PV Global Demand vs PV Global Capacity Docket

PV Global Demand vs. PV Global Capacity Docket No. DPU 09 -05 Information Request DPU-05 Dated 04/23/2009 Q-DPU 5 -002, Page 2 of 3 Global capacity of PV modules is expected to increase much faster than global demand, leading to a buyers market Prometheus Institute, State of the Solar Industry, 2009 Photon International Magazine, 2009 Greentech Media Solar Plaza 2009 Conference in Valencia, Spain Power Advocate, Inc. CONFIDENTIAL; DRAFT PRODUCT

Docket No. DPU 09 -05 Information Request DPU-05 Dated 04/23/2009 Q-DPU 5 -002, Page 2 of 3 Solar Power Generation Market : A Shift in the Landscape From 2008 to 2009, the solar market has shifted drastically in all areas including policy, manufacturing, pricing, and technology 2006 - 2008 2009 + • Polysilicon Shortages • Fragmented Supplier Market • Module Capacity Expansion • Polysilicon Oversupply • Supply Market Consolidation • Module Oversupply Demand • Europe Leads With Feed-In Tariff • US Federal Carbon Policy Expected • Vast Availability of Financial Backing • Europe Decreases Feed-In Tariff • US States Lead Renewable Policy • Renewable Projects Lack Backing Technology • Silicon Shortage Leads to Thin Film • Funding for New PV Technology • Demand Prevents Cost Reduction • Thin Film Cost Advantage Reduced • CIGS Moving to Utility Scale • Oversupply Allows Cost Reduction Supply Key takeaways: • Industry shakeout has caused weaker PV module players to close • A buyers market has resulted, leading to better prices for utilities • Pending carbon legislation and heightened awareness of meeting State RPSs are creating a sense of urgency to further develop solar power Power Advocate, Inc. CONFIDENTIAL; DRAFT PRODUCT