Perspectives on Grid Parity and Large Scale Solar PV Power Plants

Pashu Gopalan

Managing Director (Sub-Saharan Africa/ South Asia)

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This presentation may contain forward-looking statements regarding the Company and the solar industry. Forward-looking

statements are statements that do not represent historical facts. Forward-looking statements in this presentation include, without

limitation, solar market growth projections, viable U.S. and foreign markets, future operating companies, our sales cycle, delivery

process, strategic growth, project pipeline, margin trends and financial sensitivity. These forward-looking statements are based on

information available to us as of the date of this presentation and current expectations, forecasts and assumptions, and involve a

number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking

statements.

Risks and uncertainties include, without limitation, changes in the regulatory environment and laws, changes in the module supply

market, changes in interest rates or the credit market, the Company’s ability to achieve expected operational, sales or financial

results and increased competition.

Given the dynamic, evolving nature and risks and uncertainty of the solar industry and the Company, the industry and the

Company’s forecasts, plans and expectations, and other components of forward-looking statements, may change. These forward-

looking statements should not be relied upon as representing our views as of any subsequent date, and we are under no obligation

to, and expressly disclaim any responsibility to, update or alter our forward-looking statements, whether as a result of new

information, future events or otherwise.

Forward Looking Statements

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MEMC Overview� 1st commercial manufacturer of silicon wafer

� 50+ years of innovation in technology

� Sold over 900 MW of Wafers in 2010 and expect

double that in 2011; ~$2.2 Billion in 2010

� ~5500 employees worldwide

� 12 manufacturing sites worldwide

� 150+ customers worldwide like Intel, Samsung,

Suntech, Qcells, Texas Instruments, TSMC

� MEMC trades as “WFR” in NYSE and is a

constituent of S&P500

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Strong & Established Company Competing in an Immature Market

� Developer of solar power projects and solar energy services provider

� Develops, finances, installs and operates distributed solar power plants for its customers

� Manufactures polysilicon and provides wafers. Outsourcing wafer manufacturing and now ramping in house capabilities

� Provides solar wafers which are used as the starting material for mono- and multi-crystalline Si based solar cells

� Grouped together to form solar modules, cells convert energy from the sun into usable electricity.

Semiconductor Materials Solar Materials SunEdison

Business Segment Summary

Served market size: $10 billion Served market size: $70 billionServed market size: $15 billion

� Silicon wafers with customized specifications such as size, surface features, composition, purity levels, crystal properties and electrical properties from which virtually all semiconductor devices are manufactured

� Prime Wafers� Epitaxial Wafers

� Test / Monitor Wafers

� Silicon-on-Insulator Wafers (SOI)� Semiconductor devices in turn

supply the intelligence in all electronic devices

Unique & Diversified Positioning

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Solar Food Chain

Ingot Wafers Cells / Modules Systems/

PV Power PlantPolysilicon

MEMC

Ingot Wafers Semiconductors Electronics

Semiconductor/Electronics Food Chain

Polysilicon

MEMC

$248 billion ~ $1 trillion

$10 billion $16 billion $40 billion

$11 billion

Source: Semi, Photon & MEMC Estimates. Market data for 2008 shown.

Global Leader in Wafer Products to the Semiconductor and Solar Industries, and Solar Energy Services

One of the largest solar energy service providers i n North America� Over 400 solar plants, financed and under O&M� Operational plants in 6 countries and development in 10 other countries� Built first utility scale plant in the U.S and Canada� Tracking 4 GW in project development� Created a JV with First Reserve Corp to invest US $1.5 billion� Built world’s largest PV Power Plant of 70 MW in 2010 in 8 months

Work closely with customers in order to:� Address renewable portfolio requirements� Hedge cost of energy� Provide green energy

Core competencies and key advantages � Internal R&D to optimizes system design and production� Leading monitoring technology maximizes uptime and production� Financing capabilities enable project growth, +$1 bil in projects done– Regulatory support enabled solar markets (CA, CO, AZ, etc)

SunEdison Energy Services OverviewWe develop, build, finance, own and operate solar power plants in order to deliver solar services / sell commercial retail electricity at competitive prices

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SunEdison: General Overview Indian business model: How do we add value ?

Secure lease contracts and permitting for large rooftop commercial projects and ground-mount projects

Develop portfolio mix towards fully permited projects

Combine project finance and equity placement to investors

Utilize diverse range of financing partners as well as our own balance sheet

Operate, monitor and service projects (overall plant management) leveraging global infrastructure

We invest with a long term view

+ Local developers

Create a strategic partnership with a solid infrastructure companies

While securing the supply chain by providing major components through global purchasing

+ EPC partners + Financing investors + Field O&M providers

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Estimate & Forecast

GWAnnual Solar Capacity Installation

(GW)

Rest of World 38%

Italy 98%

Germany 36%

Spain 31%

Greece 134%

Canada 134%

US 56%

India 69%

China 124%

Global 45%

Japan 14%

Compound Annual Average Growth Rate*

Active SunEdison

Markets

1.2 1.7 3.6 5.8 7.4 15.2 16.6 18.9

GW Installed per year:

Source: BP Statistical Review, B of A, Merrill Lynch Global Research, Solarbuzz. Note: CAGR based on 2005 to 2012 or growth from year of first capacity addition.

Germany is forecast to remain the dominant

market through 2012; but will decline as the FiT is

reduced and suitable rooftops become more

scarce

Solar PV industry global market outlook

Levelized Cost of Energy US$/ kWh – California and A rizona(ITC & MACRS included)

Source: EIA, and SunEdison

Industry dynamics & the concept of grid parity

Cell efficiency increase

/ scale

Supply / demand imbalance (from aggressive capacity ramp and

capital constraints),

technical innovation,

Margin compression

Grid ParityGrid Parity

Average cost of electricity in California (US$/kWh)

Average cost of electricity in Arizona (US$/kWh)

LCoE in California (US$/kWh)

LCoE in Arizona (US$/kWh)

NG Peaking

LCoE: $0.22 to $0.35/kWhr

Solar Photovoltaics – Markets and Cost Utility scale

>50MW

C-Si (tracking), c-Si,

CdTe, CIGS (?)

� Cost sensitive

� Tracking desirable

� Land costs

� Limited roof space

� Weight considerations

� Building integrated (BIPV)

� Cost sensitive

� No tracking

Commercial>20kW to <2MW

c-Si predominant

� Cost sensitive

� Tracking desirable

� Land costs

Industrial>2MW to <50MW

c-Si, CdTe, CIGS (?)

� Limited roof area

� Aesthetics are important

� Less cost sensitive

� Mounting technology key

� No tracking

Residential/Small Commercial<10kW to <20kW

c-Si predominant

$1.50$3.00$3.50$4.00 $2.50 $2.00$4.50$5.00$5.50$6.00$6.50$0.00

$0.10

$0.15

$0.20

$0.35

$0.05

$0.25

$0.30

Lev

eli

zed

Co

st o

f E

ne

rgy

(LC

oE

) –

$/k

Wh

r

Installed cost ($)/Wp

CCNG

LCoE: $0.073 to $0.12/kWhr

Wind

LCoE: $0.044 to $0.09/kWhr

No incentives

Solar PV LCoE for a 1MWp fixed c-Si system, ~1.5Whr/Wp, 6% interest rate

2010 average US retail price: ~10.1¢/kWhr

Relentless cost reduction

Source: PG&E website and MEMC estimates

SunEdison ’s Rovigo Project� SE built Europe’s largest Solar PV Power Plant at

Rovigo, Italy – 70 MW Project Commissioned on

22nd Nov 2010

� System will power ~16,500 homes & prevent

40,000 tons of CO2, equivalent of 8000 cars on road

� Optimum Area Utilization – 206 Acres

(3Acres/MW)

� Record Completion Time

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Rovigo project video - presentation

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Rovigo project: A reference within the European PV Marke tLargest solar project in Europe 70MW

Main CharacteristicsLocation Rovigo (Italy)Power rating 70 MWSurface 850,000 sq.mInvestment 250 – 300 M€Jobs ~ 500

Technical AnalysisSubstation 80MVA (20/132 kV)Inverters Central Inverters -

60 units of 1MW cabinsModules ~300,000Modules Manufact. Crystalline Silicon

Yield AnalysisIrradiation (Incl) 1.354 kWh/m2 Performance Ratio ~ 79,25%Estimated Yearly Production 1.115 kWh/kWp

78,6MWh/year

Veneto

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� Very attractive support scheme, mixing net-metering and well-segmented premium FiT

� New regulation announced for 2011 (New Conto de Energia) continues to support the

investors. Long term planning horizon

� Regulation likely to stay stable given track record

� Good potential for grid parity in medium term future

� Administrative procedures to be harmonized at regional level

� Regional commitment makes a difference

� Short development time frame: Generally, full development within 10 months

� Required for non-recourse financing schemes

Rovigo project: A reference within the European PV Marke tA stable regulatory framework is key

A stable regulatory framework assured by the local and state authorities yields development procedures and security for investors and financiers

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Rovigo project: A reference within the European PV Market Alignment among various private and public actors i s crucial for success

FINANCING BANKS

EQUITY PARTNERS

SPV

EPC CONTRACTORS

O&M PROVIDERS

AUTHORITIESLOCAL DEVELOPER

No immediate reliance on long

term debt financing partners ensures

fast execution

Strong involvement of

municipalities and regional

government

Local developer brings

knowledge, compliance and

alignment

Equity partners

attract long term

financiers

National Grid Operator (TERNA)

ensures interconnection in

year

PROJECT

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Rovigo project: Point of reference for the South Af rican market - Timing is critical

Speed of execution a critical factor: 8 months from start of works to interconnectionMEMC/SunEdison financial strength allowed immediate ground break

Jan’10 Feb ‘10 Mar ‘10 Apr ‘10 May’10 Jun’10 Jul’10 Aug’10 Sep ‘10 Oct ‘10 Nov ‘10

Negotiations and Signature

Financing DD and Signature with banks

Civil Works

Inverters and Cabins

Modules

Testing and Comissioning

Interconnection

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Rovigo project: Point of reference for the South Af rican market - An amazing challenge

Several issues have to be taken into account in order to successfully achieve the project

Optimization of costs

Financing

Timing

Procurement

Redesign of the plant to increase production without compromising performance

Unexpected costs

Establishing a “club deal” among several banksspecialized in Project Finance plus

approaching banks knowing the market conditions

Raising finance for such a big deal (~250M€) in such a narrow time-frame

Provisioning of materials, Perfect coordinationof labor, TERNA negotiation and relationship,…

Essential to interconnect in 2010

Establishment of long term strategic alliances, Dealing with several suppliers,…

Delays in shipment, Lack of panels,…

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Rovigo project: Point of reference for the South Africa n marketKey Advantages and Disadvantages of Such a Large Pr oject

Advantages Disadvantages

� Economies of Scale

� Stimulates the economy and creates jobs

– 325-400 M $ investment

– Around 500 jobs created

� Projects the region worldwide and in the investment community

� Government to comply with the EU directive: Large scale projects help the country reach EU requirements in timely fashion.

� Deploy 100% renewable energy:

– Rovigo will generate enough energy to power approx. 16,500 homes

– Will prevent the emission of 40.000 tons of CO2 which equates to the removal of 8,000 cars from the road

� Large debt financing to be secured: challenging

� Increasing difficulties in the procurement of modules

� Land availability is usually an issue for such a large terrain: ~170 ha

� Human resources

� Risk concentration

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SunEdison’s ProjectsProject examples in Europe

1.4 MW – Rome, Italy Solyndra modules, fixed tilt, roof mount

Barbara - 1 MW – Lecce (Apulia), ItalyCrystalline panels, fixed tilt,ground mount

70 MW - Rovigo, Italy. Largest being built in EuropeCrystalline panels, fixed tilt, ground mount

1.6 MW – Lleida, SpainCrystalline panels, Fixed, one-axis, trackers, ground mount

2.0 MW – Cadiz, SpainCrystalline panels, fixed tilt, roof mount

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SunEdison’s ProjectsProject examples in North America

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City of San Diego - 1.1 MW - San Diego, CA Crystalline panels, fixed tilt, ground-mount on steel

Kohl’s - 409 KW - Laguna Nigel, CA Crystalline panels, fixed tilt,roof mount; PPA partnership

Duke Energy- 18 MW – Cotton Grove, NCCrystalline panels,one axis, ground mount

9 MW – Ontario, Canada's largest solar parkCd-Te Thin Film panels, fixed tilt, ground mount.

8.2 MW - Alamosa, COCrystalline panels, Fixed, one-axis, & dual-axis trackers, ground mount

Staples - 486 KW - Killingly, CT Thin film panels, fixed tilt,roof mount;; PPA partnership

SunEdison’s ProjectsExample of PPA model: KOHL’S Tailor-Made program (U SA)

SunEdison has positioned Kohl's stores in the third position in the ranking of U.S. green businesses, with Intel, D ell and PepsiCo, without need for capital investment in the project.

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Contact:Name: Pashupathy GopalanTitle: Managing Director (South Asia and Sub-Saharan Africa)pgopalan@memc.com

www.sunedison.com

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