1. Energy when it is Needed John Frederick Senior Vice President

2. Energy Quiz Question: When is wind production the highest? Answer: 70% of wind production happens at night

3. Energy Quiz Peak Solar Production Question: When is solar production the highest? Answer: 80% of all solar production happens between 9am and 2pm

4. Energy Quiz Peak Solar Production Question: When do electric utilities experience peak daily demand? Answer: Peak electrical demand typically occurs between 4pm and 7pm Utility Peak Demand

5. Energy Quiz Final Question: How many states have passed Renewable Portfolio Standard Laws?

6. Energy Quiz Answer:

8. Distributed, utility controlled, customer sited energy storage can be below $1000 per KWh*$1,000 and $2,500 per KWh includes all balance of system components (i.e. power electrics, switch gear, etc)

9. Distributed Storage Value Curve

10. Value of Storage for Utilities NPV $/kW Distribution Value Dynamic VAR Support ~150 Improved Service Reliability (site dependent) ~250 Generation Value Firming & Shifting Renewables (source dependent) ~650 ~150 Energy Arbitrage Frequency Regulation and other Ancillary Values (large variability) ~450 Distribution Capital Deferral (site dependent) ~850 Generation Capacity ~500

11. Community Energy Storage Value Streams CES provides many value streams versus bulk storage Energy Storage for the Electricity Grid: Benefits and Market Analysis Guide Jim Eyer and Garth Corey

12. Solar Peak Shifting… Typical Residential Household Using 40 kWh per day “On Peak” Period From 2pm to 8pm Demand kWh time Silent Power stores the excess Solar PV for use during the “On Peak” period

13. Residential Energy Storage Value Streams RES provides even more value streams Energy Storage for the Electricity Grid: Benefits and Market Analysis Guide Jim Eyer and Garth Corey

14. Substation Storage vs CES vs RES Analysis

15. Cost Advantages of RES vs CES RES is being installed as part of new Solar PV installations

17. John does not want his nice new landscaping disrupted with a CES device

18. John’s neighbor has a huge swimming pool that will consume all the CES backup energy when it is engaged

19. Integrating renewables at his location would be a challenge

22. 30% federal investment tax credit applies to $14,000 incremental cost

23. Net cost of 10 kWh of storage is $9,800 ($980 / KWh)Silent Power OnDemand Energy Appliance with 10 KWh of battery storage Lithium Ion battery example

25. UPS switchover times

26. Continued solar production during grid outage

27. Improved solar system ROI - TOU/Feed-in tariff adoption Silent Power OnDemand Energy Appliance with 10 KWh of battery storage

29. Predominately in the top 50% of income households

30. The average installed cost of a residential standby generators is $6000-$7000

31. Over 31 million people lost power in 2008 according to Generac

32. Power outages cost homeowners $1.5 billion dollars each year**

33. Causes of Outages *Source: NPD 2008 Generator Owner Study Energy when it’s needed **Source: Propane Education & Research Council

35. anywhere from $118 to $352 per year using current rates

36. this could easily go to $400 to $800 per year

38. Average Solar PV installation 4.7 kW

39. Average storage attached to each Solar PV installation is 10 kWh

40. Starting today (2010), adding storage to every new solar home would equal 5.5 GW through 2015New Solar PV Installs Megawatts of Storage

42. Average Commercial Solar PV installation 50 kW

43. Average storage attached to each Solar PV installation is 50kWh

44. Starting today (2010), adding storage to every new solar business would equal 6.14 GW through 2015Megawatts of Storage New Solar PV Installs

45. Communication & Aggregation MWh Number of Customers

46. Residential Energy Storage Pilots

48. SMUD will be piloting both RES and CES

49. 3 CES devices

50. 15 RES devices

51. Other Project participants include GridPoint, Navigant Consulting, Sunpower, and Saft

53. Residential Energy Storage provides the maximum number of values streams for both the utility and end user. Highest societal benefit.