Solar Renewable Energy - NowMDV-SEIA

Thomas Leyden, Managing Director

December 4, 2009

SunPower Update

Over 500 systems on 3 continents

Over 500 MW installed, 24 MWs in NJLargest solar projects in North America

Established in 1985 World record solar cell efficiency = MORE POWER

Established and Proven. Technology Leaders.

Publicly traded (NASDAQ), strong balance sheet

4,000 Employees: All we do is solar

Over 85 patents and over 20 years of R&D

Energy efficiency expertise

$1.4 billion in 2008 revenue – all solar

Worldwide footprint

Fully staffed NJ office in Trenton

Your SunPower Solar Solution

Technology

Comprehensive Solar Program

All-in price of electricity

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2005-2020

$/kwh

Grid 4.5% inflation

Grid 3% inflation

solar declining 5%

solar declining 6%

Crossover points

MSEIA/PV Now

Reaching “Grid Parity”

Incentives accelerate the cross-over

Raw Materials to Rooftops = Lower Risk and Higher Savings

Solar PV Value Chain

Polysilicon

Ingot

Solar Cell

Wafer

Solar Panel

Systems

6

Residential Retrofit New Production Homes

Commercial & Public Power Plants

Deployment Applications

SunPower ®

T10 Solar Roof Tile

Ground

Solar Cell

SunPower Deployment Products

SunPower PowerGuard ®

SunPower ®

T20 Tracker

Rooftop

SunPower ®

T0 Tracker

7

SunPower ®

T5 Solar Roof Tile

Thin Film

More Energy (kWh) = More Customer Cost Savings

More Power Per Square Foot

High Efficiency

Conventional

205,000 kWh (4.4% efficiency)

468,000 kWh(12.8% efficiency)

880,000 kWh(18.4% efficiency)

Efficient Use of Land with High-Efficiency PV Technology

More Energy, Less Space

19.3% Efficiency

21 Acres

High Efficiency

32 Acres

Conventional

12.6% Efficiency

41 Acres

Thin Film

9.5% Efficiency

6MW Solar Power Plant

Tiffany & Co. 1.3 MWParsippany, NJSolar + Energy Efficiency delivering savings of more than $450,000/year

FedExOakland, CA

ToyotaOntario, CA

TargetHayward, CA

Shiseido 699 kW New Jersey Headquarters

• Reduces annual energy usage by 35%• Saves $100,000 annually in electricity costs

Johnson & JohnsonNew Jersey

Conectiv Energy4.1 MW

Bavaria, Germany10 MW

Florida Power & Light – Desoto, FL25 MW

NJ Policies Bridged the Price Gap and

Removed Barriers:

Market Incubator Components:

� Rebate programs via SBC funding

� Early REC market

� Net metering and simplified interconnection

780% solar industry growth

In the first 5 years

NJ Policies Created A National Leader

New Jersey RPS

New Solar Energy Companies

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Solar RPS MWhs

0

20,000

40,000

60,000

80,000

100,000

120,000

NJ Solar Companies

MWh's/cum Solar Companies in NJ

Projected Growth

3,000 new jobs

RPS Drives Rapid Growth and Investment in NJ

NJ Photovoltaic Installations - RPS Driven Requirement

15 year Aggregate Investment of $8.8 billion

0200,000

400,000600,000

800,0001,000,000

1,200,0001,400,000

1,600,0001,800,000

2,000,000

200620

0720

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

1820

1920

2020

21

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Annual PV Installs ($ millions)

Total RECS Required

RPS

Mandated

SRECS

$mm

Opportunity For Market-Based Growth:

� RPS with solar carve out and ACP sets the stage� 2000 MW goal by 2021 lays the foundation for large scale investment

21

EAST COAST SOLAR MARKETS TO 2010-2012

21

Known East Coast Solar Markets Based on RPS & SRECs

Upcoming Markets for East Coast•New York•Massachusetts•Vermont•Delaware

New Jersey

Year

New Solar

Capacity

(MWp)

New Solar

Value $m

2010 67.5 $405

2011 76.1 $419

2012 71.5 $358

Total 215.1 $1,181

Maryland

Year

New Solar

Capacity

(MWp)

New Solar

Value $m

2010 9.0 $54

2011 9.0 $50

2012 13.0 $65

Total 31.0 $169

North Carolina

Year

New Solar

Capacity

(MWp)

New Solar

Value $m

2010 12.5 $75

2011 25.7 $141

2012 33.1 $166

Total 71.3 $382

Ohio

Year

New Solar

Capacity

(MWp)

New Solar

Value $m

2010 13.7 $82

2011 41.0 $226

2012 81.9 $410Total 136.6 $717

Pennsylvania

Year

New Solar

Capacity

(MWp)

New Solar

Value $m

2010 0.5 $3

2011 19.5 $107

2012 30.4 $152

Total 50.3 $262

Existing East

Coast Markets 3 Years New Solar

New Solar

Value $m

Total 3 Years 504 $2,711

Utility Scale: Cross-Over is Here and Now . . .

� PV has reached the cross-over point when compared with new construction of a gas peaker, coal or nuclear plant.

� Conventional utility capacity alternatives have become too expensive and/or too risky:

� Coal cannot be financed

� Gas Peakers yield very expensive power

� Nuclear is too costly and too risky

� PV is now the lowest cost of any of these options

22

Levelized Cost of Energy - Forecast

23

References:• Lazard for start year for Coal IGCC, Gas CT, Gas CCCT, Nuclear, Wind. E3 Consulting for CSP and Coal IGCC with CCS. • DOE for Central and distributed PV (CPV and DPV). Costs after start year are trended per SunPower internal assumptions on commodity prices, fuel costs and cap & trade. Wind is flat for 4 years, thendeclines 1%/year; CSP declines per a blend of various company price curves.

The weighted average LCOE from PV over the construction period of a

Conventional Plant is lower than the LCOE from that plant.

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DOE HQ

Fort Dix

A New Era is Upon Us….….

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Nothing is as powerful as an idea whose time has come-- Victor Hugo