Boreal SolarStrictly Private and Confidential. For Discussion purposes only

ONEIA PresentationSupply + Demand in Ontario SolarMarch, 2011

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Solar in Ontario = A Glass of Water

The glass is half full

Could be $1B in solar panels sold this year, >200% growth

Evolution of the Grid to accommodate distributed power generation is taking place

Stakeholders including government, Hydro-1, LDCs, developers showing commitment to make Ontario solar a multi-year success

Contracts are being awarded – 257MW for 40 projects in rnd 2

Lots of potential!

The glass is half empty

Demand has been moderating for 2011

Connection issues won’t get fixed overnight and contract approvals have been slower than expected – what’s next?

Public awareness of the Ontario FIT program is low

Political uncertainty could translate into unwanted changes for solar in Ontario - rate cuts are expected in the fall

Lots of risk! Where are the (Canadian) banks?

Challenges provide an opportunity

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The demand is there – we think…

455MW in 2011according to ClearSky

ClearSky Advisors expects 455MW in 2011

65 Stakeholders

Down ~200MW from earlier forecast

More than 200MW of RESOP

Still a moving target – depends on phase 3 FIT announcement - some developers will build more aggresively

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Suppliers are here in volume

Ontario Content PV Modules

To date: New manufacturers like Heliene, Solgate, Lumin Solar have been supplying MWs of panels for primarily microFIT. Sharp and UE Solar providing panels with Ontario-refined silicon from 6N

Today: New supply lines from Silfab, Canadian Solar, ATS Photowatt, Celestica, Flextronics, Centennial, Eclipsall, Siliken, Suntech (6N) coming on line in H1/2011.

Tomorrow: Rumoured new supply? Day 4, LDK, Motech, Sanyo

Ontario Content Inverters

String Inverters – KACO, SMA, Fronius, Power One, SET, PVPowered, Satcon, Sungrow, Santerno

Micro Inverters – Enphase, Enecsys, Apparent, Solarian, SPARQ

Micro Inverters have been a little bit behind the curve – a complex supply chain?

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PV Module supply/demand

An undersupply through H1/11, an excess supply of PV Modules in H2/11? Combined with lower cell prices

(expected), could see a dip!

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Bankability is a concern!

Opportunities

Very few diversified solar brands…

What do you mean…? Reliability: Is the product reliable and generating power in 20

years? Corporate reliability: Is the product financeable? Where? Is the

company behind the product diversified? Brand equity: Is the company a “brand name”? Important when

looking to sell a project...

Sharp

Samsung (?)

Sanyo

Sharp has been very successful in extracting a premium in the market even with a “new” product using 6N silicon

New manufacturers need to keep bankability in mind to differentiate -

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Opportunities in Ontario Solar?

Conclusions?