Projected Energy Demand 2050 Solar market drivers Limited

Projected Energy Demand - 2050

Solar market drivers Limited and costly fossil fuel energy Shift towards decentralized power generation Energy independence Growth drivers Global warming / environment awareness Technological improvement Political commitment /subsidies

Strong solar growth trends Worldwide historical and projected demand 12 06–’ GW 34% Source: Solarbuzz 2008, “International Energy 2004, ” EIA, May-July 2004 (1) Includes geothermal, solar, wind and biomass R’ CAG

Best Research-Cell Efficiencies

Thin-Film Technology Landscape

Current Status of various technologies • Traditional Silicon – – • Currently 90%+ of installed manufacturing capacity High manufacturing cost $3+/W Raw material cost high due to shortage, massive supply coming on line starting this year Very low Capex/Watt, labor intensive, proven technology, turn-key solution available Thin Film – a-Silicon • • • Most proven technology among the Thin-Film category Low manufacturing cost, $1/W. Available in rigid and flexible format High Capex/Watt, lower efficiency, AMAT & Orliekon offering turn key solutions – Cd. Te • • • low manufacturing cost, $1/W, high efficiency First Solar only company currently in high production, 1 GW/year of manufacturing capacity by end of 2010 Attracted limited number of players due to Cd issue GE made significant investment in Primstar, local CO company Currently limited to glass substrate only – CIGS • • • Low manufacturing cost, $1/W. High efficiency, available in rigid and flexible format Currently in limited production Attracted maximum number of new players and multi Billion $$$ investment Worldwide in recent years

Grid Parity • Current cost – $6 -8/Watt installed – Grid parity with local incentives and tax break • Projected cost in 2012 – $3 -4/Watt installed (50% cost reduction) – Grid parity on its own in high price market like CA, HI, NY, NJ etc • Projected cost in 2015 – < $2/Watt installed – Grid parity on its own in most of the US geographical location • Cost breakdown – 50% module cost – 50%, BOS (inverter, frames, junction boxes, cables etc. , ), installation, logistics, permitting, and installer profit. • Applications/Limitations – Grid tied vs distributed generation? • Land cost, smart grid – Off peak vs peak hours? • States like CA pay very high premium for peak hours – Storage for night operation ?