With the Renewable Energy Incentive Program, NEC will pay its members $ 3 / watt (installed nameplate capacity) of an acceptable renewable energy technology* such as a photovoltaic array or a wind turbine, up to 50% of the installed cost. The maximum amount of a payment incentive will be $ 25,000 and only one incentive payment per service entrance** will be allowed.

(1) You select and have installed a qualifying solar electric system, wind turbine, or other renewable energy technology at your home or business. This home or business must be served by NEC. Furthermore, your system must meet all qualifications listed in the following "Qualifications" section.

(2) You must use a licensed contractor to install the system and the installation must meet IEEE standards, the National Electric Code, as well as the NEC Interconnection standards. The contractor must also certify the systems installed nameplate capacity in watts. The incentive amount that you receive is dependent on the installed nameplate capacity in watts.

You sign an agreement assigning rights to the associated environmental credits to NEC.

(4) All kWh hours generated by your renewable energy system and delivered back to the NEC distribution system will be purchased at the rates established under a Net Metering tariff to be approved by the Arizona Corporation Commission.

(5) You, the owner of the renewable energy system, are responsible for payment of normal system repairs and maintenance to the unit, including labor.

* Those renewable energy technologies which qualify for inclusion in the Arizona Corporation Commission Renewable Energy Standard & Tariff.

** A service entrance is the electric meter location and associated wiring on the member’s premises.

*** "Net Metering" refers to a system which deducts energy produced by a system and delivered to the grid from the energy purchased from the grid.

(6) In order to receive the rebate, you must submit the following to NEC:

(7) Once the documentation is submitted, please allow 30 days for your rebate to be processed. In the event that demand for non-residential funds exceeds a period allocation, NEC may provide reservations to those projects above the allocation depending on the current REST compliance status and availability of funding. In the event that funds collected for use in the Distributed Energy incentive program are not fully subscribed in a program year, those funds will be applied towards the next program year. The funds will be allocated to achieve the required energy outcome between residential and non-residential projects.

(8) A more in-depth interconnection standards requirement is contained in this packet.

Documents should be submitted to:

Navopache Electric Cooperative, Inc.

Renewable Energy Incentive Program

1878 W. White Mountain Blvd.

Lakeside, Arizona 85929

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INCENTIVE PROGRAM SYSTEM QUALIFICATIONS

All member-owned renewable energy system components must meet the following system and installation requirements to be connected to the NEC electric distribution system:

1. The system components must be certified as meeting the requirements of IEEE-929 – Recommended Practice for Utility Interface of Photovoltaic Systems.

2. The system components must be certified as meeting the requirements of UL – 1741 – Power Conditioning Units for use in Residential Photovoltaic Power and be covered by a non-prorated manufacturer’s warranty of at least two years.

3. The system design and installation must meet all requirements of the latest edition of the National Electric Code (NEC), including Article 690 and all grounding, conductor, raceway, over-current protection, disconnect and labeling requirements.

4. The system and installation must meet the requirements of all federal, state and local building codes and have been successfully inspected by the building official having jurisdiction. To do so, the installation must be completed in accordance with the requirements of the latest edition of the NEC in effect in the jurisdiction where the installation is being completed, including, without limitation, Sections 200-6, 210-6, 230-70, 240-3, 250-26, 250-50, 250-122, all of Article 690 pertaining to photovoltaic systems, thereof, all as amended and superseded.

5. A wind turbine system must be certified as meeting the requirements of UL – 1741 – Standard for Safety for Inverters, Converters, Controllers, and Interconnection System Equipment for Use With Distributed Energy Resources, 1st Edition; IEEE 1547 – 2003; CAN/CSA-C22.2 No 107.1-01, 3rd Edition.

6. The system must meet NEC Interconnection requirements for self-generation equipment.

7. An AC disconnect means shall be provided on all ungrounded AC conductors and shall consist of a lockable gang-operated disconnect clearly indicating open or closed. The switch shall be visually inspected to determine that the switch is open. The switch shall be clearly labeled stating "Renewable Energy System AC Disconnect."

8. All system installations must be completed in a professional, workman-like and safe manner.

9. All system installations must be completed by a licensed electrical contractor. NO EXCEPTIONS.

Your participation in the NEC Renewable Energy Incentive Program assumes that you will operate your system continuously for a period of ten (10) years after you receive the incentive payment from NEC. If you fail to do so, then you will be considered to be out of compliance with the program requirements and NEC will be entitled to take certain actions described below.

You are required to notify NEC within five (5) business days after your system is either removed from your property or is no longer operational. NEC will consider this notification as the removal date. If you fail to maintain and operate your system for at least one year after the date you receive the incentive payment, liquidated damages may apply. In such event, you will be required to reimburse us the total amount of the incentive payment in certified funds no later than five (5) business days after your receipt of our request that you refund the incentive payment to NEC. If the removal date occurs after the first year but before the end of the tenth year, we reserve the right to request a pro-rated refund of the incentive payment. If your removal date occurs in Year 2, you would refund to NEC 80% of the incentive payment, Year 3, 70%, in Year 4, 60% and so on.

NEC may waive the foregoing reimbursement obligation or any other instance of your noncompliance if it is determined that the renewable energy system is not operational due to equipment malfunction or other disrepair that is not attributable to you, and, you are actively and reasonably making diligent, good faith efforts to repair the renewable energy system and return it to operation.

When NEC receives your reimbursement payment this incentive agreement will be deemed terminated and neither NEC nor you will have any further obligation to each other, but resolution of our respective obligations and rights will continue to be determined by this agreement until our relationship with each other is finally and completely resolved.

There are certain important conditions to consider if you sell your property where the renewable energy system is installed.

1. You are required to notify NEC in writing promptly in the event that you intend to sell your property.
2. If you sell your property within one (1) year after we pay you the incentive payment and your buyer does not continue to operate and maintain the renewable energy system you will be required to reimburse NEC the total amount of the incentive payment.
3. If you sell your property more than one (1) year after you receive the incentive payment, you must make arrangements to have your buyer agree to these terms and conditions whereby your buyer will continue to operate the renewable energy system.

VOLUNTARY RENEWABLE ENERGY PROGRAM

SCHEDULE NO. 10

Effective: For electrical usage beginning on January 1, 2008 and billed beginning with the February 1, 2008 cycle billings.

Available as an option to all residential and non-residential standard offer members of the Cooperative to participate in the cooperative’s renewable energy program. Not applicable for resale, breakdown, standby or auxiliary service.

Available to all classes of members, regardless of service entrance size or installed infrastructure located at the member’s residence or place of business.

$ 2.00 per month for each block of 50 kWh of electric generation from renewable resources. Members electing this option may purchase one or more blocks. The rate is in addition to the otherwise applicable charges for all kWh consumed under standard offer service provided by the Cooperative.

Members of the Cooperative may enroll at any time, effective at the beginning of the next billing month. Members may terminate their participation at any time by notifying the Cooperative; termination is effective at the end of the current billing month. Terminations made in conjunction with termination of all service from the Cooperative are effective at the time of such termination.

All funds collected under this Schedule will be used solely to construct, operate, and maintain renewable energy projects carried out by the Cooperative in Arizona, including solar electric generating projects. Electric energy generated by renewable resources in blended with other energy throughout the Cooperative’s distribution system. Energy delivered to members electing this option will consist of such blended energy.

The applicable sales tax in Arizona will be added to bills where required. The cooperative is authorized to pass on to the consumers the applicable proportionate part of any taxes or government impositions, which are or may in the future be assessed on the basis of the gross revenues of the cooperative.

Billing made under this schedule will be due and payable upon receipt and past due fifteen (15) days from the date the bill is mailed. Service will be subject to disconnect in accordance with the cooperative’s collection policy.

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