Blunden - Solar Photovoltaic Electricity

April, 2010

SunPower Overview

Safe Harbor

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This presentation contains forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical

facts and may be based on underlying assumptions. The company uses words and phrases such as

"expects," “believes,” “plans,” “anticipates,” "continue," "growing," "will," to identify forward-looking

statements in this presentation, including forward-looking statements regarding: (a) our plans and

expectations regarding our cost reduction roadmap, (b) cell manufacturing ramp plan, (c) financial

forecasts, (d) future government award funding, (e) future solar and traditional electricity rates, and (f)

future percentage allocation of SunPower solar panels within our systems business. Such forward-looking

statements are based on information available to the company as of the date of this release and involve a

number of risks and uncertainties, some beyond the company's control, that could cause actual results to

differ materially from those anticipated by these forward-looking statements, including risks and

uncertainties such as: (i) the company's ability to obtain and maintain an adequate supply of raw materials

and components, as well as the price it pays for such; (ii) general business and economic conditions,

including seasonality of the industry; (iii) growth trends in the solar power industry; (iv) the continuation of

governmental and related economic incentives promoting the use of solar power; (v) the improved

availability of third-party financing arrangements for the company's customers; (vi) construction difficulties

or potential delays, including permitting and transmission access and upgrades; (vii) the company's ability

to ramp new production lines and realize expected manufacturing efficiencies; (viii) manufacturing

difficulties that could arise; (ix) the success of the company's ongoing research and development efforts to

compete with other companies and competing technologies; and (x) other risks described in the

company's Annual Report on Form 10-K for the year ended January 3, 2010, and other filings with the

Securities and Exchange Commission. These forward-looking statements should not be relied upon as

representing the company's views as of any subsequent date, and the company is under no obligation to,

and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a

result of new information, future events or otherwise.

SunPower

>1 GW solar PV deployed

Diversified portfolio: roofs to power plants

2009 revenue of $1.5B

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Commercial Power PlantsResidential

5,000+ Employees; 100% solar

550 MW 2010 production

~1000 dealers and growing rapidly

4+ GW power plant pipeline Publicly listed NASDAQ: SPWRA, SPWRB

© 2010 SunPower Corp.

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History

Original funding VC/DOE/EPRI

Utility-scale solar dish application

High performance required

All-back-contact cell developed

NASA & Honda early customers

Great technology, high cost


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SunPower’s Leading Solar Cell Efficiency

Conventional SunPower A-300 SunPower Gen 2

= Average production efficiency

Thin Film

22.4%In Production Today

6

8

10

12

14

16

18

20

22Percent


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SunPower: Most Energy Per Meter Squared

Most powerful solar technology on the planet

Direct Control:

Ingot through SystemsWafer Solar Cell Solar PanelIngot SystemPolysilicon


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Superior Performance, Superior Quality

World’s Most Efficient Solar Cell

SunPower ® T20 TrackerSunPower ® T10 Roof TileSunPower SunTile®

Residential Rooftop Commercial Rooftop Ground Systems

Class A Fire Rated Up to 10% More Energy Up to 30% More Energy


Wafer Solar Cell Solar Panel System $/WIngotPolysilicon

Value Chain Cost Distribution

20%

30%

50%

2006 US Solar System Cost Allocation by Category

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SunPower’s US Jobs Growth

SunPower US Direct Jobs

– 2004: 40

– 2009: 700

– 2010: 900

2010 US Manufacturing: +100

2010 Dealers: >4000

2011 CVSR: 100s

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Manufacturing Location Siting Criteria

Tax Credits / Exemptions

Local Incentives

Long-term demand

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2009 New Capacity (MW)1 California 220

2 New Jersey 57

3 Florida 36

4 Arizona 23

5 Colorado 23

6 Hawaii 14

7 New York 12

8 Massachusetts 10

9 Connecticut 9

10 North Carolina 8

Other 29

Total 441

© 2010 SunPower Corp.Source: SEIA 2009 Year in Review

Grid-Tied, U.S. PV Installations Up 38% in 2009

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-

50

100

150

200

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009p

New Grid-Tied PV Installations (MW)

© 2010 SunPower Corp.Source: SEIA 2009 Year in Review

26,500

13,000

-

5,000

10,000

15,000

20,000

25,000

30,000

2009 2010 2011 2012 2013 2014

Global Annual Demand Forecasts (MW)

3rd Party - High

3rd Party - Average

3rd Party - Low

Solar PV Scale: 20 GW Installed Base 2009

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Sources: Barclays, UBS, JP Morgan, Deutsche Bank, BofA/Merrill Lynch © 2010 SunPower Corp.

Solar PV Uniquely Flexible to Serve All Segments

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Rooftops Distributed

Power Plant

Central Station

Power Plant


Solar policy design drives relative segment growth

Power Plants for Utilities

Experience

– SCE – 200 MW distributed rooftop

– Florida Power and Light – 35MW

– Exelon 8 MW urban infill

– Xcel 17 MW under construction

– PG&E 210 MW in permitting

Technology

– T5 Rooftile & T0 tracker: most W/meter2

– T20 tracker: highest capacity factor

Return

– LCOE competitive with gas peaker

– Bankability, ease of permitting

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Muehlhausen,

Germany, 6 MW

Olivenza, Spain

18 MW

Serpa, Portugal

11 MWIsla Mayor, Spain

8 MWJumilla, Spain

23 MW

Over 250 MW of power plants installed in Europe

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Montalto, Italy

24 MW © 2010 SunPower Corp.

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Solar PV Power Plants Are Cost Competitive

0

0 50 75 100 150 200 250 300 350 400

Levelized Cost ($/MWh)

Renewables

Conventional

$87 - 196

$129 - 206

$57 - 113

$216- 334

$69-96

Gas Peaking

Gas Combined

Cycle

Wind

Solar Thermal

Solar PV

LCOE by Resource $/MWh: 2009 - 2012

Prices include federal incentives

Source: Lazard Capital Markets 3/18/2009© 2010 SunPower Corp.

PV Power Plant LCOE Drivers

Capital cost dominated by PV, BOS, and land

– PV costs driven down per experience curve + technology

– BOS costs reduced by larger plant sizes, experience curve, and higher panel efficiencies

– Land development costs lowered by panel efficiency and scale

Capacity factor increased with tracking systems

– Tracking also delivers more energy during peak demand periods

Cost of capital function of the perceived risk by investors

– Proven technologies and performance lower cost of capital

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Crystalline Silicon PV Returns to Learning Curve

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Last 4 data points: the Prometheus Institute

1

10

100

1 10 100 1000 10000 100000

Mo

du

le A

SP

(2

00

8$)

Cumulative Production (MW)

1979

$33/W

2008

$3.17/W

Silicon

Shortage

81% Progress

Ratio

2012

$1.40/W

Panel Average Sales Price (ASP) 2008$

- Thinner wafers 300 145 microns

- Efficiency 16% 22+%

- Factories 100MW 1,000MW © 2010 SunPower Corp.

Pre-manufactured T20 Trackers Lower BOS Cost

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18 MW Olivenza T20 Tracking System


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Constant Power Plant Capacity: 6.5 MW

SunPower Conventional Thin Film / Fixed

34k m2 52k m2 72k m2

SPWR 150% m2

SPWR 210% m2 / -20% kWh


Annual and Summer Peak Capacity Factor by System Technology

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Las Vegas, NV Plant Capacity Factor based on PV Grid v.11.1

- Tracker annual Capacity Factors > 30% AC

- Peak Summer Capacity Factors > 35%

- Optimize technology choice for land use and delivery preferences

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

Fixed Tilt T20 Tracker T0 Tracker

Annual CF

Summer CF


Approximate Financed Solar Power Plant Capacity

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Silicon PV Thin Film PV CPV Dish SterlingTrough CLFR CSPHeliostat / Tower

5 GW

1 GW

0.5 GW


Actual vs Expected Production (MWh): 106%

Consistent Energy Production: Bavaria Solarpark

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Expected Energy Production Actual Energy Production

2005 2006 2007 2008

12,000

10,000

8,000

6,000

4,000

2,000

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SunPower Power Plants: any scale, anywhere, fast

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