Thomas Leyden, Managing Director of SunPower, Corporation, discusses some of his company's large-scale commercial solar projects and the driving forces behind them. This presentation was given December 4, 2009 at the Solar Energy Focus Conference: Fall 2009 hosted by the Maryland, DC, Virginia Solar Energy Industries Association (MDV-SEIA) in Gaithersburg, MD. To learn more please visit: www.mdvseia.camp7.org

1. Solar Renewable Energy - Now
MDV-SEIA
Thomas Leyden, Managing Director
December 4, 2009

2. SunPower Update
Established in 1985 World record solar cell efficiency = MORE
4,000 Employees: All we do is POWER
Over 85 patents and over 20 years of R&D
solar
Worldwide footprint Publicly traded (NASDAQ), strong balance
Over 500 systems on 3 continents sheet
Energy efficiency expertise
Over 500 MW installed, 24 MWs in $1.4 billion in 2008 revenue – all solar
NJ
Largest solar projects in North America Fully staffed NJ office in
Trenton
Established and Proven. Technology
Leaders.

3. Technology
Comprehensive Solar Program
Your SunPower Solar Solution

4. Reaching “Grid Parity”
MSEIA/PV Now All-in price of electricity
0.4
0.35
Incentives accelerate the cross-over
0.3
0.25
Grid 4.5% inflation
$/kwh
Grid 3% inflation
0.2
solar declining 5%
solar declining 6%
0.15
Crossover points
0.1
0.05
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2005-2020

5. Solar PV Value Chain
Raw Materials to Rooftops = Lower Risk and Higher Savings
Polysilicon
Ingot
Wafer
Solar Cell
Solar Panel
Systems

6. Deployment Applications
Residential Retrofit New Production Homes
Commercial & Public Power Plants
6

7. SunPower Deployment Products
Solar Cell
Rooftop Ground
SunPower ®
SunPower SunPower ®
PowerGuard ® T10 Solar Roof Tile
T5 Solar Roof Tile SunPower ® SunPower ®
T0 Tracker T20 Tracker
7

8. More Power Per Square Foot
More Energy (kWh) = More Customer Cost Savings
Thin Film Conventional High
Efficiency
205,000 kWh 468,000 kWh 880,000 kWh
(4.4% efficiency) (12.8% efficiency) (18.4% efficiency)

9. More Energy, Less Space
Efficient Use of Land with High-Efficiency PV
Technology
Thin Film Conventional High Efficiency
41 Acres 32 Acres 21 Acres
9.5% Efficiency 12.6% Efficiency 19.3% Efficiency
6MW Solar Power Plant

10. Tiffany & Co. 1.3 MW
Parsippany, NJ
Solar + Energy Efficiency
delivering savings of more than
$450,000/year

11. FedEx
Oakland, CA

12. Toyota
Ontario, CA

13. Target
Hayward, CA

14. Shiseido 699 kW
New Jersey Headquarters
• Reduces annual energy usage by 35%
• Saves $100,000 annually in electricity
costs

15. Johnson & Johnson
New Jersey

16. Conectiv Energy
4.1 MW

17. Bavaria, Germany
10 MW

18. Florida Power & Light – Desoto,
FL
25 MW

19. NJ Policies Created A National Leader
NJ Policies Bridged the Price Gap and
Removed Barriers:
Market Incubator Components:
Rebate programs via SBC funding
Early REC market
Net metering and simplified interconnection
New Jersey RPS
New Solar Energy Companies
160
120,000
140 Projected Growth
3,000 new jobs
NJ Solar Companies
120 100,000
Solar RPS MWhs
100 80,000
80
60,000
60 780% solar industry growth
40,000
40
20 20,000
In the first 5 years
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
MWh's/cum Solar Companies in NJ

20. RPS Drives Rapid Growth and Investment in NJ
Opportunity For Market-Based Growth:
RPS with solar carve out and ACP sets the stage
2000 MW goal by 2021 lays the foundation for large
scale investment
NJ Photovoltaic Installations - RPS Driven Requirement
15 year Aggregate Investment of $8.8 billion
2,000,000 $1,400
1,800,000
$1,200
1,600,000
Annual PV Installs ($ millions) $1,000
1,400,000
1,200,000 Total RECS Required $800
1,000,000
800,000 $600
600,000 $400
400,000
$200
200,000
0 $0
RPS
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Mandated $mm
SRECS

21. EAST COAST SOLAR MARKETS TO 2010-2012
Known East Coast Solar Markets Based on RPS & SRECs
New Jersey Ohio
New Solar New Solar
Capacity New Solar Capacity New Solar
Year (MWp) Value $m Year (MWp) Value $m
2010 67.5 $405 2010 13.7 $82
2011 76.1 $419 2011 41.0 $226
2012 71.5 $358 2012 81.9 $410
Total 215.1 $1,181 Total 136.6 $717
Maryland Pennsylvania
Upcoming
New Solar New Solar
Capacity New Solar Capacity New Solar
Markets for East
Year (MWp) Value $m Year (MWp) Value $m Coast
2010 9.0 $54 2010 0.5 $3 •New York
2011 9.0 $50 2011 19.5 $107
2012 13.0 $65 •Massachusetts
2012 30.4 $152
Total 31.0 $169 Total 50.3 $262 •Vermont
•Delaware
North Carolina
New Solar
Capacity New Solar Existing East New Solar
Year (MWp) Value $m Coast Markets 3 Years New Solar Value $m
2010 12.5 $75
2011 25.7 $141
Total 3 Years 504 $2,711
2012 33.1 $166
Total 71.3 $382
21
21

22. Utility Scale: Cross-Over is Here and Now . . .
PV has reached the cross-over point when compared with
new construction of a gas peaker, coal or nuclear plant.
Conventional utility capacity alternatives have become
too expensive and/or too risky:
Coal cannot be financed
Gas Peakers yield very expensive power
Nuclear is too costly and too risky
PV is now the lowest cost of any of these options
22

23. Levelized Cost of Energy - Forecast
The weighted average LCOE from PV over the construction period of a
Conventional Plant is lower than the LCOE from that plant.
References:
• Lazard for start year for Coal IGCC, Gas CT, Gas CCCT, Nuclear, Wind. E3 Consulting for CSP and Coal IGCC with CCS.
• DOE for Central and distributed PV (CPV and DPV).
Costs after start year are trended per SunPower internal assumptions on commodity prices, fuel costs and cap & trade. Wind is flat for 4 years, then
declines 1%/year; CSP declines per a blend of various company price curves.
23

24. A New Era is Upon Us….….
DOE HQ
Fort Dix
24

25. Nothing is as powerful as an idea whose time has come
-- Victor Hugo
25