1. California Solar InitiativeThermal ProgramContractor & Self-Installer Workshop

2. WORKSHOP INTRODUCTION2

3. Housekeeping: Turn off your cell phones Refreshments Recycle Restrooms down the hall Sign-in- Contractors License #3

4. CSI Thermal Program Workshop Agenda Workshop & CSI Thermal Program Introduction Program Eligibility Requirements & Incentive Calculator Program Incentives Lunch Application Process Technical Requirements & Inspection Checklist Hand out Proof of Attendance Certificates & Keys4

5. Purpose of Workshop Training Provides details of CSI Thermal program Eligibility Requirements Incentive Structure Application process Training required for contractors and self- installer participation in CSI-Thermal Program Not a how to install/design/sell SWH systems.5

6. Installation Course at CCSE April 23-26, 2012 Two courses: 1. Two day focuses on business practices, marketing, sales - $50 2. Four day two-day course plus two days of hands-on installation and design - $100 Normal cost of this workshop is $1500 - $2500 Sign up at6 www.energycenter.org/calendar

7. INTRODUCTION TO CSI-THERMAL PROGRAM7

8. Program Administrators (PA)California Center for Sustainable Southern California Gas Company: Energy (SDG&E territory): Phone: (800) Gas-2000Phone: (877) 333-SWHP Email: swh@socalgas.comEmail: swh@energycenter.org Website:Website: www.energycenter.org/swh www.socalgas.com/rebates/solarPacific Gas and Electric: Southern California Edison:Phone: (877) 743-4112 Phone: (866) 584-7436Email: solar@pge.com Email: CSIGroup@sce.comWebsite: www.pge.com/csithermal Website: www.sce.com/csithermal www.gosolarcalifornia.org/solarwater8

9. Incentive BudgetCSI-Thermal total program incentive budget is $280,800,000: $180,000,000 for natural gas displacing SWH systems Up to $100,800,000 for electric and propane displacing SWH systems 40% of the total incentive budget is reserved for single-family residential customer SWH systems 60% of the total incentive budget is reserved for commercial or multifamily SWH systems. 9

10. Incentive Budget Per Program Administrator Program Natural Gas Budget Electric/Propane Displacing Administrator (& millions) Budget ($ millions) PG&E $70.2 $44.0 CCSE $18.0 $10.4 SCE -- $46.4 SoCalGas $91.8 -- Total $180.0 $100.810

11. Low Income Program The Low Income Program is set to launch in March 2012 Only applies to qualifying natural gas-displacing SWH systems Total budget of the Low Income Program is $25 million Total Incentive Program Budget Budget Administrator Allocation (in millions) PG&E 39% $9.75 CCSE 10% $2.50 SCG 51% $12.75 Total 100% $25.0011

12. Low Income ProgramFor more information on theLow-Income Program go towww.energycenter.org/swh Click on CSI-Thermal Documents Click on Handbooks Click to download Handbook 12

13. CSI THERMAL PROGRAM ELIGIBILITY REQUIREMENTS13

14. Eligibility Criteria & Requirements Participants Warranty Equipment Energy Efficiency Shade Factor Metering Surface Field Inspections Orientation Factor14

15. Participants Eligibility, continuedCustomer Class and Incentive Rate determined byUtility Rate Schedule Residential Rate = Single-family residential Commercial Rate = Commercial Master Meter Rate = Multifamily Residential15

16. Participants Eligibility Host Customer: The utility customer of record at the location where the solar water heating (SWH) system will be located. Natural Gas Customers of PG&E, SDG&E, SCG Electric Customers of PG&E, SDG&E, SCE Propane customers are eligible for a CSI- Thermal incentive if they are electric customers of PG&E, SDG&E, SCE* *Starting January 2012 for projects signed off after16 June 14, 2011

17. Participants Eligibility Host Customer (continued): Natural Gas Displacing SWH Electric/Propane Displacing SWH Existing Home/ Business Existing Home/ Business New Home/ Business New Home/ Business17

18. Participants Eligibility, continuedSystem Owner: Owner of SWH system at time incentive is paid Host Customer or Third Party18

19. Participants Eligibility, continued Applicant: Entity that completes/submits CSI-Thermal application Serves as main contact throughout process Eligible solar contractor or self installer will be the applicant for CSI-Thermal applications19

20. Participants Eligibility, continuedSolar Contractor: Contractors must have one of the following active licenses: A, B, C-4, C-36, or C-46 License Must attend CSI-Thermal workshop (today) Solar Contractor is the Applicant- will receive a key at the end of the workshop to register at: www.csithermal.com20

21. Participants Eligibility, continued Self-Installer: Homeowners or building owners who choose to install a SWH system on their property. Must meet definition of Host Customer. Self-Installer is also the Applicant. Equipment Sellers: Refers to retail sellers such as manufacturers, distributors, retail businesses, and contractors. An Equipment Seller is not an in-home sales representative. These participants are NOT eligible to be an applicant (unless they are the contractor).21

22. Technology Eligibility Solar Water Heater Types Open Loop Closed Loop (Direct) (Indirect) Active Passive Active Passive 1 2 4 5 Direct Forced Indirect Forced Thermosiphon Thermosiphon Circulation Circulation 3 Integral Storage Not eligible systems Collector (ICS) for incentives22

23. End-Use EligibilitySingle Family SWH systems Domestic Hot Water (DHW) end uses are eligible: Water used for domestic purposes (but not including space heating, space cooling, or swimming pool heating): drinking, food preparation, sanitation and personal hygieneMultifamily/Commercial SWH systems SWH applications must directly consume the solar heatedpotable water, as opposed to using the solar heated water as amedium to carry heat for some other end use.23

24. Eligible EquipmentAll SWH Components must be new and unused, exceptfor the following components: De-scaled copper piping Collector racking (design stamped by an Engineer to ensure the existing racks are appropriate for expected wind loading)24

25. Eligible Equipment Single family residential projects must have SRCC OG-300 or IAPMO System Certification SRCC www.solar-rating.org IAPMO www.iapmo.org Installation must match OG-300 system configuration exactly: collector area, solar storage capacity, number of tanks, type of back up fuel source, type of back up water heater (tank vs tankless) Exceptions: Substitution of Solar Storage Tank of equal or greater performance than the solar tank specified in the OG-300 certification Substitution of Auxiliary Tank with Tankless even when the OG-300 system is not certified with a tankless auxiliary water heater Multi-Family & Commercial projects must have SRCC OG-100 or IAPMO Collector Certification25

26. Ineligible Systems (not eligible for incentives) Pools, spas, space heating, space cooling Direct Forced Circulation, Open Loop Thermosiphon systems, Closed Loop Recirculation Systems that re-circulate water in the collector loop Combination systems will only receive an incentive for domestic hot water (DHW) energy savings (must clearly isolate DHW energy savings) End uses that do not directly consume the solar heated water, but rather use the water as a medium to carry heat for some other end use A SWH system that replaces a SWH system which previously received an incentive through the CSI-Thermal Program Portable systems or systems that are not permanently installed. A SWH system that received incentives from a utility Energy Efficiency program. 26

27. Permit Requirements All SWH projects must receive an inspection permit from local jurisdiction Eligibility is valid up to 24 months after date on final permit sign-off Contractors should be familiar with local code requirements as they relate to SWH installations27

28. Warranty Requirements Collector Manufacturer: 10-year minimum Contractor: 1- year minimum on installation labor and workmanship 10-year minimum to protect the purchaser against more than a 15% degradation of system performance that may occur as a result of faulty installation28

29. Energy Efficiency Requirements Energy Efficiency Survey/Audit: required for all existing residential and commercial buildings or proof of Title 24 energy efficiency compliance Must have been performed during the past three years Acceptable surveys include online, telephone, or onsite audit provided by the utilities, Program Administrators, or a qualified independent vendor or consultant http://www.sdge.com/residential/tools.shtml29

30. Insulation Requirements All accessible hot water piping must be insulated with a minimum of R2.6 If there is a recirculation loop, all accessible piping must be insulated with a minimum of R2.630

31. Metering RequirementsPurposes of Metering 1) Customer Performance Metering (CPM) Provides performance data to system owner Required for systems larger than 30kWth 2) True-up Payment (70/30) Required for systems>250kWth Requires CPM*Metering is encouraged for all projects regardless of requirements31

32. Commercial/Multi-family: 30kWth - 250kWth Customer Performance Metering (CPM) is Required One-time/lump sum incentive payment Incentive based on estimated therm or kWh savings provided by the OG-100 Calculator Paid after project is completed, approved, and inspected (if applicable)32

33. Commercial/Multi-family > 250kWth70/30 True-Up Payment Customer Performance Metering (CPM) is required Payment made in two parts: 1) OG-100 calculator estimates therm or kWh savings. PA pays 70 percent of that incentive after Incentive Claim and Inspection (if applicable) are approved 2) System is then metered/monitored for 12 consecutive months. PA pays the true-up incentive amount by subtracting the initial 70 percent incentive payment from the final metered incentive amount.*Program will pay no more than 110% of estimated incentive33

34. 70/30 True-up Example Actual energy savings less than expected 1. OG-100 Calculator Estimation: 12,000 therms displaced annually (12,000 therms x $12.82/therm) = $153,840 incentive 2. 70% Payment: Once the project is completed, approved, and inspected (if applicable), PA pays 70 percent of estimated incentive ($153,840 x .70) = $107,688 3. Meter for 12 months: ex: based on 12 months of performance metering actual savings equals 10,500 therms saved (not 12,000 estimated) 4. Calculate Maximum Incentive (based on metered data): 10,500 therms (10,500 therms x $12.82/therm) = $134,610 incentive 5. Calculate Final 30% Payment: Maximum Incentive minus 70% payment: $134,610- $107,688 = $26,92234

35. Metering Communication Requirements 70/30 True-up Metering requires a Program Performance Data (PPD) provider PPD provider is a service provider that monitors and reports energy delivery data from SWH systems to PA PPD provider must be approved by PAs Application found in Handbook and www.GoSolarCalifornia.com website PPD provider must monitor, trend, archive and report fields as required in Handbook Table 10 See CSI Thermal Handbook Section for more information35

36. Metering, Monitoring, and Communication Requirements Metering Table 11 Who System Metering Incentive CPM PPD Summary of Performance Metering and Communication Requirements Equipment Bears Size Process Structure Required Required Location Cost Single < 30 kWth None Lump-sum N/A N/A N/A N/A Rebate Collector loop Customer Single Paid for by or potable 30 - 250 kWth Performance Lump-sum Yes No System water side Monitoring Rebate Owner Paid for by 70/30 True- 70/30 True- Potable water > 250kWth Yes Yes System up payment up side Owner Contractor Opt-in Single Required less to M&E Potable water 250 kWth Lump-sum for systems Yes $500 offset (not side Rebate >30 kWth from PA mandatory)36

37. CSI THERMAL PROGRAM INCENTIVES & APPLICATION PROCESS37

38. CSI-Thermal Incentive Structure Four-Step declining incentive structure Steps decline as we receive more projects and step budget allocations are used for each customer class Steps move independently by Customer Class and Program Administrator Electric/Propane incentive steps change when natural gas steps change Step Change Tracker: www.csithermal.com/tracker/38

39. Incentive Steps Natural Gas Natural Gas Incentives $/therm Incentive Step Customer Class Displaced Cap Residential $1,875 1 $12.82 Commercial/Multifamily $500,000 Residential $1,500 2 $10.26 Commercial/Multifamily $500,000 Residential $1,125 3 $7.69 Commercial/Multifamily $500,000 Residential $687.50 4 $4.70 Commercial/Multifamily $500,00039

40. Incentive Steps Electric/Propane Electric/Propane Incentives $/kWh Incentive Step Customer Class Displaced Cap Residential $1,263 1 $0.37 Commercial /Multifamily $250,000 Residential $1,025 2 $0.30 Commercial /Multifamily $250,000 Residential $750 3 $0.22 Commercial /Multifamily $250,000 Residential $475 4 $0.14 Commercial /Multifamily $250,00040

41. Low Income Program Incentives Offers higher rebates for qualifying low-income properties Single-family rebates are 200% of regular CSI-T rebates Maximum rebate is $3750 Multifamily rebates are 150% of regular CSI-T rebates Maximum rebate is $500,000 Only natural gas-displacing systems are eligible Single Family Incentives Multifamily Incentives $/therm Incentive $/therm Incentive Step Step displaced Cap displaced Cap 1 $25.64 $3,750 1 $19.23 $500,000 2 $20.52 $3,000 2 $15.39 $500,000 3 $15.38 $2,250 3 $11.53 $500,000 4 $9.40 $1,376 4 $7.05 $500,00041

42. Single Family Residential Incentives Lump sum/one-time payment Maximum Single Family Incentives: Electric/Propane - $1263 Natural Gas - $1875 Paid after project is completed, approved, and inspected (if applicable)42

43. Single Family Residential Incentives Incentive is based on the following factors: 1. Estimated energy savings (Based on SRCC OG-300 rating in CEC climate zones) 2. Incentive Level 3. Shade Factor 4. Surface Orientation Factor (SOF) *The calculator on www.csithermal.com will automatically calculate your incentive.43

44. Incentive Calculation Factors: 1. SRCC OG-300 Rating www.solar-rating.org44

45. Incentive Calculation Factors: 1. Climate Zones Different climate zones will have different sun exposure Check the CECs website for climate zones by zip code:http://www.energy.ca.gov/maps/renewable/building_climate_zones.html45

46. SRCC System Schematic Conversion Factor To Convert: 1 therm = 29.3 kWh 2241kWh = .03413 therms x 2241 1 kWh = 0.03413 therms = 76.48 therms46

47. Incentive Calculation Factors: 2. Incentive Level Based on the current step level of either electric/propane or natural gas47

48. Incentive Calculation Factors: 3. Shade Factor For each percentage of average annual availability below 100% on the collector(s) between 10am and 3pm, there will be an equal percentage reduction in the system incentive payment down to 85%. Example: 95% solar availability between 10am and 3pm = 5% incentive reduction48

49. Shade Factor Tools: Solar Pathfinder49

50. Shade Factor Tools: Solmetric SunEye50

51. Calculate Shade Factor Add total hours of shading between 10am and 3pm, based on shade analysis results Divide by total hours in the year between 10am and 3pm (5 hrs. x 365 days = 1825 hours of shading/ yr.) Example: 135 hours of shading/1825 hours= 7% Shade Factor = 93%51

52. Incentive Calculation Factors: 4. Surface Orientation Factor (SOF) SOF value is determined by Tilt and Azimuth The ideal SOF = 1.0; Minimum SOF required = .75 SOF less than 1.0 receives a lesser incentive SOF less than .75 is not eligible for an incentive52

53. Collector Tilt Tilt - Angle at which the collectors are mounted relative to 0 (flat horizontal surface) Ex. 30 tilt angle53

54. AzimuthMagnetic North is measured using a compass, which does not represent the true north point because of the Earths magnetic fieldsTrue Azimuth is the angle between Magnetic North Point and the direction the direction panels are facing Magnetic Declination True North on a If you are in San Diego, Magnetic North on a Compassadd the magnetic declination Compassof 12 to get the true azimuth To find magnetic declination for different locations, go to:http://www.ngdc.noaa.gov/geomag models/Declination.jsp54

55. Incentive Calculation: 4. Surface Orientation Factor (SOF) SOF Chart found in CSI-Thermal Handbook55

56. SRCC OG-300 Incentive Calculator:Single Family Residential Calculator at www.csithermal.com 4 Factors to determine incentive: 1) SRCC estimated annual energy savings, based on the CEC climate zone 2) Incentive Step Level at the time the Incentive Claim Form is approved 3) Surface Orientation Factor (SOF) 4) Shade Factor Incentive Calculation Formula: (SRCC OG-300 estimated annual energy savings) X (Current Incentive Step Level) X (SOF) X (Shade Factor)= $ Incentive Amount56

57. Example: OG-300 Incentive FormulaSingle Family Residential : Natural Gas Annual Energy Savings 120 Therms x Price/Therm (Step 1) x $12.82 x Surface Orientation Factor x 1.0 x Shade factor x .98 = $ Savings = $1508 57

58. Example: OG-300 Incentive FormulaSingle Family Residential: Electric Annual Energy Savings 2800 kWh x Price/kWh (Step 1) x $0.37 x Surface Orientation Factor x 1.0 x Shade factor x .98 = $ Savings = $1015 58

59. Single Family Residential Incentives: OG-300 Incentive Calculator www.csithermal.com Fill in one of these59

60. Multi-Family/Commercial: Incentive Cap A maximum of one multifamily or commercial incentive will be allowed per SWH system Maximum natural gas incentive: $500,000 Maximum electric/propane incentive: $250,000 In addition, the total incentives for multiple systems on one site cannot exceed the incentive maximums Gas-displacing commercial projects and Multifamily Residential projects are still eligible for rebates.60

61. MF/C Site Definition Example #1 For Illustration Purposes Only Site #1 Site #2 186 Temple 2125 Walnut Ave. Street 2123 Walnut Ave. 2131 Walnut Ave. 2121 Walnut Ave. 2127 Walnut Ave. 2129 Walnut Ave. Walnut Avenue Walnut Avenue Temple Street (public street) (public street) Site #3 (public street) 178 Temple Street = Walnut Gardens Apartment Complex The Host Customers premises, consisting of all the real property and apparatus employed in a single enterprise on an integral parcel of land undivided.61

62. MF/C Site Definition Example #2 For Illustration Purposes Only Site #1 Building F Building D Building E Building A Building G Building B Building C Temple Street Walnut Avenue Walnut Avenue (public street) (public street) (public street) = University of Hastings Building HIn the case of industrial, agricultural, oil field, resort enterprises, andpublic or quasi-public institutions divided by a dedicated street, highwayor other public thoroughfare or railway, these are considered to beone site.62

63. MF/C Site Definition Example #3 For Illustration Purposes Only Site #1 Separate business enterprises or homes on a single parcel of land undivided by a highway, public road, and thoroughfare or railroad would be considered as separate sites.63

64. Multi-Family/Commercial Incentives: OG-100 Incentive Calculator Not a design tool It is strictly a tool to estimate the incentive May take 15 plus minutes to obtain results Available at64

65. OG-100 Incentive Calculator Demonstration65

66. OG-100 Incentive Calculator Results Incentive Details Project Details66

67. CSI THERMAL APPLICATION PROCESS67

68. Application Process What: Fully automated online application processing database Where: How: Register as a Contractor or Self-Installer using your unique key provided at the end of this workshop Who: Once registered, Contractors and Self-Installers may create additional accounts to accommodate multiple users68

69. Application Process Application must be completed using the CSI-Thermal online database: www.csithermal.com Eligible Contractor completes the application for the customer Documents may be submitted online or by mail Online documents must be in pdf format Database demonstration will be provided today69

70. Application Process Summary70

71. Application Process- Single Family Applications One-Step Process Incentive Claim Form and supporting documentation are submitted the final signed-off building permit obtained71

72. Application Process- Single-Family Residential REQUIRED Documentation: Incentive Claim Form (ICF): Complete with signatures (originals not required) Energy Efficiency Audit or Title 24 documentation: Must be within the past 3 years Executed Agreement to purchase and install an eligible SWH System: Agreements must be legally binding and clearly spell out the scope of work, terms, price, and SWH system components to be installed. Final Signed-off Building Permit: Valid for 24 months Authorization to Receive Customer Information or Act on a Customers Behalf: Only required for SDG&E applicants Executed Alternative System Ownership Agreement: If System Owner is Different from Host Customer (Conditional)72

73. Application Process: Commercial/Multi-family 30kWth Two-Step Process 1. Reservation Request Form and supporting documentation submitted prior to installation Incentive rate locked in upon approval of Reservation Request Form and supporting documentation (Confirmed Reservation) Confirmed Reservation valid for 18 months 2. Incentive Claim Form and supporting documentation are submitted the final signed-off building permit obtained73

74. Two-Step Process Documentation Step 1: Reservation Request Reservation Request Form (RRF): Complete with signatures (originals not required) Energy Efficiency Audit or Title 24 documentation: Must be within the past 3 years Executed Agreement to purchase and install an eligible SWH System: Agreements must be legally binding and clearly spell out the scope of work, terms, price, and SWH system components to be installed. Authorization to Receive Customer Information or Act on a Customers Behalf: Only required for SDG&E applicants Executed Alternative System Ownership Agreement: If System Owner is Different from Host Customer (Conditional) GPD justification: signed by P.E. if customers building type is not on the Maximum GPD Guideline Table, see Appendix D (Conditional) Step 2: Incentive Claim Incentive Claim Form (ICF): Complete with signatures (originals not required) Final Signed-off Building Permit: Must be after July 15, 2009 74

75. Application Process: Commercial/Multi-family 30kWth Three-Step Process 1. Reservation Request Form and supporting documentation submitted prior to installation Incentive rate locked in upon approval of Reservation Request Form and supporting documentation submitted (Confirmed Reservation) Application Fee required Conditional Reservation 2. Proof of Project Milestone submitted which contains the executed contract. Must be submitted within 60 days (90 days for govt/non-profit) of the Conditional Reservation Confirmed Reservation given upon approval 3. Incentive Claim Form and supporting documentation are submitted after the final signed-off building permit obtained Must be submitted within 180 days of the Conditional Reservation75

76. Three-Step Process Documentation Step 1: Reservation Request Reservation Request Form (RRF): Complete with signatures (originals not required) Energy Efficiency Audit or Title 24 documentation: Must be within the past 3 years Authorization to Receive Customer Information or Act on a Customers Behalf: Only required for SDG&E applicants Application Fee GPD justification: signed by P.E. if customers building type is not on the Maximum GPD Guideline Table, see Appendix D (Conditional) Step 2: Proof of Project Milestone Executed Agreement to purchase and install an eligible SWH System: Agreements must be legally binding and clearly spell out the scope of work, terms, price, and SWH system components to be installed. Executed Alternative System Ownership Agreement: If System Owner is Different from Host Customer (Conditional) Step 3: Incentive Claim Incentive Claim Form (ICF): Complete with signatures (originals not required)76 Final Signed-off Building Permit: Must be after July 15, 2009

77. Application Fee Process Must be submitted within 30 days of Reservation Request receipt Wait Listed projects do not need to submit application fee until notified that incentive funds are available If funds are available to waitlisted projects, notified customers have 14 days to submit application fee May be mailed at the same time Reservation Request documentation is submitted Payment must reference: Host Customer Name Project ID. e.g. SDG-000045 Invoice will be issued as part of the Reservation Request submittal Failure to submit payment within 30 days will result in cancellation of application77

78. Application Fee78

79. Refund of Application FeeApplication fees will be refunded in the following cases: Once systems are complete, the application fee will be refunded. No interest will be paid on refunded application fees. If upon eligibility screening the project does not qualify for the CSI-Thermal Program. No interest will be paid on refunded application fees. If the application fee was invoiced and a refund is due, PAs will pay the invoiced party. If the application fee was not invoiced and a refund is due, PAs will pay the party that submitted the application fee.79

80. Forfeit of Application FeeApplication fees will be forfeited in the following cases: Once a conditional reservation is granted and the project expires or subsequently fails due to inadequate documentation. Once a confirmed reservation is granted and the project is cancelled or withdrawn by the Applicant and/or Host Customer. If a project reservation is allowed to lapse and the project is later built under a new reservation, the application fee for the previous reservation will be forfeited. If a project is submitted for reservation and the incentive declines due to a step change, the applicant will be notified and have 20 days to cancel the application without forfeiting the application fee.All forfeited application fees will be allocated to the CSI-Thermal Program budget80

81. Complete Reservation Request Form PA receives new Reservation Request for review: Documentation complete = Application Approved Incentive amount locked in Contractor and System Owner notified81

82. Incomplete Reservation Request Form PA receives new Reservation Request for review : Documentation incomplete = Application Suspended Contractor notified of incomplete documentation 20 days to submit corrections Corrections not submitted within 20 days=Cancelled project; Contractor must resubmit application Incentive amount NOT locked in until all documentation is complete82

83. Complete Incentive Claim FormPA receives new Incentive Claim for review: Documentation complete Application Approved Incentive amount locked in (Singlefamily residential) Project is a) processed for payment or b) selected for inspection Contractor and System Owner notified83

84. Incomplete Incentive Claim FormPA receives new Incentive Claim for review: Documentation incomplete Application Suspended Contractor notified of incomplete documentation 20 days to submit corrections Corrections not submitted in 20 days = cancelled project and contractor must resubmit84

85. Payment Process Upon final approval of the Incentive Claim Form and passed onsite field inspection (if applicable), the PA will disburse the CSI- Thermal Program incentive payment. Payment will be made to the Host Customer or a third party as indicated on the Incentive Claim Form, and will be mailed to the address provided.85

86. Application Database Demonstration86

87. CSI Thermal Database Support InformationCSI Thermal Support Email:support@csithermal.comCSI Thermal Support Hotline:(888) 323-313387

88. CSI THERMAL FIELD INSPECTION PROCESS88

89. Onsite Field Inspection Process Required: First 3 ICFs for projects that displace 30kWth or less (462 sq ft of collector area or less) First 3 ICF for projects that displace more than 30kWth (more than 462 sq ft of collector area) PAs will inspect a random sample of projects thereafter Contractors are encouraged to attend inspections 89

90. Onsite Field Inspection Results Infractions: Items that do not require corrections, but are identified as educational items for improvements on future projects Failure items: Items that do require corrections and will delay the incentive payment. Failure Sanctions will be imposed. (These items will be discussed in detail in the technical Section of this presentation) 90

91. Onsite Field Inspection Results PAs notify System Owner and Contractor of Inspection Results Inspection may uncover incorrect SOF or shading, resulting in a change in the estimated incentive amount Results: Pass = Process Payment Fail = Failure Sanctions 91

92. Failure Sanction Process: Notification Applicant will either accept or dispute the results: Accepted results: 30 days to correct the failure item(s) Re-inspection may be onsite or via photos of corrections Failure to correct items may be grounds for removal from the program Disputed results: Appeal in writing to the PA within 30 calendar days of notification Panel will review and notify of the decision within 60 days 92

93. Failure Sanction Process Three failures* in a rolling 12-month period= Probation for 6 months Re-attend Contractor/Self Installer training workshop Additional program applications will not be processed until completion of the workshop Five failures* in a rolling 12-month period= Disqualification from the program for a minimum of 6 months. *Failures are tracked across all PA territories 93

94. CSI THERMAL PROGRAM TECHNICAL REQUIREMENTS & INSPECTION CHECKLIST94

95. Inspection Checklist Condensed from SRCC OG-300 Shows OG-300 Section reference MF/Commercial system designers must follow SRCC OG-300 Standards Extracts exact language relevant to installers and commercial designers Explains CSI-Thermal Program interpretations Identifies 18 Failure Items & 18 Infractions 95

96. SRCC System Schematic ExampleIndirect Forced Circulation - Closed Loop Glycol 96

97. Technical Requirements System Sizing Inspection Checklist Failure Items Infraction Items 97

98. System Sizing: Single Family Residential Single Family Projects size according to Gallons of hot water used per day (GPD) Number of occupants 1st person= 20 GPD; 2nd person= 15 GPD; Each person thereafter=10 GPD Number of bedrooms (if occupants unknown) 1st bedroom= 20 GPD; 2nd bedroom= 15 GPD; Each bedroom thereafter=10 GPD Rules of thumb: 1 ft2 of collector area per GPD 1.5 gallons of storage per ft2 of collector area98

99. System Sizing: Single Family Residential Single Family project example: 3 occupants 45 gallons of hot water per day Collector Area: approximately 45 ft2 of collector space is needed Storage Capacity: at least 68 gallons of storage capacity is needed Appropriate OG-300 system would likely include one 4X10 collector (40 square feet) and 80 gallons of storage capacity99

100. System Sizing: MF/Commercial Multi-family (MF)/Commercial Projects Annual average GPD is estimated based on the Maximum GPD Guideline Table (Appendix D). SWH systems for the building types listed in Maximum GPD Guideline Table must be sized using the GPD value in this table for the appropriate building type. The GPD values in the table are maximum values. Systems may be sized using a lesser GPD assumption. Building types not listed in the Maximum GPD Guideline Table must do one of the following: Meter actual hot water consumption using an in-line water flow meter with accumulator for a minimum of 60 calendar days and adjust for seasonal variability. Hot water consumption calculation must be stamped by a P.E. Meter natural gas or electric consumption at the water heater for a minimum of 60 days and adjust for seasonal variability. Water heater gas or electric meter consumption calculation must be stamped by a P.E. Fluid collector square footage cannot exceed 1.25 times the GPD, or 1.85 times for air collectors. Systems with two or more tanks must have a minimum of one gallon of storage per square foot of collector. One-tank systems must have a minimum of 1.25 gallons of100 storage per square foot of collector.

101. System Sizing: MF/Commercial Building types not listed in the Maximum GPD Guideline Table must do one of the following: Meter actual hot water consumption using an in-line water flow meter with accumulator for a minimum of 60 calendar days and adjust for seasonal variability. Hot water consumption calculation must be stamped by a P.E. Meter natural gas or electric consumption at the water heater for a minimum of 60 days and adjust for seasonal variability. Water heater gas or electric meter consumption calculation must be stamped by a P.E. Metered Data must be provided upon submittal of Reservation Request **All Low-Income projects can meter actual hot water consumption if the contractor desires.101

102. System Sizing: MF/Commercial Appendix D Maximum Gallon per Day (GPD) Guideline Table for Multi-Family/Commercial Projects* Type of Building GPD Apartments/Condos: Number of Units 2 to 20 42 21 to 50 40 51 to 100 38 101 to 200 37 201 plus 35 Student Housing 15 GPD per unit Hotels/Motels 15 GPD per unit Retirement/Nursing Homes 18 GPD per room Office Building without showers 1.0 GPD per person Restaurants Meal Service Restaurants 2.4 GPD per full meal served Quick Service Restaurants 0.7 gallons per meal served Elementary schools 0.6 gal/student/day of operation Junior and senior high schools 1.8 gal/student/day of operation Laundries 20 GPD per 10 lbs per washing machine *Small multi-family/commercial systems are those that displace 30 kWth or less.102

103. Multi-Family/Commercial Incentive Calculator Scenario: Multi-family Building 10 units Max 42 GPD/Unit 42 x 10 = 420 GPD (maximum) 103

104. 104

105. Inspection Checklists 2 Inspection Checklists: o Single Family Projects o Multifamily & Commercial Projects Both Inspection Checklists: o Are based on SRCC OG-300 principles and guidelines o Explain CSI-Thermal Program interpretations 105

106. Inspection Checklists Single Family: o Identifies 18 Failure Items Multifamily & Commercial: o Identifies 18 Failure Items The 18 failure items are the same; however, some of the pass/failure criteria differs between the two checklists 106

107. Summary of Failure Categories System: Operational Operating Limits (stagnation protection) and freeze protection Control lines and sensors UV radiation protection Back thermosiphon protection Leak and water damage protection Collector OG-100 or consistent with OG-300 certification SOF and Shade Factor Flow balance 107

108. Summary of Failure Categories Tanks: Consistent with OG-300 configuration (single family) Consistent within sizing guidelines (multifamily/commercial) Waterproofed Plumbing and Piping: Insulation Mixing Valve Owners Manual Meters (Multifamily/Commercial only): Approved for metering purpose & installed correctly 108

109. Failure Item: System Operation Is the system operational? Are there any significant health and safety violations?109

110. Failure Item 6.1.1.1: Operating Limits(Stagnation/Overheat Protection) High collector fluid temperatures (over 200F) can be generated during long (especially summer) vacations where the fluid is left in the collector un-cooled. This heat may damage glycol and/or critical system components, and may pose a serious risk of scald injury to humans 110

111. Failure Item 6.1.1.1: Operating Limits Means shall be provided to protect the SWH system within the design limits of temperature and pressure. Limit tank temperatures to a value not to exceed the tank suppliers specified high temperature limit (unless using emergency stagnation prevention cycling.) The pressure/temperature relief valve shall not be used for this purpose under normal operating circumstances. Emergency stagnation prevention cycling is when the controller cycles the solar loop pump on and off during the day to allow the tank temperature to rise above the high temperature limit in order to prevent stagnation in the collector. The system shall be able to withstand prolonged periods of stagnation(high solar flux, no hot water demand) without significant system deterioration and with no maintenance. This includes conditions during loss of electrical power to the system. 111

112. Failure Item 6.1.1.1: Operating Limits Acceptable Stagnation Protection Mechanisms: Controller with vacation mode Controller with stagnation prevention cycling mode Steam Back Heat dump radiator or convector Pressure Stagnation Protection Integral Stagnation Temperature Control Hartstat Thermosiphon Protection 112

113. Failure Item 6.1.1.1: Operating Limits,High Limit Setting 113

114. Failure Item: 6.2.5 Freeze Protection Collectors may freeze at ambient temperatures of 42F or higher Since every California climate zone has experienced recorded temperatures below 41F, freeze protection is required. For solar systems where the collector fluid is water, a minimum of two freeze protection mechanisms shall be provided on each system. Manual intervention (draining, changing valve positions, etc.) is suitable as one mechanism. (Note. Direct Forced Circulation and Open Loop Thermosiphon Systems are not eligible for a rebate, whether freeze protection valves or recirculation is utilized.) 114

115. Failure Item: 6.2.5 Freeze Protection A system in which components and/or piping are subject to damage by freezing shall have the proper fitting to allow for pipe slope and collector design to allow for manual gravity draining and air filling of the affected components and piping. Pipe slope for gravity draining shall have a minimum 1/4 inch per foot vertical drop. This also applies to any header pipes or absorber plate riser tubes internal to the collector. At the time of installation, a conspicuously placed label how the system is protected from freezing and what actions the homeowner should take shall be attached to the system. For systems which rely on manual intervention for freeze protection, this label shall indicate the minimum ambient temperature conditions (Freeze Tolerance Limit) below which owner action is recommended and the procedure to be followed. 115

116. Failure Item: 6.2.5 Freeze Protection:ICS Systems ICS systems may not be installed in climate zones where historical temperatures drop below the rated FTL: Freeze Tolerance Level of the ICS System116 Source: SunEarth CPAU

117. CEC Climate Zone Historical LowTemperatures117 Appendix F of the Handbook

118. Where to find the FTL of ICS Systems118

119. Failure Item: 6.2.5 Freeze Protection: Thermosiphon Systems Must be Indirect with Glycol (closed loop) Direct (open loop) thermosiphon systems are not eligible for an incentive Source: SunEarth CleanTech119

120. Failure Item: 6.2.5 Freeze Protection: Indirect Forced Circulation Systems Indirect Forced Circulation (closed loop) Systems must be protected by one of the following: Anti-freeze/heat transfer fluid (Propylene Glycol, Mineral Oil, etc): must have a pressure gauge showing minimum acceptable collector loop pressure Drain back: must have 1/4 inch per foot vertical drop in the pipe slope to ensure fluid drains from collectors; must have a water level gauge or transparent in-line flow meter120

121. Failure Item: 6.2.5 Freeze Protection: Direct Forced Circulation (Open-Loop) Direct Forced Circulation, open loop systems are not eligible for an incentive. These systems have what is known as recirculation freeze protection. This type of freeze protection is not considered adequate for any of the 16 CEC Climate Zones.121

122. Failure Items: 6.1.5.5 & 6.5.18: Control Line and Sensors Shall be sufficiently protected from degradation or from introducing false signals Weather-exposed wiring must be rated sunlight andmoisture resistant and comply with NEC Articles 340and 690. Sensor wiring shall be separated from hotcollector piping and shall be protected from UV122

123. Wire nuts not weather protected123

124. Strap on Sensor 124

125. Do not do this! 125

126. Poor Sensor Placement 126

127. Sensor is not attached to the collector absorber or return pipe.127

128. Must use stainless steel hose clamp or immersion well.128

129. Sensor Wire 129

130. Flashing and Hood 130

131. Fiberglass insulation is not adequateNote the spring to hold theclip holding the tank sensor tosensor to the tank the tank wallwall 131

132. Believe it or not, thissensor was attachedto the outer wall ofthe solar tank!132

133. Failure Item 6.1.2.2:Protection from UV Radiation Components or materials shall not be affected by exposure to sunlight to an extent that will signifi- cantly deteriorate their function during their design life. Insulation must be protected from UV by jacketing or at least two coats of the insulation manufacturers recommended UV coating, or at least two coats of exterior grade latex paint. 133

134. Example of good jacketing to protect insulation Source: Sunlight and Power134

135. Insulation Protection Unprotected Protected 135

136. Insulation gap136

137. Was plastic and not protected 137

138. Should miter & cover 138

139. Rain gutter Clever use of reversed rain gutter for jacketing139

140. Failure Item 6.1.1.5:Back Thermosiphon Prevention Means shall be provided to prevent undesired escape from storage through thermosiphoning action. Acceptable means are check valves, solenoid valves, and/or 18" heat traps. 140

141. Wrong check valve CV mounted wrong141

142. Failure Item 6.1.1.5:Back Thermosiphon Prevention Acceptable Back Thermosiphon Prevention Mechanisms: Check Valve Solenoid Valve Heat Trap (at least 18)142

143. Failure Item 6.2.6:Protection from Leaks All potable water sections of a solar water heating system shall not leak when tested in accordance with the codes in force at the installation site. All non-potable sections of a solar water heating system shall be tested for leaks in accordance with the suppliers instructions.143

144. Failure Item 6.5.6:Water Damage Collectors and support shall be installed in such a manner that water flowing off the collector surface or pressure relief valve shall not damage the building or cause premature erosion of the roof. Water tanks located in or above the living space shall be installed on a drip pan with a drain line to a waste or outside or have other means to safely remove any excess liquid.144

145. Water Damage 145

146. Failure Item: Collector Collectors: Must be consistent with Incentive Claim Form Manufacturer, Make and Model # of collectors and square footage In accordance with program sizing requirements Must be SRCC certified and labeled Single Family: Must be the collector identified in the OG-300 certification Multi-family/Commercial: Must be OG-100 certified146

147. Non-certified collectors Collectors must be labeled with SRCC certification- this would constitute a failure 147

148. Failure Item: Surface Orientation Factor Collectors must have an SOF value of between 0.75 and 1.0. Tilt must be within 3 of tilt reported on ICF Azimuth must be within 5 of azimuth reported on ICF If SOF is within allowable parameters, but differs from ICF, incentive amount will be adjusted148

149. Failure Item: Collector Flow Balance Ensure proper flow balancing in and among collector banks by using reverse return plumbing, flow balancing valves and adhering to manufacturers maximum collectors allowed in banks.149

150. Collector Flow Balance150

151. Parallel Flow 151

152. Failure Item 6.1.2.7:Collector Circulation Control The collector subsystem control shall be designed to be compatible with control requirements of the system. 152

153. Wrong check valve for hard water153

154. Failure Item:Solar Tank and Auxiliary Water Heater Single Family: Must be consistent with ICF and OG-300 Certification: Number of tanks Solar Storage Capacity Auxiliary water heater fuel source Auxiliary water heater type: Tank or Tankless Auxiliary water heater capacity does not have to be the exact capacity as the OG-300 certification; however, a tankless water heater may not be substituted for a tank type water heater unless it is OG-300 certified as such 154

155. Failure Item: Solar Tank Multifamily/Commercial: Must be in compliance with sizing requirements: Two tank systems: minimum of 1 gallon/ ft2 One tank systems: minimum of 1.25 gallons/ft2 If capacity or number of tanks (both solar and auxiliary) differs from ICF but is in compliance with sizing requirements, this is an infraction and the incentive will be adjusted accordingly 155

156. Failure Item 3.1.3.3: Waterproofing Underground and above ground unsheltered storage tanks shall be waterproofed to prevent water seepage. Storage tanks used outdoors shall be rated for outdoor use. 156

157. Failure Item 6.1.6.3: Insulation All accessible hot water piping and the final 5 feet of metallic cold water supply pipe leading to the system shall be insulated with R-2.6 F-ft2-hr/Btu or greater insulation. This includes recirculation loop piping. 157

158. Insulate over fittings 158

159. Poor Insulation Technique 159

160. Use Escutcheons 160

161. Failure Item 6.1.5.6:Temperature Control/Mixing Valve The system must be equipped with a means to limit the temperature of the hot water at the fixtures Approved valves (must be installed according to manufacturers specification): Mixing valve ASSE rated anti-scald valves with a setpoint option appropriate for the use Other ASSE rated valves such as point-of-use anti- scald valves 161

162. Watts Mixing Valve Warning 162

163. No mixing valve No solar bypassSloppy insulation 163

164. No Mixing valve164

165. ASSE 1017 Anti-Scald Valve 165

166. Failure Item 6.6.1: Owners Manual An owners manual or manuals shall be provided with each SWH system and should contain the following: The name, phone number and address of the system supplier The system model name or number A description the operation of the system and its components The procedures for operation and maintenance 166

167. Meters: Multifamily/Commercial Projects Only Installed meters must be approved for the identified metering purpose Customer Performance Monitoring 70/30 True up Payment Meters must be installed properly and in the correct locations per the CSI- Thermal Metering Installation Guide167

168. Summary of Infraction Categories Missing details in owners manual Bypass valves, air traps, and pressure relief valves Operating indicators Fluid / safety labeling Rain / snow build-up Expansion tank sizing Appropriate pumps and controllers Main shut-off valve Maintenance accessories Protection of buried components Pipe hangers and supports, pipe sloping Thermal expansion protection Appropriate building penetrations 168

169. Count the errors!169

170. 170

171. ENERGY UPGRADE CALIFORNIA in SDG&E Territory New program that offers cash incentives to single-family homeowners who complete energy-saving home improvements through approved contractors Goal: Improve comfort, health, safety and energy performance of San Diegos existing homes Up to $4,000 available for home energy upgrades Open to CSLB licensed B-General, C20-HVAC and C2-Insulation Contractors Contractor listings on statewide web-portal www.EnergyUpgradeCA.org Contact Jesse Fulton at CCSE with any questions jesse.fulton@energycenter.org171

172. Upcoming Workshops Solar Water Heating Installation Training April 23-26 Two-Day or Four-Day Training $50 or $100 cost Skips Tips February 29 6pm to 8pm Solar Water Heating Basics for Homeowners March 14 6pm to 8pm Sign up online at172

173. Solar Water Heating Program Contact Jordan DiGiorgio Program Manager jordan.digiorgio@energycenter.org 858.634.4730 Skip Fralick- Energy Engineer skip.fralick@energycenter.org 858.244.4868 Jeff Wheeland Associate Program Manager jeff.wheeland@energycenter.org 858.244.1179 www.swh.energycenter.org173