Solar in America: Strong and Getting Stronger

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1 Tom Kimbis, Vice President, Strategy & External Affairs, SEIA Justin Baca, Senior Research Manager, SEIA Andrew Krulewitz, Solar Analyst, GTM Research March 29, 2012

2 About SEIA Founded in 1974 U.S. National Trade Association for Solar Energy 1,000+ member companies from around the world Members from across 50 states Largest companies in the world as well as small installers 14 official SEIA Chapters across the country Our Mission: Build a strong solar industry to power America Our Goal: 10 gigawatts (GW) of annual installed solar capacity in the U.S. by 2015

3 Solar in America: Strong and Getting Stronger 100,000 American workers in solar double the number in Employed at 5,600 companies most of them small businesses across all fifty states. The fastest growing energy sector, and one of the fastest growing sectors of the U.S. economy with 109% growth in PV installations in More than 4,460 MW of installed solar electric capacity today across the U.S.

4 What the Future Holds Looking Ahead In 2012, we ll see near-term challenges for the industry, especially for manufacturers Since the beginning of 2010, 52 new U.S. solar manufacturing facilities have begun operations across America By , the U.S. is projected to become one of the world s largest solar market alongside surging Chinese market.

5 Solar Market Insight: Year in Review 2011 Detailed data on markets in top 23 states available in full report. Free executive summary provides national aggregate data on installations, pricing, manufacturing and demand forecasts. Full report for sale (50% discount to SEIA members) includes detailed market segment and state data.

6 SEIA/GTM Research Partnership Industry need for up-to-date and reliable market data Market reports issued every quarter Member discount: benefit for SEIA members Reliable market intelligence Member discount makes SMI the most affordable market research available Data to support SEIA s advocacy mission SEIA-GTM conferences questions to research@seia.org or solaranalysts@gtmresearch.com

7 Billions ($) Industry Overview The value of solar installations grew to $8.4 billion in 2011 Solar employment more than doubled from 2009 to 2011, topping 100,000 American workers Value of PV Installations U.S. Solar Workforce $ ,000 $8.0 $ ,000 $6.0 80,000 $5.0 $4.0 60,000 $3.0 40,000 $2.0 $1.0 20,000 $ SEIA Estimate SEIA/GTM Research SEIA Estimate The Solar Foundation SEIA/GTM Research U.S. Solar Market Insight: Year In Review

8 U.S. Solar Business Locations in 2011

9 Installed Capacity (MWdc) U.S. Solar Industry Continues Strong Growth PV demand grew 109% in U.S. PV Installations Source: SEIA/GTM Research Solar Market Insight, "2011 Year In Review" Year Q1 Q2 Q3 Q4

10 Megawatts (DC) U.S. PV Demand Forecast to Grow 53% in 2012 to Over 2.8 GW U.S. PV Installations Forecast E 2013E 2014E 2015E 2016E Source: SEIA/GTM Research Solar Market Insight, "2011 Year In Review" Annual Installations Q1 Q2 Q3 Q4 Projected Installations

11 Status of Market Diversity 2011 PV Installations by Major Market State 2011 Annual Installations 2011 Ranking Rest of U.S. 20% Next Five States 34% California 29% New Jersey 17% California New Jersey Arizona New Mexico Colorado Pennsylvania New York North Carolina Texas Nevada

12 Megawatts (Mwac) U.S. to Lead in CSP California, Arizona and Nevada are leading states The current CSP pipeline contains over 5,000 MW of projects with signed PPAs 2,200 2,000 1,800 1,600 CSP & CPV Forecast 1,400 1,200 1, Installations Forecast

13 SEIA s 10 GW Goal Within Reach SEIA s goal of 10 GW annually by 2015 is achievable, but additional policies are needed, including: Policies to support financing of solar projects, especially the Section 1603 Treasury Program Long-term power purchase authority for federal agencies Development of alternative financing mechanisms Removal of local barriers to solar deployment

14 PV Manufacturing Across the U.S.

15 Solar Market Insight: Year in Review 2011 Detailed data on markets in top 23 states available in full report. Free executive summary provides national aggregate data on installations, pricing, manufacturing and demand forecasts. Full report for sale (50% discount to SEIA members) includes detailed market segment and state data.

16 SEIA Membership SEIA is working to build a strong solar industry across America SEIA members receive the following benefits: Registration and exhibiting discounts at SEIA conferences and tradeshows Free registration for member webinars each month Exclusive access to the SEIA solar tax manual A free, optional listing in the SEIA member directory Discounts on industry reports Job postings Members-only access to the Small Business Resource Center, a set of tools to help small businesses grow To join, visit: For more information, membership@seia.org.

17 Growing Importance of the U.S. Market

18 Market Segment Growth

19 Increasing Prevalence of Third-Party Residential Solar

20 Non-Residential Market Trends

21 Major Utility Projects Completed in 2011 Rank Project Name Developer Capacity (MWdc) State Power Purchaser EPC Firm 1 Mesquite Solar I - Phase 1 Sempra Generation 48 AZ Pacific Gas & Electric Zachry 2 San Luis Valley Solar Ranch Iberdrola 38 CO Xcel Energy - Colorado SunPower 3 The Long Island Solar Farm BP Solar 37 NY Long Island Power Authority Blue Oak Energy 4 Webberville Solar SunEdison 34 TX Austin Energy RES Americas 5 Stillwater Solar-Geothermal Plant Enel Green Power 27.6 NV NV Energy Bombard Renewable Energy 6 Roadrunner Solar Electric Facility NRG Energy 25 NM El Paso Electric First Solar 7 PG&E UOG Program - Stroud Solar Station Cupertino Electric 25 CA Pacific Gas & Electric Cupertino Electric 8 Copper Crossing Solar Ranch Iberdrola 23 AZ Salt River Project Fluor Corp. 9 Sun City Eurus Energy 23 CA Pacific Gas & Electric Ryan Company 10 Sand Drag Eurus Energy 21.8 CA Pacific Gas & Electric Ryan Company In 2011, 28 projects over 10 MW were completed, this is up from just eight in 2010 and two in 2009 Markets are spreading geographically as utilities strive to meet RPS goals Over 9 GW of projects with signed utility off-take agreements slated for completion in the next five years

22 State market dynamics remain independent through 2011 Growth Prospects Arizona Massachusetts Hawaii Ohio Risky Markets New Jersey Pennsylvania North Carolina State Markets in 2011

23 Average Installed Costs Decrease

24 Shipments vs. Installations

25 U.S. PV Production Trends

26 U.S. PV Production Price Declines

27 U.S. Concentrating Solar Update Major US Concentrating Solar Project Development Highlights Project State Technology Capacity Expected Construction (MW-ac) Completion Project Status Update Blythe CA CSP/PV 1000 Dec-10? Announced switch to PV from trough in August Ridgecrest CA CSP/PV 250? Announced switch to PV from trough in October Palen CA CSP/PV 500? Announced switch to PV from trough in October Amargosa Farm Road CA CSP/PV 500? Announced switch to PV from trough in October Ivanpah CA CSP 370 Oct Closed DOE loan guarantee for $1.6 billion in April 2011 Solana AZ CSP 250 Dec December 2011: Banco Santander to buy 45% equity stake. Mojave Solar Project CA CSP 250 Dec Approved by California PUC November 2011 Rice Solar Energy CA CSP 150 Sep Approved by California CEC December 2010 Crescent Dunes Solar Energy Project NV CSP 110 Jun DOE Loan Guarantee for $737 million closed in Sept 2011 Genesis CA CSP /2014 Loan Guarantee closed September 2011 Alamosa Solar CO CPV 30 May DOE Loan Guarantee for $90.6 million closed in Sept 2011 Hatch NM CPV 5 Jun-11 In Operation Imperial Solar Energy Center West CA CPV Long term PPA signed with California utility Capacity Installed by State (MWac) 2010 Total Q Total Cumulative MW-ac MW-ac MW-ac MW-ac Arizona California Colorado Florida Hawaii Nevada New Mexico Other Total

28 Thank You & Contact Info Tom Kimbis, VP of Strategy & External Affairs Justin Baca, Senior Research Manager Contact: For more information about purchasing the full SEIA/GTM Research U.S. Solar Market Insight 2011 Year-in-Review report, please visit or Justin Freedman Andrew Krulewitz, Solar Analyst Contact: