Investor Presentaiton

electriq power CALIFORNIA NET ENERGY METERING REGULATIONS UPDATE What is Net Energy Metering? Net Energy Metering ("NEM") is a billing mechanism for California's investor-owned electric utilities whereby customers who install on-site generation such as rooftop solar are eligible to receive financial credit on electricity bills for any surplus generation sent to the grid Utility credits customer for the value of energy exported at prevailing electricity rates NEM has been active for over 20 years, with modifications from time to time How Net Metering Works Under NEM 3.0, average residential customers installing solar paired with battery storage will save at least $136 per month during the first year The Push for Reform Some argued that the NEM 2.0 regime was misaligned with California's grid reliability and climate change goals NEM customers intermittently import and export energy throughout the day without consideration for when energy is needed the most Output from solar declines in the evening peak hours resulting in ramped up generation from fossil gas plants, increasing greenhouse gas emissions Opponents argue that NEM 2.0 disproportionately burdened non-solar customers о Solar customers viewed as relying on the grid during peak hours while avoiding payment for the maintenance of infrastructure Higher income customers are more likely to own solar systems 3. Home uses electricity 2. from solar panels and from the grid 4. Solar panels 1. generate electricity Excess energy from solar panels sent back to grid Utility credits electricity bill for value of energy sent to grid In December 2022, the California Public Utilities Commission adopted their latest iteration of the NEM rules, dubbed NEM 3.0, which significantly supports the push for co-located battery storage with residential solar stations. The package includes: L Switch to Time of Use ("TOU") billing whereby credits received by homeowner are the highest during peak hours Homeowners with storage can store energy during off-peak hours, exporting when TOU pricing is highest Additional credits available to customers who install solar plus storage in the next 5 years $900M of state funding available in incentives for homeowners who adopt a solar plus storage system, 70% of which is targeted for low-income customers California's recently adopted NEM 3.0 rules could be a catalyst for the residential storage industry Source: Decision 22-12-056, Decision Revising Net Energy Metering Tariff and Subtariffs, issued 12/19/2022; California Public Utilities Commission Fact Sheet, Modernizing NEM to Meet California's Reliability and Climate Goals published 11/10/2022. Strictly Confidential / Not for Redistribution 40

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