1. Solar Power: A National Perspective Julia Judd, Executive Director Solar Electric Power Association

2. Facilitating Utility Use and Integration of Solar Electric Power Presentation Overview  Who is SEPA?  Solar Market Trends and Data  Policies that Make a Difference  Technologies of Today and Tomorrow  A Look into the Crystal Ball

3. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Who is SEPA?

4. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power About SEPA  Formed in 1992 as the Utility PhotoVoltaic Group (UPVG)  Association membership:  Electric Utilities – 75 members  Solar Electric Industry – 75 members  Solar Electric “Stakeholders” (researchers, consultants, investors, architects, etc) – 30 members

5. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Association Goals  Tools - Provide tools to utilities and electric service providers on the use and integration of solar.  Networking - Foster business to business networking.  Information - Share information on solar electric technologies, applications, and programs.  Policy/Regulation Tracking – Evaluate and report on policies, regulations, and legislation.

6. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Solar Market Trends and Data

7. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Big Name Manufacturers

8. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power  Wal-Mart  US Postal Service  Staples  Johnson & Johnson  Google  Microsoft  The list goes on and on… Big Name Customers

9. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power  Power purchase agreements (PPAs) are emerging as a preferred deal structure  No capital investment by building owner  Fixed price of electricity for long time period  No balance sheet impact  Allows customers to benefit from federal tax credit even if they aren’t allowed to take it Financing Trend - Purchasing Solar Electricity Rather than Solar Panels

10. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Photovoltaic Installations by Country - 2006 Source: Solarbuzz

11. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Solar Resource Compared to Germany

12. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power US Grid-Tied Installs Source: IREC

13. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Grid-Tied Installations by State (kW-dc) 20052006% Change% of Market CA52,01570,57336%70% NJ5,52617,858223%18% NY1,4182,70991%3% NV4942,619434%3% AZ (e)1,5492,08835%2% MA6401,452127%1% CO (e)179933521%<1% TX59371420%<1% CT174541211%<1% OR35352950%<1% All Others (e)6991,450107%1% TOTAL63,640101.46659.4% Source: IREC (e) Includes some estimates

14. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Policies that Make a Difference

15. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power  Extends ITC for 8 years  Removes 30% cap for commercial systems and $2,000 cap on residential systems  Modifies credit to $1,500 per ½ kW  Provides AMT (alternative minimum tax) relief  Provides 3-year accelerated depreciation for commercial systems Securing America’s Energy Independence Act (HR 550, S 590)

16. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power  An 8-year extension of the ITC will:  Create more than 55,000 new American jobs in the solar industry and over $45 billion in economic investment by 2015.  Displace over 4 trillion cubic feet of natural gas and save American consumers over $32 billion.  SEIA makes it simple for individuals to join letter writing campaign – www.seia.org According to the Solar Energy Industries Association

17. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power California Solar Initiative (CSI)  3,000 megawatts of new, solar-produced electricity by 2017  CPUC will provide over $2 billion in incentives for existing residential homes and existing and new commercial, industrial, and agricultural properties  CEC will manage a $350 million program to encourage solar in new home construction through its New Solar Homes PartnershipNew Solar Homes Partnership

18. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power CSI offers:  Incentives starting at $2.50 per watt for systems up to 1 MW in size  Pay-for-performance incentive structure to reward high-performing solar projects  Funds for solar installations for existing and new low-income and affordable housing  More info at www.gosolarcalifornia.ca.gov

19. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power California Senate Bill 1 (SB1) Highlights  Mandates the creation of municipal utility solar programs  Increases net metering cap  Requires production homebuilders to offer solar as an option

20. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Technologies of Today and Tomorrow

21. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Today – Crystalline Cells  Silicon shortage is driving innovation  Higher efficiency  SunPower – 22% efficient cell  Sanyo – 21% efficient cell  Thinner wafers  Reduces consumption of expensive silicon

22. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Less so Today - Thin-film Source: NREL Production Capacity vs. Calendar Year

23. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Crystalline versus Thin-Film Market Share Today2010 Crystalline93%80% Thin-film7%20%

24. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Entrance of Concentrator PV (CPV) Source: Sharp Electronics

25. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power A Look into the Crystal Ball

26. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Short Term  Softening market = price decreases  Saw price increase in 2006 due to polysilicon shortage  Polysilicon supply is not as tight as originally expected  Prometheus Institute anticipates 20% drop in 2007 (from $4/watt to $3.25/watt)

27. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power Longer Term - 2010  Thin film growing to ~20% of market  Price decreases up to 50%  $4.25 installed  Largest potential problem – pool of qualified installers to meet demand

28. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power America’s largest solar event www.SolarPowerConference.com

29. Solar Electric Power Association Facilitating Utility Use and Integration of Solar Electric Power For more information: Julia Judd, Executive Director (ext. 4) jjudd@solarelectricpower.org 202-857-0898 www.SolarElectricPower.org