SMA Solar Technology AG FUEL SAVING SOLUTION WITH SCALABLE BATTERY STORAGE SYSTEMS SMA Solar Technology AG Wendy Truong, PPA Engineer‘s Workshop 2016

DISCLAIMER IMPORTANT LEGAL NOTICE This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of SMA Solar Technology AG (the "Company") or any present or future subsidiary of the Company (together with the Company, the "SMA Group") nor should it or any part of it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness and nothing herein shall be construed to be a representation of such guarantee. The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on the management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements which speak only as of the date of this presentation. This presentation is for information purposes only and may not be further distributed or passed on to any party which is not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the addressees hereof other than for the purpose for which it has been provided to the addressee. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933 as amended. 2

AGENDA Features of the SMA Fuel Save Controller & Storage Integration FSC Solutions with Storage

FSC2.0 SOLUTION FOR DIFFERENT POWER CLASSES 4 FSC 2.0L (Customised) with Centralised Storage Systems FSC 2.0M without Storage MW FSC 2.0L with Centralised or Decentralised Storage Systems Upgradeable PV Power (AC output)

FUEL SAVE CONTROLLER (FSC) > Monitoring of entire system: - PV generation - Loads - Gen-set output > Direct communication via CAN and Modbus with Gen-set controllers - Ability to request for spinning reserve > Direct communication to PV inverters to control PV power output > Integrated inputs for CTs for line measurements

FSC PRODUCT FEATURES 6 > Management of Spinning Reserve Demand: o As PV power can fluctuate during the day due to cloud passing or disconnection of e.g. one inverter units, FSC makes sure during all operation time that the grid has enough reserve capacity to compensate any fluctuations. > Generator Minimum Load and Reverse Power Protection: o At the times of low consumption loads, the PV power can reach a high penetration level so that the generators will run lower than their minimum load. FSC avoid this behavior and adjust the PV power to the acceptable level. o Furthermore in case of sudden load reduction (e.g. partial disconnection), FSC immediately reduce PV power to avoid reserve power flow to the Genset.  Grid Feed-in Protection: o If PV power is not allowed to inject into the grid or to a certain limit, FSC can control PV power to a predefined limit.  Reactive Power Management o SMA PV inverters have the capability to adjust reactive power during the operation. FSC monitor the load and adjust reactive power of the inverters on the fly to make sure the gensets remains in the stable operation window.

FEATURES OF STORAGE INTEGRATION 7 > Optimized Operation of Genset: Storage utilization to react on PV drop and load changes reduces the running reserve capacity of the generators.  Improving “operating point” of gensets, increase efficiency, reduce O&M > Increase PV penetration: Increased intermittent PV power will be buffered by the storage system not curtailed  A higher share of solar PV energy results in increasing fuel savings.  Ramp-Rate Control of PV Plants: Batteries provide reserve power to “ firm ” the output of the PV system and ensure stable power supply.  Makes PV power “dispatchable” Which features to be fulfiled by Storage Integration?

RAMP RATE CONTROL WITH STORAGE 8 PV Power PV Requirement Battery Energy Power time Compensate PV drop Discharge Compensate PV rise Charge e.g. 10% Pn/mins Benefit: > Increase system and grid efficiency > Avoiding running conventional generator for grid services, e.g. frequency control, free load capacity to be served by the renewable sources and thus enable more energy feed-in

AGENDA Current Market Landscape FSC with Storage Solutions

FSC WITH CENTRALISED BATTERY STORAGE SYSTEM 10 Fast power response Comprehensive provision of ancillary services Ease of installation & commissioning by SMA Suitable for higher PV penetration

CENTRALISED STORAGE INTEGRATION – SCOPE OF PRODUCTS Fuel Save Controller – as a Power Management System Industrial controller available for different system sizes Provide the power management functions needed for grid stabilisation Carrying out the storage system control like SoC control and enhanced system efficiency 11 Sunny Central Storage kW in a single unit Includes interface to battery management system Based on the robust Sunny Central platform with more than 15GW field installations

DETAILED CENTRALISED STORAGE INTEGRATION 12 All system components from a single source, well tested in advance and fully compatible. SMA Component

FSC WITH DECENTRALISED BATTERY STORAGE SYSTEM 13 Fast power response Comprehensive provision of ancillary services Component modularity & Scalability Easy installation & future expansion Mature technology

DECENTRALISED STORAGE INTEGRATION – SCOPE OF PRODUCTS Fuel Save Controller – as a Power Management System Industrial controller available for different system sizes Provide the power management functions needed for grid stabilisation Carrying out the storage system control like SoC control and enhanced system efficiency 14 Communicates directly to battery management system Based on the well proven Sunny Island platform Expandable technology to accommodate various system sizes Reliable operation without corrosion issues in Pacific Ocean region Familiar technology for easy on-site installation, maintenance & operation

DETAILED DECENTRALISED STORAGE INTEGRATION 15 SMA Component All system components with the beloved Sunny Island

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