Is there a penalty if the battery is not available?

Non-performance in passive events during the 10-year participation of the program will result in non- compliance with program requirements and the customer will be required to return a prorated portion of the un-earned incentive. This claw back evaluation process will commence at the end of the summer season. The evaluation will determine whether a participating BESS responded to greater than 90% of the passive dispatch hours at the enrolled level with the expectation to uniformly dispatch 80% of useable energy over the 5-hour passive dispatch window. The first year that the system is non- compliant with this threshold, the customer will be responsible for returning 10% of the upfront incentive (“Violation Fee 1”). Upon the second year of non-compliance, the customer will be charged a second fee equal to a pro-rated amount of the upfront incentive based upon remaining years in the program (“Violation Fee 2”). After Violation Fee 2, the customer will no longer be considered a participant in Energy Storage Solutions. If the customer does not pay the violation fees as described above, performance incentive payouts will be swept by the Green Bank until the cost of the violation fee is recovered. If no performance incentive payouts are available to be swept, the customer will be billed by the Green Bank. If the customer is able to demonstrate a valid reason for non-compliance (e.g. manufacturer recall), they may appeal the Violation Fees to the Green Bank directly. The Green Bank, Eversource and United Illuminating will investigate and will notify the customer in writing whether the penalty is upheld.

If the battery is not available for the active events during the 10-year participation of the program, there is no penalty, but the performance-based incentive will be reduced.

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