System Owner shall mean the Owner of the GEP

at the time the incentive is paid. In the case of third-party owned systems, the third-party is the System Owner. System Owners can be 9 designated by the Customer as Authorized Representatives. 5.25 Technical Committee shall mean the committee or committees to be formed by PREAA to perform the functions assigned to it under this Regulation. 5.26 Technical Evaluation Process shall mean the process of evaluating completed and preapproved Proposals submitted for Tier 2 GEPs to determine the incentives to be awarded under such Tier 2 program during any one quarter. 5.27 Tenant shall mean a person (natural or legal entity) that uses or occupies, and pays rent for such use or occupancy, a Facility owned by another person. Tenant will need to submit a written authorization from landlord in order to construct or install the GEP in landlord's property. 5.28 Tier 1 shall mean any GET project that has a System Capacity of up to and including one hundred (100) kilowatts (kw). 5.29 Tier 2 shall mean any GEP that has a System Capacity greater than one hundred (100) kilowatts (kW) and up to and including one (1) megawatt (MW). 10 5.30 Total Incentive Amount shall mean the total amount determined by PREAA to be reserved for a GEP. 5.31 Total Project Cost shall mean the total eligible costs of developing and installing a GEP. Eligibility is further defined in this Regulation. 5.32 Validation Process shall mean the process by which PREAA reviews and approves applications to confirm their compliance with this Regulation and to determine the incentives to be granted, if any. VI. Generally Applicable Provisions In order to qualify for an incentive under this Regulation, both Customers and Green Energy Projects must satisfy the following provisions: 6.1 Applicant Eligibility 6.1.1. Residential, commercial, industrial, agricultural, and non-for-profit (educational or otherwise) Customers will all be eligible to apply for a GEF incentive, subject to the requirements of the Act, this Regulation and the Reference Guides. 6.1.2. Government entities, as Customers, will only be eligible to apply for Tier 2 incentives under this 11 Regulation. Notwithstanding the above, commercial and industrial Customers occupying a Government owned building, will be eligible to receive the benefits of all programs presented hereunder, subject to the requirements of this Regulation and additional provisions included in the Reference Guides. 6.1.3. Customers that may have unsuccessfully applied in any period or quarter may re-apply in the future. However, a new application fee shall be payable. Customers and/or Authorized Representatives that sign a Reservation Agreement and default under the causes stated therein, causing PREAA to cancel a reservation, may not apply for GEF incentives in the future. 6.2 Application Requirements 6.2.1. Applicants shall complete their applications for incentives under the Green Energy Fund through www.prdoesitbetter.com or such other webpage as may be indicated from time to time in the Reference Guides. Green Energy Fund information, including the Reference Guides, shall 12 also be available at PREAA's website www.aae.gobierno.pr. 6.2.2. Applicants with no Internet access shall visit PREAA offices, where PREAA will provide the resources to submit an application under Tier 1 and Tier 2 programs. 6.3 Application Fee 6.3.1. Applicants will be required to pay a non-refundable Application Fee in order to successfully complete an application. The fee structure shall be detailed in the Reference Guides and may be modified from time to time by PREAA. 6.4 Reservation Guarantee 6.4.1. A Reservation Guarantee shall be provided at the time the Reservation Agreement is executed between the Customer, the Authorized Representative and PREAA. 6.4.2. Upon successful project completion and PREAA's final determination, the Reservation Guarantee will be refunded together with the incentive payment. Reservation Guarantee shall be forfeited and the incentive denied if the approved GEP is not Completed 13 satisfactorily or if Applicant does not comply with any other terms and conditions of the Reservation Agreement. 6.4.3. The applicable Reservation Guarantee structure and conditions shall be detailed in the Reference Guides and may be modified from time to time by PREAA. 6.5 Eligible Projects Only GEPs that have not begun construction or installation before submittal of the application and before final approval may receive incentives hereunder. Only permitting related activities may begin before final approval of an application and shall not constitute project initiation for purposes of eligibility. Except as indicated in the next sentence, incentives will not be granted retroactively to constructed projects. In the case of Applicants that submitted an application for tax credits to the Department of Treasury under Act No. 248 of August 10, 2008 after July 1, 2010 but before September 30, 2010, for projects Completed or substantially Completed by September 30, 2010 and did not receive a response or received a negative response based on the provisions of Art. 2.22 (g) of Act 83, will be eligible to apply for an incentive under this Regulation 14 during Fiscal Year 2012. PREAA will request written confirmation from the Treasury Department and/or request further evidence from Applicant to validate the information submitted in connection with a Completed project that may qualify for an exception pursuant to the previous sentence. Further details about the interaction and receipt of GEF incentives and other incentives will be reviewed by PREAA. To the extent applicable, Applicants shall comply with any additional conditions that may be required under the joint Puerto Rico Treasury Department and PREAA Regulation to be approved for tax and other incentives. 6.6 Eligible Project Costs The Applicant must submit project cost details in a single project quote signed by both the Customer and the sales representative to evidence the eligibility and amount of Total Project Cost. The following may be included as part of the Total Project Costs of a GEP for incentive calculation purposes. 6.6.1. Equipment costs including, photovoltaic (PV) modules, wind turbines, inverters, metering devices, and any other balance of system equipment necessary for the operation of a GEP; on-site system measurement, monitoring and data 15 acquisition equipment cost. PREAA certified accessory equipment, such as batteries and charge controllers, for stand-alone systems that demonstrate inability to interconnect to the utility grid due to circumstances beyond the control of Applicant, will be considered as eligible Total Project Costs. 6.6.2. Engineering, design and permitting cost; 6.6.3. Construction, installation and mounting cost. For projects in which the GEP is part of a larger development, only the construction and installation cost directly associated with the setting up of the GEP are eligible. Mounting and anchoring structures such as racking systems, car ports, and any other structure that provide primary support for the GET equipment may be included. 6.6.4. In cases where part of the GEP will be financed, interest expense may be included, provided such interest expense is commensurate with rates provided by financial institutions to finance projects with similar risks. 16 6.6.5. Such other costs as PREAA may determine from time to time and publish in the Reference Guides. PREAA may request copies of construction documents and evidence of costs incurred before determining final incentive amount to be reserved or paid. Under no circumstances the Total Project Cost per installed Watt (System Capacity) shall exceed the Reference Cost. 6.7 Installers 6.7.1. Installations must be performed by a PREAA Certified Renewable Energy Systems Installer according to PREAA Regulation No. 7796 of January 19, 2010, as amended from time to time, or such other regulation at the time applicable. This includes PV Installer certification for Solar PV GEPs, and Small Wind Turbine Installer certification for Small Wind GEPs. 6.7.2. Should an installer be performing engineering or architectural work, the Certified Renewable Energy System Installer shall also be a licensed or authorized professional under Act No. 173 of August 12, 1988. 17 6.7.3. For a list of certified installers see: http://www.aae.gobierno.pr 6.8 Insurance 6.8.1. All PREAA Certified Renewable Energy System Installers and/or Customer or System Owner shall present to PREAA proof of insurance in order to participate in this program. Insurance shall be adequate to cover the risks of the project until completion. PREAA will publish in the Reference Guides specific terms and conditions of insurance, as deemed necessary for the GEPs. 6.9 Equipment 6.9.1. Eligible technologies for each program hereunder will be published through the respective Reference Guide. 6.9.2. All Green Energy Technology equipment must be certified according to the Joint Regulation of Permits for Construction Works and Land Uses (Joint Regulation), as amended from time to time, or such other regulation at the time applicable. However, certifications of a Green Energy Technology issued before the approval of the Joint Regulation and 18 certified by PREAA according to PREAA Regulation No. 7796 of January 19, 2010, Regulation for the Certification of Renewable Energy Systems, will maintain its validity. 6.9.3. All equipment installed under the programs included in this Regulation shall be new. Rebuilt, refurbished or relocated equipment do not qualify for incentives. 6.10 Installations 6.10.1. All installations shall be connected at the Point of Interconnection with the Electric Utility, comply with the National Electrical Code, PREPA standards and local net metering laws and regulations as applicable. 6.10.2. All installations must have monitoring capability that is readily accessible to the Customer and/or System Owner and PREAA. This metering device must be in compliance with minimum requirements established in