1. Sustainable Energy Innovation A New Era in Solar Dominic Drenen – Manager Solar Energy Systems

2. 2 Renewable Energy As an organisation Origin Energy has a strong commitment to ‘Clean Energy Solutions’ We operate businesses providing/supplying the following: –Environmental Refrigerants –Cogeneration –Wind power –Natural Gas for Vehicles –Geoexchange –Energy efficiency consulting

3. 3 ‘Sustainable Energy Innovation’ Proudly sponsored by Origin Energy

4. 4 Origin Energy and Solar From a distributed power perspective, solar is the leading option. Research and Development –ANU – solar module development with objectives of increased efficiency and reduced cost. Total investment in approx. $4 million to date, pilot plant early 2003. –AES – grid connect inverter objective of reduced cost. Total investment approx. $2.5 million, prototypes being developed bench testing/field testing 3 rd quarter 2002. In advance of having access to our own technology we have entered the retail market as a provider of grid connected solar systems.

5. 5 Consumer preference is clearly biased towards clean and green Oppose Support Source: SMUD – Sacramento Municipal Utility District, March 1997 Solar Hydro Wind Natural Gas Geo Therm Landfill Gas Forest Waste Nuclear Coal Strongly Support %

6. 6 Origin Energy’s Solar Offer Offer a comprehensive range of sizes (450 watt plus). Facilitate the completion of all documentation for the customer. Competitive buy back rate for electricity exported back to the grid (28c/kWh). Free consultation and energy advice. Competitive pricing through Origin Energy's buying power. Access to approved Australian Greenhouse Office installers. Extended warranty (panels have a 20 year warranty and an expected useful life of 30 years+). More than 140 years of experience in the energy business.

7. 7 What are the costs? Return on investment for a 1500 watt system: Capital cost: $14,000 Return: 2,200kWh * 14c/kWh = $308 ROI: $308/$14,000 = 2% (tax free!) Installed prices for solar systems in Australia are currently running at ~$16/watt. The AGO PVRP provides a rebate of $5/watt, giving the customer an effective price of ~$11/watt.

8. 8 Solar Installation

9. 9 The price of silicon has only slightly decreased in the last decade All prices in US$2002 Source: Silicon study by Walarian Kipiniak This is expected because PV uses waste from semiconductor production (PV uses ~10% of total) and therefore cumulative volume much larger and annual cost reduction smaller

10. 10 Approved Applications by State Up to Jan 2000 Oct 2001

11. 11 Current Market size Up to January 2002 the total number of installed grid connected solar units across Australia was 900. The average installation size is 1kW and therefore the annual national grid connect solar contribution is estimated at 1.5 GWh.

12. 12 Market Segments Two distinct market segments: –Retrofit (installing a solar energy system on an existing house), customers reached through: –Yellow Pages, mail outs, advertorials, web page, trade shows, bill inserts, Origin Energy shops. –Range of businesses servicing this market – including Origin Energy. –New Homes, (installing a specific solar package incorporated into the house design), customers reached trough: –Major developers, architects, eco developers, councils. –No supplier servicing this market.

13. 13 Developer Package Origin Energy has developed a 450 watt grid connect solar system specifically for new home builders. After rebate installed price of just over $3,000 or ~$6.70/watt. Can get to this price through a combination of: –Scale – multiple sales to one customer. –System installation during construction. –Significantly easier approval process reduces cost.

14. 14 Developer Package The following developers are now beginning to offer an Origin Energy solar system option to their customers: –Australand Homes –Henley Homes –Metricon Homes Origin Energy is confident that the uptake by developers of this streamlined solar energy package will result in a quantum increase in solar installations, heralding a new era in Solar.