Business for Clean Energy Presentation 2-26-15

1. Clean Energy Policy
in California
Business for Clean Energy
February 26, 2015

2. About Enphase
• Leading global supplier of solar microinverter systems
• 2014 Global Frost & Sullivan Award for Technology
Leadership
• Headquartered in California, 550 employees
• Over 2GW(DC) shipped
• 2014 Revenue: $330 million*
• Offices in seven countries worldwide

3. Advanced
Semiconductor
Design
Converts DC to AC
Enphase
Microinverter
Proprietary
Networking
Technology
Collects Performance
Information
Communications
Gateway
SaaS Energy
Management
Platform
Analytics Ensures
Maximum Production
Enlighten Platform
Proprietary technology protected by
125 PATENT FAMILIES
Enphase Technology Innovation
Intelligent Storage
Solution
Optimizes Generation and
Load
AC Storage Battery
Networking the Distribution Grid

4. Enphase Management System
Engage Cable
Load
Load Controllers
Load Center
Utility
Meter
• Distributed PV (AC Module) and Distributed Storage (AC Battery)
Managed by
Enlighten
Energy
Storage System
PV System
Storage

5. Market Leader
Known as #1 microinverter company worldwide = 190k
systems (1GW)

6. Solar as An Asset In California
• Over 70,000 systems installed in CA (50%
market share)
• Collecting grid power quality data near real-time
for last several years
• Cloud-based network uploads over 600 GB/day,
more than Twitter
• Ability to monitor and remotely upgrade systems
for power quality management
Asset to the Grid - Enphase’s network of over 70,000
systems can detect and correct for distribution power quality
issues today.

7. Paul Nahi
President and CEO
Kris Sennesael
CFO
Martin Fornage
Founder and CTO
Raghu Belur
Founder and VP,
Products & Strategic
Initiatives
Greg Steele
SVP, Engineering
Jeff Loebbaka
SVP, Worldwide Sales,
Marketing & Customer
Support
Ciaran Fox
VP,Quality & Reliability
Steve Lapointe
VP, Global Human
Resources
Darien Spencer
VP, Manufacturing &
Operations
Decades of Experience in
Semiconductors and Communications Networking
Enphase Executive Team

8. AB32 – California’s GHG Legislation
• Global Warming Solutions Act of
2006
• 1990 levels by 2020 (15% below
BAU)
• Established standard to maintain
warming at 2 degrees C
• EU (40%), Germany (55%),
UK (50%)
• Executive Order - 80% below
1990 levels by 2050 (non-binding) Source: California Air Resources Board

9. Cap and Trade
• Sets cap and decreases number of offsets over time
• Provides flexibility for compliance

10. Low Carbon Fuel Standard
• Achieve 10% reduction in carbon intensity of
transportation fuels by 2020

11. Advanced Clean Cars
• EVs, Fuel Cell, BEVs, HEVs

12. Renewable Portfolio Standard
• Increase renewable energy to 33% of all electricity
generation by 2020

13. 33% Renewable Portfolio Standard by 2020
Source: CPUC

14. More Variable Than in the Past
Source: CPUC

15. Energy Efficiency
• Increase incentives and codes/standards for
appliances and new/existing buildings

16. 2015 – More, More and More
1. Governor’s new goals for 2030
• 50% decrease in use of petroleum
• 50% increase in efficiency for existing homes
• 50% renewable generation
2. SB 350 (de Leon, Leno) - 50-50-50 bill
3. SB 32 (Pavely) – 80% below 1990 by 2050
4. EPA 111(d) – Clean Power Plan – 30% below 2005

17. Triple 50 & 80% Bill
• Decreases need for traditional utility services
• Increases need for “flexibility” and “connectivity”
• Shift load (storage, DR), Power Quality (voltage,frequency)
• Forces change in rate structures (NEM 2.0, fixed plus
variable)
• Match supply with demand
• Forces change in utility business model
• Incentivize conservation not capital expenses
• Infrastructure as a “service”

18. EPA 111 (d) – Impacts Other States
Source Brattle Group

19. The Net Effect
• Push towards localized resources, greater customer
choice and control
• Consumer plays a critical role in providing grid
services
• Compensation structure needs to be defined
• Utility transforms into a services business
• Sells levels of reliability, transacts with consumers
• All of this happens as resource costs continue to
decline, benefitting the consumer

20. Thank you.