©2015 SolarEdge

Optimizing Commercial Rooftop Systems

James Higgins

General Manager, SolarEdge China

| 2©2015 SolarEdge

Commercial Rooftop Breakdown

10%

9%

19%

27%

9%

3%

23% EBoS

Inverter

Labor

Module

Structure

SBoS

Soft Costs

25-30% of total system cost originates from inverter selection

US Commercial Rooftop PV Breakdown, 2013

| 3©2015 SolarEdge

The Inverter Choice is Crucial

Inverters account for only 10% of system costs but they influence:

30%of Project

Costs

20%of Operating & Maintenance

Costs

100%of Energy

Production

| 4©2015 SolarEdge

Selecting the Right Inverter

Proven reliability

Bankable manufacturer, with deep-rooted market presence

Cost-effective, lifetime warranty coverage

Compliant with industry safety regulations both today and tomorrow

| 5©2015 SolarEdge

O&M/Asset Management

PV projects are secure long-term investment opportunities

Like any financial asset, PV systems must be monitored and actively managed to assure full potential

Intelligent monitoring and remote control can greatly reduce O&M costs and increase system up-time

Market solutions include inverter, string and panel-level monitoring

20% O&M

| 6©2015 SolarEdge

O&M/Asset Management

Key Criteria

Real-time monitoring

Performance monitoring

Pinpointed failure analysis

Remote diagnostics and service

Automatic alerts on system issues

20% O&M

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Balance of System (BoS) Costs

BoS components represent a significant part of overall system cost and includes:

DC switches/fuses, DC combiner boxes, cabling

Labor, which influences installation costs

Key Criteria

Number/length of DC strings

30% BoS

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Impact of Inverter Topology on BoS Cost

In megawatt scale systems, the difference can amount to hundreds of thousands of dollars

1 MW System Example DC Optimized String Inverter Central Inverter

DC Cable Length (m) 264 5,364 8,604

AC Cable Length (m) 8,464 8,464 -

Cost ($) 15,477 19,488 24,791

Cost (%) 62% 79% 100%

Central

String 1

String 2

| 9©2015 SolarEdge

Harvesting Maximum Power

System output is influenced by:

Inverter DC to AC conversion efficiency

Tracking of the optimal Maximum Power Point (MPP)

Each panel in a PV system has a different MPP

Various topologies can handle MPP tracking – inverter level, string level and panel level

Key Criteria

MPP tracking that mitigates power losses

100% energy

| 10©2015 SolarEdge

SolarEdge – DC Optimized Inverter Solution

| 11©2015 SolarEdge

Meet SolarEdge

A leader in the PV inverter market

Invented the DC optimized inverter solution

2.1GW of our systems shipped worldwide

Over 8M power optimizers and over 340,000 inverters shipped

150,000 monitored systems in 88 countries

60 awarded patents and 104 additional patent applications

Over 470 employees and presence in 11 countries

A publicly traded company on NASDAQ (SEDG)

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DC Optimized Inverter Solution

InverterCloud-based

Monitoring Portal

Power Optimizer

Power optimizer2:1 configuration

Maximizing System Output while Minimizing Additional Cost

Each panel is connected to a power optimizer

Power optimizers are electronic converters that maximize energy from each panel individually

A simplified inverter converts DC to AC

Monitoring platform visualizes performance of each panel

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SYSTEM LIFETIME O&M COST

BoSCOST

INVERTERCOST

PV Lifetime Value

LIFETIME VALUE

LIFETIMEREVENUE

$

Example is for illustrative purposes only

Function of lifetime revenue, CAPEX & lifetime

costs

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Eliminating Power Mismatch Losses

By performing panel level MPPT, energy losses due to panel mismatch are eliminated

The more mismatch there is in a string, the more energy you save

Modeling Microinverters and DC Power Optimizers in PVWatts; 2/2015

Traditional system

SolarEdge system

NREL PVWatts modeling report showing 2% more energy calculated due to panel mismatch

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Singapore 500 kW System

System size 500 kWp

Annual yield 1,224 kWh/kWp

Electricity rate 15.6 c/kWh

SolarEdge added yield 2%

20 years saving US$38,189

Saving per watt peak 0.08 US$/w

1MWac Rosendin & Mainstreet Energy; Arizona

0.08 US$/w

Singapore American School, 1 MW

System Saving

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Singapore System 500 kW - BoS

Fewer Strings = Less Wiring

Traditional string inverter: 10.4 m/kW DC

SolarEdge System: 2.3 m/kW DC

0.01 US$/w

DC cables 10 m/kWDC

Cable cost US$1.49/m

Traditional inverter cable cost US$7,450

SolarEdge cable saving 50%

SolarEdge cost saving: US$3,725

SolarEdge cost saving per W: $0.01

BoSSystem Saving

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500kW System Lifetime O&M Costs

Low cost of ownership 25-year warranty for power optimizers

12-year inverter warranty with low cost extension to 25 years

Out of warranty inverter replacement costs less than traditional inverters

Example of extended warranty for 27.6 kW inverters (500 kW):

SolarEdge Leading String inverter

Standard Warranty Length 12 years 10 years

Warranty Extension to 20 years US$777 US$1,567

# of 27.6 inverters 15 15

20 year replacement cost US$11,655 US$23,505

20 year replacement cost per watt US$0.023 US$0.047

0.024 US$/w System Saving

Savings even higher if compared with 5 years

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SolarEdge Monitoring Platform

Monitor the technical and financial performance of PV sites

Full visibility of system performance & remote troubleshooting Monitoring at the panel level Fault detection pinpointed on a virtual site map Automatic alerts on system issues Easy access via web browser from computer or mobile device

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Example 500 kW – O&M

Monthly cost US$0.04/kWp

20 years cost US$4,800

20 years cost per watt US$0.01

SolarEdge Monitoring is free for system lifetime

0.01 US$/w

Typical Monitoring software:

SolarEdge Leading String Inverter

Truck roll for fault diagnosis - Once a year

Truck roll for replacement Once a year Once a year

20 year truck rolls 20 40

Truck roll cost US$110 US$110

20 year truck roll cost US$2,200 US$4,400

20 year truck roll cost per watt

US$0.004 US$0.008

0.004 US$/w

Truck RollsSystem Saving

System Saving

SolarEdge Free for Lifetime of System

Remote Fault detection & diagnosis

| 20©2015 SolarEdge

SYSTEM LIFETIME O&M COST

BoSCOST

INVERTERCOST

PV Lifetime Value Summary

LIFETIME VALUE

LIFETIMEREVENUE

$

3.8 c/w -6 c/w

HIGHER LIFETIME VALUE

6.8 c/w8 c/w

1 c/w

Traditional system

SolarEdge system

Function of lifetime revenue, CAPEX & lifetime

costs

| 21©2015 SolarEdge

The Key Component in a PV System

Choosing the inverter is a critical decision

Getting it right will help ensure you maximize the long-term financial performance of your PV system

Maximizes Energy Production

Reduces Lifetime Costs

Controls O&M Expenses

| 22©2015 SolarEdge

Disclaimer

Cautionary Note Regarding Comparisons

This presentation contains the results of case studies for actual SolarEdge commercial solar PV systems using PVsyst simulated results for our system, as well as system architectures employing traditional string invertors. In creating these case studies, we have made a number of assumptions and estimates based on our knowledge of industry practice with respect to the relative design, hardware, permit, installation, operation and maintenance cost of each system. These assumptions and estimates involve uncertainties and are subject to change over time, however, we believe that these assumptions and estimates are reasonable and represent our best knowledge of these systems. In addition, each commercial solar PV system will have its own unique physical and system characteristics which may result in a different comparison.

| 23©2015 SolarEdge

Disclaimer

Cautionary Note Regarding Market Data

This presentation contains market data from certain third-party sources. This information is based on industry surveys and the preparer’s expertise in the industry and there can be no assurance that any such market data is accurate or that any such industry forecasts will be achieved. Although we have not independently verified the accuracy of such market data and industry forecasts, we believe that the market data is reliable and that the industry

forecasts are reasonable.

| 24©2015 SolarEdge

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