1

Revitalizing American Competitiveness in Solar Technologies

So what is the SunShot Initiative?

2

SunShot Initiative SunShot Initiative

5 - 6¢/kwh without subsidy

A 75% cost reduction by the end of the decade

Pric

e

3

SunShot

$1/W Target

$1/W

Inst

alle

d Sy

stem

s P

rice

($/

W)

$3.80/W

Power Electronics

Balance of Systems (BOS)

PV Module

Estimates made in 2010 for Utility Scale PV plants

4

U.S. Solar Installations

• U.S. PV installations have grown dramatically in the past few years and are expected to continue to grow

• Currently ahead of SunShot Vision Study projections

4

Note: P = projection. PV assumes an 85% DC to AC conversion Sources: 2006 – 2010: Department of Energy “2010 Solar Technologies Market Report”. 2011: GTM/SEIA : “U.S. Solar Market Insight Q4 2011 & 2011 Year-in-Review”. 2012: median of Barclays (03/19/12), BNEF (02/06/12), Citibank (02/22/12), Cowen (03/20/12) EPIA (Market Outlook 2011, Global Market Outlook until 2015), Goldman Sachs (02/29/12), Navigant Consulting (01/26/12) Photon Consulting (Solar Annual 2012), Stifel Nicolaus (01/25/12), UBS (01/20/12). 2016- 2020: DOE “SunShot Vision Study”, February, 2012. EIA Annual Energy Outlook (AEO) 2012 Early Release, January 2012.

0

10

20

30

40

50

60

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

Cum

ulat

ive

U.S

. Ins

talla

tion

s (G

WA

C)

Cum. CSP (SunShot Vision Study)Cum. PV (SunShot Vision Study)Cum. PV & CSP (EIA AEO 2012)Cum. PV (EIA AEO 2012)Cum. U.S. PV & CSP (Reported)Cum. U.S. PV (Reported)

US PV Cell and Module Production

Sources: Navigant Consulting, Solar Services Program – 2011 Shipment Update, NPS-Supply6 - April 2011, Report NPS-Supply4, Report NPS-Supply3.

6

Manufacturing

“Abandoning today's ‘commodity’ manufacturing can lock you out of tomorrow's emerging industry.”

- Andy Grove, co-founder, former CEO, Intel

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To compete in the clean energy race, we have to do more than invent

technologies, we have to make them, sell them, and use them too.

Secretary of Energy

Steven Chu

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Incubator Supports Startups

8

9

2007 2008 2009 2010 2011 2012 2013

Multiple Incubator Rounds

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Round 5 PV Incubator

Round 4 PV Incubator

Round 3 PV/Pre-Incubator

Round 2 PV Incubator

Round 1 PV Incubator

Round 6 SunShot Incubator Soft Cost

Round 7 SunShot Incubator

10

Incubator Startups

10

Caelux

Renewable Power

Conversion

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SUNPATH Contract Duration

2 years

Max Contract Award ($) $25M, 75% cost-share

Maximum Cost to DOE ($)

$50M

Objective Domestic industrial scale manufacturing demonstration of a PV technology : • 15% lower in cost per watt when compared to the industry

leader • progressing significantly towards the SunShot goal of $0.50/W

modules • >25 year lifetime and sufficiently high efficiency for low Balance

of Systems costs. Replication and expansion of commercial manufacturing of products and technologies in the US.

SUNPATH goals and the SunShot portfolio

SUNPATH

~$6.50

~$5.50

~$4.00

$0

$1

$2

$3

$4

$5

$6

$7

Residential Commercial Utility

PV

Sys

tem

Pri

ce /

WD

C

2010 PV System Prices BOS-non-hardwareBOS-hardwarePower electronicsModule

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“Even if you paid nothing for the hardware, you'd still pay thousands of dollars to install a residential solar power system” - Secretary Chu

Non Hardware costs: • Customer

Acquisition • Financing and

Contracting • Permitting,

Inspection, and Interconnection

• Installation and Performance

The Issue:

Complicated and confusing process

Process is different for every local

Unnecessarily high permit fees

In-person application submission and inspection

Long wait times for inspection and approval

But Why so Pricey?

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More Paperwork = Higher Cost

One Hypothetical City’s Process…

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Pre-Application Install

Complies with Zoning Rules

Apply to Commission A

Receive Commission A

Approval

Special Building Type?

Yes

Utility Track

Uti

lity

- App

licat

ion

Solar to be

utility connected?

Apply Electronically for Interconnection

Apply via mail for Interconnection

Utility Report Auto-Generated

Person Creates Utility Report

Report Sent to Appropriate Area

> 30 kW? Contract Type 1

Authorization Letter

Equipment Spec

Sheets

3-Line Diagram

Application Type 2

Application Fee

Application Type 3

No

Yes

Yes Yes

Yes

Check Utility Report

Approve Initial Design within

10 Days Engineer Review

Order Meter

Time of Use Metering?

Special Order Meter

Uti

lity

- Ins

talla

tion

Yes

No

From the Start: Buildings Office Track Install

Complies with Zoning Rules

Apply to Commission A

Receive Commission A

Approval

Special Building Type?

Yes

Electronic Filing?

Bui

ldin

gs O

ffice

- A

pplic

atio

n

Print Forms A & B for Signatures

Complete All Paper Forms

Complete Form A, Architect/Engineer Signs Complete Form A1 Complete Form A2

Application Certified?

Application Review

Requesting Fire Code

Exemption?

Yes No

Yes

Yes

No

No

More than a Year Later, You’re Finally Ready for Solar

And Permitting is Different Everywhere

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Germany’s Success

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Sign contract with installer

Register PV system with state energy

agency for FIT

(1 page, submitted online in 15 mins.)

As long as housing structure is built to code, no permits filed for residential PV in Germany

Rooftop Solar Challenge

CA NJ

= CA WI

La Mirada, CA Oceanside, CA

≠

≠

Uniform processes

The Problem • 18,000+ local jurisdictions with different PV

permitting requirements • 5,000+ utilities implementing interconnection

standards and net metering programs • 50 states developing interconnection

standards and net metering rules

The Solution The Challenge invests in 22 teams comprised of jurisdictions, utilities, and local stakeholders to develop the same requirements and processes across large geographic areas (500,000+ population). The Challenge also measures each team’s progress to identify approaches that work.

$2/W SunShot Residential Prize RFI

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Residential PV in Germany costs ~$2.50/W Residential PV in the US costs ~$6/W

Thank You

Minh Le Chief Engineer, Acting Deputy Program Manager

SunShot Initiative