This research study has been approved by the N.C. Utilities Commission and Public Service Commission of S.C. The study is designed to verify the costs and savings that can be achieved by the installation and use of residential solar water heating systems. Program eligibility is subject to the Program tariffs (on Progress Energy Carolinas, Inc. ("PEC") Web site at: http://progress-energy.com/aboutenergy/rates/index.asp#b0). Since the Program is limited to 150 participants, all Customers submitting a Program application are not guaranteed acceptance into the Program and may not receive the Program's $1,000 one-time incentive rebate.

This rebate is only available to Customers notified by PEC that they have been selected to participate in the Program and whose solar water heating system has been inspected by and received all applicable permits and approvals from local authorities. PEC, in its sole and absolute discretion, may deny Program participation to any Customer to achieve a geographic and demographic diverse population of Program participants.

By submitting a completed Program application, the Customer attests that the Customer has read and understands the applicable Program tariff requirements, meets the Program's eligibility requirements and will comply with all Program tariff requirements if selected to participate in the Program. PEC will post on its Web site the physical street addresses where each Program participant's system is located.

PEC, its parent and affiliates, and their respective officers, directors and employees (I) disclaim all responsibility and shall not be liable to any customer for any loss, injury, claim, liability or damage or any kind resulting from, arising out of, or in any way related to, any solar water heating system or the acts or omissions of any approved and authorized specialty installer; and (II) disclaim and make no representation, warranty or guarantee or any kind, express or implied, with respect to the quality, condition or delivery of any materials, equipment or labor of any kind provided or supplied by, work of any kind performed by, or services of any type or nature rendered by any approved and authorized specialty installer, including without limitation any implied warranty of merchantability or fitness for a particular purpose.