Solar:Power TodayJune 2011

Residential1-10 kW

Commercial Rooftop10 kW – 1 MW

Utility Scale1 MW– 250 MW

Solar Growing Rapidly, Averaging 65% Compound Annual Growth Rate for the Past 5 Years

17 nuclear power plants

worth of solar peak

power shipped in

2010

Source: PV Industry Growth Data from Paula Mints, Principal Analyst, Solar Services Program, Navigant

5 nuclear plants

brought online in

2010

Solar Industry Growth has Produced Steadily Falling Prices

Sources: 1976 -1985 data from IPCC, Final Plenary, Special Report Renewable Energy Sources (SRREN), May 2011; 1985-2010 data from Paula Mints, Principal Analyst, Solar Services Program, Navigant;

2011 numbers based on current market data

Avera

ge P

rice

[U

SD

20

05

/W]

Produced Silicon PV Modules (Global)

$100

$50

$5

$1

$0100 1,000 10,000

1976

2010

Module Pricing Trends 1985-2011

Due to Polysilicon Shortage

$1.50

$60.00

Projected price increase 1% per year

Conventional Electricity Costs are Increasing

Average Retail Price of Electricity

Sources: U.S. Energy Information Administration (EIA) ; DOE, Annual Energy Outlook, 2011

Projected price increase 2.5% per year

To date

US cell phone subscribers has risen

from 5.3 million to 285 million

in 15 years

Price

Technology and Adoption

Solar Adoption on High Tech Trajectory

Solar Price Drops MirrorHigh Tech Consumer Goods

DVD Players

Digital CamerasCell Phones

with plan

Driven by Innovation, Automation, and Scale

• 100% Financing accelerating solar home sales

• Sale of Energy, not equipment• Never an Increase in your Utility Bill• >100,000 solar power systems already

installed

Solar at Zero Cost in Increasing Markets

Solar is Less Expensive Than New Nuclear

Cents

per

Kilo

watt

Hour

Average time to permit and build a nuclear 1 GW power plant – 13 years. Average time to permit and build a 1 GW solar plant:  < 1 yearThe last nuclear power plant completed in the US, Watts Bar 1 in Tennessee, took 23 years 7 months to construct.

$0.139

$0.07

$0.129

1 GW Plant

$0.095

Sources: 2011 nuclear price is the mid-point of the LCOE range given by Lazard, version 5.0. 2020 nuclear price is illustrative, calculated assuming 3.5% annual escalation; 2011 & 2016 PV Prices from DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011, 2020 PV price illustrative, assuming 4% annual cost reduction from 2016

(further validated by prices bid by solar developers into the California markets).

Solar is Less Expensive Than New Nuclear

Cents

per

Kilo

watt

Hour

Average time to permit and build a nuclear 1 GW power plant – 13 years. Average time to permit and build a 1 GW solar plant:  < 1 yearThe last nuclear power plant completed in the US, Watts Bar 1 in Tennessee, took 23 years 7 months to construct.

$0.139

$0.07

$0.129

1 GW Plant

$0.095

Sources: 2011 nuclear price is the mid-point of the LCOE range given by Lazard, version 5.0. 2020 nuclear price is illustrative, calculated assuming 3.5% annual escalation; 2011 & 2016 PV Prices from DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011, 2020 PV price illustrative, assuming 4% annual cost reduction from 2016. Dotted line indicates

typical baseline prices bid into the California markets by solar developers, where awarded contracts receive typically a 25-30% adder based on the peak-coincident time-value of solar generation.

Projects bid into California Utilities in response to 2009 and 2011 requests for bids

Solar Beats Natural Gas Peak Power Today

Cents

per

Kilo

watt

Hour

$0.226

$0.139

$0.086

$0.238

250 MW Gas CT

Sources: 2011 gas price is the mid-point of the LCOE range given by Lazard, version 5.0. 2016 gas price is illustrative, calculated assuming 1% annual escalation; 2011 & 2016 PV Prices from DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011 (further validated by prices bid by solar developers into the California

markets).

Gas peakers pollute 3 times more than natural gas power plants.

Cents

per

Kilo

watt

Hour

$0.226

$0.139

$0.086

$0.238

250 MW Gas CT

Solar Beats Natural Gas Peak Power Today

Sources: 2011 gas price is the mid-point of the LCOE range given by Lazard, version 5.0. 2016 gas price is illustrative, calculated assuming 1% annual escalation; 2011 & 2016 PV Prices from DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011. Dotted line indicates typical baseline prices bid into the California markets

by solar developers, where awarded contracts receive typically a 25-30% adder based on the peak-coincident time-value of solar generation.

Gas peakers pollute 3 times more than natural gas power plants.

Projects bid into California Utilities in response to 2009 and 2011 requests for bids

Coal Plant 5%500 MW

New Coal Can’t Deliver Power for 6-8 Years, When Solar Will Be Competitive

Cents

per

Kilo

watt

Hour

$0.139

$0.07

$0.109

$0.07

Source: 2011 coal price is the mid-point of the LCOE range given by Lazard, version 5.0. 2020 coal price is illustrative, calculated assuming 5% annual escalation: 2011 & 2016 PV Prices from DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011, 2020 PV price illustrative, assuming 4% annual cost reduction from 2016

(further validated by prices bid by solar developers into the California markets).

$0.08

Coal Plant 5%500 MW

New Coal Can’t Deliver Power for 6-8 Years, When Solar Will Be Competitive

Cents

per

Kilo

watt

Hour

$0.139

$0.07

$0.109

$0.07

Source: 2011 coal price is the mid-point of the LCOE range given by Lazard, version 5.0. 2020 coal price is illustrative, calculated assuming 5% annual escalation: 2011 & 2016 PV Prices from DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011, 2020 PV price illustrative, assuming 4% annual cost reduction from 2016. Dotted line indicates

typical baseline prices bid into the California markets by solar developers, where awarded contracts receive typically a 25-30% adder based on the peak-coincident time-value of solar generation.

$0.08

Solar Meets Critical Peak Power Demand

Peak Summer Load

Tracking PV at Full Power

Summer Time Of Use Rates

28

26

24

22

20

18

Reta

il U

tilit

y R

ate

s, c

en

ts p

er

kw

h

Sources: For summer peak load shape – California Independent System Operator (CAL-ISO); For time of use rates – Pacific Gas and Electric Company (PG&E); For PV Tracking Output – Solaria Corporation

Germany, with Less Sun than Seattle, is Largest Solar Market in the World

Solar Energy Capacity (2009) in GW

Lazard: Compiled from multiple industry sources, May 2011

Solar Energy Capacity (2010) in GW

Italy and Germany added 13

GW in 2010

U.S. Solar Market Is Small but Growing

US Total Installed PV Solar Energy Nameplate Capacity and Generation

DOE, NREL, Renewable Energy Data Book, 2009; Lazard: Compiled from multiple industry sources, May 2011

California Adding Multiple GW of Solar in the Next 5 Years

California could be 20% solar by 2020

Of the 8.6 GW under contract, 4.4 GW is below the Market Price Referent (MPR), defined as the 20-year levelized cost of energy from a new natural gas plant in California.

Source: Greentech Media, February 2011

2009 Utility RFO submittals:  30 GW2011 Utility RFO submittals:  45 GW (expected)

4.4 GW under contract below the cost of energy from new natural gas 1

1

Utilities Recognize Solar’s AdvantagesCompleted US PV Projects

Total USA Installed PV 2 GW in 50 States

Global Installed 26 GW

Source: Solar Electric Power Association (http://www.solarelectricpower.org/solar-tools/solar-data-and-mapping-tool.aspx)

Completed US PV Projects

Utilities Recognize Solar’s Advantages

Over the next 4 years 12GW

Completed US PV Projects

1 Note:  Utility purchases only - Does not include residential and commercial marketsSource: Solar Electric Power Association (http://www.solarelectricpower.org/solar-tools/solar-data-and-mapping-

tool.aspx)

1

Equal to 12

nuclear plants

in 4 years

Solar Subsidies Pale in Comparison to Fossil Fuels

Fossil Fuel and Solar

[ELI, SEIA]

[SEIA, Blumenauer, Treasury]

$72.4 billion

$2 billion

$40 billion

$7-10 billion

Estimating U.S. Government Subsidies to Energy Sources: 2002-2008Environmental Law Institute, September 2009SEIA (Solar Energy Industries Association) Federal  Energy  Subsidies in the United States: A Comparison of

Energy  Technologies, February 24, 2011 “Ending Oil Industry Tax Breaks”Congressman Earl Blumenauer, Third District of Oregon,  www.blumenauer.house.gov, April 2011

$72 bn

Fossil Fuel Subsidies Pad Profits while Prices Increase

7

8

9

10

11

12

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Ave

rag

e R

eta

il P

rice

of E

lect

ricity

: Ce

nts

pe

r K

ilow

att

Ho

ur

:

Sources :ARP of Electricity from U.S. Energy Information Administration (EIA); Subsidy Data Source from SEIA

$2 bn

$0

$1

$2

$3

$4

2007 2008 2009 2010

Mo

du

le P

ricin

g T

ren

ds:

Cu

rre

nt $

/Wp

Relatively Small Solar Subsidies Produce Significant Price Declines

Sources: Weighted Average ASP Data from Paula Mints, Principal Analyst, Solar Services Program, Navigant; Subsidy Data Source from SEIA

Solar Creates Jobs

7x more jobsthan coal

Average Total Jobs/Megawatts

Sources: Kammen, David M et al, 2004, Report of the Renewable and Appropriate Energy Lab, Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create?, Energy Resources Group, Goldman School of Public Policy, University of California, Berkeley.Wei, Max et al, 2010,

Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create?, Energy Resources Group, Goldman School of Public Policy and the Haas School of Business, University of California, Berkeley, in Energy Policy, vol 38, issue 2, February 2010.

Solar PV Uses Far Less Water than Other Power Sources

Source: Adapted from DOE 2010, Table 8.3

or Tower (wetcooled)

Added water if gas source is Fracking

Solar is Ready Now

Solar17 GW

Solar added more than 17 GW worldwide2010

All other sources combined only added 14.7 GW in the US2010

Coal6.7 GW

Natural Gas

5.5 GW

Wind5 GW

Source: Erik Shuster, National Energy Technology Laboratory, Tracking New Coal-Fired Power Plants, January 14, 2011(Natural Gas includes NGCC at 4GW and NG GT as 1.5 GW.)

US Solar Resource Dwarfs Other Markets

SPAIN

GERMANY

Map Source: National Renewable Energy Laboratory for the U.S. Department of Energy

Enough land area to power

the whole country

US Lags in both PV Production and Market Growth2010 Global Supply/Demand 

Supply 17.4-GWp Demand

Source: Supply data from Paula Mints, Principal Analyst, Solar Services Program, Navigant; Demand data from Source: Greentech Media

Solar power will be the largest source of electricity in the U.S.

TW

H/y

r

To 2030 To 2040 To 2050

• Substitute Generation • Smartgrid• Flexible Generation

• Energy Storage

Sources: McKinsey Report, 2007 for starting points and energy efficiency; AWEA for wind; internal SunPower calculations for DPV, CPV, CSP

Transition to Renewables

Public Support for Clean Energy

91 percent of Americans say developing sources of clean energy should be a priority for the president and Congress

85% of Republicans

89% of Independents

97% of Democrats

Sources: Public Support for Climate & Energy Policies in May 2011, Yale Project on Climate Change.

Solar

Less expensive than new nuclear and cost competitive with new coal and gas started today

Delivers Gigawatt’s of power fast – 8 to 20 years faster than coal or nuclear

•Date and other infoThank You

•Date and other infoAppendix

Peak Demand/Heat Waves Coincide with Peak SunNew York City Blackout Summer 2003

Load (

GW

)

New York City Summer 2006 Peak Demand Day

Blackout could have been avoided with just 500 MW PV

Economic lossesin NYC alone

exceeded $1bn.

Losses were between

$7 to 10 bn in the Northeast U.S. and Canada

Economic Loss Sources: Reuters, ICF Consulting in Richard Perez - ARSC (with permission), City Comptroller, William Thompson, 2003

Among Global Energy Sources

6

Coal

Uranium

900Total

reserve

220

Petroleum

170

Natural Gas

70Wind

0.5

Waves

23

OTEC

Biomass

11

Hydro

4

0.3

TidesGeothermal

2

Renewable Energy(Annual Reserves)

FINITE ENERGY(TOTAL RESERVES)

© Richard Perez – Used With Permission

World Energy Use15 TW-yrs per year

15

Solar

40,000 TW-yrs per year

Solar is by Far the Most Abundant

6

World Energy Use15 TW-yrs per year

Coal

Uranium

900Total

reserve

220

Petroleum

170

Natural Gas

70Wind

0.5

Waves

23

OTEC

Biomass

11

Hydro

4

0.3

TidesGeothermal

2

15

© Richard Perez – Used With Permission

Fukushima Daiichi Nuclear MeltdownMarc

h 2011

BP Deep Water Horizon Oil

SpillApril 2010

Natural Gas Pipeline

Explosion in San Bruno,

CASeptember, 2010

Upper Big Branch Coal

Mine DisasterApril

2010

Examples of Energy Disasters 2010-2011