Solar Energy in the United States New and Emerging Markets and Investment Opportunities Rhone Resch President and CEO Solar Energy Industries Association

Introduction to SEIA US National Trade Association for Solar Companies Over 900 member companies Members include all solar technologies Represent over 80,000 people employed by solar 14 state and regional chapters SEIA’s Mission Expand Markets Remove Market Barriers Strengthen R&D Improve Education and Outreach Voice of Solar in US We Represent Your Interests in the United States

US PV Market PV market grew by 71% On-grid PV grew by 81% Off-grid PV grew by 21% Residential +32% Commercial +110% Utility +97% Domestic manufacturing continues to grow Thursday, July 16, 2015 © 2009 SEIA 4 Domestic PV Cell Manufacturing (MW DC ) pGrowth Production % Capacity % Source: Greentech Media Research/Prometheus Institute

Grid-Tied PV Capacity Additions by Market Segment Thursday, July 16, 2015 © 2009 SEIA 5 Sources: IREC

Grid-Tied PV Capacity – State by State StateInstalled in 2008Cumulative California New Jersey Colorado Nevada Hawaii New York Arizona Connecticut Oregon North Carolina Others Total Thursday, July 16, 2015 © 2009 SEIA 6

2008 Breakthrough Success Tax Credit Extension - 17 Votes in Congress –Filibustered 9 times Bailout Bill – October 3 –Extended tax credits for 8 years –Removed residential cap for PV –Repealed utility exemption –Provides AMT relief for commercial and residential Additional Solar Legislation Introduced –SOLAR Act –Feed-in Tariff –Solar Reserves

2008 was a Record Year Last 3 Months Extremely Difficult Good News

Creating a Solar Governor Thursday, July 16, 2015 © 2009 SEIA 9

Creating a Solar President

Thursday, July 16, 2015 © 2009 SEIA 11

Changes in Washington Obama Administration –Carol Browner – WH Energy and Climate Coordinator** –Dr. Steven Chu – Secretary of Energy –Nancy Sutley – Council on Environmental Quality –Lisa Jackson – Environmental Protection Agency –Van Jones – WH Green Jobs Advisor –Cathy Zoi – Assistant Secretary EERE Congress –Waxman replaces Dingell Chairman of House Committee on Energy & Commerce –Markey Subcommittee on Global Warming –Senate – Democrat majority increases, more difficult for Republican filibuster

HR 1 American Recovery and Reinvestment Act 19 Provisions to Benefit Solar Companies –Improves existing tax credits Refundability Remove subsidized energy financing penalty –Improves loan guarantee program –Increases government procurement ($25 billion) –Creates new manufacturing tax credits –State energy program funding ($3.1 billion) –Expands CREBS funding ($1.6 billion) –Funds school repair and construction ($53.6 billion) –Funds water treatment repair and construction ($6 billion) –Supports construction of new transmission –Increases access to federal lands –Increases DOE solar appropriation –Improves tax credit for solar water heating –Funds worker training –Increases profile of solar with top political leaders

Environmental Energy Technologies Division Energy Analysis Department State RPS Policies: 28 States and D.C.; Additional States Have Non-Binding Goals Existing mandatory state RPS policies will apply to 53% of US electrical load, once fully implemented

US Market Strong in 2009 California continues to be the dominant market but… More states adding incentives –Virginia adding incentive –Pennsylvania adding incentive –District of Columbia adding incentive –New York adding more incentives –Maryland providing more funding for incentives –Missouri new solar carve-out for RPS –Vermont feed-in tariff Federal incentives stronger than ever

Highlight: California California Solar Initiative on tract to double installations this year Source: SEIA based on CSI data from 7/8/09

Highlight: California continued California growing into a multibillion dollar market $842 million in revenue in the first half of ‘09 Source: SEIA based on CSI data from 7/8/09

Highlight: California continued Order pipeline strong $656 million and 110 MW in applications from first half of ’09 alone Q2 ‘09 strongest quarter yet for incentive applications Source: SEIA based on CSI data from 7/8/09

Renewable Portfolio Standards ☼ OH: 25% by 2025 † ME: 30% by 2000 New RE: 10% by 2017 ☼ NH: 23.8% by 2025 ☼ MA: 15% by % annual increase (Class I Renewables) RI: 16% by 2020 CT: 23% by 2020 ☼ NY: 24% by 2013 ☼ NJ: 22.5% by 2021 ☼ PA: 18% by 2020 † ☼ MD: 20% by 2022 ☼ DE: 20% by 2019* ☼ DC: 20% by 2020 VA: 15% by 2025* ☼ NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) VT: (1) RE meets any increase in retail sales by 2012; (2) 20% RE & CHP by 2017 State renewable portfolio standard State renewable portfolio goal Solar water heating eligible * † Extra credit for solar or customer-sited renewables Includes separate tier of non-renewable alternative resources ☼ Minimum solar or customer-sited requirement

RPS Policies with Solar / DG Provisions State renewable portfolio standard State renewable portfolio goal Solar water heating eligible OH: 0. 5% solar by 2025 NC: 0. 2% solar by 2018 MD: 2% solar-electric in 2022 DC: 0.4% solar by 2020; 1.1 multiplier for solar NY: % customer-sited by 2013 DE: 2.005% solar PV by 2019; triple credit for PV NH: 0.3% solar-electric by 2014 NJ: 2.12% solar-electric by 2021 PA: 0.5% solar PV by 2020 MA: TBD

State Solar Set-Aside Programs StateCumulative Installed Capacity (MW) Goals (MW)Terminal Date New Jersey57.81, New York Connecticut Massachusetts Pennsylvania* Ohio Maryland-1, Total5,077-7,077 *Expands with passage of SB 92 and HB 80

Environmental Energy Technologies Division Energy Analysis Department Future Impacts of Solar/DG Set-Asides Are Projected To Be Substantial 500 MW required by 2010, growing to 7,700 MW by 2025 Approximately 100 MW/yr through 2010, 300 MW/yr through 2014, 600 MW/yr through 2021 Graphic assumes that full compliance is achieved

New Green Energy Bill Comprehensive Energy Legislation –House and Senate refining legislation –Initial Drafts Contain Renewable Electricity Standard (20% by 2025) Carbon cap and trade program (83% decrease by 2050) Transmission legislation 30-year PPA authority Clean energy bank

Clean Energy Bank in H.R Amendment passed on inclusion of a Clean Energy Deployment Administration under the DOE –Provide a suite of financing options, including direct loans, letters of credit, loan guarantees, insurance products and others –The bank would fund "breakthrough" technologies and is aimed at helping promising technologies from moving from the lab into commercial demonstrations and markets –Can reduce interest rates from 7-9% to 1.75% through FFB Thursday, July 16, 2015 © 2009 SEIA 24

Grid-Parity: 30% ITC + Bonus Depreciation 100% debt financed* –8% APR –20 years 30% ITC Bonus Depreciation Commercial systems only *4% Discount rate, bonus depreciation assumed to be worth an additional 20% of capital costs Los Angeles New York Miami Philadelphia ChicagoBoston Las Vegas Honolulu

Grid-Parity in US Cities: 30% ITC + Bonus + Green Bank 100% debt financed - 8% 4% APR - 20 years 30% ITC Bonus Depreciation Commercial systems only Does not include state incentives! *4% Discount rate, bonus depreciation assumed to be worth an additional 20% of capital costs Los Angeles New York Miami Philadelphia ChicagoBoston Las Vegas Honolulu X

How To Get Involved in the US Market 1.Join SEIA – –Expand your business Fast-track government approval Access to federal funds –Network of 900 companies Top global manufacturers, financiers, installers –Shape markets and policy in America 20 Active issue groups –Discounts to conferences Solar Power International PV America –Karen Nedbal, Director of Membership

How to Get Involved in the US Market 2.Attend and participate in SEIA’s PV America –Largest PV only conference in the US –Partnership with IEEE PVSC –Philadelphia, PA June 8-10 –Fastest growing market in the US –Learn from the best! More than 50 breakout sessions on Business Development, Financing Issues, Market Development, Policy Updates and Workforce Issues –Collaboration with SNEIA –

America’s largest B2B solar event featuring 650+ Exhibitors covering 200,000 net square feet of exhibit space! presented by: Balance of Systems Material and Equipment Suppliers Distributors, Integrators, Installers and Solar Service Providers Publications and more PV Cells and Modules Solar Water Heating Concentrating Solar Power (CSP) Solar Thermal Electric Concentrating PV (CPV) Learn more at SolarPowerInternational.com

CEO Panels and Keynote Presentations 65+ Education Sessions and 200+ Speakers presenting in six educational tracks: Pre and Post Show Workshops Technology Policy Markets Finance Cross-Cutting Execution and Implementation Learn more at SolarPowerInternational.com Premier Educational Opportunities:

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