members According to Agreement Annual True-Up (June 1st)

o If total group usage for previous year is less than output of generator for previous year

Group Net Metering - Agreement

Must include requirements of PUC Rule 909.05

Essentially, Group Net Metering is a system of payments. Agreement must govern distribution of payments and payment obligations.

Needs to govern relationship among the group

A long-term complicated relationship How group will evolve over time.

Other Issues

Taxes – Payments likely to be considered taxable income. Collective solution: Excess generation

allocated to member by utility as kwh credits. Securities – If using a corporate, LLC, etc.

structure, could implicate securities regulations. Collective solution: securities exemption for

net metering.

Thanks!

Eli Emerson

PRIMMER PIPER EGGLESTON & CRAMER PC

106 Main Street | PO Box 349 | Littleton, NH 05601

Tel: 603 444 4008 | Fax: 603 444 6040

eemerson@primmer.com | www.primmer.com