MWCOG – The Solar Advantage

Todd Foley

Director, Business Development

BP Solar

BP Commitment to Solar

• Large Solar Manufacturer & Marketer ($300 Million in Revenues; product in 160 countries)

• 18%Market Share• Largest User of Solar Power-6

Mega Watts Deployed on 380 Service Stations & Other Structures

• Solar is Core of Alternatives Strategy with Wind, Fuel Cells & Hydrogen - $500 million invested ’01-’03

• Local: HQ in Frederick

Solar Power = High-Value Electricity

• Peak Power Shaver (not base load) • Distributed Power Source - Power at

Point of Demand• Enhances Energy Security &

Reliability – no maintenance or fueling• Infinitely Scaleable• Aesthetically Pleasing • Zero Emissions – offsets emissions

from conventional sources• Jobs!

– 36 for every MW installed– CA today:

• 4000+ jobs• 450+ companies

DemandPV Output

00:00 12:00 24:00

PV Market Growth/Drivers •34% Market Growth in 2003•574 Mega Watts in 2003•Rising Electricity Costs & Growing Demand: 45% in next 20 years •Fuel Diversity – Price Hedge •T&D Constraints•Cost Reduction: 5% p.a.•Overcoming Regulatory Hurdles

– Incentives– Simple & Uniform Net

Metering/Interconnection Standards

•Environmental Impact of Energy Use•Consumer/Voter Popularity: 91% polled by USA Today Prefer Solar Power to Other Sources

Global Market

US Market by Segment – 66 MW; CA 80%

Solar Applications

• Homes• Buildings+EE:

– Commercial

– Public/Schools, etc.

• Remote/Off-Grid Needs:– Signage

– Parks

Issues for Continued Growth

• Commitment/Leadership

• Level Playing Field:

– Simple & Uniform Net Metering & Interconnection Standards

– $$$ Value for “External” Benefits

– Codes/Covenants

• Funding/Incentives:

– RPS

– Public Benefits Charges/Rebates

– Tax Credits

• Awareness: utilities, consumers

Local/State Leaders

• California– LADWP

– SFPUC

– SMUD

– San Diego

• Chicago

• New Jersey

• New York

• Arizona

• Nevada

New York

Chicago Washington, DC