Wenger_SBSEE10

8/9/2019 Wenger_SBSEE10

1/31

2010 SunPower Corporation

2010 SunPowerCorporation

Utility Scale Solar Technology at a Distribution Level

May 12, 2010

Howard Wenger

President, Utility and Power Plants


2/31


2

Safe Harbor StatementThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of1995. Forwardl ooking statements are statements that do not represent historical facts and may be based on underlyingassumptions. Forward-looking statements in this presentation are made regarding: (a) the FAB 3 Malaysian manufacturing

facility; (b) demand and supply trends; (c) internal cost reduction forecasts; (d) forecasted utility and power plant pipeline andassociated recognized megawatt business; (e) the developer model and forecasted quarterly revenue recognized anddeferred; (f) gross profit by value chain step in contrast to vertical integration; (g) forecasted growth in dealer partners andthe residential and light commercial business unit revenue; (h) retail price by value chain step and associated SunPowervalue premium; (i) forecasted Oasis modular power plant savings; (j) the companys ability to finance and monetize in 2010more than 60 MW of Italian power plants, to monetize the Montalto prower plant, and to recognize revenue from 100MW+ ofpower plants; (k) quarterly revenue mid-point for the utility and power plant and residential and commercial business units for2010 ; (l) revenue, gross margin, and GAAP and non-GAAP earnings per share for the second, third and fourth fiscalquarters of 2010 and for the full fiscal year 2010; and (m) 2010 capital expenditures and solar cell production. Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of

risks and uncertainties, some beyond the companys control, that could cause actual results to differ materially from thoseanticipated by these forward-looking statements, including risks and uncertainties such as: (i) potential difficulties associatedwith integrating SunRays business and operations; (ii) the companys ability to obtain and maintain an adequate supply ofraw materials, components, and solar panels, as well as the price it pays for such items; (iii) general business and economicconditions, including seasonality of the industry; (iv) growth trends in the solar power industry; (v) the continuation ofgovernmental and related economic incentives promoting the use of solar power, particularly such incentives affecting theacquired SunRay pipeline and the markets in which the company sells solar panels and constructs commercial systems andpower plants; (vi) the companys ability to sell or otherwise monetize power plants; (vii) the improved availability of financingarrangements for the companys customers; (viii) construction difficulties or potential delays, including permitting andtransmission access and upgrades; (ix) Southern California Edison exercising early termination rights to purchase less than200 MWdc during the term of the supply agreement; (x) the companys ability to ramp new production lines and realizeexpected manufacturing efficiencies; (xi) manufacturing difficulties that could arise; (xii) the success of the companysongoing research and development efforts; (xiii) evolving regional permitting, financing, grid interconnection, technical, andother customer or regulatory requirements, and the companys ability to satisfy such requirements with SunPower Oasis andits other products and services; and (xiv) other risks described in SunPower's Annual Report on Form 10-K for the yearended January 3, 2010, and other filings with the Securities and Exchange Commission. These forward-looking statementsshould not be relied upon as representing the company's views as of any subsequent date, and the company is under noobligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a resultof new information, future events or otherwise.


3/31


Outline

!About SunPower!Technology Overview!Applications!Economics

3


4/31


Approximate Financed Solar Power Plant Capacity

4

Silicon PV Thin Film PV CPV Dish SterlingTrough CLFR CSPHeliostat / Tower

5 GW

1 GW

0.5 GW


5/31


SunPower

>1 GW solar PV deployed

Diversified portfolio: roofs to power plants

2009 revenue of $1.5B

5

Commercial Power PlantsResidential

5,000+ Employees; 100% solar

550 MW 2010 production

~1000 dealers and growing rapidly

4+ GW power plant pipeline Publicly listed NASDAQ: SPWRA, SPWRB


6/31


6

SunPower Global Mission

! Mainstream solar power: Compete with retail and wholesale electricrates by reducing system cost by 50% by 2014

! Innovate: Set new standards for systems performance, value,appearance and customer experience

South KoreaNew

Jersey

California

Hawaii

Germany

SwitzerlandSpain

Regional HQ

Canada Italy

Philippines

Singapore

Regional Office Australia

England

FranceAri

zona

CO


7/31


SunPower - A Differentiated Technology

!Highest Efficiency Cells and Modules!Best Energy Performance (kWh/kWp)!Solid Reliability & Quality

7

The Planets

Most Powerful Solar


8/31


8

A Revolutionary Cell Technology

SunPowers all-back contact silicon solar cells vs. Conventional C-Si cells.

Patented with industry leading efficiencies of up to 23%

SunPower Cell

22%+ Efficient

Conventional Mono Cell

16% Efficient

Conventional Multi Cell

15% Efficient

Front Side No Grid lines


9/31


!"

#"

$%"

$&"

$'"

$!"

$#"

&%"

&&"

!"#$%'(##)*+,(-+./01

9

Up to Twice the Power

()*+,*-)*./" !2-3"4(%&56788& !2-3"4(%&9(-&:&

0"1+,2.3,"42)567-)*",879,*7:"

;


10/31


Solar PV Uniquely Flexible to Serve All Segments

10

Rooftops DistributedPower Plant

Central StationPower Plant


11/31

SunPower T5 Solar Roof Tile

Highest efficiency panels tilted at 5

Easy to install, all-in-one design

Panel and mounting combinedinto one

$"

&"

C"

No roof penetration'"

No grounding required, due to polymermaterial

D"

11

Pre-engineered all-in-one solution

Durable, lightweight, aerodynamicD"



12/31


Efficient Logistics & Transportation High shipping density Eco-friendly: No cardboard/packaging

T5 Self Stacking Design

High Density Shipping! 305 Wp per tile! 100-kWp per truck

12

22 Units per Pallet


13/31

More power per rooftop thanhigh tilt systems

;"%(&3"4(%&"


14/31


Rooftop PV behaves like energy efficiency

14

Source: Pacific Gas & Electic Co, 1992,Photovoltaics as a Demand-Side

Management Option, World EnergyEngineering Congress, Atlanta

12 kW rooftop PV system


15/31


Solar as a Standard FeatureSunPower SunTile for new homes Its a roof and a power plant

15


16/31

16

TOTAL BILLED AMOUNT: $4.14

2010 SunPower CorporationNet-Metered 3-kW PV System

Rooftop PV treated like

energy efficiency, with net

metering


17/31


Net producer for month, sending 98 kWhback to grid

Prior Meter Read: 880Current Meter Read: 782---------------------------------------

Difference: -98

17


18/31


Quickly Emerging: Power Plants for US Utilities

US Utility Examples

! SoCal Edison 200 MW distributed rooftop! Florida Power and Light 35 MW power plants! Exelon 8 MW urban infill!

Xcel 19 MW under construction! Pacific Gas & Electric 250 MW in permitting

18


19/31


Exelon City Solar: Chicago, IL

E2F.*"A*GH//"B)I,2"B/.*JKL"=9J"J)"M.*5")2"N295"

19 2010 SunPower Corp.


20/31


20

FPL: January 2009Start of Construction

2010 SunPower Corp.


21/31


21

FPL: June 200925 MW AC Installed

Courtesy FPL Group 2010 SunPower Corp.


22/31

2010 SunPower CorporationMuehlhausen,

Germany, 6 MW

Olivenza, Spain

18 MW

Serpa, Portugal

11 MWIsla Mayor, Spain

8 MWJumilla, Spain

23 MW

Over 250 MW of power plants installed in Europe

22

Montalto, Italy

24 MW


23/31


23

20 MW Montalto Italy



24/31


SunPower Power Plant Product Focus

Four core goals:

1. Deliver the most financeable solar plants2.

Delivercompetitive LCOE

3. Create community acceptable solar plants4. Deliver a productized power plant solution

24


25/31


25


26/31


26


27/31


Cost Trajectory: Silicon PV Returns to Learning Curve

27

Last 4 data points: the Prometheus Institute

Panel Average Sales Price (ASP) 2008$

- 30-year Trends: Wafers 500 " 145 microns; Efficiency 12%" 22+%; Factories 10MW" 1,000MW


28/31


28

SunPower New Factory: 1 Giga-Watt/year Capacity


29/31


Solar PV Power Plants Cost Competitive

%"""""""""D%"""""""""OD"""""""""$%%"""""""""$D%"""""""""&%%"""""""""&D%"""""""""C%%"""""""""CD%"""""""""'%%"

Levelized Cost ($/MWh)

Renewables

Conventional

$87 - 196

$129 - 206

$57 - 113

$216- 334

$69-96

Gas Peaking

Gas CombinedCycle

Wind

Solar Thermal

Solar PV

LCOE by Resource $/MWh: 2009 - 2012

Prices include federal incentivesSource: Lazard Capital Markets 3/18/2009

Solar is nowcompetitive with coaland gas peakers

29


30/31


Power of Solar

30

An area with a16 mile radiuscan provide all

of Californiaselectricityneeds.

About 0.5% ofthe states landarea

A 132 GW solarplant

An area with a58 mile radiuscan provide all

of the USselectricityneeds.

About 10% ofthe state of

Nevada

A 1,650 GWsolar plant


31/31


Solar Power is one solution. This is Day 1

Thank you

31

Documents

Wenger_SBSEE10