PV-OUTLOOK A.D. 2010 v1.

5
At the beginning of this year: Crisis is over, but prices go down Feed-in tariff subsidies are less, but demand is high Lack of finances for equipment suppliers The PV industry is already over subsidized The time to get to the grid parity is now!

PV-Outlook A.D. 2010 v1.5

Global crisis out, grid parity in!

The past year 2009 was really a hard one. Due to the global crisis it seemed a lot of real-estate load generated money disappeared from the market like it was a soap bubble that has burst. Manufacturing equipment suppliers experienced a lack of finances, which troubled many of them. Even the greatest Applied Materials reported their annual turnover almost halved. However these have been hard times for equipment suppliers, but the sales of the photovoltaic modules and systems didnt diminish. Au contraire, it seems that sales in Germany had a sudden development, according to some opinions because customers knew about subsidies are going to be decreased in 2010, and many of them hurried to take the last opportunity to get higher subsidies before the end of the year. We could hear some voices of worry of the eventual negative effect of the German government is decreasing the subsidies, while others say, no problem, we can sell the excess of stock in other countries. At this point, horribile dictu, Id like to support here a third kind of opinion, which says the PV industry is already over subsidized, and the time to get to the grid parity is now. We already have great technologies, wonderful products satisfying year by year more exigent standards, and fat profits that may allow generous investing in R&D. On May 19, 2009 Mr. Rick Schuett, Sols President and CEO presented his message Grid parity now! to the Alternative Energy and Building Efficiency Conference in Boston, MA. Mr. Schuetts message promoted the idea that solar powered outdoor lighting has achieved grid parity in many applications. Sols solar powered light systems are installed at a cost less than grid-tied lights, which are burdened by costly trenching, wiring, and permitting. Grid parity exists when renewable energy systems are deployed at or below the cost of conventionally powered ones. However most PV installations have 10 to 20 year payback periods and solar powered electricity generation is not forecast to achieve grid parity with fossil fuel systems until well after 2015, but Sols example clearly demonstrated grid parity is already achievable if we get out of old paradigms and we find a new viewpoint in PV applications. The way how to apply PV commodities determine how economically viable our PV systems will be. It is need for a purposeful thinking based on the intention to get Photovoltaic systems be really competitive. Page 2 of 189

PV-Outlook A.D. 2010 v1.5 We shall not compare PV as an alternative to the energy we buy via power generation and distribution systems that have been built in the early 1960s. The tariffs we used to compare the costs of PV generated energy must be the day time peak tariffs, which coincide with the peaks of the generated PV power. We have to rethink the way we measure and the way we use the PV commodities, and eventually we will discover grid parity is not anymore a dream, but it is a solid reality now.

Page 3 of 189

PV-Outlook A.D. 2010 v1.5

Table of contents
PV-OUTLOOK A.D. 2010 V1.5 GLOBAL CRISIS OUT, GRID PARITY IN! TABLE OF CONTENTS MARKET ANALYSIS AND FORECAST THE DEMAND SIDE OF THE MARKET DEMAND FOR CLEAN ENERGY FINANCIAL INCENTIVES FOR PHOTOVOLTAICS MECHANISMS NATIONAL INCENTIVES ELECTRICITY PRICES IN OECD COUNTRIES ELECTRICITY PRICES IN NON-OECD COUNTRIES THE SUPPLY OF PHOTOVOLTAIC MODULES PHOTOVOLTAIC MODULES MANUFACTURING PV Modules Manufacturing Capacity PV Modules Production PV Module Production per Main Regions of the World TOP PRODUCER COUNTRIES CHINA GERMANY UNITED STATES JAPAN MALAYSIA INDIA KOREA PHILIPPINES TOP 20 PV MODULE MANUFACTURERS IN 2009 SHARP SUNTECH POWER FIRST SOLAR SUNPOWER YINGLI SOLAR Q-CELLS GROUP SCHOTT SOLAR NANOSOLAR SOLARFUN SANYO ELECTRIC TRINA SOLAR ENERGY KYOCERA CANADIAN SOLAR (CSI) 1 2 4 7 7 7 10 10 12 13 15 17 17 17 18 19 20 21 25 30 30 31 31 32 32 33 35 36 37 39 39 40 41 41 41 42 42 42 43 Page 4 of 189

PV-Outlook A.D. 2010 v1.5 SOLAR WORLD NINGBO SOLAR ELECTRIC POWER / SUN EARTH MOSER BAER PHOTOVOLTAIC BOSCH SOLAR ENERGY (ERSOL SOLAR) CHINA SUNERGY CONERGY BAODING TIANWEI YINGLI CRYSTALLINE SILICON SOLAR MODULES 194 CRYSTALLINE MODULE MANUFACTURERS THIN FILM SOLAR MODULES 100 THIN FILM PV MODULE MANUFACTURERS THIN-FILM TECHNOLOGY ABOUT TO MAKE ITS BREAKTHROUGH THIN FILM EQUIPMENT PV MANUFACTURING EQUIPMENT SUPPLIERS Crystalline Silicon Technologies: Thin Film Technologies: APPLIED MATERIALS CENTROTHERM SCHMID OERLIKON SOLAR ULVAC GT SOLAR MEYER BURGER ROTH & RAU JINGYUOTONG VACUUM EQUIPMENT NPC MANZ SPIRE SOLAR LARGEST PHOTOVOLTAIC POWER STATIONS IN THE WORLD ANNEX - COUNTRY DATA CARDS ALGERIA ARGENTINA AUSTRALIA AUSTRIA BELGIUM (FLANDERS) BRAZIL BULGARIA CHINA CANADA, ONTARIO CZECH REPUBLIC DENMARK ESTONIA 43 43 43 44 44 44 44 46 48 51 52 54 60 62 63 63 65 66 67 67 68 69 70 71 72 72 72 73 74 75 75 77 79 83 90 92 94 96 98 103 105 109

Page 5 of 189

PV-Outlook A.D. 2010 v1.5 FINLAND FRANCE GERMANY GREECE HUNGARY INDIA IRELAND ISRAEL ITALY JAPAN KENYA KOREA, SOUTH LATVIA LITHUANIA LUXEMBOURG MACEDONIA NETHERLANDS PHILIPPINES PORTUGAL SLOVENIA SOUTH AFRICA SPAIN SWITZERLAND TAIWAN THAILAND UGANDA 111 113 116 129 132 134 136 138 140 146 148 150 156 158 160 162 164 166 168 170 173 175 178 183 185 187

Page 6 of 189

PV-Outlook A.D. 2010 v1.5

Market analysis and forecast

The Demand Side of the Market
There is unprecedented interest in renewable energy, particularly solar and wind energy, which provide electricity without giving rise to any carbon dioxide emission. Harnessing these for electricity depends on the cost and efficiency of the technology, which is constantly improving, thus reducing costs per peak kilowatt. Utilizing electricity from solar and wind in a grid requires some back-up generating capacity due to their intermittent nature. Policy settings to support renewables are also generally required, and some 50 countries have these. Utilizing solar and wind-generated electricity in a stand-alone system requires corresponding battery or other storage capacity. Technology to utilize the forces of nature for doing work to supply human needs is as old as the first sailing ship. But attention swung away from renewable sources as the industrial revolution progressed on the basis of the concentrated energy locked up in fossil fuels. This was compounded by the increasing use of reticulated electricity based on fossil fuels and the importance of portable high-density energy sources for transport - the era of oil. As electricity demand escalated, with supply depending largely on fossil fuels plus some hydro power and then nuclear energy, concerns arose about carbon dioxide emissions contributing to possible global warming. Attention again turned to the huge sources of energy surging around us in nature sun, wind, and seas in particular. There was never any doubt about the magnitude of these; the challenge was always in harnessing them. Today we are well advanced in meeting that challenge. Wind turbines have developed greatly in recent decades, solar photovoltaic technology is much more efficient, and there are improved prospects of harnessing tides and waves. Solar thermal technologies in particular (with some heat storage) have great potential in sunny climates. With government encouragement to utilize wind and solar technologies, their costs have come down and are now in the same league as the increased costs of fossil fuel technologies due to likely carbon emission charges on electricity generation from them.

Demand for clean energy

There is a fundamental attractiveness about harnessing such forces in an age which is very conscious of the environmental effects of burning fossil fuels and sustainability is an ethical norm. So today the focus is on both the adequacy of energy supply long-term, and also the environmental implications of particular sources. In that regard the near certainty of costs being imposed on carbon dioxide emissions in developed countries at least has profoundly changed the economic outlook of clean energy sources.

Page 7 of 189

PV-Outlook A.D. 2010 v1.5 A market-determined carbon price will create incentives for energy sources that are cleaner than current fossil fuel sources without distinguishing among different technologies. This puts the onus on the generating utility to employ technologies which efficiently supply power to the consumer at a competitive price. Sun, wind, waves, rivers, tides and the heat from radioactive decay in the earth's mantle as well as biomass are all abundant and ongoing, hence the term "renewables". Only one, the power of falling water in rivers, has been significantly tapped for electricity for many years, though utilization of wind is increasing rapidly and it is now acknowledged as a mainstream energy source. Solar energy's main human application has been in agriculture and forestry, via photosynthesis, and increasingly it is harnessed for heat. Electricity remains a niche application for solar. Biomass (e.g. sugar cane residue) is burned where it can be utilized. The others are little used as yet. Turning to the use of abundant renewable energy sources other than large-scale hydro for electricity, there are challenges in actually harnessing them. Apart from solar photovoltaic (PV) systems which produce electricity directly, the question is how to make them turn dynamos to generate the electricity. If it is heat which is harnessed, this is via a steam generating system.

If the fundamental opportunity of these renewables is their abundance and relatively widespread occurrence, the fundamental challenge, especially for electricity supply, is applying them to meet demand given their variable and diffuse nature*. This means either that there must be reliable duplicate sources of electricity beyond the normal system reserve, or some means of electricity storage. Policies which favor renewables over other sources may also be required. Such policies,

Page 8 of 189

PV-Outlook A.D. 2010 v1.5 now in place in about 50 countries, include priority dispatch for electricity from renewable sources and special feed-in tariffs, quota obligations and energy tax exemptions.

This load curve diagram shows that much of the electricity demand is in fact for continuous 24/7 supply (base-load), while some is for a lesser amount of predictable supply for about three quarters of the day, and less still for variable peak demand up to half of the time. Some of the overnight demand is for domestic hot water systems on cheap tariff. With overnight charging of electric vehicles it is easy to see how the base-load proportion would grow, increasing the scope for nuclear and other plants which produce it. [Source: Vencorp] Most electricity demand is for continuous, reliable supply that has traditionally been provided by base-load electricity generation. Some is for shorter-term (e.g. peak-load) requirements on a broadly predictable basis. Hence if renewable sources are linked to a grid, the question of back-up capacity arises, for a stand-alone system energy storage is the main issue. Apart from pumped-storage hydro systems (see below), no such means exist at present, at least on any large scale. However, a distinct advantage of solar and to some extent other renewable systems is that they are distributed and may be near the points of demand, thereby reducing power transmission losses if traditional generating plants are distant. Of course, this same feature sometimes counts against wind in that the best sites for harnessing it are sometimes remote from population, and the main

Page 9 of 189

PV-Outlook A.D. 2010 v1.5 back-up for lack of wind in one place is wind blowing hard in another, hence requiring a wide network with flexible operation.

Financial incentives for photovoltaics

Financial incentives for photovoltaics are incentives offered to electricity consumers to install and operate solar-electric generating systems, also known as photovoltaics (PV). A government may offer incentives in order to encourage the PV industry to achieve the economies of scale needed to compete where the cost of PV-generated electricity is above the cost from the existing grid. Such policies are implemented to promote national or territorial energy independence, high tech job creation and reduction of carbon dioxide emissions which may cause global warming. When, in a given country or territory, the cost of solar electricity falls to meet the rising cost of grid electricity, then 'grid parity' is reached, and in principle incentives are no longer needed. In some places, the price of electricity varies as a function of time and day (due to demand variations). In places where high demand (and high electricity prices) coincides with high sunshine (usually hot places with air conditioning) then grid parity is reached before the cost solar electricity meets the average price of grid electricity.

Mechanisms
Four incentive mechanisms are used (often in combination):

Investment subsidies: the authorities refund part of the cost of installation of the system. Feed-in Tariffs/net metering: the electricity utility buys PV electricity from the producer under a multiyear contract at a guaranteed rate. Renewable Energy Certificates ("RECs")

With investment subsidies, the financial burden falls upon the taxpayer, while with feed-in tariffs the extra cost is distributed across the utilities' customer bases. While the investment subsidy may be simpler to administer, the main argument in favor of feed-in tariffs is the encouragement of quality. Investment subsidies are paid out as a function of the nameplate capacity of the installed system and are independent of its actual power yield over time, so reward overstatement of power, and tolerate poor durability and maintenance. With feed-in tariffs, the initial financial burden falls upon the consumer. Feed-in tariffs reward the number of kilowatt-hours produced over a long period of time, but because the rate is set by the authorities may result in perceived overpayment of the owner of the PV installation. The price paid per kWh under a feed-in tariff exceeds the price of grid electricity. "Net metering" refers to the case where the price paid by the utility is the same as the price charged, often achieved by having the electricity meter spin backwards as electricity produced by the PV installation in excess of the amount being used by the owner of the installation is fed back into the grid. Where price setting by supply and demand is preferred, RECs can be used. In this mechanism, a renewable energy production or consumption target is set, and the consumer or producer is obliged to purchase renewable energy from whoever provides it the most competitively. The producer is paid via an REC. In principle this system delivers the cheapest renewable energy, since the lowest

Page 10 of 189

PV-Outlook A.D. 2010 v1.5 bidder will win. However uncertainties about the future value of energy produced are a brake on investment in capacity, and the higher risk increases the cost of capital borrowed. Smart meters allow the retail price to vary as a function of time ("time of use pricing"). When demand is high the retail price is high and vice versa. With time-of-use pricing , when peak demand coincides with hot sunny days, the cost of solar electricity is closer to the price of grid electricity, and grid parity will be reached earlier than if one single price were used for grid electricity. The Japanese government through its Ministry of International Trade and Industry ran a successful program of subsidies from 1994 to 2003. By the end of 2004, Japan led the world in installed PV capacity with over 1.1 GW. In 2004, the German government introduced the first large-scale feed-in tariff system, under a law known as the 'EEG' (see below) which resulted in explosive growth of PV installations in Germany. At the outset the Feed-in Tariff (FIT) was over 3x the retail price or 8x the industrial price. The principle behind the German system is a 20 year flat rate contract. The value of new contracts is programmed to decrease each year, in order to encourage the industry to pass on lower costs to the end users. In October 2008, Spain, Italy, Greece and France introduced feed-in tariffs. None have replicated the programmed decrease of FIT in new contracts though, making the German incentive less attractive compared to other countries. The French FIT offers a uniquely high premium for building integrated systems. France - Tarif dAchat Photovoltaque (2009) Installation Type Feed-in-tariff Continental France Overseas Departments Remark Roof & groundmounted 0.3 Euro / kWh 0.4 Euro / kWh 1. Duration: 20 years BIPV 0.55 Euro / kWh 0.55 Euro / kWh Focus on BIPV National Target: 160MW by 2010 / 450MW by 2015 Tax credit for income tax payer: 50% reimbursement on equipment cost In 2006 California approved the 'California Solar Initiative', offering a choice of investment subsidies or FIT for small and medium systems and a FIT for large systems. The small-system FIT of $0.39 per kWh (far less than EU countries) expires in just 5 years, and the residential investment incentive is overwhelmed by a newly required time-of-use tariff, with a net cost increase to new systems. All California incentives are scheduled to decrease in the future depending as a function of the amount of PV capacity installed. At the end of 2006, the Ontario Power Authority (Canada) began its Standard Offer Program (http://www.powerauthority.on.ca/sop/), the first in North America for small renewable projects (10MW or less). This guarantees a fixed price of $0.42 CDN per kWh for PV and $0.11 CDN per kWh for other sources (i.e., wind, biomass, hydro) over a period of twenty years. Unlike net metering, all the electricity produced is sold to the OPA at the SOP rate. The generator then purchases any needed electricity at the current prevailing rate (e.g., $0.055 per kWh). The difference should cover all the costs of installation and operation over the life of the contract.

Page 11 of 189

PV-Outlook A.D. 2010 v1.5 The price per Kilowatt hour (kWh) or kWp of the FIT or investment subsidies is only one of three factors that stimulate the installation of PV. The other two factors are insolation (the more sunshine, the less capital is needed for a given power output) and administrative ease of obtaining permits and contracts (Southern European countries are reputedly complex). For example Greece, at the end of 2008, had 3GWp of permit requests unprocessed and halted new applications.

National incentives
The most significant incentives programs are listed at the end of this study, along with country specific data. Please click on any of the below links to access the Country specific data card.

Algeria Belgium (Flanders) China Denmark France Hungary Israel Korea, South Luxembourg Philippines South Africa Taiwan

Argentina Brazil Canada, Ontario Estonia Germany India Italy Latvia Macedonia Portugal Spain Thailand

Australia Bulgaria Czech Republic Finland Greece Ireland Japan Lithuania Netherlands Slovenia Switzerland Uganda

Page 12 of 189

PV-Outlook A.D. 2010 v1.5

Electricity Prices in OECD Countries

Page 13 of 189

PV-Outlook A.D. 2010 v1.5

Page 14 of 189

PV-Outlook A.D. 2010 v1.5

Electricity Prices in non-OECD Countries

Page 15 of 189

PV-Outlook A.D. 2010 v1.5

Page 16 of 189

PV-Outlook A.D. 2010 v1.5

The Supply of Photovoltaic Modules

The present study focuses on the photovoltaic modules, however in order to be usable, a photovoltaic system has to contain also a balance of system (BoS), e.g. support structure, cabling, inverters, batteries, monitoring unit etc.

Photovoltaic Modules Manufacturing

The below figures are mainly based on own analysis and thorough study of press releases and other publications of PV industry participants. Although some sources cite capacities of up to 38MWp for 2010, here we can see a little moderation of the growth rate compared to the past years. The scarcity of the available cash, and the decrease of the incentives in Germany, one of the main markets, may show their effects for a little while. Also the abundance of the Chinas supply may make some investors to rethink their investment policies. While some corporations owning efficient technologies are going to expand their facilities at a higher order of magnitude. Gigawatt size production capacities will be not uncommon in the near future. PV Modules Manufacturing Capacity
Capacity TF share TF c-Si Total 2004 9.00% 149 1,502 1,650 2005 8.39% 279 3,050 3,329 2006 9.64% 526 4,937 5,463 2007 14.76% 1,355 7,827 9,182 2008 21.10% 3,125 11,681 14,805 2009 26.12% 5,494 15,537 21,031 2010 30.54% 8,307 18,896 27,202 2011 35.21% 11,749 21,617 33,365 2012 38.55% 15,936 25,407 41,342 2013 41.66% 20,325 28,462 48,786

Capacity
60,000 45.00% 40.00% 50,000 35.00% 40,000 MWp/year 30.00% 25.00% 30,000 20.00% 20,000 15.00% 10.00% 10,000 5.00% 0 2004 2005 2006 2007 TF 2008 2009 c-Si 2010 2011 2012 2013 0.00% Thin Film share

TF share

It is interesting to observe the market share of the thin film technologies keeps increasing, ant it is to achieve over 30% of the total PV manufacturing capacity installed in 2010. Page 17 of 189

PV-Outlook A.D. 2010 v1.5 I am doing my own market research since almost four years, and I am wondering about the very low figure others dared to forecast in the past years. The real figures revealed after some time always surpassed the most optimistic predictions. I can be enough self confident about my figures of three years ago came pretty close to the real life achievements. The results of the year 2009 are not yet audited as of today; hence some of large corporations will present their Annual Reports of 2009 not earlier, then March 2010. (By the time I am writing this report it is only middle of February 2010). On the following pages I will reveal lists with data of 294 companies that are said to produce and sell PV modules; therefore if there would be any discrepancy of data, my figures can be corrected if needing to do so. Just let me remark, I was amazed of an affirmative question found on a web site selling market reports at not so low prices. The affirmative question was: Did you know that there are 255 photovoltaic manufacturing companies?. My answer to give them also in a questioning form is: Did you know that some of the market reports represent the data of only 255 companies, solely because Excel spreadsheet can handle only 255 rows of data for a diagram?. The present report actually processed the data of 294 companies. PV Modules Production
Production TF share TF c-Si Total 2004
10.00%

2005
12.41%

2006
11.81%

2007
13.31%

2008
16.89%

2009
23.36%

2010
27.72%

2011
33.00%

2012
36.39%

2013
40.11%

125 1,125 1,250

213 1,505 1,718

325 2,428 2,753

728 4,740 5,468

1,550 7,626 9,176

3,536 11,601 15,138

5,527 14,412 19,939

8,848 17,960 26,807

11,986 20,949 32,935

15,874 23,704 39,578

Production
45,000 40,000 35,000 30,000 MWp/year 25,000 20,000 15,000 10,000 5,000 0 2004 2005 2006 2007 TF 2008 2009 c-Si 2010 2011 2012 2013 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Thin Film share

TF share

Very soon the market share of the thin film PV modules is going to reach and exceed 30% of the total produced photovoltaic modules. Page 18 of 189

PV-Outlook A.D. 2010 v1.5 PV Module Production per Main Regions of the World Asia and Pacific countries are leading the world production. China is rising vertiginously, having tripled its output in only three years, and keeping increasing its production at an incredible speed. The governmental support, the lack of unnecessary administrative barriers, and the vigor of the Chinese economy along with the industriousness of the Chinese people have shown great results. Japan, the former world leader from before 2005, presented ambitious plans. India, Korea (South) and Philippines are the next leaders in the APAC region. Philippines attracted major industry players as First Solar due to the countrys low specific costs, and availability of a good labor culture, workers having the experience of the Integrated Circuits mass manufacturing of the past decades. The most of EMEA regions production comes from Germany. Germany quadrupled its production during the past three years. America also quadrupled its production in the past three years, which is also a remarkable result.
Capacity APAC EMEA AMER WORLD 2005 1,928 1,092 309 3,329 2006 3,383 1,652 428 5,463 2007 5,590 2,786 806 9,182 2008 8,947 3,827 2,031 14,805 2009 12,932 4,973 3,127 21,031 2010 17,026 6,208 3,968 27,202 2011 20,268 7,963 5,134 33,365 2012 25,657 9,371 6,314 41,342 2013 30,150 10,792 7,844 48,786

PV Module Production per Main Regions of the World

45,000 40,000 35,000 Production [MWp/year] 30,000 25,000 20,000 15,000 10,000 5,000 0 2005 2006 2007 AMER 2008 EMEA 2009 APAC 2010 WORLD 2011 2012 2013

Page 19 of 189

PV-Outlook A.D. 2010 v1.5

Top Producer Countries

The table and the diagram below show the comparison between the top eight countries in the competition of the photovoltaic manufacturing abilities. However China is now on the top since 2005, the year when the former leader Japan lost its subvention system of the industry, but Japan also started to revive, at least according to the announced increases of production capacities for the next couple of years.
Country China Germany United States Japan Malaysia India Korea Philippines R.O.W. 2005 751 444 261 985 112 31 746 2006 1,885 832 357 1,040 154 113 75 1,009 2007 3,211 1,544 707 1,582 331 218 108 1,482 2008 5,129 2,266 1,821 1,931 392 481 368 414 2,004 2009 6,864 3,189 2,801 2,405 1,084 893 668 574 2,554 2010 8,604 4,122 3,396 3,588 1,340 1,213 728 1,000 3,213 2011 9,716 5,141 4,406 4,723 1,580 1,793 808 1,000 4,200 2012 11,190 6,019 5,386 6,998 2,070 2,093 1,178 1,200 5,210 2013 12,753 6,940 6,716 8,768 2,800 2,023 1,228 1,200 6,360

Top Eight Countries

14,000 PV Manufacturing Capacity [MWp/year] 12,000 10,000 8,000 6,000 4,000 2,000 0 2005 2006 China Japan Korea 2007 2008 2009 Germany Malaysia Philippines 2010 2011 2012 United States India R.O.W. 2013

The figures representing the forecast of the production of India may need soon some massive adjustments, if the Indian governments recently announced solar PV program will succeed in practice.

Page 20 of 189

PV-Outlook A.D. 2010 v1.5

China
The production of solar cells and the announcements of planned new production capacities in the Peoples Republic of China have sky-rocketed since 2001. Production rose from just 3 MW in 2001 to 1070 MW in 2007 and for 2008 the estimates vary between 2.3 and 2.9 GW. For 2009, capacity increases to 8.9 GW have been announced, whereas the figure stands at 12.3 GW for 2010. In parallel, China is aiming to build up its own polysilicon production capacity. The numbers given for 2007 production capacity vary quite significantly from 1,225 to 4,550 and 8,900. The same is true for the 2010 figures: 29,050 to 84,500. However, despite the discrepancies, it is clear that there is a strong drive for building up its own silicon feedstock supply industry. This development has to be seen in the light of the PRCs strategy to diversify its energy supply system and overcome the existing energy shortage. Why is this of particular interest? During the China Development Forum 2003, it was highlighted that Chinas primary energy demand will reach 2.3 billion toe in 2020 or 253% of the 2000 consumption if business-as-usual (BAU) occurs. Under such a scenario the electricity demand would be 4,200 TWh by 2020. This development presents a reason to press for additional Government policies supporting the introduction of energy efficiency measures and renewable energy sources. With the proposed measures, fossil energy demand would still grow, though considerably slower than in the case of BAU. The Standing Committee of the National Peoples Congress of China endorsed the Renewable Energy Law on 28 February 2005. At the same time as the law was passed, the Chinese Government set a target for renewable energy to contribute 10% of the countrys gross energy consumption by 2020, a huge increase from the current 1%. The Renewable Energy Law went into effect on 1 January 2006, but no specific rate was set for electricity from Photovoltaic installations. The 2006 Report on the Development of the Photovoltaic Industry in China, by the National Development and Reform Commission (NDRC), the Global Environment Facility (GEF) and World Bank (WB), estimates a market of 130 MW in 2010. The report states that the imbalance between solar cell production and domestic market development impedes not only the sustainable development of energy sources in China, but also the healthy development of the PV industry. In the National Outlines for Medium and Long-term Planning for Scientific and Technological Development (2006-2020), solar energy is listed as a priority theme. New and renewable energy technologies: to develop low cost, large-scale renewable energy development and utilization technologies, large-scale wind power generation equipment; to develop technology of Photovoltaic cells with high cost-effect ratio and its utilization; to develop solar power generation technology and study integration of solar powered buildings; to develop technologies of fuel cells, hydropower, biomass energy, hydrogen energy, geothermal energy, ocean energy, biogas, etc. Also the National Medium-and-Long Term Renewable Energy Development Plan has listed solar Photovoltaic power generation as an important developing point. Within the National Basic Research Program of China, the so-called 973 Program, there is an additional topic on Basic research of mass hydrogen production using solar energy. With the support from national Page 21 of 189

PV-Outlook A.D. 2010 v1.5 ministries and commissions, the top efficiency of China's current lab PV cell is 21%, commercialized PV components and normal commercialized cells respectively have an efficiency of 14 15% and 10 13%. China has reduced the production cost of solar PV cells and the price of solar cells has gradually declined from the 40 RMB/Wp (4.40 /Wp) in 2000. In July 2009, the National Energy Administration (NEA) has set a subsidized price for solar power at 1.09 RMB/kWh (0.112 /kWh). It should be noted, that so far this is for a single project in Gansu, Dunhuang and serves as a reference. However, according to the Energy Research Institute under the National Development and Reform Commission, this is not sufficient for Chinese companies to be profitable yet. At the moment, the companies need between 1.3 and 1.5 RMB/kWh (0.134 and 0.155 /kWh) to become profitable. Therefore, the Institute is calling on the Government to adjust the prices to accelerate the domestic market growth. When the electricity generation cost with solar PV systems declines to some 1 RMB/kWh (0.103 /kWh) in 2010/11, this will be within the cost price of routine power generation. In 21 July 2009 a joint notice was release by the Ministry of Finance, Ministry of Science and Technology and the National Energy Administration announcing subsidies for PV demonstration projects in the following two to three years through a programme called Golden Sun. The Government will subsidize 50% of total investment in PV power generation systems and power transmission facilities in on-grid projects, and 70% for independent projects, according to the notice. The available budget should allow about 500 MW of PV installations. A new plan to foster the development of new energy sources, including wind, solar and nuclear is expected to be published by the end of this year. According to statements of senior Government officials published in various Chinese media, investment in new energy under this Energy Revitalization Plan will reach more than RMB 3 trillion ( 309 billion) and investments in smart-grids will exceed RMB 4 trillion ( 436 billion) by the next decade. The PRCs continental solar power potential is estimated at 1,680 billion toe (equivalent to 19,536,000 TWh) per year. One percent of Chinas continental area, with 15% transformation efficiency, could supply 29,304 TWh of solar energy. That is 189% of the world-wide electricity consumption in 2001. The Standing Committee of the National Peoples Congress of China endorsed the Renewable Energy Law on 28 February 2005. Although the Renewable Energy Law went into effect on 1 January 2006, the impact on Photovoltaic installations in China is however still limited, due to the fact that no tariff has yet been set for PV. The main features of the Law are listed below: Energy Authorities of the State Council are responsible for implementing and managing renewable The Government budget establishes a renewable energy development fund to support R&D and resource assessment; The Government encourages and supports various types of grid-connected renewable energy power generation; Grid enterprises shall purchase the power produced with renewable energy within the coverage of their power grid, and provide grid-connection service; The grid-connection price of renewable energy power generation shall be determined by the price authorities, and the excess shall be shared in the power selling price within the coverage of the grid; Page 22 of 189

PV-Outlook A.D. 2010 v1.5 The Law became effective in January 2006. During the China Renewable Energy Development Strategy Workshop 2005, Wang Sicheng, from the National Development and Reform Commission's Energy Institute, presented the Strategic Status of Photovoltaics in China. The national target for the accumulated capacity of PV systems set in the Eleventh Five-Year Plan (2006 2010) was 500 MW in 2010. The predictions of the PV Market in China for 2020 were rather optimistic. The accumulated installed capacity was given as 30 GW and included 12 GW in the frame of the Chinese Large-Scale PV Development Plan, a project which was scheduled to start in 2010. However, due to the fact that at that time this plan did not receive official consideration the actual growth of PV installations was far below the required figures. Therefore, the 2007 China Solar PV Report authored by the China Renewable Energy Industry Association, Greenpeace China, European PV Industry Association, and WWF, reduced the market predictions to 300 MW cumulative installed capacity in 2010. For 2020, two scenarios are given. The low target scenario predicts 1.8 GW, in line with the old Government policy, whereas a high target of 10 GW would be possible if strong support mechanisms were to be introduced. In May 2009, SEMI's PV Group published a White Paper entitled China's Solar Future. China faces a rapidly increasing demand for energy, and the country is building a massive PV industry, representing all facets of the supply chain, from polysilicon feedstock, ingots and wafers to cells and modules. The report recommends an accelerated adoption of PV generated electric power in China to reach global average level of PV power generation by 2014. The main policy recommendations of the report are: Establish clear targets for PV installation. Adjust current national targets and achieve global average level by the year 2014, including adjustment of the 2010 target from 300 MW to 745 MW and the 2020 target from 1.8 GW to 28 GW. Enact clear and easy-to-administer PV incentive policies that are suitable for Chinas unique situations, using both market and legal mechanisms to encourage private investment in PV. Maintain the current rural electrification effort but priority should be given to grid-connected large scale power plants and building integrated systems. Immediately implement a Government financed direct investment subsidy model at central and local levels, and effectively implement feed-in tariff programs stipulated in the Renewable Energy Law. The White Paper also points out that despite the economic and social benefits of increasing solar power demand, Chinas lack of PV demand might threaten Government solar incentives in other countries. Policy-makers in Europe, US and elsewhere may view China as the primary beneficiary of domestic economic policies that encourage PV demand, while China itself is not contributing to global fossil fuel reduction. On 1 November 2006 a new law on energy-efficient construction, in order to promote the use of solar power to supply hot water and generate electricity, took effect in the city of Shenzhen. Projects which are unable to use solar power will require special permission from the Government otherwise they cannot be put on the market. By 2010, the Shenzhen Construction Bureau expects that 50% of the new buildings will install solar water heating systems and 20% of new buildings will use Photovoltaic electricity generation systems. Page 23 of 189

PV-Outlook A.D. 2010 v1.5 Chinas RMB 4 trillion stimulus package included RMB 210 billion ( 21.6 billion) for green energy programs as announced in early March 2009. On 23 March 2009 the Chinese Ministry of Finance and Ministry of Housing and Urban-Rural Development [Mof 2009] announced a solar subsidy program which immediately went into effect. It was suggested that 70% of the budget would be handled by the Provincial Finance Ministries. For 2009 the subsidy will be 20 RMB/Wp (2.06 /Wp) for BIPV and 15 RMB/Wp (1.46 /Wp) for roof top applications. The document neither mentions a cap on individual installations nor a cap for the total market. The subsidy will be paid as a 70% down payment and 30% after the final acceptance of the project. Eligible are all systems >50kW which have module efficiencies of >14% (polycrystalline modules), >16% (monocrystalline modules), or >6% (thin-film). Applications for grants apparently have to be made from 15 May to 30 August. However, public comments from an official of the National Development and Reform Commission (NDR) indicate that issues like grid connection are not yet discussed sufficiently. One of the reasons is that none of the Ministries which announced the subsidy has jurisdiction over the grid. In addition to the solar subsidy program which was announced on 23 March 2009 by the Chinese Ministry of Finance and Ministry of Housing and Urban-Rural Development, Mof announced another support program the Golden Sun Program for pilot cities to support the use of renewable energies in buildings on 21 July 2009. In April 2009, JLM Pacific Epoch reported that according to China Business News the Jiangsu Province plans to release a new plan to promote solar power applications soon. According to the plan, Jiangsu intends to reach building and rooftop installations of 10 MW in 2009; 50 MW including 40 MW of rooftop projects in 2010; and 200 MW including 180 MW of rooftop projects in 2011. The plan also mentions the possibility of establishing funds to provide project construction subsidies and risk guarantees, an executive of Jiangsu's PV Industry Association stated. The plan stipulates further allocations of quotas to local companies. A number of large scale Photovoltaic projects, ranging up to 1 GW were announced in the course of the last 18 months in China. How many of them will actually be realized to create a local market for solar Photovoltaic electricity systems, still has to be seen. With all these measures a doubling or even tripling of the market seems possible in 2009, as a starting point for the development of a GW size market from 2012 on. China is now aiming for 2 GW total installed solar capacities in 2011. In July 2009 the new Chinese energy stimulus plan revised the 2020 targets for installed solar capacity to 20 GW). [Credits to Arnulf Jager-Waldau - Photovoltaic Industry in China; Sep. 29, 2009] China has said it will spend billions of dollars on renewable energy projects in the coming years, and is one of the world's leaders in solar technology manufacturing (PE 12/09 p7). But those factors will not necessarily translate into large-scale use of solar power, compared with other energy sources. NEF's Chase says that, in view of China's ambitious targets for carbon-emissions cuts, the country is more likely to spend heavily on other forms of power, such as wind, geothermal and biomass, which can make a bigger environmental impact more cheaply. NEF forecasts Chinese capacity will expand by 700 MW in 2010, compared with 50 MW or less added in 2009.

Page 24 of 189

PV-Outlook A.D. 2010 v1.5 "Solar power has nearly unlimited resource potential, which is why people get excited about it, but in terms of carbon emissions saved per dollar spent, it is not generally the best option," she says. The best chance for a rapid expansion of solar power in China would be if Chinese manufacturers' export markets weakened to the point where the business could survive only through the creation of domestic demand instead. Impressive results continue to emerge from Chinese firms with US listings, such as Suntech, Trina Solar and Yingli Green, suggesting that situation will not arise in the near term. ["Solar-power subsidies spur growth." Petroleum Economist. Euromoney Institutional Investor PLC. 2010. HighBeam Research. 16 Feb. 2010 <http://www.highbeam.com>.]

Germany
In 2007, Germany was the worlds largest solar PV market with 3.8 GWp of total installed PV power, representing 49 percent of global market share.33 The German cluster accounted for 55 percent of global solar electricity production and installed 1.1 GWp of new PV capacity in 2007 alone, generating EUR 5.7 billion in revenues (33 percent of the world market), including EUR 2.5 billion in exports. The cluster boasted more than 10,000 businesses35, including over 80 manufacturers of PV components, over 60 PV equipment suppliers, and employed 42,000 people in 2007 (denoting employment growth of over 30 percent since 2006). The growth of the cluster has been buttressed by a strong focus on innovation and technology, with over 60 research institutes in Germany engaged in the development of PV technology. German investments in PV R&D amounted to

approximately EUR 176 million in 2007, and between 2004 and 2007, the cluster registered over 250 patents. Due to an extensive incentive program provided by the German government, the German PV cluster is concentrated in the former East-German states of Saxony, Thuringia, Saxony-Anhalt, and Berlin- Brandenburg. Over 90 percent of PV manufacturers in Germany are located in this region. While many PV equipment and machinery suppliers are spread further south into Bavaria, this is due to the well-established heavy machinery and equipment cluster located in that region. As for PV research institutes, there is a heavy concentration in both eastern Germany and Bavaria, so as to allow proximity to both manufacturers and equipment suppliers.

Page 25 of 189

PV-Outlook A.D. 2010 v1.5 While the solar irradiation levels in Germany are well below many other regions and countries of the world, the German PV cluster has developed successfully due to a number of key factors: (i) supportive government policies and incentives; (ii) the availability of a skilled labor force and high quality infrastructure; (iii) significant investment in R&D; (iv) the presence of highly developed supporting industries; and (v) the depth and breadth of enabling industry associations. (i) Government Policy and Incentives The German governments policies to encourage solar PV technology and electricity production date back to the Electricity Feed-In Act of 1991 and 1000 Roofs Program of 1991-1995.43 The Act and Program provided grid access to solar electricity producers for the first time as well as a refund payment of approximately EUR 0.085 per kWh, and tested the grid compatibility of PV systems. Between 1995 and 1999, the Government introduced further regional support programs and demo plants for PV producers, working towards the initiation of the 100,000 Roofs Program in 1999, which provided low-interest loans for 300 MWp of installed capacity.44 In 2000, Germany passed the Renewable Energy Sources Act (EEG), requiring grid operators to pay a higher price to solar electricity producers (EUR 0.51 per kWh) than to providers of traditional fossil fuel electricity. Then in 2004, the Government amended the EEG to introduce a feed-in tariff (FIT) system whereby solar electricity providers would be given a guaranteed price of between EUR 0.457-0.624 for a period of 20 years.46 While the German governments pre-2000 policies helped spur interest and initial action in the solar PV sector, the introduction of the EEG in 2000 and subsequent amendment in 2004 were key milestones that helped the German PV cluster takeoff. In addition to the 20 year price guarantee provided under the 2004 amendment, an additional element of the feed-in policy was an annual reduction of 5 percent in the 20 year rate. This incentivized early entry into the PV sector as the rate PV electricity producers started at would be the rate they would keep for 20 years. Moreover, the FIT was provided to commercial PV providers as well as individual households that connected their solar panels to the grid. This encouraged widespread adoption of solar PV panels by German homesby 2008, nearly 400,000 households in Germany had installed solar panels. Apart from the FIT, the German Government also provided tax credits for commercial PV providers, including VAT exemption and a 20 year depreciation period for investments. The Governments policy framework aimed at making East Germany the hub for PV activity in Germany and therefore most incentives were geared towards firms setting up in the former East German states. For example, firms entering the East German cluster received investment incentives of up to 50 percent of capital expenditure, and the KfW provided low interest loans for private and commercial investors alike. By 2008, the federal Government had provided about $1.2 billion in subsidies to firms in the East German solar cluster. Notably, foreign firms and investors were welcomed and given incentives equivalent to German firms. As a result, the East German PV cluster soon attracted some of the best international PV companies, which stood to gain from the myriad incentives, positive externalities and know-how afforded them by locating in East Germany. Finally, in addition to the various investment incentives (such as low-interest loans and public guarantees) provided to PV companies, the Government also offered an extensive scheme of Page 26 of 189

PV-Outlook A.D. 2010 v1.5 operational incentives, such as recruitment and training support, wage subsidies, and incentives for R&D. (ii) Skilled Labor force and High-Quality Infrastructure Another crucial enabling factor for the development of the German PV cluster was the plentiful supply of skilled labor as well as high-quality infrastructure. Over 25 percent of the German workforce had university or vocational college education, and 50 percent of workers were classified as skilled craftsmen or technicians. Furthermore, the historical presence of the microchip and semiconductor industries in East Germany gave the region a highly-skilled and flexible labor force. Numerous universities developed solar technology and offered a range of graduate level courses with a strong focus on PV and renewable energies. On the infrastructure front, the German Unity Transport Projects were launched in 1991 to close the infrastructure gap between East and West Germany. The projects involved a total investment of EUR 38.5 billion and included the construction of 9 railway ventures, 7 motorways, and 1 waterway. Overall since 1990, over EUR 67 billion have been publicly invested to rebuild East German infrastructure that was subpar at the time of reunification. This huge investment in East German infrastructure led to a double advantage by 2007not only was the quality of infrastructure completely modernized and top-rate, but the property and rental rates of the region were relatively low compared to West Germany and other cosmopolitan centers of Europe. Hence, setting up in the East German cluster was a win-win situation for companies in terms of costs as well as high-quality physical and technical infrastructure. Logistics centers were also abundant, with Berlin-Brandenburg alone boasting 5 freight traffic centers and nearly 100 large logistics companies. Moreover, Germany had a 100 percent digitalized telecommunications network with 87,000 miles of fiber optics and an ISDN density five times higher than in the US or UK. All in all, the availability of highly-skilled and specialized workers, a good transportation system, and solid physical and technical infrastructure at relatively low costs made East Germany an ideal setting for the growth of the PV cluster. (iii) Significant Investment in R&D Under its High-Tech Cluster Strategy, the German federal government allocated significant resources towards energy and environmental technologies in 2006-2009. The presence of world class research institutes together with a concerted public and private sector effort to invest in PV technology, has made Germany home to one of the richest PV R&D landscapes in the world. In 2007, the German PV industry invested EUR 175.8 million in R&D.56 State-funded research has also been massive, given the federal governments commitment to invest EUR 6.5 billion in renewable energy research, technology and innovation in this legislative period. Germany is especially focused on new PV technology areas such as organic photovoltaics, and in 2007, the German Ministry of Education and Research committed to invest EUR 360 million to support groundbreaking research on organic PV.

Page 27 of 189

PV-Outlook A.D. 2010 v1.5 As a result of this heavy emphasis on R&D, over 250 solar PV patents were registered in Germany between 2004 and 2007.58 The close cooperation and collaboration between research institutes, universities and PV manufacturers and equipment suppliers has helped make the adoption of new PV technologies more cost effective and seamless. This has been a vital element in the German PV clusters success to date. (iv) Highly Developed Supporting Industries The presence of highly developed supporting industries, especially in semiconductors, optics, chemicals and glass, has also played a fundamental role in enabling the successful growth of the German PV cluster. The East German states where the PV cluster is concentrated were already home to the top semiconductor industry in Europe, as well as a vibrant optics industry with over 400 companies and 235,000 employees. In addition, Germany is the global leader in logistics, and ranks among the top 3 globally in information and communications technology (ICT). It is the European leader in the chemicals industry (among the top 4 globally), and has an extensive glass sector with 330 companies and 50,000 employees. Last but not least, Germany is a powerhouse in the machinery and equipment industry, harboring 6000 companies with 0.9 million employees, responsible for 28 percent of the worlds mechanical engineering patents. The depth and breadth of these supporting industries has provided the German PV cluster with a rich source of highly specialized workers, a ready supply of machinery and equipment inputs, and one of the best transport and ICT infrastructures in the world. The existence of these clusters together with the large number of PV firms located in such a concentrated area, has also led to many learning-by-doing externalities. (v) Well Established Institutions for Collaboration Industry associations have played an important role in coordinating the sharing and exchange of information. There are multiple organizations at the sub-national, national, European and international levels. For instance, the European Photovoltaic Industry Association (EPIA) unites members from the entire PV value chain and represents their interests at the national, international and global level. EPIA is the worlds largest PV industry association representing about 80% of the worldwide PV industry. The German Energy Agency (DENA) is a child of the Federal Government and KfW, intended to serve as a competence center for energy efficiency with almost 6,000 sales offices.61 Finally, the Federal Solar Energy Association (BSW) unites over 650 members (producers, wholesalers, consultants, R&D institutes) and serves as a forum between solar businesses and the German government. While Germanys PV cluster is slated to grow at a rate of 25-30 percent over the next decade, such growth will depend on the confluence of certain crucial elements: (i) demand conditions for solar PV within Germany and internationally; and (ii) the ability of the cluster to compete against rising PV markets in China, Spain and the USA.

Page 28 of 189

PV-Outlook A.D. 2010 v1.5 (i) Demand Conditions in Germany and Abroad Ensuring a growth rate of 25-30 percent for the German PV cluster in coming years will require robust demand for solar PV within Germany and abroad. Domestic demand conditions are promising. This is partly because of the German governments goal to make the country a global leader in renewable energy and environmental sustainability, through incentive programs and such. But it is also due to the propensity of German consumers to purchase more fuel efficient cars and electronics, and be more environmentally conscious. Indeed, Germanys commitment to environmental sustainability and renewable energy permeates German consumers and society on a social, cultural and ethical level, over and above government incentives. In terms of international demand, the European Unions decision to increase the share of power obtained from renewable energy sources by 20 percent and to cut carbon emissions by 20 percent by 2020, should help keep demand for solar PV buoyant throughout Europe. In addition to its own market, Germanys location at the heart of Europe provides companies located in the East German cluster easy access to other growing PV markets in Spain, France and Italy. Furthermore, with the rapid growth in India, China and other developing countries, the strain on conventional power sources will only increase in coming years, making the move towards renewable energies inevitable. Not only will solar PV play an important role as a clean energy proxy for traditional sources of power, but it will also make it easier to provide electricity in rural and remote areas which are far removed from the grid. Germanys reputation for providing the highest quality goods makes the Made in Germany label on solar PV products attractive internationally. Against this mostly positive backdrop, there are also some concerns regarding future demand conditions. In particular, once the German government tapers off incentives such as the attractive FIT provided to solar PV users at present, will this lead to a drop in PV production and demand? There are also concerns that the EU may introduce a system of trading renewable energy obligations (similar to the UKs system of Renewables Obligation Certificates) among member states, which could cause Germanys FIT mechanism to unravel.63 (ii) Competition from Growing PV Markets in Asia, Spain, and the USA While the German PV cluster has enjoyed a preeminent position in the global market so far, the cluster faces rising competition from growing PV markets in Asia (China, Taiwan, Korea), Europe and the USA. As more and more companies enter, the industry is becoming less consolidated. In fact, market share of the top 10 PV manufacturers fell from 80 percent in 2004 to 57 percent in 2007, and only two of the top ten companies are German. Moreover, as China, Spain and other countries with much higher solar irradiance levels than Germany aggressively enter the PV sector, the German cluster will confront stiffer competition than ever before. The growth stories of China and Taiwan are particularly remarkableChina expanded PV production capacity from 3 MW in 2001 to 1070 MW in 2007.65 As of 2007, 98 percent of Chinese and Taiwanese PV production was exported.

Page 29 of 189

PV-Outlook A.D. 2010 v1.5 A flurry of activity late in 2009 bolstered Germany's photovoltaic (PV) solar-energy capacity after a difficult year for the sector globally. But the role of the world's leading market as a demand driver is set to diminish. Project developers have been rushing to launch solar farm projects in Germany before power tariffs for the sector were reduced by around 10% from this month. Carsten Koernig, head of BSW, Germany's solar industry federation, said recently that new capacity may have reached as much as 3 gigawatts (GW) in 2009, double the amount added in 2008. "The tariff reduction is not catastrophic for the German solar market, given modules are now so cheap, but it does mean that if you had a project in the planning stage, it was worth paying a premium to start it up before the end of the year," says Jenny Chase, head of the solar energy team at New Energy Finance (NEF), a consultancy. NEF estimates that the amount of new capacity built in Germany this year will be only slightly higher than 2009 at around 3.2 GW. The German solar industry has been worried that the recently re-elected government of Angela Merkel might seek to cut federal spending by making further substantial cuts in solar-sector subsidies in mid-2010. It would be a tempting option, even with this month's tariff cut, given that the price of solar modules has halved since 2008, making projects much cheaper to develop. Those concerns seem to have been assuaged to some extent by indications from the government that it would not make tariff cuts that would damage what it regards as an important part of the economy - Germany plays host to some of the world's leading solar-panel makers and project developers.

United States
The US market managed to add some 450 MW of PV capacities in 2009, less than some had hoped at the start of the year when the apparently green-oriented administration of President Barak Obama moved into the White House. Restricted financing and the time taken to put government incentives into place dampened growth, although, here too, the low silicon price is expected to bolster the market in coming months. There was also some succor for the US market from the federal government's November announcement that it would fast-track large-scale renewable energy projects in California, such as Chevron's planned 500 MW solar facilities. If these projects can be started by the end of 2010 they will be eligible for part of $15bn in stimulus funds set aside for green projects. This renewed momentum could see fresh demand in the US rise to around 860 MW in 2010.

Japan
The reintroduction of subsidies and a new feed-in tariff introduced in November 2009 helped to more than double solar sales in Japan in 2009, compared to the previous year. Japanese solar photovoltaic sales reach 484 MW in 2009. According to the Japan Photovoltaic Energy Association, sales reached 483.96 MW in 2009, up from approximately 230 MW in 2008. Japanese PV solar cell and module manufacturers also increased exports to the U.S., which were up 21% compared to the previous year, reaching 203.17 MW in 2009. Although the largest export market for Japanese producers, solar cell and module sales in Europe actually fell by 4.3%, to 624.25 MW, total shipments reached 1.143 GW. Monocrystalline shipments

Page 30 of 189

PV-Outlook A.D. 2010 v1.5 of 576.5 MW topped the cell type technology categories. Multicrystalline cell shipments reached 419.4 MW, while a-Si thin-film shipments reached 120.3 MW in 2009.

Malaysia
While the PV market is Malaysia is miniscule, the PV industry in Malaysia is starting to gain significance; this is largely fuelled by the presence of key international PV manufacturers in Malaysia, namely First Solar Inc, Q-Cells AG, SunPower Corporations, and Tokuyama Corporation. On the policy front, grid-connected PV systems have been receiving capital incentives from the Government since 2006. The capital incentives will end by 2010. By 2011, the Government is planning to implement a new RE policy which will further drive the PV industry development. While the country is preparing for the implementation of the new RE policy, soft infrastructure is continuously taking shape. These include capacity enhancement for local PV service providers, quality control scheme, and awareness program for general public and commercial sectors. It is foreseeable that renewable energies in Malaysia will take centre stage in the years to come as country prepares to wean off fossil fuel towards fuel sources which are truly clean, renewable and safe. This is a three-prong strategy which will address energy security, climate change mitigation and creating a new economy in green technology.

India
Begun as far back as in the mid 70s solar photovoltaics program of the Government of India is one of the largest in the World. While the rest of the world has progressed tremendously in production of basic silicon monocrystalline photoltaic cells, in India the major players are Central Electronics Ltd, BHEL, REIL and the other manufacturers of SPV modules are in fact assemblers sourcing the cells and carrying out assembly. Electricity and social development go hand in hand. Rural areas of India are so far-flung that in some cases it is decided not to lay down conventional electricity lines due to the small populace to be served and high cost of laying lines. Conventional generator sets are also not feasible due to recurring maintenance problems. The best solution under the circumstances is solar photovoltaic based systems to generate power, run irrigation pumping sets and home lighting and streetlights. In addition to offering subsidy on these products government is also offering training on PV technology, PV system designs and related fields. Recently Indias government announced its National Solar Mission: an ambitious plan that aims to achieve 20,000 megawatts of cumulative installed solar power by 2022. This mission includes a feedin tariff system comparable to incentives that boosted leading PV markets such as those of Germany, Spain, and Italy. This, combined with the countrys remarkable solar irradiation, could lead to a quick boom in the Indian PV market. Cumulative installed solar power in India is 110 MW, and in 2008 only 3 MW were added. An average year-on-year growth of 68% will be needed to reach the target of 20,000 MW by 2022, the majority of this coming from grid-connected projects. This growth scenario would appear to be Page 31 of 189

PV-Outlook A.D. 2010 v1.5 feasible within the context of the proposed incentives. Based on this target, India will change from a production hub into one of the largest PV markets in the world. The angle of greatest interest regarding the Solar Mission is not only that it will provide clean and safe (solar) electricity to millions of people, but that it will also create tens of thousands of jobs at the same time. Over the next three years, Indias PV market volume is forecast to grow to more than 600 MW in a Business-As-Usual scenario and to 2250 MW in an accelerated growth scenario. The cost of solar electricity generation is expected to fall significantly from INR 12 to INR 8 per kWh within a span of 10 years (2008 to 2017), while grid electricity prices are expected to rise to around 8 INR by 2015. Based on these forecast developments, India has the potential to reach grid parity between 2017 and 2020.

Korea
In South Korea the government announced its intention to invest some 84.4 billion US dollars in environmentally friendly technology like for example solar power in the next five years. It presented a new funding program to achieve this objective. This program is designed to support smaller solar plants of up to 200 kW while compensation for larger plants is to be reduced.

Philippines
With its past experience of the Integrated Circuits mass manufacturing Philippines attracted major industry players as Sun Power and First Solar, other of its main attractive factor for investors being the countrys low specific costs, and the local policies.

Page 32 of 189

PV-Outlook A.D. 2010 v1.5

TOP 20 PV Module Manufacturers in 2009

Production Sharp Suntech Power First Solar Sunpower Yingli Solar Q-cells GROUP Schott Solar Nanosolar Solarfun Sanyo Electric Trina Solar Energy Kyocera Canadian Solar (CSI) Solar World Ningbo Solar Electric Power / Sun Earth Moser Baer Photovoltaic Bosch Solar Energy (Ersol Solar) China Sunergy Conergy Baoding Tianwei Yingli

2007 528 501 159 100 146 123 154 10 30 220 29 208 40 170 100 41 55 80 150

2008 719 603 412 437 282 183 229 100 230 310 210 291 103 190 175 120 143 110 50 150

2009 960 906 904 850 550 460 415 400 400 377 350 323 300 290 280 260 210 200 200 180

2010 1,460 925 1,047 1,070 600 575 464 450 500 465 500 379 450 500 350 372 260 250 250 400

2011 1,600 1,025 1,147 1,310 800 1,065 540 640 600 595 700 784 560 700 400 730 378 256 400 560

Page 33 of 189

PV-Outlook A.D. 2010 v1.5

Top 20 PV Module Manufacturers in 2009

Sharp Suntech Power First Solar Sunpower Yingli Solar Q-cells GROUP Schott Solar Solarfun Nanosolar Sanyo Electric Trina Solar Energy Kyocera Canadian Solar (CSI) Solar World Ningbo Solar Electric Power / Sun Earth Moser Baer Photovoltaic Bosch Solar Energy (Ersol Solar) Conergy China Sunergy Baoding Tianwei Yingli 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2011 2010 2009 2008 2007

Production [MWp/year]

Page 34 of 189

PV-Outlook A.D. 2010 v1.5

Sharp
Sharp Corporation (TYO: 6753, Osaka Sec. Ex.: 6753, Nagoya Stk. Ex.: 6753, Fukuoka Stk. Ex.: 6753, Sapporo Sec. Ex.: 6753, LuxSE: SRP) is a Japanese multinational corporation that designs and manufactures electronic products. Headquartered in Abeno-ku, Osaka, Japan, Sharp employs more than 54,144 people worldwide as of October 31, 2009. The company was founded in September 1912. It takes its name from one of its founder's first inventions, the Ever-Sharp mechanical pencil, which was invented by Tokuji Hayakawa in 1915. Since then it has developed into one of the leading electronics companies in the world. As a semiconductor maker, Sharp is among the Worldwide Top 20 Semiconductor Sales Leaders and among the Top 100 R&D Spenders in a list published by IEEE Spectrum magazine. It gained public awareness in the United Kingdom when it sponsored Manchester United F.C. from 1982 to 2000, which was a period of great success for the club. They took a controlling stake in Pioneer Corporation in 2007. On 25 June 2009, they agreed to form a joint venture with Pioneer on their optical business to be called "Pioneer Digital Design and Manufacturing Corporation". Sharp Solar produces thin film modules and mono and poly-crystalline silicon solar cells and for some years has been the world's leading manufacturer of photovoltaic (PV) modules. Sharp's solar modules are used for many applications, from satellites to lighthouses, and industrial applications to residential use. Sharp began researching solar cells in 1959 with mass production first beginning in 1963. Production capacity amounted to 324 MW in 2004. Sharp Solar manufactures PV modules in many locations, including Llay near Wrexham, Wales and Memphis, TN. Sharp Solar History 1959: Started development of solar cells 1963: Began mass production of solar cells 1963: First to supply ocean buoy with solar 1966: Installed solar on lighthouse 1967: Began development of solar space applications 1976: "Ume" satellite successfully launched with solar cells on board 1980: Released first solar calculator 1981: Began operations at Shinjo Plant (now Katsuragi) 1988: Reached 11.5% cell conversion for amorphous silicon solar cells 1992: Reached 17.1% cell conversion for polycrystalline solar cells 1992: Achieved world's highest cell conversion efficiency of 22% 1994: Commercialization of residential solar power system (grid-connected) Page 35 of 189

PV-Outlook A.D. 2010 v1.5 2000: Became global leader in solar cell manufacturing 2001: Obtained UL (U.S.) and TUV (EU) certification for PV modules 2002: Developed the industry's first string power conditioner 2003: Space PV module installed on Satellite Observatory "Free Flyer" (SFU) 2003: Began producing PV modules in the United States 2003: Began producing PV modules in Europe 2005: Developed solar cells that admit light and can be used as building materials for windows 2005: Began mass producing thin film solar cells 2006: Katsuragi plant expands its annual production capacity to 600 megawatts, the world's highest at that time 2007: Expanded production capacity of PV modules to 200 megawatts in Europe 2008: Became first PV manufacturer in the world to achieve cumulative production of 2 GW 2008: Achieved industry's highest conversion efficiency for a polycrystalline PV module of 14.4% 2009: Launched thin film modules in the United States

Suntech Power
Suntech Power (NYSE: STP) is the one of the world's largest producer of crystalline silicon photovoltaic (PV) modules. Suntech Power achieved an annual production capacity of 1GW in 2009. As the center for the company's global operations, Suntech Headquarters, in Wuxi, China, features the world's largest building integrated solar facade. With offices in every major solar market, Suntech has delivered solar products to more than 80 countries around the world Suntech Power has supplied or installed solar modules for numerous solar power plants and systems around the world. Notable installations include: Alamosa Power Plant (Colorado, USA) Arizona State University (Arizona, USA) Beijing National Stadium (Beijing, China) Elecnor Power Plant (Trujillo, Spain) Masdar City Solar Farm (Abu Dhabi, UAE) Nellis Air Force Base (Nevada, USA) Expo 2010 Shanghai (Shanghai, China)

Page 36 of 189

PV-Outlook A.D. 2010 v1.5 The company's Suntech Energy Solutions division completed Google's 1.6 MW solar installations in June 2007. Suntech Power joined with Israeli company Solarit Doral to build Israel's largest solar power station, a 50kW rooftop project in the northern town of Katzrin, which was connected to the electricity grid in December 2008. Suntech Power has representative offices in China, Australia, the United States, Switzerland, Spain, Italy, Germany, Japan, and Dubai, as well as production facilities in Suntech Power Wuxi, Luoyang, Qinghai and Shanghai, with another under construction in Phoenix, Arizona. Suntech America is based in San Francisco, California, and the company has plans to start a production facility in Phoenix, Arizona in 2010. Suntech also has executives of their US operations in top posts in American solar panel industry groups. Last year the United States placed tariffs on Chinese solar panels. To bypass American legislation, Suntech Power Holdings Co. plans to build a production facility in Goodyear, Arizona. Suntech Power was recognized as the 2008 Frost & Sullivan Solar Energy Development Company of the Year. Frost & Sullivan Research Analyst Mary John commented on the recognition, "The company's pioneering success in developing energy-efficient, cost-effective and customizable building integrated photovoltaic (BIPV) systems and crystalline PV cells, and modules for solar energy conversion into electricity are highly commendable. It has gone beyond just meeting global energy needs to anticipating them as well and highly satisfied customers testify that the BIPV systems and other energy-efficient products are customized precisely to their needs." The Andalay AC Solar PV Panel was awarded one on MSNs most brilliant products of 2009 because of innovations that advanced their ease of installation and use. Suntech Power is one of the main manufacturers of components for the Andalay Solar Panel sold by Akeena Solar (AKNS).

First Solar
First Solar, Inc. is a publicly-held U.S. energy company in the solar sector. It manufactures photovoltaic solar modules using a thin film semiconductor process based on CdTe, to produce photovoltaic modules. It is the largest manufacturer of thin-film cells in the world and world's second largest manufacturer of photovoltaic (PV)cells with production capacity of over 1 GW per year by the end of 2009 The process uses different materials than most other solar cells, is more economical, tolerant of a wide range of conditions, but less efficient at converting light to electricityFirst Solar was founded as Solar Cells Incorporated by Harold McMaster and in 1999 was purchased by True North Partners LLC, which rebranded the company as First Solar. Glasstech Solar was founded by inventor/entrepreneur Harold McMaster in 1984. McMaster envisioned the opportunity for low cost thin films made on a large scale. After trying amorphous silicon, he shifted to CdTe at the urging of Jim Nolan and founded Solar Cells inc. (SCI) in 1990. In February 1999, McMaster sold the company to True North Partners, an investment arm of the Walton family, owners of Wal-Mart. John T. Walton joined the Board of the new company, and Mike Ahearn of True North became the CEO of the newly minted First Solar. In its early years First Solar suffered setbacks, and initial module efficiencies were modest, about 7%. Commercial product became available in 2002. But production did not reach 25 MW until 2005. The company built an Page 37 of 189

PV-Outlook A.D. 2010 v1.5 additional line in Perrysburg, Ohio, then four lines in Germany. In 2006 First Solar reached 75 MW of annual production and announced a further 16 lines in Malaysia. As of Q3 2008, First Solar is producing at nearly half a gigawatt annual rate and is among the largest PV module manufacturers in the world. Research and development takes place at the Ohio facility, and headquarters are in Tempe, Arizona. First Solar LLC is one of the companies world-wide to produce CdTe-Thin-film modules. First Solar has developed a solar module product platform that is manufactured using unique and proprietary Vapor Transport Deposition (VTD) process. The VTD process optimizes the cost and production through-put of thin-film PV modules. The process deposits semiconductor material while the glass remains in motion, completing deposition of stable, non-soluble compound semiconductor materials. First Solar is continuing to expand its CdTe thin-film production capacity massively. The latest announcement was made in July 2009 to build a new factory in a joint venture with EdF Nouvelles in France with at least 100 MW capacity [Fir2009]. The company has currently four manufacturing plants in Perrysburg (U.S.A.), Frankfurt/Oder (Germany) and two in Kulim (Malaysia), which will have a combined capacity of1.1 GW at the end of 2009. In 2008 the company produced503 MW and currently sets the production cost benchmark with 0.86 $/Wp (0.62 /Wp) in the second quarter of 2009. First Solar is continuing to expand its CdTe thin-film production capacity massively. The latest announcement was made in July 2009 to build a new factory in a joint venture with EdF Nouvelles in France with at least 100 MW capacity [Fir 2009]. The company has currently four manufacturing plants in Perrysburg (U.S.A.), Frankfurt/Oder (Germany) and two in Kulim (Malaysia), which will have a combined capacity of 1.1 GW at the end of 2009. In 2008 the company produced 503 MW and currently sets the production cost benchmark with 0.86 $/Wp (0.62 /Wp) in the second quarter of 2009. The company sells its products to solar project developers, system integrators, and public utilities. Sales have been primarily in Germany because of strong incentives for solar enacted in the German Renewable Energy Sources Act (EEG) of 2000 (cp. Solar power in Germany). With the extension of the Investment Tax Credit in the United States, sales in the U.S. are expected to increase, as evidenced by First Solar's October 2008 partnership with SolarCity. In a five-year deal, First Solar has agreed to supply 100 megawatts of solar modules to SolarCity, the largest residential installer in the United States according to SolarCity CEO Lyndon Rive. First Solar has a backlog of long-term contracts totaling approximately $6.3 billion in sales.[15] Among the 12 European project developers and system integrators, customers include Blitzstrom GmbH, Colexon Energy AG (previously Reinecke + Pohl), Conergy AG, Gehrlicher Umweltschonende Energiesysteme GmbH, Juwi Solar GmbH and Phoenix Solar AG. In 2007, each of these six accounted for between 10% and 23% of sales. In 2007, new contracts were negotiated with EDF Energies Nouvelles, Sechilienne-Sidec, Rio Energie, and Sun Edison. First Solar also expanded an existing contract with Juwi. The manufacturing cost per watt reached $1.23 in 2007 and $1.08 in 2008. On February 24, 2009, the cost / watt broke the $1 barrier with 98 cents per watt. As of Q3 2009, their production cost had fallen to $0.85/watt.[18] First Solar is contractually bound to reduce price per watt by 6.5% per year and plans to be competitive on an unsubsidized basis with retail electricity by 2010 Page 38 of 189

PV-Outlook A.D. 2010 v1.5

Sunpower
SunPower Corporation designs and manufactures high-efficiency silicon solar cells, roof tiles and solar panels based on a silicon all-back-contact solar cell invented at Stanford University. SunPower Corporation is publicly traded on the NASDAQ as SPWRA and SPWRB. SunPower Corporation is a component of the Dow Jones Oil and Gas Index DJUSEN. SunPower was founded in 1988 by Richard Swanson and Robert Lorenzini to commercialize proprietary high-efficiency silicon solar cell technology. The company went public in November 2005. The initial products, introduced in 1992, were high-concentration solar cells with an efficiency of 26%. SunPower also manufactures a 22% efficient solar cell called Pegasus that is designed for non concentrating applications. SunPower has recently announced a number of projects around the world that utilize its patented solar tracker technology. The company maintains a market-leading position in Spain with more than 61 megawatts installed or under construction; recently completed a 2.2-megawatt solar power plant in Mungyeong, Korea; and the largest solar installation in the U.S., the 15-megawatt Nellis Solar Power Plant in Nevada. On October 6, 2008, Agilent Technologies Inc. and SunPower Corporation announced that a 1megawatt solar tracking system at Agilent's campus will start producing electricity in mid-October. The system features a 3-acre (12,000 m2) parking lot canopy structure with nearly 3,500 SunPower solar panels that track the sun throughout the day. The design of SunPower's tracking solar system will generate up to 25 percent more energy for Agilent than a similarly sized flat, rooftop system, the company said. As a result, Agilent's solar parking canopy is the largest solar energy generator in Sonoma County, California. SunPower donated the solar cells for the NASA/AeroVironment Pathfinder-Plus high-altitude UAV, which then set an altitude record of 80,201 feet (24,445 m) for solar-powered and propeller-driven aircraft. SunPower conducts its main R&D activity in Sunnyvale, California and has its cell manufacturing plant outside of Manila in the Philippines. Fab. No 1 has a nameplate capacity of 108 MW. Fab. No 2 was fully operational at the end of 2008 with a capacity of 306 MW. For 2009 a capacity increase to 574 MW is foreseen. According to their Annual Report 2008, the company started the construction of a 1 GW solar cell factory in Malaysia. Production in 2008 was quoted with 237 MW. SunPower has announced that it plans to compete with retail electric rates by reducing system cost by 50% by 2012

Yingli Solar
Yingli (NYSE: YGE) also known as Yingli Green Energy Holding Company Limited, which holds the brand Yingli Solar, is a solar energy company and one of the largest vertically integrated manufacturers of photovoltaic solar modules. The company released an IPO on the New York Stock Exchange on June 8, 2007. Yingli Green Energy was founded by Mr. Liansheng Miao, the Companys Chairman of the Board and Chief Executive Officer. Headquartered in Baoding, China, Yingli Green Energy has been adopting a Page 39 of 189

PV-Outlook A.D. 2010 v1.5 vertically integrated business model since 2004 and started with an initial annual capacity of 6 MW in ingot, wafer and cell, and 50 MW in module. In July 2009, the annual production capacity of each stage of the value chain reached 600MW. As a final step to make Yingli a completely vertically integrated business model, the Company, through its wholly owned subsidiary, Fine Silicon Company Limited, began the trial production of high quality solar-grade and electronic-grade polysilicon in December 2009. Today, Yingli Green Energy has become a leading solar energy company, who holds the brand Yingli Solar, and one of the worlds largest vertically integrated photovoltaic (PV) manufacturers. The Company develops, manufactures and sells photovoltaic modules to a wide range of markets, including Germany, Spain, Italy, Greece, France, South Korea, China, and the United States. Yingli Green Energy has more than 6000 employees and more than 10 branch offices worldwide. Yingli Green Energy is publicly listed on New York Stock Exchange (NYSE: YGE). On Wednesday February 3, 2010, Yingli was announced as an official sponsor of the 2010 FIFA World Cup. It is the first ever Chinese company to sponsor the FIFA World Cup. The company will actively support FIFA's "Football for Hope" movement and "Green Goal" concept first by providing solar panels for FIFA's "20 Centres for 2010" campaign. Yingli's products include both the raw material and the end product, including polysilicon ingots, wafers, photovoltaic cells, photovoltaic modules, and photovoltaic integrated systems.

Q-cells group
Established in 1999, Q-Cells is one of the world's largest manufacturer of photovoltaic (PV) cells. Its core business is the development, production and marketing of high-quality (mono- and multi-) crystalline silicon photovoltaic cells. Since commencing production in 2001, Q-Cells has grown rapidly and now employs more than 1000 people at its site in Bitterfeld-Wolfen, Saxony-Anhalt, Germany. Its cells are sometimes marked with a small capital 'Q' near a corner. Q-Cells has developed the performance of its cells as well as its technological production processes. Q-Cells is also developing additional important technologies through partnerships for the commercialization of these technologies. The Q-Cells group includes, but is not limited to: Calyxo (CdTe). CSG Solar (CSG). REC Group (polycrystalline silicon) 17.2% Stake was sold on 6. May 2009 Solaria Corporation (silicon). Solibro, CIGS for BIPV and small industrial and commercial roofs. Sontor (formerly Brilliant 234 GmbH), (CIGS) Sovello (string ribbon), in partnership with Evergreen Solar. Page 40 of 189

PV-Outlook A.D. 2010 v1.5 Sunfilm (micromorph thin-film silicon). VHF Technologies / Flexcell (Flexible thin films).

Schott Solar
SCHOTT AG is a German manufacturer of high-quality industrial glass products, its main markets are household appliances [100millionth glass-ceramic hob due 2009], pharmaceutical industries, solar energy, electronics, optics as well as automotive. According to the 2008 Annual Report, Schott AG employs 17,363 people in 42 countries. Schott AG is well known by the photographic community for manufacturing the glass components of Zeiss and Schneider Kreuznach lenses as well as B+W filters. They also publish the Schott Glass Catalog, which is a standard reference for the properties of the many optical glasses produced by them and other companies. The company was founded in 1884 at Jena, Germany as Glastechnische Laboratorium Schott & Genossen by Otto Schott, Ernst Abbe, Carl Zeiss and Roderich Zeiss. The company later changed its name to Jenaer Glaswerk Schott & Genossen. After the Second World War, the company was forced to relocate to Mainz in West Germany as Schott Glaswerke AG after the headquarters in Jena was taken over by the East German government and became Jena Glaswerke VEB. After the German reunification, Schott Glaswerke AG acquired Jena Glaswerke VEB to become a single company again. In 2008 they announced plans to build a factory in Albuquerque, New Mexico, USA to build receivers for concentrated solar thermal power plants (CSP) and 64 MW of photovoltaic modules. They are already making 15 MW of photovoltaics annually in Billerica, Massachusetts. Schott plans to produce crystalline PV cells and modules with a total of 450 MW annually. In addition, the company will produce thin-film PV wafers with a capacity of 100 MW

Nanosolar
Nanosolar developed a manufacturing technology in the process of which minute nano particles of copper, indium, gallium, selenium and probably sulphur will be printed on sheeting material using the roll-to-roll process. Using this innovative printing technology, the Americans want to bring down costs to USD 0.30 up to USD 0.35 ( 0.22 up to 0.25) which is about one third of the manufacturing cost of First Solar, the leading company in the sector. Mr. Erik Oldekop, the spokesman of Nanosolar said: We are capable of coating large areas within very short cycle times. The factories have already been built and series production is about to take off. Nanosolar wants to manufacture its cells in a 430 MW plant in San Jos, California. These will then be processed into circuit modules at Luckenwalde near Berlin.

Solarfun
Solarfun was established in 2004 by the electricity meter manufacturer Lingyang Electronics. The first production line was completed at the end of 2004 and commercial production started in November 2005. The company went public in December 2006 and reported the completion of their production capacity expansion to 360 MW in the second quarter of 2008. For 2009 a further 60 MW expansion is planned. For 2008 total module shipments of 172.8 were reported by the company.

Page 41 of 189

PV-Outlook A.D. 2010 v1.5

Sanyo Electric
SANYO Electric Co., Ltd. (San'y Denki Kabushiki-Kaisha) (TYO: 6764, NASDAQ: SANYY) is a major electronics company and member of the Fortune 500 whose headquarters is located in Moriguchi, Osaka prefecture, Japan. Sanyo targets the middle of the market and has over 324 offices and plants worldwide, together employing more than 11,000 employees. On November 2, 2008, Sanyo and Panasonic announced that they have agreed on the main points of a proposed buyout that would make Sanyo a subsidiary of Panasonic [2] and a formal announcement of the acquisition was made on Sanyo's web site on December 19, 2008.[3]They became a subsidiary of Panasonic on December 21, 2009. Sanyo Energy opened its solar module assembly plant in Hungary and in Mexico in 2004, and in 2006 it produced solar modules worth $213 million. In 2007, Sanyo completed a new unit at its solar module plant in Hungary that is to triple its annual capacity to 720,000 units in 2008. Plans to expand production were based on rising demands for Sanyo Hungary products, whose leading markets are Germany, Italy, Spain and the Scandinavian countries. The plant at Dorog, outside Budapest, will be Sanyo Electric's largest facility that produces solar modules in the entire world. In late September 2008, Sanyo Electric Company, Ltd. announced its decision to build a manufacturing plant for solar ingots and wafers (the building blocks for silicon solar cells) in Inagi, Japan. The plant will begin operating in October 2009 and will reach its full production capacity of 70 megawatts (MW) of solar wafers per year by April 2010. . Sanyo and Nippon Oil have decided to launch a joint company for the production and sale of thin-film solar panels, to be named Sanyo Eneos Solar Co., Ltd . The new joint company will start production and sales at an initial scale of 80MW and gradually increase its production capacity. For this joint project, Sanyo will draw on its solar cell technologies, based on the technology acquired through the development of the HIT Solar Cell.

Trina Solar Energy

Trina Solar was founded in 1997 and went public in December 2006. The company has integrated product lines, from ingots to wafers and modules. In December 2005 a 30 MW mono-crystalline silicon wafer product line went into operation. According to the company the production capacity was 350 MW for each of ingot, wafer, cell and modules at the end of 2008. For 2008 shipments of 201 MW were reported.

Kyocera
Kyocera Corporation (Kysera Kabushiki-Kaisha) is a multinational manufacturer based in Kyoto, Japan. It was founded as Kyoto Ceramic Co., Ltd. (Kyto Seramikku Kabushiki-Kaisha) in 1959 by Kazuo Inamori and renamed in 1982. The company has diversified its founding technology in ceramic materials through internal development as well as strategic mergers and acquisitions. It manufactures industrial ceramics, solar power generating systems, telecommunications equipment, office document imaging equipment, electronic components, semiconductor packages, cutting tools, and components for medical and dental implant systems.

Page 42 of 189

PV-Outlook A.D. 2010 v1.5 Kyocera Corporation has announced a plan to increase its solar cell production to 650 megawatts (MW) per year by March 31, 2012, more than doubling its 2008 output of 290 MW. The company will reinforce its production bases in Japan, Mexico, Europe and China, investing about 50 billion through March 31, 2012 as part of the expansion. Through this production enhancement, Kyocera looks to meet increasing demand across the world for solar cells.

Canadian Solar (CSI)

Canadian Solar Inc. was founded in Canada in 2001 and was listed on NASDAQ in November 2006. CSI has established six wholly-owned manufacturing subsidiaries in China, manufacturing ingot /wafer (planned production in mid 2008), solar cells and solar modules. According to the company it achieved 120-150 MW of ingot and wafer capacity and 270 MW of cell capacity in 2008. For 2008 the company reported shipments of 167.5 MW.

Solar World
SolarWorld is a German company dedicated to manufacture and market photovoltaic products worldwide by integrating all components of the solar value chain, from feedstock (silicon) to module production, from trade with solar panels to the promotion and construction of turn-key solar power plants. The group controls the development of solar power technologies at all levels in-house. SolarWorld AG is listed on the Frankfurt Stock Exchange. Its subsidiaries are SolarWorld Innovations GmbH, Sunicon AG, Deutsche Solar AG, Deutsche Cell GmbH, Solar Factory GmbH [3], SolarWorld Industries America,

Ningbo Solar Electric Power / Sun Earth

The company has been part of China PuTian Group since 2003. According to company information Ningbo has imported solar cell and module producing and assembling lines from America and Japan. According to the company, production capacity will be increased in 2009 from the current 200 MW to 350 MW.

Moser Baer Photovoltaic

Established in 1983 in New Delhi, Moser Baer is one of Indias leading technology companies. Moser Baer's flagship company, Moser Baer India Limited (MBIL) has successfully developed cutting edge technologies to become the worlds second largest manufacturer of optical storage media. Moser Baer Photo Voltaic Limited (MBPV) and PV Technologies India Limited (PVTIL) are subsidiaries of MBIL and were launched between 2005 and 2007 with the primary objective of providing reliable solar power as a competitive non-subsidized source of energy. Moser Baer India Limited, the global technology company, is developing a one megawatt solar project in Chandrapur, Maharashtra. It has been has been awarded an EPC contract to this effect by Mahagenco, a Government of Maharashtra power generation company. The solar power plant was awarded on the basis of a global tender, in which 20 global companies participated. The project will be commissioned in consortium with SunEnergy GMBH, a specialized PV systems company based in Germany. The Chandrapur solar farm is among the largest projects anywhere in the world using amorphous silicon (thin film) photovoltaic technology.

Page 43 of 189

PV-Outlook A.D. 2010 v1.5

Bosch Solar Energy (Ersol Solar)

Bosch Solar Energy AG stands for the Solar Energy division of the Bosch Group and, together with its subsidiaries, it is a leading provider of silicon-based photovoltaic products with a consistent focus on product quality. From small-scale plants for single-family homes to finished large-scale photovoltaic projects Bosch Solar Energy offers high-quality solar cells and modules for photovoltaic power generation. With its high-efficiency crystalline and thin-film products, Bosch Solar Energy focuses very deliberately on the sustainable and environmentally friendly form of silicon-based solar power generation.

China Sunergy
China Sunergy was established as CEEG Nanjing PV-Tech Co. (NJPV), a joint venture between the Chinese Electrical Equipment Group in Jiangsu and the Australian Photovoltaic Research Centre in 2004. China Sunergy went public in May 2007. At the end of 2008, the Company had five selective emitter (SE) cell lines, four HP lines, three capable of using multi-crystalline and mono-crystalline wafers, and one normal P-type line for multi-crystalline cells with a total nameplate capacity of 320 MW. For 2008 a production of 111 MW was reported by the company.

Conergy
Conergy AG was founded in 1998 by the former chairman of the board Hans-Martin Rter. With a turnover of 706 Million Euros in 2007, and employing more than 2000 staff currently, Conergy is one of the leading solar energy companies in Europe. It also has a company called Conergy Americas.

Since March 2005 Conergy AG has been registered at the Frankfurt Stock Exchange with the abbreviation CGY and the ISIN DE 00060 40025. Three months after its IPO, the company is now listed on the TecDAX. Conergy has been increasingly building a presence in foreign markets. By 2007 Conergy had operations in subsidiaries in 25 countries on five continents. As well as expansion into the most promising solar markets worldwide, Conergy pursued diversification of its product range to become a "renewable energy agnostic" company manufacturing, supplying and developing renewable energy technologies with proven commercial applications. Until its reorganization in 2008, Conergy addressed the renewable energy market via three brands, which were intended to be clearly delimited relative to each other. The Conergy group served solar wholesalers, installers, industrial or private roof-owners and investors in solar power as required. In this way the respective customer wishes can be tackled and implemented by specialist sales teams. Potential for growth is additionally created by extension of the solar portfolio based on needs, for instance with large solar-thermic plants and solar cooling systems.

Baoding Tianwei Yingli

Baoding TianWei SolarFilms Co. Ltd. was set up in 2008. It is a subsidiary of Baoding TianWei Group Co., Ltd., a leading company in the China power transformer industry. In Phase I of the production, the set up has a capacity of 50MW and should begin commercial operation in the second half of 2009. The company plans to reach a capacity of 500 MW in 2015.

Page 44 of 189

PV-Outlook A.D. 2010 v1.5

Page 45 of 189

PV-Outlook A.D. 2010 v1.5

Crystalline Silicon Solar Modules

Photovoltaics are the direct conversion of sunlight into electrical energy. The name derives from photos (the Greek word for light) and volta (from Alessandro Volta, the pioneer of electrical engineering). Photovoltaic (or solar) cells to capture sunlight and convert it into electrical energy were first manufactured in the 1950s. They are the heart of a photovoltaic system. The market is currently dominated by silicon (Si) solar cells. Silicon is a semiconductor and displays the properties of both metals and non-metals. The raw material from which the silicon is manufactured is quartz sand. Due to the almost unlimited reserves and its complete non-toxicity, silicon is a material well-suited to photovoltaics. Only ultra-pure silicon is suitable as a basis for manufacturing solar cells. Known as polycrystalline silicon, it is 99.99 percent pure. This ultra-pure raw material is used in two forms: as crystalline (c-Si) and amorphous silicon (a-Si). The two forms differ in their inner structure. In the production of solar cells we distinguish between two manufacturing processes. In crystalline technology, a solar cell is made out of polycrystalline technology in several production steps. The standard format is currently 156 by 156 millimeters. The individual solar cells are then connected electrically to each other to form a solar module. The main advantage of crystalline technology is its high level of efficiency. Efficiency refers to the percentage of sunlight that can actually be converted into electrical energy. At more than 17 percent and roughly 16 percent respectively, the efficiency of monocrystalline solar cells and polycrystalline solar cells is significantly higher than that of thin-film solar cells.

Monocrystalline solar cells are made from a single silicon crystal and are therefore uniform in color, which ranges from dark blue to black.

Polycrystalline solar cells are also bluish in color, but of a lighter shade than monocrystalline cells. They are made up of many silicon crystal grains of different size and orientation. The resulting irregular crystal structure is unmistakable.

Both cell types work according to the same principle.

Page 46 of 189

PV-Outlook A.D. 2010 v1.5

Page 47 of 189

PV-Outlook A.D. 2010 v1.5

194 Crystalline Module Manufacturers

Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 9 0.1 5 2 5 2 10 1.5 3 6.6 0 2 1.5 3.7 0.2 10 0.7 2.7 9 4.81 0.1 0 10 2 2 10 2 10 1.2 9.5 1.3 5 3 10 0.8 40 8.6 5.8 100 55.6 32 11.1 50 15 192 60 200 32 100 200 192 25 50 10 20 25 30 10 80 12 15 42 100 30 100 6 15 8 200 100 100 65 5 55 180 30 30 400 108 30 140 10 15 100 25 150 60 25 20 10 15 1.2 14 60 5 4 45 15 150 20 40 10 80 25 50 8 10 200 32 270 200 320 100 25 50 10 20 50 35 30 50 80 12 15 42 250 30 100 6 15 8 200 100 20 100 65 5 150 25 103 106 110 50 10 50 8 20 25 20 30 40 60 12 12 30 175 30 80 6 10 7 50 50 10 100 60 4 200 180 50 35 32 30 570 300 200 150 320 200 100 80 75 40 50 50 10 9 30 15 50 30 35 20 30 30 150 100 80 70 24 18 15 12.5 42 35 350 280 30 30 100 90 6 6 15 12 8 7.5 200 100 100 75 20 15 110 88 65 60 5 4 500 50 32 570 200 320 200 75 50 10 30 50 35 30 150 80 30 15 42 450 30 100 10 15 8 200 100 20 110 65 5 400 38 32 450 175 250 140 60 50 10 30 40 25 30 150 80 24 15 42 350 30 100 8 14 8 150 80 20 110 60 4 700 100 32 700 200 320 200 100 100 10 30 100 35 30 200 100 30 15 42 550 30 100 10 15 8 200 100 20 110 100 5 560 80 32 560 175 256 180 80 80 10 30 80 25 30 170 80 24 15 42 400 30 100 8 14 8 160 80 20 110 80 4 700 100 32 700 200 400 300 100 100 10 30 100 70 30 200 100 30 15 42 650 30 100 10 15 8 200 100 20 110 100 5 560 80 32 560 175 300 200 80 80 10 30 80 40 30 180 80 24 15 42 550 30 100 8 14 8 160 80 20 110 80 4 800 100 32 800 200 500 500 100 100 10 30 100 70 30 300 100 30 15 42 750 30 100 10 15 8 200 100 20 110 100 5 640 80 32 640 175 400 320 80 80 10 30 80 60 30 220 80 24 15 42 650 30 100 8 14 8 160 80 20 110 80 4 1000 25 40 1100 100 30 1200 10 15 100 30 1200 25 80 80 20 10 50 1.2 6 0.5 0.5 5 0.2 10 0.5 1.3 0.3 4.3 1.1 1.6 9 5 0.1 0.05 25 3 2 10 2 10 2 9.5 2.5 5.3 3 25 8 2 1.5 10 0.2 10 1.5 3 1.5 5.3 0.4 10 9 6 0.1 0.05 25 3 2 10 2 10 2 9.5 2.5 8 3 25 25 2.5 1.5 10 0.2 10 1.5 6 2 6.4 0.4 15 9 7 0.1 0.05 25 3 2 10 2 10 2 9.5 2.5 10 3 25 15 2.8 1.5 10 0.2 10 2 9 2 8 1.3 18 9 8 0.1 0.05 25 3 2 10 2 10 2 14 2.5 10 3 25 50 25 3 1.5 10 0.2 10 2 10 2.5 9 2.5 20 0.5 9 8 0.1 0.08 25 3 2 10 2 10 25 3 1.6 10 1.6 10 9 8 0.1 0.08 25 3 2 10 2 10 25 3 1.6 10 1.6 10 9 8 0.1 0.08 25 3 2 10 2 10 25 3 1.6 10 1.6 10

Country Australia Australia Austria Austria Austria Austria Austria Austria Belgium Belgium Belgium Belgium Canada Canada Canada Canada China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China China Croatia Cyprus Cyprus Cyprus Denmark Egypt France France BP Solar Origin

Company

Energetica Energietechnik GmbH Ertex Solar GmbH KIOTO Photovoltaics GmbH (RKG) PVT-Austria SED Produktions GesmbH SOLON Hilber Technologie Droben Energy Solutions Issol Photovoltech Centennial Solar Day4Energy Siliken Spheral Solar Baoding Tianwei Yingli Beijing Hope Industry BP Solar Canadian Solar (CSI) Changzhou Eging China Sunergy Chint Solar ZheJiang (Astronergy) 1. CSG PVTech Co.,Ltd. ET Solar FiveStarEnergy Huangming Solar Jiangyin Jetion Science and Tech. Co., Ltd. Jiawei Solar Products Jing Ao Solar Jinko Solar (Zhenziang Sun Valley) Jumao Photonics Kyocera Linuo Millenium Electric Ningbo Solar Electric Power Co. Ltd. Shanghai Boneng Shanghai Chaori Solar Shanghai Electric Solar Energy Co. Shanghai Prim-Sola Shanghai Pubsolar Shanghai Solar Shanghai Topsolar Green Energy Shanghai Zhouhao Solar Tech. Co., Ltd Shenzhen Jiawei Shenzhen Topray Solar SMIC Solar EnerTech Corp. Solarfun Sunlink Sunrise Solartech Co., Ltd Suntech Power Holdings Co., Ltd. Sunworld Solar Suzhou Shenglong Trina Solar Energy Co., Ltd. Trony Universal Energy Wuxi Shangpin Xian REW Yingli Solar Yuhuan Sunshine Yunnan Semiconductor Zhejiang Shuqimeng Energy Tech. Co., Ltd. Zhejiang Yuhui Solar Energy Source .,Ltd Zytech Znshine Solar Solar Cells Enfoton Solar Kyocera SolarTec AG Gaia Solar BIC Photowatt Tenesol

2 2 14 11.2 2.5 2.5 10 9 3 25 50 2.5 20 20

2 2 14 11.2 2.5 2.5 10 9 3 25 50 2.5 20 40

2 2 14 11.2 2.5 2.5 10 9 3 25 50 2.5 20 45

32

30

25 8 20 10 30

25 4 5

25

11 12 2 12 75 20 40

2 12 25 12 10

80 20 80 10 0

60 20 12 6 10 6 21 5 75 40 30 20 75 40 6 5 15 8 6.25 4.86 10 150 16 15 100 25 50 0 100 45 5 80 35 3.5

11

25 6 40 8 10 20 100 25 70 5 8 6 25 30 80 60 4

8 150

30 6

80 15 20 7 30 15 60 200 120 54 14.6 1.5 1 8 59.8 27.4 4 10 5.8 2 50 25 100 35 20 30 10 50 0 5

25 50 10 10

6 40 4 5

30 360 25 30 20 30 336 1000 54 108 10 30 29 350 8 10 1 15 60 100 15 25 146 400 30 25 60 20 35 10 50 6 10 10 15 1.2 14 40 5 3 40 9 1.2 14 60 11 4 45 15

230 550 25 30 30 40 498 1000 80 108 20 30 210 600 10 10 5 15 80 100 25 30 282 600 15 30 40 60 25 75 20 135 8 10 12 60 1.2 14 50 8 3 40 15 1.2 14 60 11 4 45 20

400 700 25 30 32 40 800 1000 90 108 25 30 350 900 10 10 10 15 90 100 24 30 550 800 20 30 45 60 30 100 100 375 10 10 12 60 1.2 14 55 10 3 40 16 1.2

500 700 25 30 40 40 800 1000 100 108 30 30 500 900 10 10 15 15 100 100 30 30 600 1000 25 30 55 100 60 100 300 375 10 10 30 60 1.2 1.2

600 900 800 1200 25 30 25 30 40 40 40 40 880 1200 1000 1200 100 108 100 108 30 30 30 30 700 1200 1000 1500 10 10 10 10 15 15 15 15 100 100 100 100 30 30 30 30 800 1200 1000 1500 25 30 25 30 80 100 80 100 80 100 80 100 325 375 350 20 10 10 10 10 40 60 40 60 1.2 1.2 1.2 1.2 14 14 100 80 18 14.4 4 45 20 3.2 40 20

1.2 14 60 0.2 0.3 1 45 15

1.2 5 0.1 0.3 1 29 2.7

1.2 14 60 1 0.3 4 45 15

0.6 11 1 1.8 30 8

14 14 80 60 18 14.4 4 45 20 3 40 20

14 14 100 80 18 14.4 4 45 20 3.2 40 20

14 14 100 80 18 14.4 0.6 3.2 40 20 4 45 20

0.3 0.75 0.45 0.75 0.45 0.75 0.45 0.75 0.45 0.75

0.6 0.75

0.6 0.75

Page 48 of 189

PV-Outlook A.D. 2010 v1.5

Country Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Greece Hungary Hungary India India India India India India India India India India India India India India India India India India Israel Israel Italy Italy Italy Italy Italy Italy Japan Japan Japan Japan Japan Japan Japan Japan Japan Korea Korea Korea Korea Korea Korea Malaysia Malaysia Mexico Mexico Pakistan

Company Aleo AG ASS Automotive Solar Systems GmbH Bluenergy Bosch Solar Energy AG (Ersol Solar AG) Conergy EverQ GSS Gebude-Solarsysteme GmbH Heckert-B.X.T. Solar GmbH Prisolartech GmbH RWE Schott Solar Schott Solar AG Schco International AG SMD (Aleo Solar) Solar Factory (for Solar World AG) Solara Solar-Fabrik AG Solarion Solarnova Solarwatt Solar Systeme GmbH Sunovation GmbH Sunware GmbH & Co. KG Solartechnik Sunways Systaic GmbH Webasto WulfmeierSolar GmbH ZRE Solar Cells Hellas Korax Gpgyr Kft. Sanyo Electric Ammini Solar Bharat Electronics Ltd. Bharat Heavy Electricals Ltd. Central Electronics Ltd. Emmvee Solar Systems Pvt. Ltd. KL Solar Kotak Urja Maharishi Moser Baer Photovoltaic Ltd. Photon Energy Systems Ltd. Shurjo Energy Solar Semiconductor Tata BP Solar Titan Energy Systems Ltd Udhaya Energy Photovoltaics Pvt., Ltd. USL Webel Solar XL Telecom Millenium Electric Orionsolar Photovoltaics Electro Solar Elettro Sannio EniPower (former Enitecnologie) Helios Technology S.p.A. Renergies Italia S.E. Project Fujipream Hitachi KIS Kyocera Mitsubishi Electric MSK / Suntech Sanyo Electric Sharp Yocasol Inc. Hae Sung Solar Hyundai Heavy Industries Co. Ltd. KD Solar (Kyungdong) S-Energy Symphony Energy Unison Qcells Sunpower Corp. Kyocera Sanyo Electric Akhter Group

Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 4 2 4.2 0 90 8 20 45 4.5 5 100 12 20 60 50 90 12 50 10 40 100 45 8 10 55 0 60 5 0 5 30 74 125 25 20 220 100 100 12 50 10 60 205 80 10 20 133 50 50 8 20 8 40 138 150 25 40 320 250 150 12 50 10 100 335 125 20 30 180 200 100 10 30 10 80 295 200 25 50 320 375 300 12 50 10 130 335 175 20 40 200 250 250 12 45 10 104 300 200 25 100 320 500 400 12 100 10 200 335 175 20 80 250 400 320 12 80 10 160 300 200 25 100 320 500 500 12 100 10 200 500 175 20 80 280 400 400 12 80 10 160 400 200 25 100 320 600 600 12 100 10 200 500 175 20 80 300 480 480 12 80 10 160 420

12 20 25 3 2.5 90

10

30 12 25

15 4 0

22 3 0.7 35

10 40 15 0.01 0 12 3 60 35.5 0.5 0.3 1.5 0.7

5 1

1.5 0.1

25 22 25 25 2.5 1.4 90 42 90 60 90 90 90 90 90 90 100 90 100 90 100 90 75 55 135 135 160 160 200 170 450 300 450 400 600 500 600 550 12 10 24 18 24 20 24 24 36 30 36 30 36 30 36 30 50 17 50 35 50 40 75 60 75 75 100 80 100 80 100 80 0.01 0.01 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 12 3.2 12 6 12 12 24 20 30 24 30 24 30 24 30 24 100 45.5 100 55 100 65 100 85 100 95 100 95 100 95 100 95 0.5 0.5 0.5 0.3 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.5 0.8 1.5 0.8 1.5 1 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 38 76 33 116 82 156 120 200 160 250 200 300 240 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 5 1.5 5 1.5 5 5 10 8 10 10 10 10 10 10 10 10 1 0.1 1 0.1 1 0.5 1 1 1 1 1 1 1 1 1 1 16 16 16 16 16 16 16 16 16 16 16 16 16 16 3 3 2 50 3 4 105 3 4 90 2 1.8 3 8 12 6 3 10 60 8.8 6 25 80 24 2.5 8 8 6 10 0.2 5 3 6 16 5.5 35 35 5 8 171 150 100 200 473 50 6 25 25 30 30 12 3 4 105 2 10 10 10 25 10 3 17 70 15 10 50 205 40 4 15 10 10 10 0.2 5 3 10 60 5.5 50 50 5 10 240 260 100 315 760 70 10 330 60 100 150 18 300 3 4 105 2 5 5 9 15 8 3 15 70 11 8 40 150 32 3 10 8.5 8 10 0.2 5 3 9 30 5.5 40 40 5 9 180 170 100 252 650 60 8 100 60 60 80 14 120 70 20 16 3 4 105 2 10 10 10 25 10 3 20 90 15 10 50 300 50 4 15 10 10 10 0.2 5 3 10 60 5.5 50 50 5 10 500 250 100 405 820 90 10 330 100 120 150 18 300 40 144 20 20 3 4 105 2 10 10 10 25 10 3 16 72 11 10 45 200 40 3.5 10 9 10 10 0.2 5 3 9 35 5.5 45 45 5 7 180 200 100 300 700 80 10 150 80 80 100 16 120 20 115 20 18 3 4 105 2 10 50 10 25 10 3 20 100 15 10 100 300 100 4 15 10 10 10 0.2 5 3 10 60 5.5 100 100 5 10 500 250 100 405 900 120 10 330 150 150 150 18 500 80 200 20 20 3 4 105 2 10 30 10 25 10 3 16 80 12 10 80 240 80 3.5 12 9 10 10 0.2 5 3 9 40 5.5 80 3 4 105 2 10 150 10 25 10 3 20 100 15 10 100 300 100 4 15 10 10 10 0.2 5 3 10 60 5.5 100 3 4 105 2 10 100 10 25 10 3 16 80 12 10 80 260 80 3.5 12 9 10 10 0.2 5 3 9 45 5.5 80 3 4 105 2 10 250 10 25 10 3 20 100 15 10 100 500 100 4 15 10 10 10 0.2 5 3 10 60 5.5 100 3 4 105 2 10 180 10 25 10 3 16 80 12 10 80 350 80 3.5 12 9 10 10 0.2 5 3 9 50 5.5 80 4 55 0.4 25 4 55

50 1 2.25 3 3

2 10 3 45 15 7 10 6

0.6 1 0.6 1.5 1 2.25 0.2 2.25 1.5 3 1 3 2.4 10 5 10 15 3 15 6 2 10 1.5 1.55 3 2 10 5 10 20 2 10 3.5 15 0.15 3 0.75 6 50 26 45 31.3 85 6 15 3 20 4 0.97 4 5 7 4 15 5 10 5.5 10 0.5 6 6 6 5 0.2 5 0.2 10 0.2 5 3 10 30 5.5 50 50 5 10 172 145 200 185 600 10 10 30 50 100 18

1 2 0.5 2.25 1.5 7 7 10 10 15 4 10 3 3 7 10 6 70 8 15 2 6 15 50 45 125 8 30 2 4 7.6 15 7.5 10 6 6 10 0.2 5 2 6 8 5.5 30 5 7 130 120 160 150 363 3 10 25 10 30 10 10 0.2 5 3 10 30 5.5 50 50 5 10 202 230 100 225 710 60 10 70 90 80 100 18

1.2 6 8 15

0.9 1.2 0.8 3.8 6 3 8 10.5 8 1.1 0.17 8 30 21 5 10 172 135 200 95 350 10 10 20 20 50 3 5 5 48 111 36 65 272 7.5

172 135 200 95 350 0.6

38 100 75 21 319 0.5

80 100 5 5 8 10 520 800 200 600 100 100 350 500 720 1000 100 150 10 200 100 100 120 16 400 60 160 20 18 10 500 200 200 250 18 750 120 300 20 20

80 100 80 5 5 5 8 10 8 600 800 640 480 800 640 100 100 100 550 600 550 800 1200 1000 120 180 150 10 300 150 120 150 16 10 500 250 200 250 18 10 400 200 160 200 16 800 150 350 20 18

30

3 8 1

600 1000 100 200 240 20 18 400 20 20

36 12

10 10

36 20 15

20 20 1.5

36 20 20

30 20 8

72 57.6 20 20 20 12

108 20 20

Page 49 of 189

PV-Outlook A.D. 2010 v1.5

Country Philippines Portugal Russia Russia Russia Slovenia South Africa Spain Spain Spain Spain Spain Spain Spain Sweden Sweden Sweden Sweden Switzerland Taiwan Thailand Thailand Thailand Uganda U.A.E. Sunpower Corp. Shell Solar Saturn JSC Solar Wind Telecom-STV Bisol d.o.o. Tenesol

Company

Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 75 67.5 80 59 8 1.5 15 60 27 60 30 18 8 32 19 3 2 90 39.8 10 5 2 2 20 3 22 15.5 14 9 4 30 0 1 40 14 4.5 0.5 9 0 0.5 20 24 12 50 17.7 12 4 130 61 27 16 15 15 20 23 20 45 9 20 4 10 30 3 3.5 4 40 3.2 18 2 45 4.5 6 3 10 0.5 0.5 25 3 0.6 30 12 1.5 15 60 69 50 12 130 45 45 4 20 40 40 100 9 35 4 30 4 3.5 12 110 25 35 22.6 0.1 0.05 15 13 30 18 14 60 50 3 12 40 0.1 38 26.7 0.6 0.3 15 12 30 17 0.2 0.2 14 13 60 50 3 50 0.1 20 38 0.6 20 30 10 14 60 3.5 90 15 7 1 5 32 20 25 8 90 30 40 3 5 10 10 100 9 25 3 20 2 2 100 30 12 1.5 15 60 69 50 12 130 45 45 15 20 40 40 150 9 35 25 30 4 50 3.5 12 220 25 9 1 5 60 30 30 12 100 30 40 12 3.2 28 28 100 9 30 4 30 4 14 2 8 176 30 12 1.5 15 60 69 50 24 130 45 45 15 20 40 40 150 9 35 25 30 6 50 3.5 12 220 30 10 1 10 60 50 40 20 110 35 40 10 10 32 32 140 9 35 15 30 4.8 25 2.5 8 200 40 12 1.5 15 60 69 50 24 130 45 45 15 20 50 40 150 9 35 25 30 10 50 3.5 12 220 32 12 1 12 60 60 45 24 120 40 40 10 15 28 36 140 9 35 20 30 8 36 3 8 200 40 12 1.5 15 100 100 100 24 130 45 45 15 20 100 40 200 9 35 25 30 10 100 3.5 12 220 40 32 12 1.2 12 80 80 80 24 120 40 40 10 16 80 36 160 9 35 20 30 8 80 3 9.6 200 30 40 12 1.5 15 100 100 100 24 130 45 45 15 20 100 40 200 9 35 50 30 10 100 3.5 12 220 60 32 12 1.2 12 80 80 80 24 120 40 40 10 16 80 36 160 9 35 30 30 8 80 3 9.6 200 40 40 12 1.5 15 100 100 100 24 130 45 45 15 20 100 40 200 9 35 50 30 10 100 3.5 12 220 80 32 12 1.2 12 80 80 80 24 120 40 40 10 16 80 36 160 9 35 35 30 8 80 3 9.6 200 60 108 100 414 237 574 450 1000 650 1000 850 1200 1000 1200 1100

Atersa BP Solar Gamesa Isofoton Siliken Solar Energia Yohkon Energia S.A. Arctic Solar (Alfasolar) GPV (Solarworld) PV Enterprise REC ScanModule AB Solterra Tynisolar Ekarat Solar Solar Power Technology Co., Ltd. Solartron Racell Uganda Microsol International

United Kingdom GB Sol United Kingdom Romag United Kingdom Sharp Manufacturing Company of U.K. United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States U.S. Islands 1Soltech Inc. Advent Solar Amonix BP Solar Emcore Photovoltaics Evergreen Solar GE Pyron Solar Schott Solar (RWE Schott Solar) Sharp Shell Solar Solar Power Industries Solar World USA Sunpower Corp. Suntech Power Holdings Co., Ltd. Unicor Hoku Solar (HOKU Scientific, Inc.)

5 3 20 10 2.7 25 25 1 27.7 38 30 38 30 38 30 0.4 0.6 0.5 0.6 0.5 0.6 0.5 16.4 58.5 26.5 160 130 170 130 22 30 25 30 30 4 10 8 10 10 10 10 10 15 11 55 60 60 60 60 60 60 3.5 35 50 100 214 25 30 200 100 250 414 30 25 30 60 120 400 1 20 25 100 250 414 30 75 30 80 200 400 20 30 27

38 30.4 0.6 0.5 200 160 10 100 100 350 414 60 75 30 10 80 80 300 400 40 50 27

38 30.4 0.6 0.5 300 220 10 100 100 350 414 90 75 30 10 80 80 280 400 60 60 27

38 30.4 0.6 0.5 400 320 10 100 100 400 414 120 75 30 10 80 80 320 400 100 70 27

15

30

20

Page 50 of 189

PV-Outlook A.D. 2010 v1.5

Thin Film Solar Modules

In amorphous thin-film technology, gaseous silicon or silane (SiH4) is deposited in a thin layer on a large glass plate, the subsequent module. The inner structure of the amorphous silicon used in this technique heightens its ability to absorb sunlight, and is the reason why thin-film technology uses only roughly one percent of the base material used in crystalline manufacturing processes. Accordingly, these cells can be manufactured much more cost-effectively. However, at roughly six percent, the efficiency of amorphous thin-film modules is currently still far below that of crystalline solar modules. Amorphous thin-film solar cells are uniform in color, which ranges from dark red to black-brown. This is why the innovative micromorphous thin-film technology (also known as tandem cell technology) is already being frequently used. In this technology, two layers of silicon are deposited. Their different structures mean that the two layers absorb different wavelengths of sunlight. In this way, the entire light spectrum is used, and the efficiency of the thin-film module increased to more than ten percent.

Micromorphous solar cells consist of a tandem of two layers of silicon one amorphous and one monocrystalline. Micromorphous solar cells suffer less of the degradation than the amorphous thin film solar cells. Micromorphous thin-film solar cells are of uniform black color. The dark coloring additionally supports light absorption and is particularly in demand by customers who place a special emphasis on aesthetics. Silicon-based photovoltaic cells and modules have a service life of at least 20 years.

Page 51 of 189

PV-Outlook A.D. 2010 v1.5

100 Thin Film PV Module Manufacturers

Country Bulgaria Canada China China China China China China China China China China China China China France France France Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Greece Greece Hungary India India India Italy Italy Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Malaysia Mexico Netherlands Portugal Russia Singapore South Africa Spain Spain Spain TF PV Module Maker Company SolarPro AD EPOD International Inc. Baoding TianWei SolarFilms Co., Ltd. Bluestar Terra Photovoltaic Co., Ltd China Solar Power (Holdings) Ltd. Chint Solar ZheJiang (Astronergy) 2. ENN Solar Energy Co., Ltd. Green Energy Technology Inc., Ltd. Harbin-Chronar Solar Energy Elec. Corp. Parity Solar Shenzhen Topray Solar (TF) Soltech Sun Well Solar (China) Tianjin Jinneng Solar 1 Tianjin Jinneng Solar 2 EDF Energies Nouvelles / First Solar Free Energy Europe T-Solar / T-SEP Antec Solar Energy GmbH Avancis GmbH Bosch Solar Energy AG (Ersol) Brilliant 234 GmbH (Q-Cells) Calyxo (Q-Cells subsidiary) Concentrix CSG Solar AG First Solar GmbH Global Solar (Germany) Inventux Technologies AG Johanna Solar Malibu GmbH & Co. KG Masdar PV GmbH (Ichterhausen) Odersun AG Scheuten Schott Solar AG Signet Solar GmbH SolarTec Solibro GmbH Solon AG Sulfurcell Solartechnik GmbH SunFilm AG Wrth Solar GmbH & Co. KG Heliodomi HelioSphera (Next Solar) Heliogrid KSK Surya Photovoltaic Venture Pte. Ltd. Moser Baer Photovoltaic Ltd.TF Titan Energy Systems Ltd (fab 2) Moncada Energy Group Srl STMicroelectronics Clean Venture 21 Fuji Electric Systems Honda Soltec Co., Ltd. Kaneka Mitsubishi Heavy Industries (MHI) A. Mitsubishi Heavy Industries (MHI) B. MSK asi Sanyo/ENEOS Sharp (thin films) Showa Shell Sekiyu First Solar Malaysia Sdn Bhd Solar Torx Nuon Solar Plus SA Nano Solar Technology Ltd. Solar Morph Pte. Ltd. Johanna Solar Technology GmbH Gadir Solar Genesis Solar Espana S.L. Gropo Unisolar SA 15 5 20 30 5 20 40 60 40 6 20 40 10 0.5 60 80 40 6 40 64 32 3 5.5 4.5 3 1 12 3 0.05 12 2.8 2.8 27.5 30 27 55 14 13 28 40 5 5 5 15 8.2 15 20 1 15 3 26 7 27.5 50 80 26 28 34 100 5 5 10 37.5 13 20 392 75 20 5.5 6 5 1 40 18 40 20 27.5 60 100 26 42 60 100 5 5 10 15 167 160 80 784 150 20 5.5 2 2.5 1.5 5 5 60 60 1 6 5 2.5 1 3 5 2.2 1 6 10 2.5 1 3 1 2 1 6 15 2.5 6 1.2 10 20 40 20 25 0.6 20 120 1 5 10 2 0.5 0.6 4 0 0 4 4 0.6 15 40 1 6 15 2.5 6 1.2 10 20 40 25 25 1 20 120 30 33 30 1 5 10 2 3.5 0.6 8 10 10 20 15 1 20 100 15 3 15 1 100 15 10 30 1 80 10 32 180 120 15 1 24 100 15 60 2.5 24 1.2 45 10 110 80 5 1 6 80 10 20 2 18 0.6 35 32 180 160 15 1 36 100 15 120 2.5 24 28 120 120 12 1 12 80 12 60 2 20 64 240 240 30 1 48 100 15 180 2.5 24 40 180 180 18 1 36 90 12 120 2 20 128 300 300 30 1 72 100 15 240 2.5 24 80 240 240 24 1 48 90 12 190 2 20 4.5 5 5 Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 6 10 46.5 2 8 8 18 20 50 8 16 36 18 20 100 12 16 55 18 20 100 14 16 80 18 20 150 16 16 120

2.5 2 24 12.5 1.2 0.6

1.2 10

0.5 8

1.2 10

0.5 4

1.2 0.96 100 50

100 20 1.2 0.96 150 80

100 60 1.2 0.96 200 140

1.2

0.2

30

23 40

16 40

55 43 1

20 42 1 84 0.2

1 80 43 5 130 4

0.5 46 40 5 110 1

90

56

120 0.2

4.5 80 43 60 5 25 210 5

4 50 40 5 5 18 180 4

1.5 14.8 0

1 14.8 14.8 14.8 14.8 0 5 6 40 5 35 2 3 10 6 80 11 8 1 60 5

20 15 30 25 30 25 30 25 30 25 20 15 100 35 100 80 100 80 200 160 40 30 80 60 160 128 160 128 200 160 50 25 50 40 100 80 100 80 200 120 25 20 100 75 100 85 150 138 200 160 2 2 4 4 4 4 4 4 4 4 40 30 40 35 100 80 200 120 300 240 120 100 120 100 120 100 120 100 120 100 30 25 30 28 30 28 60 40 90 64 33 30 100 33 160 80 220 140 280 200 30 25 30 30 30 30 30 30 30 30 40 12 40 32 40 35 80 45 120 90 65 3 65 30 130 60 195 100 260 150 9 6 18 9 18 14.4 36 30 72 40 80 70 80 70 100 80 150 110 200 160 43 40 80 60 100 80 100 80 100 80 60 20 60 40 100 80 100 80 100 80 5 5 5 5 5 5 5 5 5 5 30 25 50 40 100 80 100 80 100 80 210 180 130 110 130 110 130 110 130 110 35 5 35 20 75 40 75 50 75 60 85 60 85 65 145 100 145 125 145 130 14.8 14.8 14.8 14.8 14.8 14.8 14.8 14.8 14.8 14.8 10 60 6 360 17 8 10 1 190 8 540 29 40 34 65 30 40 20 27.5 80 120 38 100 80 200 5 5 80 50 640 50 80 657 1000 100 15 5.5 300 20 5.5 300 10 40 150 30 150 80 820 650 1020 800 29 23.2 29 23.2 40 160 40 80 40 320 40 200 300 200 500 400 29 23.2 40 480 40 320 16 60 8 40 16 12.8 60 45 16 12.8 60 48 16 12.8 60 48

23 20.8 10 9

40 80 40 100 22 27.5 96 120 40 200 90 300 5 5 40 160 500 800 60 540 800 1000 250 18 5.5 400 20 5.5 120 60 100 40 40 6

50 100 80 150 22 27.5 200 350 160 200 240 600 5 5 120 320 600 1000 400 980 320 18 5.5 60 48 80 32 10 4 500 20 5.5 120 100 100 80 40 6

80 150 120 100 150 100 22 27.5 22 300 480 400 160 300 240 350 600 400 5 5 5 280 640 500 800 1200 1000 750 1420 1200 400 18 5.5 80 80 80 40 30 4 600 20 5.5 240 100 100 80 80 6 480 18 5.5 140 80 80 60 45 4

900 1200 1000 1600 1400

Page 52 of 189

PV-Outlook A.D. 2010 v1.5

Country Switzerland Switzerland Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Thailand U.A.E. United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States

TF PV Module Maker Company Pramac Swiss S.A. VHF-Technologies Auria Solar Co., Ltd. Chi Mei Energy Corp. Green Energy Technology Inc., Ltd. Kenmos Photovoltaic Co., Ltd. Sinonar Sun Well Solar Co., Ltd. Bangkok Solar Masdar PV (Taweelah)

Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod Capa Prod 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 0.05 0.01 0.06 0.03 2 0.75 2 1.5 30 2 60 50 50 30 10 45 50 3 65 10 5 1.5 20 0.5 15 40 35 25 147 40 20 50 40 430 430 10 3 3 110 200 12 1.5 30 10 30 10 8 40 44 2 27 30 5 25 147 25 14 30 20 40 400 6 3 3 50 160 30 2 60 50 50 60 10 105 50 130 0.93 3 3 2 3 2 3 2 3 130 100 35 65 25 147 40 40 100 60 430 600 10 3 3 110 300 20 1.5 40 40 40 30 10 40 45 20 2 80 50 30 10 25 147 30 20 60 40 60 450 9 3 3 80 240 30 2 60 100 50 90 10 105 65 130 3 200 100 35 65 25 147 100 40 100 100 430 800 10 3 3 110 720 24 1.6 50 60 40 60 10 80 50 100 2.4 160 80 2 120 100 100 120 10 165 80 260 3 200 40 1.6 80 80 45 90 10 120 60 150 2.4 170 80 2 350 150 150 180 10 225 80 390 3 200 60 1.6 200 100 100 120 10 180 70 220 2.4 180

40 0 0 5 24 5 6.8 5 48 5 20 5 8.5 50

10 5 8.5 40

6 3.42

United Kingdom ICP (former Intersolar Group) Abound Solar Inc (was AVA Solar) Ascent Solar DayStar Technologies Inc. EPOD Solar Inc. (a-Si) EPOD Solar Inc. (CIGS) (JV with DayStar) EPV First Solar Global Solar HelioVolt Corp. Innovalight Inc. Konarka Miasole Nanosolar PowerFilm PrimeStar Solar Shell Solar CIS Solar Integrated Technologies Solopower Solyndra United Solar

2 0.6 25 21 1.5 0.15

2 75 4.2

1.1 60 2.5

10 90 10

5 119 3

10 147 20 20 20 430 200 10

10 145 5 2 10 20 100 3

1 1 3

0.5 0.7 0.1

50 100 10

0 10 1

80 200 30 25 55 45 25 25 147 147 80 160 30 60 80 200 80 200 344 430 640 1000 9 10 3 3 3 3

130 400 320 20 15 10 35 25 15 25 25 25 147 147 147 120 220 180 40 80 60 120 300 200 120 300 220 344 430 344 800 1400 1200 9 10 9 3 3 3 3 3 3

25

22

60

28

118

48

3 20 110 178

2.8

113

88 110 320 1000

88 110 88 800 1280 1000

Page 53 of 189

PV-Outlook A.D. 2010 v1.5

Thin-film technology about to make its breakthrough

[Sascha Rentzing is a freelance writer. The following article appears courtesy of Messe Dsseldorf, organizers of solarpeq 2010/glasstec 2010.] The Centre for Research into Solar Energy and Hydrogen Research (ZSW) is closing the gap separating it from the worlds leading institutions in the race to market the most efficient thin-film solar cell. Its copper-indium-gallium-diselenide (CIS) based cells achieved efficiencies of up to 19.6 percent in a pre-industrial production line. This means that the Stuttgart, Germany-based research workers are hot on the trail of the U.S.-based National Renewable Energy Laboratory, scoring efficiencies of up to 19.9 percent under the same conditions. Michael Powalla, head of the ZSW photovoltaic (PV) section, proudly announced: We want to take the 20 percent hurdle next. This would take the CIS technology into the efficiency ranges of available crystalline PV equipment. Multicrystalline silicon cells, taking the lions share of the market today, have reached efficiency rates of 20.3 percent under laboratory conditions. They are, therefore, hardly more efficient than their slimmer competitors.
A staff member of the Berlin-based Inventux company inspects the surface of thin-film silicon module. (Photo courtesy of Inventux)

But CIS technology is still lagging behind its potential when it comes to practical applications. Industry-manufactured modules of this type of semiconductor turn a maximum of 12 percent of sunlight into electricity. Multicrystalline modules manage up to 18.5 percent, while monocrystalline units score conversion rates of up to 20 percent. So far, CIS panels cannot make up their efficiency backlog by lower manufacturing costs. Production costs more than $2.85 (2 EUR) per watt of electricity generated, this is the same as silicon modules, requiring much more semiconductor material. CIS, therefore, is still miles away from achieving its major objective which is to generate electricity at prices undercutting all other competitors. Other thin-film technologies, however, cannot take up this challenge either. The experts say that thin-film silicon modules, for instance, may score efficiency rates of over 15 percent, and they be may be manufactured at less than $0.45 per watt of electricity. Once they actually achieve this, they would put all other solar energy technology in the shade. But at present they merely manage to score efficiencies of around 9 percent and they are about three times as expensive to make. Double the Market Share by 2010 But CIS, thin-film silicon and related devices are just preparing for a major leap in development. In the words of Arnulf Jaeger-Waldau, an energy specialist working for the European Commission, At present some 200 companies are making thin-film modules or they are working on them. This leads the European Photovoltaics Industry Association (EPIA) to expect that manufacturing capacities for these technologies will double to more than 4 gigawatt by 2010-representing a market share of nearly 20 percent. At the same time, new manufacturing technologies and advances in Page 54 of 189

PV-Outlook A.D. 2010 v1.5 automation make for ever more efficient production. Mass production and technological progress bring down costs and raise market chances. Many of these innovative production processes shall be on demonstration at the solarpeq International Trade Fair for Solar Production Equipment in Dsseldorf from 28 September to 1 October, 2010. The successes achieved by First Solar, a U.S.-based manufacturer of cadmium telluride (CdTe) modules have kept the confidence of thin-film firms up. Based on information made available by the company, the Americans by now produce one watt of electricity at about $0.93. There is no other company achieving this. But the disadvantage of these CdTe solar units is that their maximum efficiency stands at only 11.1 percent at present. They will therefore need a greater surface area in order to generate the same amount of electricity as silicon cells marketed at present. A part of the gain in lower manufacturing costs will be eaten up by higher installing charges.
Dirt brings down efficiency. Thin-film cell manufacturing, therefore, requires clean room technologies. (Photo courtesy of Oerlikon Solar)

But First Solars achievement is still considered to be a milestone on the way to making solargenerated electricity competitive. Experts had expected this network grid parity for Germany for 2015 at the very earliest. From then on, solar energy would no longer be more expensive than traditionally produced electricity coming out of a socket in the wall. As Holger Krawinkel, an energy expert at Germanys Verbraucherzentrale Bundesverband e. V., noted, this most recent progress brought grid parity into the foreseeable future: First Solar modules may already generate electricity at $0.28 to $0.35 per kilowatt hour, the expert said. In Germany, electricity prices now stand at about $0.28 per kilowatt hour. First Solar Sets the Tune First Solar set the benchmark as far as cost is concerned. Other thin-film module makers which will be unable to rapidly follow suit or which do not bring down systems costs on account of higher efficiencies, will be unable to keep their share of the market. Added to this, makers of traditional crystalline technologies have continuously lowered their cost by increasing mass-manufacture and technological improvement. Thin-film technology competitors, therefore, are very ambitious now. In April 2009, Abound Solar from Fort Collins, Colo., launched its CdTe module production and the company wants to bring down the price of one watt on its 35 megawatt (MW) line to $1. Pascal Noronha, its founder and president of the board, said that costs of around $0.90 per watt at a capacity of 200 MW are envisaged already for 2010. Berlin-based Inventux also intends to score costs of below $1 rapidly. This firm has made so-called micro-morphous silicon modules since late 2008. This technology represents a development based on the thin-film panels made of ordinary amorphous silicon marketed at present. By depositing an

Page 55 of 189

PV-Outlook A.D. 2010 v1.5 additional absorber layer made of micro crystalline silicon on the amorphous layer, Inventux managed to raise the electricity yield to 9 percent. This reduced cost perspective is to generate efficiencies of scale by larger output quantities and additional improvements to generate higher efficiency. We want to reach ten percent of efficiency by 2010, said Thorsten Ronge, Inventux spokesperson. To bring this about, Inventux works on process optimization but the company also benefits from innovation results of Oerlikon Solar, its component suppliers, from which Inventux buys its coating equipment. Jeannine Sargent, chief executive officer of Oerlikon Solar, promises that by the end of 2010 Oerlikon-made machinery shall be in a position to manufacture these new tandem modules at $0.70, halving present costs.
Careful intermediate storage procedures are required after semiconductor coating. (Photo courtesy of Oerlikon Solar)

Applied Materials, a U.S.-based equipment builder, comes with similar plans. This company also offers complete turnkey production lines for making modules out of thin-film silicon. We are optimistic that we can present solutions with manufacturing costs of below $1 very shortly, says Christopher Beitel, head of its thin-film division. The Americans will present their product portfolio at solarpeq 2010 and the concurrently held glasstec, at which firms will also exhibit solar applications. These products will also include Applied Materials SunFab thin-film line. Nanosolar, another U.S.-based company, comes with even more ambitious plans. This firm developed a manufacturing technology in the process of which minute nano particles of copper, indium, gallium, selenium and probably sulphur will be printed on sheeting material using the roll-toroll process. Using this innovative printing technology, the Americans want to bring down costs to $0.30 up to $0.35-about one third of the manufacturing cost of First Solar, the leading company in the sector. We are capable of coating large areas within very short cycle times, says Erik Oldekop, the spokesperson of Nanosolar. The factories have already been built and series production is about to take off. Nanosolar wants to manufacture its cells in a 430 MW plant in San Jos, California. These will then be processed into circuit modules at Luckenwalde near Berlin. Crystalline Modules Shining with Efficiency All signs are then switched to growth in the thin-film sector. But its quite open how many manufacturers will reach their ambitious extension and manufacturing targets within the time schedules quoted. Delays are quite frequent; it very often takes many years for a technology to be transferred into series production. It calls for the development of appropriate industrial processes for manufacturing and much money must be invested into research and testing. First Solar, for instance, needed exactly ten years to commercialize its modules. CIS manufacturer Wuerth Solar

Page 56 of 189

PV-Outlook A.D. 2010 v1.5 worked for seven years on optimizing its technology on a pilot line, before being able of launching series production in 2007. Newcomers in the thin-film sector do not have much time to present their products for series production. This is because their competitors from the crystalline sector are also spending great efforts on developing new technologies: efficiencies go up and costs are falling. It is because of this that scientists are of the opinion that also in future there will be no way of bypassing conventional solar techniques. As Stefan Glunz, head of the division of development and research into the properties of silicon solar cells of the Fraunhofer Institute for Solar Energy Systems ISE at Freiburg, Germany, puts it, Crystalline silicon cells will continue playing their dominant role.
A staff member of Chinas Suntech Power company prepares a wafer for cell processing. (Photo courtesy of Suntech Power)

This means that there is intense competition at the high end of the efficiency scales. Research workers from the University of New South Wales in Sydney, Australia, managed 24.7 percent efficiency under laboratory conditions using a monocrystalline cell, and industry is moving closer and closer to this world record. For instance Suntech Power, a Chinese solar energy company, this summer began offering a module generating seven percent more electricity than its most highly performing panel before. The core elements of their new technology are what are called Pluto cells, innovative elements that absorb more light at their frontal sections because of a specially treated surface and thinner electric contacts. This brings up efficiency from 15.2 to 17.5 percent for multicrystalline cells and from 17.2 to 19 percent for monocrystalline makes. Their manufacturing process builds on German know how: in 2008 Suntech took over KSL Kuttler, a Black Forest equipment manufacturer. The latter supplies equipment and automation sets for making Pluto cells. Experts also view so-called back contact cells as offering great potential. Bus bars and contacts are no longer to be found at the front but rather at the back side of solar cells, thus enlarging the solaractive surface of these modules. U.S.-based Sunpower, a manufacturer of backside collectors, already produces cells with efficiencies of more than 20 percent. Modules using these cells reach efficiency levels of 19.6 percent and generate 315 watt of electricity. There is no stronger module. Falling Silicon Prices The drop in silicon prices is a boon for companies in this sector. Semiconductor demand has increased so strongly over the past few years that manufacturers could hardly keep pace with their output. In 2008 this brought spot market prices up to $400 a kilo. Now, silicon prices are dropping significantly below that as the solar energy sector does not longer grow that rapidly because of the crisis. According to iSupply, a market researcher, the price stood at only $75 in June this year and there is a tendency for that price to drop even further.

Page 57 of 189

PV-Outlook A.D. 2010 v1.5 Manufacturers of thin-film modules will therefore face fierce battles to retain or conquer market shares. To begin with, their technology may face difficulties where large outputs are to be generated from a small surface area, because of fairly low efficiencies. Home owners in countries where solar energy enjoys active promotion, such as Germany, will instead prefer putting crystalline silicon panels on their roofs, because these simply generate more electricity per square meter of roof area and also result in higher compensation for electricity fed into the grid. The latter will be more than enough to offset the pricing disadvantage as compared to thin-film collectors. These, however, will find short-term chances on large industrial and commercial roofs or in free-range areas offering plenty of space and where there is less pressure on generating maximum output from a limited surface. Also, and because of their flexibility and low weight, thin-film modules may be more easily integrated into the walls or roofs of a building when compared to electricitygenerating windows or faades. Thus they do not only improve the energy balance of a building but they also make for more creative freedom of architects and planners. Numerous creative solutions for building-integrated PV (BIPV) were already on demonstration at the last glasstec trade fair held in Dsseldorf in 2008.
After manufacturing, Suntechs crystalline silicon modules are taken into storage rooms. (Photo courtesy of Suntech Power)

CIS, CdTe and similar products will emerge to be more than niche products once their manufacturers live up to their announcements and drastically reduce manufacturing cost within very short time frames. When their slim electricity generators then close the gap separating them from efficiency rates scored by the crystalline competition, they might even take over as the leading solar energy technology. In theory, therefore, thin-film cells may bring about much, but companies manufacturing them will first have to turn their ideas into capacities. Their plants just brought out 800 MW in 2008, of which 500 MW alone came from the lines of First Solar. According to information provided by EPIA, conventional PV cell manufacturers produced seven times as much. Trade fairs, such as solarpeq and glasstec 2010, will be pointers to the way developments will go, because there hardly is any other sector depending to such a degree on the influence of innovations to revolutionize manufacturing technologies by reducing cost.

In California, solar power stations are being put up everywhere. Here you can see 2 MW First Solar modules being installed on a roof in Fontana. (Photo courtesy of First Solar)

Page 58 of 189

Thin-film technologies have the potential to score similarly high efficiencies as crystalline silicon modules. To bring this about, silicon panels will have to be offered at such favorable prices in the long term as their slim-line competitors. But thin-film modules are still lagging behind crystalline technologies. Efficiency is considerably lower and only CdTe modules have gained a clear advantage on cost so far. Efficiency and Cost Potential of Solar Modules Monocrystal- multicrystal- cadmium line silicon line silicon telluride (c-Si) (mc-Si) (CdTe) copperindiumdiselenide (CIS and CIGS) 12% amorphous silicon (a-Si) Micromorphous silicon (a-Si/c-Si)

Efficiency achieved by industry Efficiency achievable Manufacturing cost per watt

19.6%

18.5%

11.1%

7%

9%

>20% $2.84

20% $2.13$2.84 <$0.71

18% $0.95

18% $2.84

10% $1.42

15% $1.42

Expected costs as from 2020 <$0.71

<$0.43

<$0.43

<$0.43

<$0.43

Sources: EU PV Platform, authors own research

PV-Outlook A.D. 2010 v1.5

Thin Film Equipment

Installations TF Equipment 2005 526.46 2006 247.28 2007 828.64 2008 1769.4 2009 2369.5 2010 2812.5 2011 3442 2012 4187 2013 4389

TF Equipment
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013

MWp/year

TF Equipment

Linear (TF Equipment)

Page 60 of 189

PV-Outlook A.D. 2010 v1.5

2005 AMAT OERLIKON %AMAT %OERLIKON

0 MWp 40 MWp 0.00% 7.60%

2006
0 MWp 3 MWp 0.00% 1.21%

2007
60 MWp 40 MWp 7.24% 4.83%

2008
145 MWp 42 MWp 8.19% 2.35%

2009
565 MWp 333 MWp 23.84% 14.05%

Applied Materials vs. Oerlikon Market Share

600 MWp 30.00%

500 MWp

25.00%

400 MWp

20.00%

300 MWp

15.00%

200 MWp

10.00%

100 MWp

5.00%

0 MWp 2005 AMAT 2006 OERLIKON 2007 %AMAT 2008 2009 %OERLIKON

0.00%

Page 61 of 189

PV-Outlook A.D. 2010 v1.5

PV Manufacturing Equipment Suppliers

When we study the various manufacturing equipments, we have to differentiate the typical PV module manufacturing technologies. It is not within the purpose of the present brief PV-outlook to enter in the field of some special and exotic or unique technologies like carbon nanotube cells, Nanosolars proprietary solar cell printing technology, micro concentrator cells on glass beads and so on, but it is the scope of the present study to give some insight into the main commercially available technologies that an average investor may consider to purchase and establish his own module manufacturing facilities. The main selection to make is to choose either crystalline of thin film technology. Crystalline photovoltaic modules have the advantage of being able to achieve the highest rates of efficiency, which in terms of the end user means more electric power can be produced on the available field area. However thin film modules may occupy more space, but also can produce more energy under low light conditions for the same rated power, and the cost per produced energy unit is typically lower, then in the case of crystalline modules. Furthermore, thin film modules are of lighter weight, which criterion becomes important in the case of roof-top and other building integrated applications. From the viewpoint of the module manufacturer, there may be eventually other selection factors that come into play. From business viewpoint, crystalline modules are a good choice for the vertically integrated manufacturers, those who keep under their own control the whole production chain from high purity silicon production, ingot manufacturing, wafer production, cells, and final assembly into modules. This is rare and it involves giant investment, due to the complexity of the technologies involved. In practice, more often we find companies specialized in one of the several levels of the manufacturing needed for the creation of the crystalline modules: high purity silicon, ingots and wafers, cells and finally module assembly. Setting up a module assembly production unit is relatively simple, but this is why there is a plenty of competitors on the market. Some excel by their highly automated lines with utilization of the most productive robots; others compete by utilizing low cost labor in certain developing countries, along with a good quality control. The result for entering in this business is obvious: newcomer (and old players, too) has to expect a very strong competition in terms of sales price (for the same quality), and also a strong competition when purchasing the needed cells. In the case of thin film technologies, the manufacturing process of the cells is much simpler: substrate material (usually flat glass, or polymer foil) comes in, cell goes out. The encapsulation of cells into modules may be similar to the crystalline module manufacturing, with exception of it is no need to assemble and interconnect a multitude of cells, but all the thin film cells are created already onto the substrate (piece of flat glass). Thin film cell manufacturing does involve lesser costs; raw materials are available in abundance, and it does use less energy and less process steps than the manufacturing of the crystalline cells. Please see in the followings a summary of different crystalline silicon thin film technologies.

Page 62 of 189

PV-Outlook A.D. 2010 v1.5 Crystalline Silicon Technologies: Monocrystalline: highest in efficiency at an average of 16% at the cell level. Top efficiency performers are SunPower at >21% cell efficiency for its back contact technology and Sanyo with its HIT cell. Manufacturing costs are on the order of $1.30/Wp to $1.45/Wp for the module. 70% of manufacturing costs are the cell. Polycrystalline: Lower efficiency than mono at an average of 14.8% at the cell level. The back contact technology in development at Advent Solar has a higher efficiency goal. Kyocera is a top performer in terms of efficiency. The advantage of poly (more correctly multicrystalline) is that it is less expensive to manufacturer at $1.25/Wp to $1.35/Wp. Ribbon Silicon: Basically a long ribbon is pulled from the melt and cut into cells, the advantage is less kerf loss, higher yields and better use of silicon. However, this technology is the lowest in efficiency of all crystalline technologies at an average of 13.5% at the cell level. Thin Film Technologies: Amorphous Silicon: Lowest in efficiency, preferred by some customers as it is low profile. Efficiency averages 6.5% to 7%. Costs are in the $1.00/Wp range. Some a-Si manufactures are pursuing tandem junction amorphous, some others micromorphous (tandem of microcrystalline and amorphous junctions). Cadmium Telluride: Lowest manufacturing costs (<$0.75/Wp), easiest to manufacturer, with efficiency <10%. Average efficiencies are of 7% to 8.5%. In the past, the presence of cadmium made the selling channel leery of this product. The booming market in Germany, and smart marketing on the part of First Solar, enabled CdTe to gain market acceptance and share. Key manufacturing issues to solve are back contact stability and control of uniformity over large areas. Copper Indium Diselenide (CIS), Copper Indium Gallium Diselenide (CIGS): Highest potential for higher efficiency, impressive lab record efficiencies (not easily transferable to production scale manufacturing). One company, Wurth Solar in Germany, has achieved production scale; many start ups, most following different research paths. Average efficiency is 9%. This technology is extremely difficult to manufacturer. Some key issues remaining are standardization of equipment for growth of the CIGS absorber layer, prevention of moisture ingress for flexible modules and columnar structure uniformity. Due to the present market tendencies of decreasing prices and oversupply on the market, the possible winning technologies will eventually be those that will enable substantial cost reductions. The following forecast figures have been published in a recent article of greentechmedia.com.

Page 63 of 189

PV-Outlook A.D. 2010 v1.5

[Source: http://www.greentechmedia.com/articles/read/the-prospects-of-amorphous-silicon-downbut-hardly-out]

Page 64 of 189

PV-Outlook A.D. 2010 v1.5

Applied Materials
Manufactures equipment for: ingots/wafers, c-Si cells, and thin films. Estimate for 2009 PV sales: $1.15 billion Name Website Applied Materials http://www.appliedmaterials.com/products/solar_index_3.ht ml?menuID=9_5 USA Santa Clara, CA Manufacturing solutions for glass, thin-film and crystalline Si

Country City Comments

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

USD 10,401.00 33.43% -0.70% 5,873.73 -16.49% 42.35% 16.40% 17.33% 11.82% 0.10% 0.07% 0.09% 2.26 1.59 0.03 0.03 2.36 4.72 14,824 5,454.45

Page 65 of 189

PV-Outlook A.D. 2010 v1.5

Centrotherm
Manufactures equipment for polysilicon, ingots/wafers, c-Si cells, and thin films. Estimate for 2009 PV sales: $800 million Name Website Centrothern Photovoltaics www.centrotherm.de

Country City Comments

Germany Blaubeuren Equipment for production of crystalline and thin-film modules

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

EUR 647.00 14.21 32.04% 11.10% 384.14 130.08% 28.87% 11.32% 12.76% 9.00% 15.71% 7.22% 13.71% 1.41 1.33 0.00 0.00 15.56 18.67 992 318.39

Page 66 of 189

PV-Outlook A.D. 2010 v1.5

Schmid
Manufactures equipment for c-Si cells and thin films. Estimate for 2009 PV sales: $570 million

Oerlikon Solar
Manufactures equipment for thin films. Estimate for 2009 PV sales: $560 million Name Website Oerlikon Solar www.oerlikon.com/solar

Country City Comments

Switzerland Pfaeffikon FAB end-to-end solution

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

563.00 23.56% -0.78% 3,166.67 13.81% -0.78% -8.95%

1.57 0.96 1.87 1.92 -0.42

Page 67 of 189

PV-Outlook A.D. 2010 v1.5

Ulvac
Manufactures equipment for thin films. Estimate for 2009 PV sales: $550 million Name Website Ulvac Solar www.ulvac-solar.com

Country City Comments

Japan Full-scale turnkey thin-film and crystalline module production line

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

Page 68 of 189

PV-Outlook A.D. 2010 v1.5

GT Solar
Manufactures equipment for polysilicon, ingots/wafers and c-Si cells. Estimate for 2009 PV sales: $500 million Name Website GT Solar www.gtsolar.com

Country City Comments

USA Merrimack, NH Manufacturing equipment for poly-Si, silane and wafers

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

USD 554.00 8.80 39.68% 26.53% 390.92 121.69% 39.68% 26.53% 26.28% 16.26% 101.38% 13.15% 67.97% 1.10 0.92 0.00 0.00 4.63 9.02 332 59.18

Page 69 of 189

PV-Outlook A.D. 2010 v1.5

Meyer Burger
Manufactures equipment for c-Si cells and thin films. Estimate for 2009 PV sales: $450 million Name Website Meyer Burger Technologies www.meyerburger.ch

Country City Comments

Switzerland Baar Manufacturing equipment for wafer cutting, automation & monitoring

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

CHF 326.00 12.88 39.46% 12.42% 697.03 118.76% 39.31% 12.42% 11.18% 8.22% 38.27% 12.39% 30.34% 1.39 0.65 0.05 0.09 2.26 13.80 630 194.23

Page 70 of 189

PV-Outlook A.D. 2010 v1.5

Roth & Rau

Manufactures equipment for c-Si cells and thin films. Estimate for 2009 PV sales: $257 million Name Website Roth & Rau www.roth-rau.de

Country City Comments

Germany Hohenstein Anti-reflective coating equipment & turnkey solations for pv manufacturing

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

EUR 305.00 12.31 31.12% 10.45% 274.66 87.37% 29.25% 10.39% 11.58% 8.38% 16.44% 10.32% 14.99% 3.51 3.06 0.02 0.02 9.51 3.23 606 204.36

Page 71 of 189

PV-Outlook A.D. 2010 v1.5

Jingyuotong Vacuum Equipment

Manufactures equipment for polysilicon, ingots/wafers and c-Si cells. Estimate for 2009 PV sales: $190 million

NPC
Manufactures equipment for c-Si cells and thin films. Estimate for 2009 PV sales: $150 million

Manz
Manufactures equipment for c-Si cells, modules, and thin films. Estimate for 2009 PV sales: 3.7 million Name Website Manz AG www.manz-automation.com

Country City Comments

Germany Reutlingen Systems: Wafer inspection, stack to carrier, screen printing, laser edge isolation, thin-film scribing, conveyor techniques. Plan co-operation with Roth & Rau EUR 214.00 46.19% 8.21% 241.27 234.35% 43.29% 11.85% 11.81% 8.45% 17.40% 12.14% 16.36% 3.61 3.03 0.03 0.10 5.53 5.85 1,513 181.65

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

Page 72 of 189

PV-Outlook A.D. 2010 v1.5

Spire Solar
Manufactures equipment for c-Si cells, modules, and thin films.

Name Website Country City Comments

Currency Market Cap in millions P/E Gross margin TTM Operating Margin TTM Revenues Revenue growth Gross profit margin Operating profit margin Pre-tax profit margin Net margin Return on equity Return of assets Return on investment Current ratio Quick ratio Long term debt to Equity Debt / Equity Interest cover Inventory turnover Receivables turnover Employees Book value

Spire Solar www.spirecorp.com USA Bedford, MA Produces turnkey lines for modules, cells and thinfilm. With Spire Semiconductor subsidiary develops high efficiency cells with GaAs USD

27% -4.44% 49.00 85% 31%

5.68%

1.13 0.78 0.04 0.04 -0.26

Page 73 of 189

PV-Outlook A.D. 2010 v1.5

Largest Photovoltaic Power Stations in the World

No. 1 Country Spain Location Olmedilla (Castilla-La Mancha) Power 60MW Photo

Germany

Solarpark Strakirchen

54MW

Germany

Solarpark Lieberose

53MW

Spain

Puertollano (Castila-La Mancha)

50MW

Portugal

Moura photovoltaic power plant Moura (Alentejo)

46MW

Germany

Solar park Kothen Kothen

45MW

Germany

Solarpark Finsterwalde Finsterwalde

42MW

8 9

Belgium Germany

Katoen Natie PV power plant Antwerpen Solarpark Waldpolenz Brandis

40MW 40MW

10

Spain

Trujillo (Caceres)

34.5MW

Page 74 of 189

PV-Outlook A.D. 2010 v1.5

Annex - Country Data Cards

Country

Algeria
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh]

28 00 N, 3 00 E 2,381,741 34,178,188 244.3 134.8 3.40% 7,100 34.98 28.34 273 279

Page 75 of 189

PV-Outlook A.D. 2010 v1.5 Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Goal to cover 5% of electricity needs with RE by 2010 (or 2015?). Unclear. Appears to allow some negotiation of tariff--recent contract for CSP grants 5 cent/kWh based on 5% solar share. Premium pricing based on the percentage of solar share in the plant output, compared to natural gas; a 10% share earns a 100% FIT and a 20% share can earn a 200% FIT. Created in 2004 and applies to concentrated solar power; allows CSP plants to mix outputs with natural gas. Abbreviated Programs

Page 76 of 189

PV-Outlook A.D. 2010 v1.5 Country

Argentina
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

34 00 S, 64 00 W 2,780,400 40,913,584 558 301.3 -2.50% 13,800 109.5 99.21 2.628 10.28 0.049 0.023 Abbreviated Programs

Page 77 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
RE sources are approximately 8% of electricity consumption in 2005. RPS goal of 8% by 2016. Some capital subsidies and investment tax credits granted. Currently, 4 MW solar installed. $5 per MWh (US dollars) granted to RE sources. Unknown which RE sources it applies to.

Page 78 of 189

PV-Outlook A.D. 2010 v1.5 Country

Australia
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

27 00 S, 133 00 E 7,741,220 21,262,641 819 920 0.80% 38,500 239.9 222 0 0 0.061 0.098 FiT Australia is a federation of states and territories. Each state has different laws regarding feed-in tariffs. The states have a range of policies from no feed-in tariffs to feed-in tariffs at more than double the normal consumer

Page 79 of 189

PV-Outlook A.D. 2010 v1.5

price of electricity. Some states are considering feed-in tariffs but have not yet enacted relevant legislation, or the legislation has not yet come into effect. Only a small proportion are Gross Feed-in tariffs (proposed NSW and ACT), most are on a net basis. In the Northern Territory at present only the Alice Springs Solar City is eligible for feed-in tariffs for solar PV.

Cost Calculation Methodology Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

104.51

[Excerpts from 2008 Australian Photovoltaics Status Report prepared by Dr Muriel Watt of IT Power Australia in May 2009 for the Australian PV Association] Installed PV power A total of 22,02 MW of PV were installed in Australia in 2008, an 80% increase on 2007 levels. Of this, nearly 69% was grid connected, taking the cumulative grid connected portion to nearly 30%, up from 19% in 2007. Total installed capacity in Australia is now 104.51 MW. Costs & prices Typical module and system prices remained steady in 2008, although there was a greater spread of prices, a noticeable drop in minimum prices and a move to bulk purchase arrangements. Module prices averaged AUD 8 / Wp and small grid systems AUD 12 / Wp. PV production 42 MW of cells were produced in Australia in 2008, from imported wafers, and 8 MW of modules. Page 80 of 189

PV-Outlook A.D. 2010 v1.5 Budgets for PV Government expenditure on PV research, development, demonstration and market incentives totaled AUD 117,91 Million in 2008. Australian Government market incentive programs, primarily the Solar Homes and Communities rebates and the Renewable Remote Power Generation Program, accounted for 88% of expenditure. Studies relating to externalities and hidden costs of conventional energy generation when compared to renewable energy The Australian Academy of Technological Sciences and Engineering has undertaken a study of energy sector externalities, titled The Hidden Costs of Electricity. It concludes that PV has a total externality cost of AUD 5 /MWh, compared to AUD 42/MWh for black coal and AUD 1.50/ MWh for wind, as illustrated in the Figure 12. It notes that the majority of PV externalities stem from manufacturing emissions and that these vary by site of manufacture. However, it does note the need for major balance of system requirements and perhaps network upgrades and storage if PV is to play a major role in Australias future electricity supply.

Details from industry of planned increases in PV module production capacity BP Solar has announced it will close its Australian PV cell and module lines in 2009, thus leaving Australia with no local manufacture. Nevertheless, a number of companies, including Spark Solar, Tindoz, Regency and PMC Solar, have indicated interest in local manufacture. The current tight finance markets may delay plans, but it is hoped that at least one of these companies will be in a position to commence production by 2010. Target of 20% Renewable Electricity by 2020 The Australian Government has committed to increasing the Mandatory Renewable Energy Target (MRET) from the current 9 500 GWh by 2010, to an expanded Renewable Energy Target (RET) of 45

Page 81 of 189

PV-Outlook A.D. 2010 v1.5 000 GWh by 2020. This is expected to increase the amount of renewable generation from current levels of around 8% of total generation to 20% by 2020. State Feed-in Tariffs Prior to the introduction of feed-in tariffs, most electricity retailers in Australia offered net metering for small renewable energy generators connected to electricity distribution feeders, although this was often restricted to residential systems. Victoria, South Australia, Queensland have now implemented net export FiTs, while the ACT has planned a gross FiT for introduction from 2009. The WA government has announced its intention to introduce a FiT. Although it is still in the design stages, it is expected to be a gross FiT of AUD 0,60/kWh for residential systems, which will be paid to system owners for long enough to pay off a system after all other subsidies are taken into account. They are examining options for extending the scheme to small businesses and commercial operations. The NSW government established a NSW Solar FiT Taskforce which is considering the design of a NSW FiT. They have stated a preference for a FiT that is consistent with other jurisdictions. There have been no significant steps towards a FiT in either Tasmania or the Northern Territory. However, the Alice Springs (NT) Solar City is offering a gross FiT (capped at AUD 5/day) of AUD 0,45/kWh (household) and 0,32/kWh (commercial).

Page 82 of 189

PV-Outlook A.D. 2010 v1.5 Country

Austria
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

47 20 N, 13 20 E 83,871 8,210,281 323.1 374.4 -3.60% 39,400 58.64 61.89 14.93 19.8 0.154 0.285 FiT Green Electricity Act of 2002 (Federal Law Gazette I no. 149/2002 as amended by Federal Law Gazette. I No. 10/2007); Green Electricity Regulation of 2006 (by the Federal Minister of Economics and Labor;

Page 83 of 189

PV-Outlook A.D. 2010 v1.5

appears to apply to CHP & medium hydro) (RES-Legal).

Cost Calculation Methodology Tariff Application Duration Tariff Rates

Based on "average production costs of cost-efficient plants that are up to date with the latest technological research" (RES-Legal). Fixed FIT for 12 years. Size <5 kW 5-10 kW > 10 kW 46 (65) 40 (56) 30 (42)

Differentiation Adjustment

Degression Application Process & Queuing

Program Financing

RE Generator Obligations

Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies

2008 ct (2009 $ct) per kWh for installations (Gipe) Differentiated by size, but do not appear to separate peak/off-peak (RESLegal; Gipe tables). 12-year FITs for PV are guaranteed at fixed rate for first 10 years, then receive scaled-down amounts (75%, 50%) in the 11th and 12th years (RESLegal). After 12 years, RE generators can only get the market rate of electricity (RES-Legal). Recalculated each year--does not appear to have an automatic degression (RES-Legal). Applications granted based on "first come, first served" with limited funding levels and rollover to the next year if they are not used up (RESLegal). If funds are used up, project can be considered for the next year (RES-Legal). Ratepayers pay support fee and grid usage fee. Support provided based on voltage of grid connected to (7 levels); average consumers pay 42 ct/kWh, energy-intensive industries pay 78% of that, and households pay 111% (Klein). 50% of PV FITs must be covered by Lnder plant is located in (RESLegal). Other costs covered by difference between price paid to RE generators and that charged to traders (RES-Legal). RE generators cover entire cost of connecting plant to grid (including physical connection and reinforcement if needed). Specific provisions are put in place by each Lnder (RES-Legal). RE plants must be members of an "eco-balance" group (RES-Legal). Clearing & Settlement Agency (CSA), a state-licensed private enterprise, is obligated to purchase electricity from RE generators and then resell it to electricity traders/suppliers at a legally-set price (RES-Legal). Annual reports from E-Control Ltd. (established by federal government) to the Ministry of Economics and Labour, but revision timeline is unclear (RES-Legal). Estimated 1,768 tons (2000) & 2,312 (2001) of CO2 avoided through RE support (Eurelectric). Unknown. As of 1998, Energy Ministry paid an additional bonus of 100% for 3 years of operation to wind/PV systems built before 1996 (Cerveny). Currently, investment subsidies are only provided for 10-20 MW hydro installations; contract is with the Ministry of Economics and Labour (RES-Legal). None.

Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp] (2008)(2008)

32.4

Page 84 of 189

PV-Outlook A.D. 2010 v1.5

[Excerpts from National Survey Report of PV Power Applications in Austria 2008 Final Version 02 Prepared by R. Brndlinger, N. Glck, arsenal research, Giefinggasse 2, A-1210 Vienna, and H. Fechner University of Applied Science Technikum Wien.] Installed PV power After a 2 years slump, the domestic PV market in 2008 more than doubled compared to 2007. In 2008, off-grid and grid connected PV systems with a total PV power of 4,7 MW have been installed, which represents a 121% growth of the domestic market compared to the year before. Despite this positive development, the domestic PV market is still far from its historical maximum of 6,5 MW achieved in the year 2003. The overall installed PV capacity in Austria reached 32,4 MW at the end of 2008. On grid applications more and more dominate the market for PV, with grid-connected systems (GCS) accounting for more than 89% of the total installed capacity at the end of 2008. As during the previous years, the off-grid sector plays a minor role in the Austrian PV market. In 2008 only 0,13 MW were installed in this sector. In total estimated 3,4 MW off-grid systems for domestic and non-domestic applications were installed at the end of 2008. On a 10 years basis, an average market growth of 22% per year for all PV installations and 26% for grid-connected installations can be reported. Costs & prices With the dominating German PV market in its direct neighborhood, PV prices in Austria are closely linked to the prices which are achieved on the German market. Compared to the previous years, module prices dropped considerably in 2008, following the international trend. The average wholesale price in 2008 was 3,22 EUR/W, the average sales-price of Austrian PV module producers was 3,11 EUR/W. In 2008, turnkey prices for installed PV systems fell slightly compared to the previous years. However, with only 5%, the reduction was still low, following the continued high demand of the European PV market and the stringent supply of PV modules on the world market. Turnkey prices for typical on-grid systems varied between 5 EUR/W and 5,8 EUR/W, depending on the used PVtechnology, size and type of the installation. PV production Despite the small home market, Austrian PV industry could again expand their business in 2008. The most important products manufactured in Austria include PV inverters, PV modules and tracking systems as well as back-sheet laminates for module encapsulation or PV Ribbon Wires. Domestic PV module manufacturers again reported a significant growth of their output. The overall PV module production in Austria in 2008 amounted to 65,4 MW (2007: 47,4 MW), which represents an increase of 38% compared to the previous year.

Page 85 of 189

PV-Outlook A.D. 2010 v1.5 Austrias PV inverter industry also reported an 80% increase of the production of inverters for gridconnected applications. In 2008, PV inverters with a capacity of approximately 448 MW a.c. nominal power (2007: 250 MW) were produced. More than 99% of the production was exported. The world wide leading manufacturer of back sheet laminates used for encapsulation of solar cells likewise reported ongoing growth of its PV business. The world market leader of large scale two-axis tracking systems also reported an increase of the production, which rose to 31 MW in 2008 (2007: 29 MW). In 2008 the first companies started industrial scale production of solar cells, which marks the next step in the development of Austrian PV industry. Budgets for PV The nationwide feed-in tariff system for electricity from RES introduced in the national Green Electricity Act is financed by all consumers of electricity via supplements on the electricity price and an obligatory purchase price for Green Electricity which has to be paid by electricity dealers. The feed-in tariffs paid for PV in 2007 amounted to approximately 10,4 MEUR (2007: 9,5 MEUR). Besides the feed-in support, also further short-term incentives in form of rebates for new PV installations are provided on the national (National Fund for Climate and Energy) as well as provincial level. The total funds spent for this purpose in 2008 were 14,6 MEUR. There is no national R&D program dedicated to PV, however, two national programs New Energy 2020 by the national Fund for Climate and Energy as well as Buildings of Tomorrow Plus by the Ministry of Transport, Innovation and Technology were launched in 2008 and include PV with a focus on PV building integration as a side issue. In the absence of a dedicated program, R&D is mainly funded on a project base. Public funding for PV related RTD can be estimated to 1,6 MEUR in 2007. Applications for photovoltaics As in most of the other IEA countries, Off-grid installations were the first economic alternative for PV systems. Small autonomous systems provide electricity to technical systems or for domestic use in Alpine areas or mountain huts far away from the grid. But not exclusively in remote areas, also on urban sites PV is an option to supply infrastructure like traffic surveillance systems, communication systems, parking meters and a variety of other applications. With the introduction of favorable support schemes On-grid Distributed Systems have meanwhile become a common place in publics interest. In Austria this sector now stands for more than 89% of the installed capacity. With the support schemes limited to small, residential scale systems, Grid-Connected Centralized Systems in form of PV Power plants play a minor role, so far approximately 1,8 MW are installed. Total photovoltaic power installed To highlight the development of the national PV market over the last 10 years, Figure 1 shows the annually installed capacity from 1998 until 2008.

Page 86 of 189

PV-Outlook A.D. 2010 v1.5

In addition, Figure 2 indicates the total cumulative installed PV power for each sub-market on the 31 December of each year from 1998 onwards until 31 December 2008.

Page 87 of 189

PV-Outlook A.D. 2010 v1.5 Production of photovoltaic cells and modules Despite the small home market, Austrian PV industry could again expand their production in 2008. In total, Austrian module manufacturers could again considerably increase their output compared to the previous year. The total module production in 2008 amounted to 65,4 MW. Compared to 47,4 MW in 2007 this figure represents a growth of more than 38% (see Figure 4). Currently six Austrian companies are involved into the production of PV-modules namely: Solon-Hilber Technologie, since 2005 a 100% subsidiary of German Solon AG, is manufacturing framed laminates exclusively for the use on the SOLON Mover tracking systems. The cells (crystalline silicon) are delivered by the German SOLON AG. PVT AUSTRIA, which started the production in 2002, manufactures standard and tailor-made PVModules. The single and multi-crystalline silicon cells are purchased from various manufacturers, mainly Germany, Spain, the U.S. and Taiwan. Energetica Energietechnik GmbH, located in Klagenfurt, Carinthia, is producing standard framed laminates and glass-glass laminates based on single and multi crystalline silicon cells. The cells are imported from various sources. KIOTO Photovoltaics GmbH, formerly RKG-Photovoltaik GmbH, is affiliated to Europes largest manufacturer of Solar Thermal Collectors, GREENoneTEC Solar Industries Ltd. The company is manufacturing standard modules based on imported cells. Ertex-Solar, affiliated to Ertl Glas AG, a large manufacturer of safety glass products, is producing tailor made modules for BIPV, especially faade integration. The cells are imported from Germany. SED, focuses on the production of PV-roof tiles and small size modules for special applications.

Page 88 of 189

PV-Outlook A.D. 2010 v1.5 Most of the modules produced include cells imported from various countries, such as Germany, Spain, The U.S., Taiwan, China and others. Virtually the whole production is exported, either directly or indirectly via distributors. According to the Austrian PV industry, the main export markets in 2008 (according to nominations) are Germany, Italy, Spain and Switzerland. Market & deployment initiatives When looking at the domestic market, the situation of PV in Austria remains unsatisfactory mainly because of the complex, unstable and primarily insignificant frame conditions. The 2006 revision of the main nationwide framework, the Green Electricity Act (GEA) currently in force does not provide any substantial support for PV and further complicated the situation in comparison to the period before. Moreover, also the 2008 revision of the Green Electricity Act, which is still (as of May 2009) pending for approval by the European Commission and has not become effective yet is not expected to provide significant improvement for PV development in Austria. Short-term initiatives such as the rebate program of the national Fund for Climate and Energy announced for 2009 will provide temporary incentives for the market. Nevertheless, due to the limited time horizon of these measures, no substantial PV market development can be expected. Hence the situation for PV in Austria will remain unclear also for the year to come.

Page 89 of 189

PV-Outlook A.D. 2010 v1.5 Country

Belgium (Flanders)
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

50 50 N, 4 00 E 30,528 10,414,336 381.4 461.5 3.40% 36,600 82.17 84.88 6.561 17.16 0.059

Abbreviated Programs

Fixed FIT paid with a Public Service Obligation (Annex 2). Premium on top of market rate (Gipe). Purchase obligation for distributors & generators

Page 90 of 189

PV-Outlook A.D. 2010 v1.5

pay only cost of connection to nearest physical point of grid, maybe system charges for upgrades (Klein). Applies to wind only.

Tariff Application Duration Tariff Rates

4.1 USD-cents/kWh for wind in 2008 (Gipe). FIT is guaranteed for the entire lifetime for small PV projects (< 3kW) (Eurelectric); in 1997 there were 3 different kinds of rates--one for intermittant systems (wind & PV) and two for reliable RE systems, depending on whether they fed into the grid constantly or only during peak times (Cerveny).

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Goals for all of Belgium to achieve 6% RE in electricity mix by 2010 and 13% by 2020. National govt controls transmission but states control RE policy-Walloon & Flanders provide grants & tax relief to RE projects (Cerveny).

71.191

Page 91 of 189

PV-Outlook A.D. 2010 v1.5 Country

Brazil
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

10 00 S, 55 00 W 8,514,877 198,739,269 2,024 1,482 0.10% 10,200 438.8 404.3 2.034 42.06

Abbreviated Programs

Page 92 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Unknown. Does not appear to apply to solar.

Page 93 of 189

PV-Outlook A.D. 2010 v1.5 Country

Bulgaria
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

43 00 N, 25 00 E 110,879 7,204,687 90.54 44.78 -4.80% 12,600 40.25 31.08 8.441 3.097

FiT

Page 94 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Remuneration for 25 year contract, with possible next year changes set as minimally 95% of the previous year. <=5kWp 823 Leva/MWh (about EUR 0.421/kWh) >5kWp 755 Leva/MWh (about EUR 0.386/kWh) Differentiated by size.

1.407

Page 95 of 189

PV-Outlook A.D. 2010 v1.5 Country

China
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

35 00 N, 105 00 E 9,596,961 1,338,612,968 8,767 4,758 8.40% 6,500 3,451 3,438 16.64 3.842

Abbreviated Programs Backed by the Chinese governments total stimulus package of RMB 4 trillion ($585bn), Chinese businesses are now among the top producers of electric vehicles, wind turbines, solar panels and energy efficient

Page 96 of 189

PV-Outlook A.D. 2010 v1.5

appliances, according to a report released last month by London-based The Climate Group. In March 2009, the China government introduced the "Solar Roofs Plan" for promoting the application of solar PV building. The Ministry of Finance in July re-introduced the "Golden Sun Project" with more specific details of the related policy. The policy provides that the grid-connected photovoltaic power generation project, the state will in principle by photovoltaic power generation system and its supporting transmission and distribution projects to give 50% of the total investment subsidies. The subsidy will rise to 70% for solar power systems in remote areas that are not currently connected to the grid. Projects with a minimum capacity of 500MW would be eligible for the related incentive.

Cost Calculation Methodology

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes
All such financial incentive schemes boosts most of the new development in China solar market, such as the new thin film solar plant of Anwell Technologies and Tianwei, as well as the contract signed by LDK solar to install up to 500 MW of capacity of PV stations over the next five years in Jiangsu Province of China. However, there still is no clarity on Feed-in-Tariffs for domestic installations within China.

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

Page 97 of 189

PV-Outlook A.D. 2010 v1.5 Country

Canada, Ontario
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

60 00 N, 95 00 W 9,984,670 33,487,208 1,287 1,319 -2.40% 38,400 620.7 536.1 55.73 23.5 0.059 0.083 FiT RESOP in 2006 & FIT in 2009. Green Energy Act adopted by Bill 150 in May 2009 and allows Ontario's Minister of Energy & Infrastructure to require the Ontario Power Authority (OPA) to implement FIT program. Replaces

Page 98 of 189

PV-Outlook A.D. 2010 v1.5

the Renewable Energy Standard Offer Program (RESOP), which granted PV 42 CAN-cts/kWh for 20 years and 11 CAN-cts/kWh for other RE generators. RESOP was not technically a FIT because "it is not the intent ... to have Ontario electricity ratepayers support any and all [RE] projects, regardless of their value to the system" (RESOP). Cost-based plus reasonable rate of return (FAQ). All power produced is sold to the OPA. Generator then purchases back what is needed at prevailing rate (e.g., $0.055/kWh CDN). The difference should cover costs of installation and operation over the life of the contract (perhaps with some profit). Fixed FIT for 20 years. Solar Photovoltaic: $0.80/kWh CDN Wind, Hydro, Biomass: $0.11/kWh CDN Contract will probably require each project to include a certain amount of "provincial content," i.e. RE in an area already being developed by the Ministry (Draft FIT Rule, 7.2(f); FAQ). Adders of 1.5 CAN-cts/kWh for aboriginal projects & 1.0 CAN-cts/kWh for community projects (groundmounted PV only); currently requires majority ownership but may allow fractional amount (proposed May 2009). Prices may be adjusted up annually based on CPI (Draft FIT Rules, 5.3); dispute over whether adjustment will be 20% of CPI or full CPI (Revisions Presentation). Peak/off-peak prices (135% and 90% of price schedule listed) are only available for non-intermittant RE (Mar. 2009 Price Schedule). Appears to allow applicants to withdraw if they are already in the queue when the price offered drops more than 5% (Draft FIT Rules, 8.2(b). No automatic degression except in the case of ground-mounted PV, the price of was originally scheduled to decrease by 9% for new contracts once 100 MW is contracted (Mar. 2009 Price Schedule). Revisions removed automatic degression (Revision Presentation). Pass-through to ratepayers. Economic Connection Test conducted every six months in each province in order to determine the costs to connect a project, which will be passed on to ratepayers (Draft FIT Rules, 4.3(d)). Provide resource data and evidence that it has the necessary access rights to property to OPA; does not appear that it will have to pay a fee for its connection to the grid (Draft FIT Rules, 2.1(a)(v)). Must provide priority grid access to RE projects (Bill 150). OPA may be able to prioritize projects that are easier to connect to grid (Draft FIT Rules, 1.2). Appears to be a mandatory purchase obligation (id. at 4.6). OPA retains rights to "environmental attributes" from generation, i.e. RECs, although it must reimburse generators for cost of verification/registering (Draft Contract, June 2009). To be reviewed every 2 years, beginning 1 year after the launch of the program (Draft FIT Rules, 8.1). Estimates that PV provides 600-1000 jobs and solar thermal provides another 180 (pre-FIT). Stakeholders sought protection against inflation--led to examination of different methods of FIT adjustment; wanted BIPV to be included within roof-mounted PV (Revisions Presentation). RESOP has been supplanted by FIT; Home REFIT being implemented for residential projects under 10 kW (FAQ). PV projects may not exceed 10 MW. Explicitly prohibits dividing larger

Cost Calculation Methodology

Tariff Application Duration Tariff Rates Differentiation

Adjustment

Degression

Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations

Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes

Page 99 of 189

PV-Outlook A.D. 2010 v1.5

projects into smaller components in order to achieve higher contract prices, allowing OPA to reject all contracts or provide the contract price that would have gone to a single project (Draft FIT Rules, 5.4(e)).

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

32.72

[Excerpts from National Survey Report of PV Power Applications in Canada 2008 - Prepared by Josef Ayoub ExCo from Canada & IEA Task 1 Representative In collaboration with Dr. Lisa Dignard-Bailey CanmetENERGY Innovation and Energy Technology Sector Department of Natural Resources Canada P.O. Box 4800, Varennes, Qubec CANADA J3X 1S6 - May 2009] Installed PV power Canadas total PV power installed capacity increased 27% in 2008 to 32.72 MW compared to 25.80 MW at the end of 2007. The 2008 domestic PV module sales volume totaled 6.94 MW compared to 5.29 MW in 2007 an increase of 31% in the one-year period. The 2008 PV module export sales totaled 21.32 MW compared to 7.33 MW in 2007 about 190% increase from the previous year. Total PV sales in Canada (domestic and export) in 2008 were at 28.26 MW a 125% increase over the previous year. The growth of the PV market in Canada has been averaging 26% annually since 1993, and about 36% annually since 2000. In 2008, the largest module sales domestically occurred in the off-grid market (both residential and non-residential) with about 66% of market share while the grid-connected has seen its share of the market grow to 34% in 2008. Costs & prices Module prices (weighted average) have gradually declined from CAD 11.09 in 1999 to CAD 3.91 in 2008. This represents an average annual price reduction of slightly over 10% over the 9-year period. PV production There was a 53% increase in full-time, labor place equivalent employees engaged in PV activities in the public and private sectors (R&D, manufacturing, distributors, dealers, retailers, system installers, consultants and developers) in Canada in 2008. The largest increase reported has been in the manufacturing sector (modules, BOS and silicon feedstock) at 58% above 2007. Public budget for PV Total public budgets in Canada showed a significant decrease of about 28% in 2008 over the previous year. This is due to large in the completion of the demonstration funding program TEAM that funded several high profile PV demonstrations over the last 10 years.

Page 100 of 189

PV-Outlook A.D. 2010 v1.5

Production and production capacity information for 2008

The Province of Ontarios Renewable Energy Standard Offer Program is viewed by the Canadian PV industry as a major step towards developing a competitive, strong Canadian solar industry. By the end of 2008, the RESOP had exceeded its 10-year target in its first year of operation with about 1411 MW of contracts signed, but project implementation delays have led to only 1.2 MW being connected to date. Delays in connection queues in strategic areas of the province are being reviewed with intent to address the backlog of applications for connection to secondary distribution feeders. The Ontario Smart Grid Forum, managed by the Independent System Operator of Ontario, has made public its recommendations on the benefits of a Smart Grid, including improved system reliability, increased customer participation and environmental benefits such as improving the integration of smaller generators embedded in the distribution system. The Solar Buildings Research Network is generating opportunities for demonstrations of innovative PV projects in Canada and is expanding the knowledge base to the benefits and added value of PV technology in the buildings of the future. The collaborative R&D focus is providing in-depth analyses to Canadian stakeholders on the optimization of low and net-zero energy homes for Canadian climatic conditions and is helping to support innovation in the residential construction industry in order to accelerate the adoption of low and net-zero energy solar homes. In addition the SBRN partners are contributing to two Canadian teams from universities in the provinces of Alberta and Ontario that will compete in the US Department of Energy sponsored Solar Decathlon competition that will take place in Washington, DC, in the fall of 2009. Private sector investments in the development and marketing of solar PV power systems in Canada will continue to drive the domestic PV market for the foreseeable future. This is reflected by steady growth in the installed base, as well as the significant private-sector investment in manufacturing and in silicon feedstock production. The Canadian Solar Industries Association and nergie Solaire Qubec have continued their promotional and marketing activities. CanSIA in particular has been very active in 2008 in developing the foundation for significant changes in policies and programs that will support the solar industry in the coming years. Page 101 of 189

PV-Outlook A.D. 2010 v1.5

Page 102 of 189

PV-Outlook A.D. 2010 v1.5 Country

Czech Republic
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

49 45 N, 15 30 E 78,867 10,211,904 256.7 189.7 -4.20% 25,100 82.72 61.65 19.99 8.52 0.156 0.205 Abbreviated Programs

Fixed or premium available--in order to be eligible, RE generator must provide contract with either grid operator or market participant/supplier.

Page 103 of 189

PV-Outlook A.D. 2010 v1.5

Payment is made by the grid operator with no provisions for pass-through. Tariffs degress each year but may be no less than 95% of the tariff valid at time of recalculation. Applies to solar, wind, hydro, biomass, biogass, geothermal. Law passed in 2005 & price schedule set by Energy Regulatory Office in 2007. Contract duration is 20 years with yearly increase linked to inflation (within range 2 - 4 %). CCM is actual cost of generation, noting that risk is higher for the premium option. PV can receive the FIT for 20 years. As of 2008, the fixed rate was 13,460 CZK/MWh (73.5 $ct/kWh) and the premium rate was 12,650 CZK/MWh (69 $ct/kWh). As of 2010 feed-in tariffs are 12.25 CZK/kWh for <=30kWp and 12.15 for >30 kWp.

Tariff Application Duration Tariff Rates

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes
Up to 50% of eligible costs of RE installations (PV < 5 kW) may be statesubsidized (2007). EU provides ECO-ENERGY funding in the form of grants and soft loans for RE projects in member states. Income from RE generation is not taxable for taxable persons. New contract prices are changed for 5 % yearly, due to unexpected rise of number of installations in 2009 new bill is proposed allowing 25 % change.

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

54.290

Page 104 of 189

PV-Outlook A.D. 2010 v1.5 Country

Denmark
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

56 00 N, 10 00 E 43,094 5,500,510 199.1 308.3 -3.60% 36,200 36.92 35.79 11.36 12.82 0.096 0.354 FiT Began in 1993. Electricity Supply Act of 2000 limits FITs to existing installations for a 10-year transition period, beginning in 2003, to TGCs (Sijm). Most recent law is the Act on Electricity Supply, No. 1115/2006

Page 105 of 189

PV-Outlook A.D. 2010 v1.5

(RES-Legal).

Cost Calculation Methodology

Pre-2000 FITs were based on avoided cost for biomass and provided RE generators with a fixed percentage, about 85%, of the consumer price of energy in a distribution area for wind/PV (Sijm). However, since the payment was the same for different REs, this subsidized wind but not more expensive technologies (NREL). Premium FIT for 10-20 years Market Price + Variable Bonus Capped Sum 60 ore/kWh for installations connected between 2004-2008 No apparent differentiation except for by type of resource (RES-Legal). Does not appear to be any adjustment for inflation. Post-2000 FITs are fixed for existing wind for 10 years + a fixed subsidy for full load-hours; new windmills (2000-2003) receive a fixed FIT for 10 years; both will get TGCs per kWh; post-2003 will receive market price + TGC (Sijm). The status of this program is unclear. Unknown. Ratepayers pay a Public Service Obligation tariff on total electricity consumption to their supervising company, which passes it on to RE generators (reduced to 37-39% of the amount for energy-intensive industries) (Klein; RES-Legal). Government subsidy in the form of carbon tax refund, which reached 87 million by 1998 and led to adoption of TGC program (Sijm). RE generators pay only cost of connection to nearest physical point of grid; may have to pay system charges for upgrades (Klein). Puchase obligation (except for onshore wind). Supervising companies pay bonuses to RE generators (RES-Legal). Regularly revised by the Danish Energy Authority (DEA) (RES-Legal). Unknown. Unknown. In 1998, no license was required for private systems <25 MW; govt reimbursed RE systems for an energy/carbon tax on top of FIT (Cerveny). TGC system is not currently in force (RES-Legal). 0.5 0.5 3.265

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression

Application Process & Queuing Program Financing

RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

[Excerpts from IEA-PVPS publication National Survey Report of PV Power Applications in Denmark 2008 Prepared by Peter Ahm, PA Energy Ltd. Snovdrupvej 16, DK-8340 Malling, Denmark.] Installed PV power By the end of year 2008 Denmark (including Greenland) had about 3,3 MW installed, an increase of almost 200 kW compared to 2007. The SOL 1000 project originally targeting 1 MW, but finally Page 106 of 189

PV-Outlook A.D. 2010 v1.5 following budget reductions reaching about 600 kW was completed end of 2006, leaving Denmark without any incentives for reducing the investment cost of PV systems. Grid-connected distributed systems constitute at about 90 % the majority of PV systems in Denmark. Costs & prices The completed SOL 1000 project demonstrated a turn-key system price for roof-tops of around 34 DKK/W. However, high demand worldwide for PV modules during 2007 and 2008 has lead to limited supply of modules and slightly increasing module prices, and system cost figures for 2008 vary widely due inter alia to the time of contracting and the size of the actual plant. The individual PV systems implemented during 2008 exhibit turn-key system (BIPV) prices in the range of 35 to 100 DKK per W installed. PV production During 2008 the producer of float-zone silicon Topsil continued its commercial activities to supply international PV industry with high purity, low-cost silicon. Modules (brand: Sunpower) using this feedstock have been tested at NREL in the USA exhibiting efficiencies > 20 %. In 2008 the inverter developer and manufacturer Danfoss Solar Inverters also reported ongoing and increasing commercial activities in the multi-million range. The module production (Gaia Solar) in 2008 is at about 500 kW, approximately the same as in 2007. The main markets for Gaia Solar are Germany and Sweden. There is no production of PV batteries in Denmark. The building industry is showing a limited, but growing interest in developing PV-building integrated components and systems in particular in connection with highly industrialized building processes. Late 2008 Danish PV companies took the initiative to establish a national PV association named Dansk Solcelleforening. Public budgets for PV In early 2008 the government confirmed its commitment to support renewables, and a new energy plan A Visionary Energy Policy reaching up to 2025 was finally agreed by February 2008. Public funding for R&D into energy is expected to be doubled from about 0,5 billion DKK in 2007 to 1 billion by 2010. Over a 3-5 year period more than 150 mill DKK will be allocated to R&D in renewables; however it is still too early to say to which extend PVs effectively can benefit from these initiatives. In 2008 the Public Service Obligation (PSO) of the Danish transmission system operator, the so called ForskEL program, funded about 15 mill DKK for applied research projects in PVs, and the other public programs funded about 6 mill DKK for PV R&D activities. Government Policy & Programs As mentioned above the Danish governments new energy plan, A Visionary Energy Policy reaching up to 2025, was finally agreed upon in early 2008. The energy plan focus on a fully liberalized energy market supported by a framework, which underpins high consumer and environment protection, energy efficiency, subdued development in energy prices and high security of supply both in the short and long term. The energy plan further focus on the ongoing development of efficient energy technologies both nationally and in the EU, and the government wish to strengthen the research community and the development of new and promising energy solutions. The energy plan also focuses on energy conservation and on increasing the penetration of renewables3 in the total Page 107 of 189

PV-Outlook A.D. 2010 v1.5 energy supply to 30 % by 2025. The overall objective is not to let the gross energy consumption increase and to decrease the use of fossil fuels by 15 %, this way continuing the trend of the last 25 years as illustrated below. Over the last 25 years Denmarks economy has grown by 75 % with almost constant gross energy consumption effectively de-coupling economic growth from growth in energy consumption. Photovoltaic technology (PV) is for the first time mentioned in the governments energy plan [Complex negotiations and a general election prevented the energy plan originally presented early 2007 to be politically accepted until February 28 2008; the February 28 agreement includes a special provision of 100 mill. DKK for PV, wave power and other emerging RE technologies]. Early 2004 the Danish Energy Authority (EA) in collaboration with the electricity sector, the industry and other key stakeholders finalized a national strategy on PV after a public hearing. Early 2006 a national workshop reviewed the PV strategy and it was consequently revised during 2006 in terms of an addendum to the original strategy. A more comprehensive revision of the PV strategy also including deployment was initiated 2008 and is expected to be completed by mid 2009. Efforts are ongoing to establish relative large scale deployment/demonstration programs, which over a 7-8 year period can bridge the gap from the present need of an investment incentive of approx. 30 % to 0 %. The need of an investment incentive is based on consumer polls indicating, that many owners of residential houses can accept a pay-back time for a PV roof-top system of 20-25 years, but not higher. However, despite a relative small need for public support to get the PV deployment moving, there are no indications in the governments energy plans, that this may happen. PV is not even mentioned in the otherwise ambitious plans for RE deployment. The national Danish PV strategy will be revised by mid 2009.

Page 108 of 189

PV-Outlook A.D. 2010 v1.5 Country

Estonia
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

59 00 N, 26 00 E 45,228 1,299,371 24.48 18.05 -13.70% 18,800 11.46 7.686 2.31 1.369

Abbreviated Programs

Fixed or premium available. For fixed FIT, grid operator appoints a supplier for the RE generator, so essentially negotiates bilateral contracts.

Page 109 of 189

PV-Outlook A.D. 2010 v1.5

Premium appears to be the same system and the grid operator pays the RE generator under both schemes. Costs are passed through equitably to ratepayers. < 100 MW plants for PV, wind, geothermal, hydro, biomass, biogas

Tariff Application Duration Tariff Rates

CCM is actual cost of generation (including energy costs, operation, investment, etc.). Lasts 12 years from date of commissioning (when plant reaches 80% of its capacity). Fixed rate for all plants is 115 Senti/kWh (10.4 $ct/kWh). Premium rate for all plants is 84 Senti/kWh (7.6 $ct/kWh).

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

0.02

Page 110 of 189

PV-Outlook A.D. 2010 v1.5 Country

Finland
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

64 00 N, 26 00 338,145 5,250,275 183.1 242.3 -6.70% 34,900 77.24 86.9 3.335 16.11 0.101 0.179 Abbreviated Programs

Paid by grid operator. Adjusted monthly depending on the price of electricity. Passed on through ratepayer via surcharge.

Page 111 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes
Companies, municipalities, and communities can receive up to 40% subsidy for PV investment projects. PV is not eligible for a "tax aid" system in which RE plants receive payment per kWh based on tax on electricity generation. Based on production costs. FIT only applies to electricity generated from Finnish peat in conventional and CHP plants.

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

5.679

Page 112 of 189

PV-Outlook A.D. 2010 v1.5 Country

France
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

46 00 N, 2 00 E 551,500 62,150,775 2,113 2,635 -2.10% 32,800 535.7 447.2 58.69 10.68 0.125 0.158 FiT Inception in Loi n2000-108 and Dcret n2000-1196; subsequently amended (RES-Legal; Gipe). "The amount of payment depends on the costs of investment and

Page 113 of 189

PV-Outlook A.D. 2010 v1.5

operation, which incur for the system operators and shall be compensated for by the distribution grid operators, who only purchase electricity. In addition, system operators may receive a premium, which depends on the amount of electricity fed in and thus rewards this contribution to the achievement of the national energy targets (Loi n2000-108, Art. 10)" (RESLegal).

Tariff Application Duration Tariff Rates

Fixed FIT for 20 years (6 for Rhone Region) Base PV FIT 32.8 (44.8) BIPV (2008) 60.1 (82) Rhone-Alps Region (2009) 40 (54.6) Commercial Buildings (2009) 45 (61.4) Overseas Territories 43.7 (59.6) ct ($ct) per kWh for installations in 2008/2009 (Gipe) For wind, fixed for 10 years and the following 5 are scaled based on average full-load hours per year of first decade. For PV, differentiated by type and location. Inflation adjustment of up to 60% of the CPI, but does not decrease (Gipe). Additionally, appears to adjust the FIT levels for new installations each year by a CPI adjustment and not just by degressing (Gipe). Reduces 2% annually (Gipe). RE generators must apply to prefect of state department for a certificate of eligibility before they can conclude a contract with grid operators (RESLegal). Ratepayers pay a standard amount per kWh, set annually by the Ministry of Energy and included in their grid usage fees, into fonds du service public de la production d'electricite (public service fund) (RES-Legal). Companies using > 240 million kWh annually are exempt from surcharge if they arrange for their own electricity generation on-site (somewhat unclear) (RES-Legal). Fees are transferred to national financial institution (Caisse des depots) and then compensates distribution grid operators, subsidizes rural transmission and low income consumers, and pays administrative costs (RES-Legal). Intermediate step between paying only cost of connection and paying all costs of connection and upgrades (Klein). RE generators must apply to prefect (state's representative in a department) for a certificate of eligibility to receive the FIT; this may be conveyed to a third party (RESLegal). Grid operators have a purchase obligation and must conclude contracts with RE generators (RES-Legal). Grid operators are both national, i.e. EDF, and private (RES-Legal). Revised in 2006, 2009. At least for wind, France's turbine manufacturing industry is small and specialized, so it frequently imports RE components (Szarka). Fears of "wind rush" led to protects by community groups; however, the rush never emerged (Szarka). Lengthy permitting process and approval turnaround (Szarka). National regulator was concerned that rates were too high, providing windfall profits to developers and harming ratepayers (Szarka). PV may receive special FITs through a tender process (this may be an older system--Szarka) (RES-Legal). Residential customers can get 50% income tax credit on hardware for PV installation (only for systems < 3 kW), up to 8,000 per person (16,000 for a couple) + 400 per child (Gipe; RESLegal). Reduced VAT of 5.5% for French mainland offered from 1999-2010

Differentiation Adjustment Degression Application Process & Queuing Program Financing

RE Generator Obligations

Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions

Additional Incentives/Subsidies

Page 114 of 189

PV-Outlook A.D. 2010 v1.5

for equipment, services, and delivery for RE installation (PV must be for building itself or is otherwise only eligible up to 3 kW) (RES-Legal). Goals of installing 160 MW PV by 2010, 500 MW by 2015, and 5400 by 2020 (Gipe). Ministry of Energy is responsible for receiving reports and engaging in inspections, and may sanction contract violators by suspension or fine (RES-Legal).

Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

91.155

Page 115 of 189

PV-Outlook A.D. 2010 v1.5 Country

Germany
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

51 00 N, 9 00 E 357,022 82,329,758 2,812 3,235 -5% 34,200 593.4 547.3 61.7 41.67 0.109 0.263 FiT Began in 1990. Electricity Feed-in Act (StrEg; 1991); Renewable Energy Sources Act (EEG; 2000 & amended in 2004, 2009). Fixed FIT based on electricity generation costs, including capital,

Page 116 of 189

PV-Outlook A.D. 2010 v1.5

consumption, and operating costs (EEG Progress Report 2007). Earlier FITs granted RE generators a fixed percentage of regional electricity prices, but this was superseded because it did not subsidize any RE except for the cheapest kinds (wind, biomass) (NREL).

Tariff Application Duration Tariff Rates

Fixed FIT for 20 years Roof-mounted Size < 30 kW 43.01 (60.63) 30-100 kW 40.91 (57.67) > 100 kW 39.58 (55.79) > 1000 kW 33 (46.52) Free-Standing 31.94 (45.02) BIPV Bonus 5 (7) (removed in 2009[1]) Electricity Produced & Used in Bldg 25.01 (35.25) n/a ct ($ct) per kWh for installations in 2009 (EEG Payment Provisions) Differentiated based on size, type of resource, type of installation. Locational: for wind, after the first 5 years the tariff is calculated against a "reference turbine" and its support is reduced for the next 15 years if its yield is > 150% of the reference yield. Additional premium for repowering of pre-1995 wind turbines. Freestanding facilities will degress by 10% starting in 2010 and 9% in 2011; roof systems < 100 kW will degress by 8% in 2010 and 9% in 2011, and > 100 kW will degress 10% in 2010 and 9% in 2011 (2009 EEG Payment Provisions). Capacity Trigger: degression increases or decreases by 1% if <1000MW or >1500MW (2009), <1100MW or >1700MW (2010), <1200MW or >1900MW (2011). New contracts will be lower in value in future years (decreasing by 8-11% per year). Digression will be accelerated or slowed down by one percentage point if the market grows faster or slower than about 15% per year. For Special Equalization Scheme (not general FIT), applications must be submitted by June 30 each year and adjusted fees will then take effect the following January 1 for approved projects (2008 Act). Power is passed from plant operator to grid operator to transmission system operator to utilities to final consumers; equitable division occurs among the TSOs (RES-Legal; 2008 Act). Final pass-through to ratepayers amounts to about 4% of average residential electricity costs and 13% of total electricity price increases, 2002-2006 (EEG Progress Report 2007). Burden is distributed differentially so as to allow energy-intensive, importbased industries--mainly iron/steel, other metals, chemicals, paper--to maintain competitiveness (id.). Industries with electricity cost as 15% of gross value and > 10 GWh electricity consumption, plus some railway operators, eligible for reduced share payment (id.). RE generators pay only cost of connection to nearest physical point of grid; may have to pay system charges for upgrades. Installations at or above 500 kW are required to measure and record capacity (EEG Progress Report 2007). Generators that produce both RE and fossil fuels are not eligible for FITs under the principle of exclusive use (id.). RE generators must report systems to the Federal Network Agency in order to be eligible for the FIT (RES-Legal). Grid system operators are required to purchase RE and provide priority interconnection (EEG Progress Report 2007; 2008 Act). However, priority purchasing can be contractually waived by the RE generator (2008 Act, 8). Revised every 5 years (Gipe).

Differentiation Adjustment

Degression

Application Process & Queuing Program Financing

RE Generator Obligations

Utility/Grid Operator Obligations Tariff Revision

Page 117 of 189

PV-Outlook A.D. 2010 v1.5 Effects on GHG Emissions, Employment, RE Industry

As of 2006, the PV provisions of the EEG have reportedly contributed to 26,900 jobs and reduced CO2 by 1.516 million tons out of a 44 million ton reduction in the electricity sector (EEG Progress Report 2007). Overall, EEG created of 236,000 jobs, with a net creation of 67-78,000 jobs after accounting for jobs lost due to RE (id.). 4 billion Euros in grid expansion necessary; Utilities actively attempted to block RE because they controlled transmission & purchase mandate displaced conventional generation; attempted to have EU court declare illegal as "state aid"; finally adopted when utility-scale offshore wind farms became feasible (Stenzel). RE generators that receive FITs are explicitly precluded from selling RECs based on the RE they produce (EEG Progress Report 2007). RE generators may be able to receive emissions credits under the CDM and JI mechanisms of the Kyoto Protocol, but this goes against the intent of EEG (id.). PV generation in kWh increased by about 400% between 2004 and 2006: from 0.6 billion kWh to 2.2 billion kWh (EEG Progress Report 2007). EEG was responsible for 13% of the price increases felt by residential households from 2002-2006 (id.). BMU must study ecological impacts of new RE development (id.). Total fees paid under EEG were 5.8 billion in 2006 (id.). Renewable electricity under the EEG cannot be sold more than once (RES-Legal).

Stakeholder Reactions

Additional Incentives/Subsidies

Additional Notes

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp] (2008)

5,351.

[Excerpts from National Survey Report of PV Power Applications in Germany 2008 Version 2 Prepared on behalf of BMU German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, May 2009 by Dr. Lothar Wissing Forschungszentrum Jlich Projekttrger Jlich, 52425 Jlich] Installed PV power New installed (power) [1] 1.500 MWp Total installed power [1] ~ 5.300 MWp Costs & prices Turnkey Prices of Typical PV Applications (VAT excluded (19%) , net, prices rounded, prices at end of 2008) 1 2 kWp: 4.450 /kWp (off-grid / grid connected) 2 5 kWp: 4.130 0 /kWp (usually grid connected) 5 - 10 kWp: 3.910 /kWp (usually grid connected) 10 -50 kWp: 3.650 /kWp (usually grid connected)

Page 118 of 189

PV-Outlook A.D. 2010 v1.5 PV production Production of cells [1] 1450 MWp Production of wafers [2,9] 710 MWp Production of feedstock silicon [2,9] 11.200 t PV power generation [1] ~4.300 GWh Budgets for PV R&D budget for PV projects by BMU [5] 39,9 Mio. R&D budget for PV projects by BMBF [5] 19,5 Mio. Industrial R&D investments 190,0 Mio Applications for photovoltaics Off-grid applications The off-grid sector includes domestic PV applications for the leisure such as electrical power for weekend houses. Non domestic applications are implemented in the 'mobile' sector, such as cars and caravans (sunroofs combined with ventilation), camping, boats, water pumping and electricity supply for many traffic applications and tool sheds, which are increasing and difficult to distinguish in the total number of PV systems installed in the off-grid sector. Domestic off-grid PV systems are offered by specialized manufacturers, distributors and systemhouses as well as by numerous Do-it-yourself and electronic-stores. Differentiated statistics broken down by applications are not available. Compared with 2007 there is a stable and slow increasing request for stand alone systems. Estimate by BSW 8 of 28 (Bundesverband Solarwirtschaft the German Solar Industry Federation) [1] indicate that end of 2008 around 40 MW were installed, 4,5 MW more than in 2007. Grid-connected applications The German funding strategy favors the installation of grid-connected PV power systems. Therefore, grid-connected rooftop systems and large PV power plant are further on dominating the market. BSW published in April 2008 the new installed capacity of around 1500 MW for grid-connected systems. That means in total about 5,3 GWp installed capacity. Promotion Due to the relatively mature PV market in Germany technical orientated demonstration and large field test activities are not in the centre of interest anymore. The proof that PV works in different kind of applications is done. Therefore, the industry focuses their activities in process optimization to reduce the production cost and to increase the quality of their products. Also recycling is becoming more interesting. Germany has a wide range of policy and promotional initiatives. First of all is the mentioned EEG with the feed-in tariff. Additionally there are tax credits for investments in PV and loans by KfW for

Page 119 of 189

PV-Outlook A.D. 2010 v1.5 measures to reduce energy consumption and the application of renewable energies in buildings. Some states award grants for PV plants. A lot of journals offer information about PV, some only specific for PV, others under the theme Renewables. The internet provides several websites, dedicated to PV and renewable energies like: http://www.bmu.de http://www.erneuerbare-energien.de/inhalt/3860/ http://www.solarwirtschaft.de http://www.photon.de/ http://www.solarserver.de http://www.dgs-solar.org http://www.solarcontact.de http://www.solarfoerderung.de http://www.sonnenertrag.de http://www.eurosolar.de http://www.top50-solar.de http://www.sonnenertrag.de http://www.bine.info http://www.dena.de http://www.german-renewable-energy.com http://www.renewables-made-in-germany.com/en/photovoltaics/ http://www.renewablesb2b.com BSW represents the German PV and solar thermal industry and supply a lot of market data (http://www.solarwirtschaft.de). The Germany Trade & Invest has the task to acquire foreign enterprises for investments in Germany. This organization supplies a lot of commercial information and supports investors individually (http://www.gtai.com). As the result of these long term initiatives, there is a broad awareness and acceptance for renewable energy and PV by the public. In consequence, a constant demand exists for PV products. Beside these promotion activities, PV industry is an important branch in the technology sector and gains more and more attention in the public.

Page 120 of 189

PV-Outlook A.D. 2010 v1.5 PV implementation highlights, major projects, demonstration and field test programs Until end of 2008, more than 500 large scale photovoltaic plants with more than 200 KWp are in operation in Germany, 120 new large plants were put into service during the year. The installed capacity of these large PV plants amounts to around 700 MWp. The largest PV power plants based on thin film technology installed in 2008 are: Brandis 40 MWp Kthen 14,75 MWp Helmeringen 10 MWp Eckolstdt 8,5 MWp Trier 8,4 MWp Igling-Buchloe 5,8 MWp Wrrstadt 5,6 MWp

In October 2008 the Fraunhofer-Gesellschaft opened the Center for Organic Materials and Electronic Devices Dresden (COMEDD). Its primary purpose is the development of economically viable and production-oriented processes for organic semiconductor devices such as organic lightemitting diodes and organic solar cells. The Fraunhofer ISE inaugurated its new 600m laboratory for silicon material research: the Silicon Materials Technology and Evaluation Center (SIMTEC). The focus of the new center is on silicon crystallization and wafer technology as well as crystalline silicon thin film technology. TV Rheinland Group is constructing one of the worlds most modern test centers for solar modules at its headquarters in Cologne. Around EUR 4 million will be invested in the new building and in ultramodern technical equipment for monitoring safety, quality and energy efficiency in photovoltaic modules and solar collectors. From summer 2009, over 40 experts will be working in the new test centre, which, with 1,800 m, will be three times as large as the existing one. INDUSTRY AND GROWTH The German PV industry still experiences a period of solid growth. Despite the fact that some investments are delayed, the range of companies dealing with PV is expanding along the whole value chain. Especially the capacity of thin film production facilities is growing significantly taking advantage of the global silicon supply shortage of recent years. Silicon Wafer Technology With Wacker, one of the world largest suppliers of silicon for the semiconductor and PV industry, Joint Solar Silicon, PV Silicon and Scheuten SolarWorld Solizium now at least four companies are in the silicon feedstock business in Germany. From 2009 on, a production capacity of more than 17 000 t equal to roughly 1 300 MW will be reached. The total production capacity for wafers now amounts to around 2 000 MW. The main supplier of silicon wafers is still Deutsche Solar AG in Freiberg. Besides this company there are another five to six Germany based wafer manufacturers like PV Silicon at Erfurt or Ersol (formerly ASI) at Arnstadt. Silicon ribbons are produced by Wacker Schott Solar (EFG-ribbon) in Alzenau and Sovello (formerly EverQ - String-ribbon) in Thalheim. Page 121 of 189

PV-Outlook A.D. 2010 v1.5 The cell production in Germany shows a steady growth. Currently, twelve companies are engaged. Amongst these, Q-Cells in Thalheim is not only the biggest cell producer in Germany but also worldwide. The production of modules grew again. There are now more than fifteen companies with a production capacity of 1 MW and more listed. Amongst these, the biggest ones are Aleo Solar, Solar Factory, Solarwatt, and Solon, all with a production of 100 MW and more. Thin-Film Technologies In addition to the silicon wafer activities, there is an increasing number of companies investing in thin-film production lines. Eleven companies are operating or building production facilities for silicon thin film modules with a total capacity of 500 to 600 MW. CIS technologies are used by twelve companies resulting in a production capacity for 2009 of roughly 300 MW. CdTe modules are currently fabricated by two companies. In total, the production of thin-film modules amounts currently to roughly 290 MW a factor of 3 times more than 2007 and now 1/3 of the silicon wafer module production. From 2009 on, thin-film technologies will have a production capacity of more than 1 000 MW, half of the module production capacity of silicon wafer technologies. Besides the above described manufacturing of feedstock, wafers, cells and modules, the fabrication of concentrating PV (CPV) is entering the scene. In 2009, the production capacity will be around 30 MW. Another important business in Germany is the inverter industry. Besides SMA Solar, the worldleader producing around 1 000 MW alone, there are more than another 10 companies producing state-of-the-art inverters. For 2008 a production of 1 600 MW was reported. Production of feedstock, ingots and wafers Production and production capacity information for the year for silicon feedstock, ingot and wafer producers in 2008

Page 122 of 189

PV-Outlook A.D. 2010 v1.5 Production of photovoltaic cells and modules Production and production capacity information for 2008 for each manufacturer roduction

Page 123 of 189

PV-Outlook A.D. 2010 v1.5

Page 124 of 189

PV-Outlook A.D. 2010 v1.5

An excellent overview of German PV manufacturers is given by Germany Trade & Invest http://www.gtai.com/fileadmin/user_upload/Downloads/Industries/Renewable_Energies/Photovolt aics/1_En (see an extracted table as follows on the next page)

Page 125 of 189

PV-Outlook A.D. 2010 v1.5

Page 126 of 189

PV-Outlook A.D. 2010 v1.5 System prices Turnkey Prices of Typical Applications Turnkey Prices of Typical PV Applications (VAT excluded (19%) , net, prices rounded, prices at end of 2008) 1 2 kWp: 4.450 /kWp (off-grid / grid connected) 2 5 kWp: 4.130 /kWp (usually grid connected) 5 - 10 kWp: 3.910 /kWp (usually grid connected) 10 -50 kWp: 3.650 /kWp (usually grid connected) Business value New installed (power) Total installed power Production of cells Production of wafers Production of feedstock silicon PV power generation Turn-over PV industry Export quota Investment in production capacity

1,500 MWp ~ 5,300 MWp 1,450 MWp 710 MWp 11,200 t ~ 4,300 GWh ~ 7 bill. 46 % 2,150 Mio.

The market share of German enterprises in the whole industry value chain for the world market is estimated by around 20 %. Country information 1) Electricity prices: 0.19 0.26 /kWh + basic fee for households. As an average 0.22 /kWh is adequate. For industrial supply, the prices are lower depending on consumption. The production cost of conventional power plants are in the range of 5 8 ct/KWh. Tendency to increasing prices in 2008. Strong influence by price level of oil and gas. 2) Typical household consumption: 4000 kW/yr. 3) Typical metering and tariff structure: The metering systems are installed in the household. The measurement takes place once a year and a payment in a one or two month period with an invoiced at the end of the year. 4) Average household income: 37,500 /yr (gross, 2008) (for a married person, solely working, 2 children; (household income can vary by different private status).

Page 127 of 189

PV-Outlook A.D. 2010 v1.5 5) Typical mortgage interest rate: around 5 %/yr 6) Voltage: 230 V / 380 V 7) Electricity Structure: There are parallel structure of large enterprises (i.e. E-on, RWE, Vattenfall), city owned companies and industrial producers for their own facilities. The grid belongs mostly to the producers. 8) Price of diesel fuel: 1.10 1.30 /l. 9) Typical values for PV system of household: 1- 5 kWp.

Page 128 of 189

PV-Outlook A.D. 2010 v1.5 Country

Greece
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

39 00 N, 22 00 E 131,957 10,737,428 339.2 338.3 -2.50% 32,100 58.79 58.28 1.962 7.575 0.067 0.112 FiT Began in 1994. Law 2244/94 defines autoproducers (net metering) and independent power producers (<50 MW); PPC monopoly must buy all IPP power under 10-year contracts; New Development Law 2601/98 subsidizes

Page 129 of 189

PV-Outlook A.D. 2010 v1.5

energy producers up to 40% or tax deduction up to 100%; tax deductions of 75% for individuals for installing RE since 1995. A more recent law is Law Nr. 3468/2006 (RES-Legal). New PV FIT law introduced 15 Jan 2009. "The criteria determining the amount of payment are the costs of construction and operation of a certain system type, i.e. investment costs, operational costs, costs of metering and capital" (RES-Legal). Fixed FIT: 10 years for PV, 20 years for solar thermal, 25 years for small rooftop PV. Small Rooftop PV (< 10 kW) 55 (77.6) Size < 100 kW > 100 kW < 5 MW > 5 MW MainlandPV 45 (62.5) 40 (54.6) x x Mainland Solar Thermal x x 25 (34.1) 23 (31.4) Islands PV 50 (68.6) 45 (61.4) x x Islands Solar Thermal x x 27 (36.8) 25 (34.1) ct ($ct) per kWh for installations in 2009 (Gipe; HELAPCO) Differentiated by peak/off-peak (nuances) and low, medium, and high voltage (Cerveny). Locational differentiation that incentivizes RE development on islands. Minister of Development adjusts FITS annually for inflation (based on 80% of previous year's CPI) (RES-Legal; HELAPCO). Newest version of FIT introduced in January 2009 and regression will begin in August 2010 (HELAPCO). Small PV systems (< 10 kW) will degress by 5% but it is unclear whether this starts in 2012 or occurs each year until revision in 2012 (HELAPCO residential). New contract prices to reduce 1% per month starting 2010. Application filed before August 2010 degression can lock in the higher FIT for 18 months to finalize installation (HELAPCO). All ratepayers support program equally (no burden reduction for electricity-intensive industries). RE generators cover entire cost of connecting plant to grid (including physical connection and reinforcement if needed). To be eligible, plant operators must apply for generation license from Minister of Development, whose approval is based on a report from the Regulative Authority for Energy (RES-Legal). PV systems < 150 kW do not require a license (RES-Legal). Purchase obligation on behalf of grid operator: either the mainland body (DESMIE) or the separate island grid operators (RES-Legal). 700 MW cap by 2020 (Gipe). Unknown. Potentially positive public reception because Law 2773/1999 requires 2% annual fee from electricity sales to grid to go into local development projects (Klein). 3 GW worth of applications filed as of late 2008, but announced new version of program (GreenTech Media). Grants up to 40% of the cost or 100,000 (except for rooftop program after 2009) (GreenTech Media). Tendering process for installations > 10 MW (Gipe). Small residential PV eligible for 20% tax deduction of no more than 700 ; only valid for mainland and residence must cover part of its hot water needs with RE, e.g., solar thermal (HELAPCO residential). Special program with higher FIT but no tax rebates planned to drive 750MWp installations of BIPV. Investment subsidies: Tax rebates and grants (40%) are available.

Cost Calculation Methodology Tariff Application Duration Tariff Rates

Differentiation Adjustment Degression

Application Process & Queuing Program Financing RE Generator Obligations

Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions

Additional Incentives/Subsidies

Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.)

Page 130 of 189

PV-Outlook A.D. 2010 v1.5 PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

18.500

Page 131 of 189

PV-Outlook A.D. 2010 v1.5 Country

Hungary
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

47 00 N, 20 00 E 93,028 9,905,596 186.3 124.2 -6.40% 18,800 37.74 37.77 8.871 12.77

Abbreviated Programs

RE plant operators have a claim starting at "commencement of commercial activity." Electricity traders obliged to enter into contracts with grid

Page 132 of 189

PV-Outlook A.D. 2010 v1.5

operators. Fixed payment differentiated by technology, time of day; adjusted annually for inflation. Applies to PV, wind, geothermal, hydro, biomass, biogas.

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes

PV had a single standard tariff of 26.46 HUF/kWh (13.6 $ct/kWh) in 2008 and FIT cannot exceed payoff time of the systems.

Suppliers charge ratepayers and then compensate grid operators who pay RE plant operators. Can receive EU subsidies, and federal subsidies up to 25% with the possibility of additional loans, for RE installations on existing buildings.

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

0.450

Page 133 of 189

PV-Outlook A.D. 2010 v1.5 Country

India
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

20 00 N, 77 00 E 3,287,263 1,156,897,766 3,548 1,243 6.10% 3,100 761.7 568 216 4.96 0.08 0.047 Abbreviated Programs

Installations capped at 10 MW per state and 5 MW per developer (potentially unattractive to solar thermal). Considering expanding overall

Page 134 of 189

PV-Outlook A.D. 2010 v1.5

cap to 1 GW.

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes

Applies to PV (unclear what else, if anything).

15 Rupees/kWh (30 $ct/kWh); in effect for first 500 MW of projects.

Goals of 20 GW by 2020, 100 GW by 2030, and 200 GW by 2050. Individual states have additional subsidies. The Indian Renewable Energy Development Agency (IREDA) provides revolving fund to financing and leasing companies offering affordable credit for the purchase of PV systems in India. State Utilities are mandated to buy green energy via a Power Purchase Agreement from Solar Farms The Ministry of New and Renewable Energy has launched a new scheme (Jan 2008) for installation of Solar Power Plants. For the producer, a Generation-based subsidy is available up to Rs. 12/kWh ( 0.21/kWh) from the Ministry of New and Renewable Energy, in addition to the price paid by the State Utility for 10 years. The State Electricity Regulatory Commissions are setting up preferential tariffs for Solar Power Rajasthan - Rs. 15.6 ( 0.27) per kWh (proposed) West Bengal - Rs. 12.5 ( 0.22) per kWh (proposed) Punjab - Rs. 8.93 ( 0.15) per kWh 80% accelerated depreciation Concessional duties on import of raw materials Excise duty exemption on certain devices.

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

Page 135 of 189

PV-Outlook A.D. 2010 v1.5 Country

Ireland
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

53 00 N, 8 00 W 70,273 4,203,200 177.3 226.8 -7.30% 42,200 26.06 25.12 303 753 0.16 0.261 Abbreviated Programs

Contract is between the RE plant operator and the final supplier but the TSO, Eirgrid, pays the FIT.

Page 136 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Funded by tax paid by consumers to TSO. Wind, biomass, and hydro--not solar. Duration depends on PPA but < 15 years. Considers market price (adjusted to CPI), price of best new entrant price (adjusted annually), and initial costs of RE electricity. 5.7-7.2 ct/kWh support.

0.400

Page 137 of 189

PV-Outlook A.D. 2010 v1.5 Country

Israel
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

31 30 N, 34 45 E 22,072 7,233,701 205.2 215.7 -0.30% 28,400 50.41 46.15 2.081 0 0.078 0.098 FiT Began in 2008. Based on cost of generation (estimated 0.50 NIS per kWh) plus a reasonable rate of return. Tariff is set with annual adjustments due to

Page 138 of 189

PV-Outlook A.D. 2010 v1.5

inflation until 2010, then drops 4% annually (Gipe).

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp] [Excerpts from National Survey Report of PV Power Applications in Israel 2007 Prepared by Dr. Yona Siderer and Roxana Dann Ben Gurion National Solar Energy Center Blaustein Institutes for Desert Researc, Ben-Gurion University of the Negev, 84990 Midreshet Ben Gurion, Israel,May 2008 ] Installed PV power We identified new PV installations totaling about 500 kW during 2007. Typical applications remain the same, the majority not grid-connected: remote homes, agriculture, security and alarm systems, communications and exterior lighting. The legislation permitting grid connection was not completed in 2007, therefore even grid-connected projects are not reported as such. Costs & prices Typical module prices range from USD 8-12/kW installed, depending on type of application. PV production There is still no PV production taking place in Israel. Budgets for PV The Israel Ministry of National Infrastructures spent USD 100 000 on R&D in 2006. Page 139 of 189
20% of the program must be composed of private individuals (Gipe). Program is limited to 50 MW or 7 years (2008-2015), whichever comes first (Gipe). Fixed FIT for 20 years. < 15 kW (residential) 2.01 (51) < 50 kW (commercial) 2.01 (51) NIS ($ct) per kWh for installations in 2009 (Gipe) None.

Received over 2000 requests from residential customers interested in installing small PV in the first month after implementation.

PV-Outlook A.D. 2010 v1.5 Country

Italy
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

42 50 N, 12 50 E 301,340 58,126,212 1,756 2,090 -5% 30,200 289.7 315 3.431 43 0.28 0.286 FiT Began in 1992. Ministerial Decree of 2005 (amended by Authority Decree 188/05 & Ministerial Decree of 2007); goal of 3000 MW by 2016 (Tilli et al.). Most recent amendments, specifically for PV, are Decreto 19.02.2007

Page 140 of 189

PV-Outlook A.D. 2010 v1.5

(Criteri e modalita' per incentivare la produzione di energia elettrica mediante conversione fotovoltaica della fonte solare, i.e. Ministerial Decree, DM 19/02/07) and Delibera n. 90/07 (Incentivazione della produzione di energia elettrica mediante impianti fotovoltaici, i.e. Resolution of the Authority for Energy and Gas, AEEG 90/07) (RES-Legal). Separate FITs for other RE sources, but one for PV is called the Conto Energia. Amount per kWh is based on the investment cost (RES-Legal), but GSE describes it as a premium on top of the market price of electricity (GSE Brochure); GSE's Nuovo Conto Energia page states that the premium is added to either the market price of electricity or the savings from net metering (via Google Translate). This makes Italian FITs among the highest offered for PV, if not the highest. FIT for 20 years (premium or fixed somewhat unclear). Size 1-3 kW 3-20 kW > 20 kW & < 1 MW Non-Integrated 39.2 (55.3) 37.2 (52.5) 35.3 (49.8) Partially Integrated 43.1 (60.8) 41.2 (58.2) 39.2 (55.3) Integrated 48 (67.8) 45.1 (63.7) 43.1 (60.8) Solar Thermodynamic 22-28/kWh depending on non-RE fraction for 25 years, up to 15,000,000 m2 surface ct ($ct) per kWh for installations in 2009 (GSE Brochure) Must be > 1 kW and < 1 MW and connected to the grid or an isolated rural grid (RES-Legal; GSE Brochure). If capacity was increased after Apr. 20, 2007, the new capacity only was eligible for the FIT (RES-Legal). Public buildings (schools, hospitals, municipalities < 5000 people, etc.) can get a 5% increase of the FIT (RES-Legal). Building-mounted plant bonus ("premium") up to 20% of the FIT if additional energy efficiency measures are implemented (RES-Legal). None applied. Full tariff for systems commissioned between Apr. 11, 2007 and Dec. 31, 2008 (RES-Legal). Payments will be degressed by 2% annually in 2009 & 2010 (RES-Legal). Cap of 1200 MW PV (RES-Legal). Grippo et al. (IFLR) say 63 MW installed as of Oct. 2008 but GSE reports 418 MW cumulative (338 MW in 2008 alone) (Tilli PPT). PV systems are not eligible for FIT if > 20% funded by public funds, i.e. federal, regional, local, EU (RES-Legal). 2003 law that RE plants (medium/large) should only require a "single permit" that streamlines national, regional, and local procedures and should provide 180-turnaround; implementation is unsatisfactory (Grippo et al., IFLR). Tariff is paid at the start of commercial operation (Grippo et al., IFLR). Application may only be filed after commissioning (GSE Brochure). All ratepayers support program equally (no burden reduction for electricity-intensive industries) based on "system costs" charge in bill (Klein; RES-Legal). System costs are placed in RE promotion fund maintained by Gestore Servizi Elettrici (GSE), a publicly-owned company with the Ministry of Economics and Finance as the sole shareholder, to pay for FITs (RES-Legal). "[R]emaining costs are covered by increases in the market price" (RES-Legal). RE generators cover entire cost of connecting plant to grid (including physical connection and reinforcement if needed) (Klein). Plant operator ("Plant operators are natural persons or legal entities, public buildings or the operators of plants on multi-family buildings and blocks of flats") must apply to Gestore Servizi Elettrici (GSE, the grid operator) within 60 days after commissioning (RES-Legal).

Cost Calculation Methodology

Tariff Application Duration Tariff Rates

Differentiation

Adjustment Degression Application Process & Queuing

Program Financing

RE Generator Obligations

Page 141 of 189

PV-Outlook A.D. 2010 v1.5 Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies
Purchase obligation and prioritization (Klein; Grippo et al., IFLR). GSE purchases RE at subsidized price and then sells it for market price (Grippo). To be revised by administrative decree in 2010 (Tilli et al.; RES-Legal). Estimation that RE will reduce CO2 emissions between 2008-2016 by 1.5 million tons, equivalent to 167 million based on EU-ETS prices (Tilli et al.) Investor concerns about lengthy authorization process, higher than European average for turnkey plants, lag time for connection (Lato & Tilli PPT). 2001 tender offered 75% subsidies for < 20 kW roof architectural systems (federal & regional govt funds) but only 23 MW installed between 2002-05 (Tilli et al.). PV < 20 kW are eligible for net metering (scambio sul posto) (RES-Legal). Other than FIT, PV < 1 MW may sell on free market or to GSE at a set price (RES-Legal). If PV plant sells to GSE (which supplies to market) (ritiro dedicato) it receives hourly market rate based on its service area (GSE Brochure); payment begins 10 days after contract--yearly and adjusted for inflation (RES-Legal). PV is eligible for VAT reduction (10%, not 20%) but cannot be combined with FITs (RES-Legal). Plants > 1MW may get TGCs (GSE Brochure); power producers and importers must submit TGCs to GSE each year (RES-Legal). Quota: 2002-03, 2% per 100 GWh; 2004-06, 2% + 0.35% each year; 2007-12, increases by 0.75% each year; 2012 revision (RES-Legal). Municipalities can grant property tax reduction for secondary residences that use RE (primary residences are not taxed) (RES-Legal). GSE is the "implementing body" for RE programs and trades in the power exchange (IPEX) power acquired under both FIT and ritiro dedicato schemes (GSE Brochure). GSE may inspect RE plants and reclaim FITs if they do not comply with the law (RES-Legal). TERNA is Italy's national transmission system operator (GSE Brochure). By end of 2008, commissioned PV capacity was 20% fully-integrated, 53% partiallyintegrated, and 27% non-integrated (Lato & Tilli PPT).

Additional Notes

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

338.100

[Excerpts from National Survey Report of PV Power Applications in Italy 2008 Prepared by Salvatore Castello e Anna De Lillo, ENEA Via Anguillarese, 301 00060 S.M. Galleria RM www.enea.it Salvatore Guastella, Fabrizio Paletta, ERSE S.p.A. Via Rubattino 54 I 20134 Milano www.cesiricerca.it , May 2009] The programme Conto energia promoting Programme is eventually ensuring a stable situation, providing the basis for the expansion of PV market in Italy. Bureaucratic problems related to the incentive mechanism have been overcome while the ones concerning plant construction and grid connection seem to be enough smoothed. In this contest, during 2008 photovoltaic is becoming more and more important as proofed by the following numbers and trends.

Page 142 of 189

PV-Outlook A.D. 2010 v1.5 Installed PV power PV power installed in Italy during 2008 sums to about 338 MWp and then the cumulative installed and operating power has reached 458 MWp, with an increase around 280 % as respect to the previous year. Costs & prices The average system price decreased with a rate of 7%/year, reaching a lower value of 4,2 /W for large free standing applications while in the case of small rooftop the prices have recoded a wide spread ranging from 4,5 /W to 6,5 /W. The average module prices has reached during this year the lowest values of 2,2 /W for large volume orders while for small orders prices typically range from 3 /W to 3,6 /W. PV production The growth of the national PV industry has not been adequate to the installed capacity. By the end of 2008, the production of photovoltaic modules, both single and multi crystal technologies, amounted in fact to only 144 MW with an increase of 70 MW with respect to 2007. The situation is worst in the case of cells and wafers: the cells are mainly imported and only about 30 MW have been produced in Italy; although announced some initiatives, up to now all the wafers are bought from international market. Budgets for PV Public and private budget for research and demonstration initiatives remain essentially flat with respect to the previous years and very small with respect to the budget of about 80 M during 2008 allocated for promoting tariffs. Applications for photovoltaics In Italy four sectors of PV power system applications are identified: - Off-grid domestic systems: have reached a saturation value in the late nineties of 5.4 MWp; - Off-grid non-domestic applications: slowly, but constantly increasing roughly reach 7.9 MWp; - On-grid centralized systems: boosted in the nineties and now growing again, this sector is being allowed to benefit feed-in tariffs; at the end of 2008 an amount of 150 MWp has been counted for this application; - On-grid distributed systems: growing up to 295 MWp as cumulative installed power; this sector is dominating with a share of about 65% Italys cumulative installed power. These systems firstly promoted by the Italian roof-top Program are continued to be supported by feed-in tariffs. Production and production capacity information for 2008 for each manufacturer a) The manufacturers, that produce only modules, purchase cells on the international market. As a consequence a total of 115 MW of cells have been imported. The other manufacturers that produce cells and modules from wafer have imported 28,4 MW of wafers. b) Taking into account that only 14% of the installed module have been produced by Italian manufactures (corresponding to about 47,3 MW), the other 96,7 MW (144 47,3) of modules produced in Italy have been exported from the country. Page 143 of 189

PV-Outlook A.D. 2010 v1.5

Business value An estimate of the value of PV business in Italy by the Gross Domestic Product approach is reported hereunder.

Page 144 of 189

PV-Outlook A.D. 2010 v1.5 The last edition of the conto energia Program is ensuring a stable situation, providing the basis for the expansion of PV market in Italy followed by an adequate growth of the national PV industry. Counting on a market growth of 338 MW in 2008 and of about 400-500 MW in the following year, Italian producers of crystalline cells and modules are planning to extend their capacities in the next two years up to 400 MW/years and some initiatives have been announced to realize production lines of polysilicon and thin films modules, as well as production of silicon ingots. Moreover a recent government call (Industria 2015) foresees the financial support of industrial projects, aimed at creating innovative process and products also for the photovoltaic sector.

Page 145 of 189

PV-Outlook A.D. 2010 v1.5 Country

Japan
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

36 00 N, 138 00 E 377,915 127,078,679 4,141 5,049 -5.70% 32,600 1,058 1,007 0 0 0.146 0.222 Abbreviated Programs The former incentive program run by the Ministry of Economy, Trade and Industry was stopped in 2005.

Page 146 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp] (2008)

2,144

Page 147 of 189

PV-Outlook A.D. 2010 v1.5 Country

Kenya
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

1 00 N, 38 00 E 580,367 39,002,772 63.52 30.21 1.80% 1,600 5.223 4.863 58.3 22.5

Abbreviated Programs

Bill introduced in 2008. 15 years duration and up to 150 MW capacity in each category. Offers 9 US cents/kWh for wind farms < 50 MW.

Page 148 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Unknown. Unclear. Wind, biomass, and hydro--not solar.

Page 149 of 189

PV-Outlook A.D. 2010 v1.5 Country

Korea, South
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

37 00 N, 127 30 E 99,720 48,508,972 1,343 800.3 -0.80% 27,700 440 385.1 0 0 0.075 0.101 Abbreviated Programs

Page 150 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates

Applies to PV, wind, small hydro, and landfill gas, differentiated by size. Contract duration 15 years, constant remuneration. In 2005, provided approximately 77 cents/kWh for 15 years for PV > 3 kW and 45 cents/kWh for 20 years for PV > 3 kW after 2010 (with buyback or 70% rebate for installations < 3 kW) (Gipe). Situation as of Oct 11 2006. Systems >30 kWp: KRW677.38/kWh Systems <30 kWp: KRW711.25/kWh (ca $0.75, 0.60)

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
1300 MW goal by 2012. Additional subsidies are available.

357.517

[Excerpts from National Survey Report of PV Power Applications in Korea 2008, Prepared by, Kyung-Hoon Yoon, Photovoltaics Research Center, Korea Institute of Energy Research (KIER), 71-2, Jang-dong, Yuseong-gu, Daejeon, Korea, e-mail : y-kh@kier.re.kr and Donghwan Kim, Korea university, Anam-dong, Sungbuk-gu, Seoul, Korea, e-mail : donghwan@korea.ac.kr May 2009] Installed PV power The cumulative installed power of PV system in Korea increased to 357.5 MW by the end of 2008. Annual installed power in 2008 has reached 276.3 MW, which was more than 3,5 times higher than the cumulative installed power by the end 2007. The share of grid-connected centralized system jumped to 83% of the total cumulative installed power, and the grid-connected distributed system accounts for 15% of the total cumulative installed power. On the other hand the share of off-grid non-domestic and domestic system has continued to decrease to about 2% of total cumulative installed power. In reality there was nearly no further installation of the off-grid systems since 2007. Page 151 of 189

PV-Outlook A.D. 2010 v1.5 Costs & prices The average PV module price of 3 260 KRW/W in 2008 was nearly 18% off compared to that in the previous year. According to the type of the installed PV system, the price of grid-connected systems varied from 6 662 KRW/W to 9 232 KRW/W. The price of the 3 kW rooftop system was 6 662 KRW/W in 2008, which is 20% lower than 8 400 KRW/W in 2007. PV production In 2008, the PV production took shaped from raw materials to all system components with a focus on upstream sectors. One company started the production of polycrystalline silicon feedstock with an annual capacity of 5 000 ton, and seven companies were involved in the silicon ingot and wafer production. For solar cells, four companies including three new entrants produced 59 MW crystalline silicon solar cells. Seven companies produced about 106 MW of crystalline silicon PV module with total annual production capability of 300 MW. In addition, one company launched the production of a-Si thin film PV modules. The production volume was 8.3 MW with a capacity of 20 MW. Budgets for PV In 2008 the total budget for PV was 272 369 million KRW which is two times more than that of 122 191 million KRW in 2007. The budget for R&D in 2008 tripled to 58 159 million KRW, and the budget for market incentives was doubled to 214 210 million KRW respectively. Applications for photovoltaics The year 2008 showed a big jump in the installation capacity. The majority was thank to the quite favourable feed-in-tariff scheme. As of end 2008, the grid-connected centralized system accounted for 83% of the total cumulative installed power, and the half of them are bigger than 1 MW. The largest system size is 24 MW installed in Shinan county by Dongyang Construction Co. The gridconnected distributed system amounted to 15% of the total cumulative installed power. These systems are mainly installed under the feed-in-tariff scheme and the 100 000 roof-top program. On the other hand the share of off-grid non-domestic and domestic system has continued to decrease to about 2% of total cumulative installed power. Production of feedstock, ingots and wafers The Dongyang Chemical Co., (DCC) started the commercial production of polycrystalline silicon feedstock in 2008, with an annual capacity of 5 000 tons. The basic procedure of polycrystalline silicon production is as follows ; Raw material Feed (MG-Si) Silane Production TCS Purification CVD Reactor Polysilicon. The quality of silicon is to be purer than 9 nine. DCC will expand its production capacity to 15 000 tons per year in 2009. Woongjin Energy established through a joint venture with Woongjin Group and US- based Sunpower produced 830 tones of single crystalline silicon ingot in 2008. In wafer area, LG Siltron which has set up 10 MW pilot production line in 2006 using electronic-grade ingot off-spec. produced 7 MW single crystalline silicon wafers in 2008. In addition, several small size companies such as Rexor, Glosil, Neosemitech, etc. entered into silicon ingot and wafer production in 2007, as can be seen in the following table.

Page 152 of 189

PV-Outlook A.D. 2010 v1.5 Production and production capacity information for the year for silicon feedstock, ingot and wafer producers

Production of photovoltaic cells and modules In 2008, four companies including three new entrants produced 59 MW crystalline silicon solar cells with an annual production capacity of 146 MW. The KPE is the largest producer followed by new entrants Hyundai Heavy Industry, Millinet Solar and Shinsung Holdings. These companies are expected to expand their production capacity in the coming two years, and new companies including LG Electronics and Hanwha Chemical are also expected to start the production in 2009. The technology will be largely based on single crystalline silicon. Seven companies produced about 106 MW of crystalline silicon PV module with total annual production capability of 300 MW. Due to PV cell supply shortage, the production was far below the production capacity. Symphony Energy, S-Energy and Hyundai Heavy Industry were major PV module manufacturers. For module production, much of single and multi-crystalline silicon PV cells were imported from Japan and Germany. The S-Energy manufactured several types of conventional modules with a peak output of 80 to 200 W and special BIPV modules for faade and atrium applications. This company is a leading PV system integrator and installer. This company installed large sized laminator for the manufacturing of large sized modules with the R&D program on roofintegrated PV modules with construction material manufacturer. The Hyundai Heavy Industries and Symphony Corp. were very active to export market development and made several supply contracts with foreign customers in 2007. In order to export, some companies have obtained certificate from foreign organization such as TUV. In addition, the Korea Iron & Steel firstly put its a-Si thin film PV modules on the domestic market. The production volume was 8.3 MW with a capacity of 20 MW. Alti Solar started the installation of aSi PV module production equipment and will produce its module in 2009.

Page 153 of 189

PV-Outlook A.D. 2010 v1.5 Total PV cell and module manufacturers together with production capacity information are summarized in the table below. Production and production capacity information for 2008 for each manufacturer

Business value The value of PV business in Korea was estimated to be 1 341 105 million KRW. This value was calculated from the PV power installed to which PV module export was added and PV module import was subtracted.

Page 154 of 189

PV-Outlook A.D. 2010 v1.5 Value of PV business

Highlights and prospects During 2008, the annual installed capacity exceeded 276 MW which are nearly six times more than that installed in 2007. This big jump was mainly due to the construction of a tremendous number of large size PV plants under the feed-in-tariff scheme. In addition, the 100 000 roof-top programs also played a certain role. It is expected that the Korean government will continue to support the PV R&D and dissemination programs in order to promote the PV as one of Koreas new growth driving industry. In accordance with global PV boom and the governments strong drive policy, many companies have already entered into the PV industry and more companies are preparing to enter into PV industry. The Korean PV community is expecting the concrete and massive investment of large companies, which especially have a good technological background in semiconductor and display industry.

Page 155 of 189

PV-Outlook A.D. 2010 v1.5 Country

Latvia
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

57 00 N, 25 00 E 64,589 2,231,503 32.4 24.2 -17.80% 14,500 4.62 6.822 2.123 4.643

Abbreviated Programs

Award of FIT eligibility entitles RE plant operator to sell at predetermined price to public trader. May be adjusted regulatorily, by tender, or

Page 156 of 189

PV-Outlook A.D. 2010 v1.5

according to natural gas prices.

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

Wind, biomass, biogas, and hydro--not solar.

10 years to unlimited duration. Pass-through to consumers.

Unknown.

0.006

Page 157 of 189

PV-Outlook A.D. 2010 v1.5 Country

Lithuania
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

56 00 N, 24 00 E 65,300 3,555,179 53.35 35.96 -16.80% 15,000 12.09 9.612 6.606 5.649

Abbreviated Programs

RE plant operator contracts with supplier (and may do it for price below FIT). Transmission grid operator must pay RE generator, or distribution

Page 158 of 189

PV-Outlook A.D. 2010 v1.5

grid operator if there's an intermediary step, and the supplier if they pay more than the statutory minimum price. Applies to a maximum capacity of 1.4 GW solar. Also wind, biogas, biomass, hydro. No CCM or adaptation criteria set. Capacity cap may be adjusted year to year based on actual generation. Unlimited duration. 0.20-0.24 LTL/kWh payments (but solar prices not listed). Passed through to ratepayers.

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

Unknown.

0.055

Page 159 of 189

PV-Outlook A.D. 2010 v1.5 Country

Luxembourg
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

49 45 N, 6 10 E 2,586 491,775 38.14 46.51 -4.50% 77,600 2.696 6.525 2.483 6.83 0.123 0.215 Abbreviated Programs

Contracts are between grid operator and RE plant and must be approved by regulatory authority. Cost is borne by grid operator and is not passed

Page 160 of 189

PV-Outlook A.D. 2010 v1.5

through.

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes

Applies to PV under 1 MWp commissioned after 1/1/08. Also wind, biomass, biogas, hydro. Designed to provide for profitable operation; degresses but does not adjust. Guaranteed for 15 years from day of 1st feed. For PV (2008), 37 ct (52 $ct) to 42 ct (59 $ct) per kWh depending on installation size.

From 2008-12, PV projects < 30 kW can earn a state subsidy of 30% of cost of installation (up to 1,650 ). 40% subsidy may still be available for larger projects. Income from sale of electricity from 1-4 kW PV systems is taxexempt as non-commercial.

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

24.414

Page 161 of 189

PV-Outlook A.D. 2010 v1.5 Country

Macedonia
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

41 50 N, 22 00 E 25,713 2,066,718 18.59 8.825 -2.40% 9,000 6.376 7.358 0 2.491

Abbreviated Programs

Purchase obligation and 20-year duration.

Page 162 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
For PV <50 kW, 46 ct/kWh & for PV >50 kW, 41 ct/kWh. Applies to PV, small hydro, wind, and biomass/biogas.

Page 163 of 189

PV-Outlook A.D. 2010 v1.5 Country

Netherlands
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

52 30 N, 5 45 E 41,543 16,715,999 652.3 789.7 -4.30% 39,000 97.19 110.2 9.28 25.01

0.261 Abbreviated Programs

New scheme ("SDE") as of April 2009; financed by treasury with capped total budget (2/3 of long-term predicted electricity price).

Page 164 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Goal of 70-90 MW PV, 2008-2011. Unknown. PV, wind (on & offshore), biomass.

54.900

Page 165 of 189

PV-Outlook A.D. 2010 v1.5 Country

Philippines
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

13 00 N, 122 00 E 300,000 97,976,603 327.2 158.7 1.60% 3,300 56.57 48.96 0 0

Abbreviated Programs

Unknown.

Page 166 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Passed 2008 Renewable Energy Act. Unknown. Unknown.

Page 167 of 189

PV-Outlook A.D. 2010 v1.5 Country

Portugal
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

39 30 N, 8 00 W 92,090 10,707,924 232.2 219.8 -3.30% 21,700 44.47 48.78 1.313 10.74 0.122 0.205 Abbreviated Programs

Policies began in 1988; most recently revised in 2007 to add FITs for new technologies (like solar thermal). Differentiated due to day/night; adjusted

Page 168 of 189

PV-Outlook A.D. 2010 v1.5

for CO2 emissions avoided, inflation. Duration of 15 years OR 21 GWh/MW capacity for PV FITs. PV, solar thermal, wind, biogas, hydro.

Tariff Application Duration Tariff Rates

Calculated based on complicated avoided costs formula. As of 2007, average FITs of 450 /MWh for PV < 5kW, 317 /MWh for PV > 5kW, 273 /MWh for solar thermoelectric < 10 MW, 470 /MWh for microgen PV < 5kW, 355 /MWh for microgen PV > 5 kW.

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Goal of 45% of electricity consumption from RE by 2010. Estimated 20,000 jobs and reduction of 11 Mt/year CO2.

67.975

Page 169 of 189

PV-Outlook A.D. 2010 v1.5 Country

Slovenia
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

46 07 N, 14 49 E 20,273 2,005,692 56.47 49.55 -6.20% 28,200 14.14 13.5 7.82 6.218

FiT Began in 1999. Law on Energy of 1999 defined "qualified producers" as RE or high-eff cogen (amended 2000, 2002, 2004, 2005, 2007); CO2 Emissions Tax of 1996 (amended 2002); National Energy Program of 2004; Decree on

Page 170 of 189

PV-Outlook A.D. 2010 v1.5

Prices & Premiums for Purchase of Electricity from Qualified Producers of 2002 (amended 2004, 2006). Newest version 2009 (Gipe; Feed-inCooperation, 7th Workshop). Fixed and premiums offered and set once a year administratively with consideration for inflation (Held). Solar PV is only eligible for fixed FITs (Held). Based on reference cost of electricity, including fuel, O&M, and investment minus revenues (Feed-in-Cooperation, 7th Workshop). Fixed FIT for 10 years. Size < 50 kW < 1MW 1-10 MW 10-125 MW On Buildings 35.826 (50.525) 32.282 (45.527) 25.621 (36.137) 21.571 (30.425) BIPV 42.058 (59.321) 37.983 (53.572) 30.352 (42.809) 25.782 (36.363) Ground-mounted 33.322 (46.998) 30.251 (42.658) 23.083 (32.550) 20.422 (28.798) Premium (optional if >5 MW) x x ??? ct ($ct) per kWh for installations in 2009 (Feed-In-Cooperation, 7th Workshop) Night/day and high (Dec-Jan), middle (Mar-Apr, Oct-Nov), and low (MaySept) seasons; 6 separate multipliers (Held--pre-2009). Uniform FITs apply for 5 years from the day the plant begins to deliver to the grid, and then reduce by 5%, and by 10% after 10 years (Held) (unclear for 2009). Variable costs (fuel and revenues) are updated annually (Feedin-Cooperation, 7th Workshop). Degression of 6.4% per year for PV until 2013 (Feed-in-Cooperation, 7th Workshop). Unknown. Paid equally by ratepayers (Held). Governmentally-funded "soft" loans offered for companies, municipalities, etc. and can cover up to 90% of RE investment (but for every 10% subsidy the FIT is reduced by 5%); limited to 40,000 for PV plants(?) (Held). Forecasting obligation but no penalty for deviations. Purchase obligation for fixed tariff only--network operators required to purchase RE from QPs in 10-year purchase agreements (Held). O&M and investment costs are revised every 5 years (Feed-in-Cooperation, 7th Workshop). Unknown. Transmission operators are required to purchase energy by all QPs connected to their grid; but QPs may sell their energy independently for a premium (Held). None.

Cost Calculation Methodology

Tariff Application Duration Tariff Rates

Differentiation Adjustment

Degression Application Process & Queuing Program Financing

RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

2.145

Page 171 of 189

PV-Outlook A.D. 2010 v1.5

Page 172 of 189

PV-Outlook A.D. 2010 v1.5 Country

South Africa
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

29 00 S, 24 00 E 1,219,090 49,052,489 488.6 277.4 -1.90% 10,000 240.3 215.1 14.16 10.57 0.022 0.059 FiT Began in 2009. Electricity Regulation Act of 2006 authorizes the National Energy Regulator (NERSA) to devise FIT regulations. Cost of generation plus reasonable rate of return (2009 Regulatory

Page 173 of 189

PV-Outlook A.D. 2010 v1.5

Guidelines); i.e. "levelized cost of electricity calculated for discount rate 12%" (?). However, 2009 Guidelines also note that ratepayers will subsidize avoided costs, so this is uncertain.

Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations
Pass-through to ratepayers. Must obtain license from NERSA. Must obey national standards, including the South African Grid Code & South African Distribution Code (2009 Regulatory Guidelines). NERSA obligated Eskom, the major South African public utility, to purchase electricity from RE generators (unclear if Eskom will be the single buyer or if RE generators will be able to sell directly to consumers). 30% of new power generation must be bought from IPPs. Will be verifying RE generation for plants over 10 MW and random sampling for < 10 MW (2009 Regulatory Guidelines). To be reviewed every year for the first five years after implementation, and at the end of that period, every third year. May be able to cap the capacity subsidized per year (2009 Regulatory Guidelines). Program has only just begun. Stakeholders and officials were concerned about simplicity for the first few years of the program (2009 Regulatory Guidelines). Concerns about producer surplus, RET differentiation. Price chosen for wind (1.25 R/kWh compared to the 0.66 R/kWh proposed) indicates that regulator listened to RE generators (Polity article). All electricity generators (IPPs) that are connected to the grid have to follow set criteria to receive a Generation License, meaning that South Africa was able to create a streamlined process for small RE generators (< 10 MW) (2009 Regulatory Guidelines). Regulator must publish yearly summary reports. Fixed FIT for 20 years. CSP 2.10 (25.9) Rand ($ct) per kWh (NERSA 2009 Regulations) Repowered or expanded existing plants may be eligible for FITs at least in part. FITs will be adjusted yearly for inflation, according to the CPI or a similar index (2009 Regulatory Guidelines).

Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions

Additional Incentives/Subsidies Additional Notes

PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

Page 174 of 189

PV-Outlook A.D. 2010 v1.5 Country

Spain
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

40 00 N, 4 00 W 505,370 40,525,002 1,367 1,438 -3.70% 33,700 283.2 276.1 16.92 5.88 0.125 0.218 FiT Conservation of Energy Law 82/1980 guaranteed price of RE < 5 MW fed into grid. Royal Decree 2366/1994 obliged distributors to buy electricity sold by RE plants < 100 MW. Law of the Electricity Sector 54/97 provided

Page 175 of 189

PV-Outlook A.D. 2010 v1.5

"Special Regime" for RE, gave it guaranteed grid access, and provided premium for RE < 10 MW (80-90% AEP). Royal Decree on Special Regime (Regimen Especial), RD 2818/1998, allowed RE plants to choose between fixed & premium FITs (amended by RD 436/2004 to allow RE plants to sell directly to market and set rates based on AET, and by RD 661/2007 to place a cap and floor on support and tie it to CPI) (Gonzalez; etc.). If RE plant sells to distributor, it receives a fixed tariff; if it sells to the market, it receives the market price plus a premium with cap/floor (earlier versions tied to AET and revised annually); PV may only receive fixed FIT (Gonzalez). RE producers may opt to switch between fixed and premium FITs each year (Held). Older versions of the FIT provided RE generators with a payment based on a fixed percentage of electricity costs, but rising energy prices made the premium option more attractive and led to the cap/floor (NREL). Fixed FIT for lifetime of project. Size < 0.1 MW 0.1-10 MW 10-50 MW PV (1st 25 years) 44.0381 41.75 22.9375 PV (after 25 years) 35.2305 33.4 18.3811 Solar Thermal (1st 25 years) 26.9375 Solar Thermal (after 25 years) 21.5498 2007 ct (2009 $ct) per kWh for installations (NREL) Peak/off-peak altered based on time of day but only for biomass & hydro. However, Held says that RE under the fixed FIT can choose to distinguish tariffs based on peak or baseload times. 0.7 ct/kWh premium for first 2 GW additional capacity for repowering pre-2001 wind power plants. Capacity caps of 371 MW for PV and 500 MW for solar thermal in 2008 (RES-Legal). Plants must be < 100 MW (RES-Legal). Tariff updated annually based on CPI minus 0.25% until end of 2012 (0.5% reduction afterwards) (Gonzalez). Cannot be changed by more than 2% annually since 2004 (Held). Reduced tariff each year after 25 for both PV and solar thermal installations (i.e. 22.4 ct/kWh reduces to 18.4 for 10-50 MW) (Held). Tariff degresses when 75% of capacity cap is met (?) (Lucas PPT). Registration requires 2 steps. Preliminary registration: applicant submits documentation on trial operation, access contract with the grid operator, and local/regional permits to the State Secretariat for Energy; cancelled unless definite registration is applied for within 3 months after the RE generator receives notice of the completed preliminary registration (RESLegal). Grid access requires bank guarantee (Lucas PPT). Definite registration: must apply to be added to the "Special Registry," maintained by the Ministry of Industry, Tourism, and Trade; authority will decide within one month of application to Special Registry (RES-Legal). Date of document submission determines awarding of FIT under capacity cap, i.e. first come first served (RES-Legal). Capacity caps of 371 MW for PV and 500 MW for solar thermal (had to be registered by 9/29/08) (RES-Legal). Payment begins after commissioning (RES-Legal). Once systems begin to receive the FIT, they must report during the first quarter of each year on their output from the previous year (RES-Legal). Starting in Sept. 2008, PV systems may be audited, and PV must enter a pre-registration queue that determines whether the project is eligible under the cap based on firstcome, first-serve (RES-Legal). Grid operators pay RE generators and then pass-through costs to ratepayers; each month the grid operator must balance income with expenses due to FITs, and if the result is negative the National Energy

Cost Calculation Methodology

Tariff Application Duration Tariff Rates

Differentiation

Adjustment

Degression Application Process & Queuing

Program Financing

Page 176 of 189

PV-Outlook A.D. 2010 v1.5

Committee (CNE) will make up the difference (RES-Legal). Anticipated annual increase of 0.6% in the average reference electricity tariff due to premiums (unclear) (REP 2005-2010, p.59). Plants > 10MW must report to grid operator anticipated electricity at least 30 hrs before day starts; can be corrected up to one hour before delivery. If actual electricity varies by more than 20% (PV, wind), RE generators must pay 10% of reference electricity price per kWh variance; RE generators cover entire cost of connecting plant to grid (including physical connection and reinforcement if needed). Purchase obligation and prioritization for fixed FIT option only. Capacity Trigger (150 MW PV, 200 MW solar thermal). Support levels for new plants revised every 4 years since 2010, ensuring reasonable profitability, once 85% of capacity is achieved (Gonzalez).

RE Generator Obligations

Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions

Additional Incentives/Subsidies

Utilities were not in charge of transmission and so began to engage in both largescale and DG-scale RE deployment, as well as encouraging the govt to ratchet up the nation's goals. Gonzalez characterized the public support as very high, largely b/c ratepayers do not realize how much they're being charged. Government very supportive because of the possibility of increased employment (Gonzalez). Cap/floor added to prevent windfall profits to RE (Held). Tax reduction of 6% of investment costs available for RE with additional reductions for PV that is mounted on top of the building or used to meet at least part of building's energy needs (RES-Legal). The reduction will decrease to 4% in 2009 and 2% in 2010 before being discontinued in 2011 (RES-Legal). Subsidy is funded by the federal government (RES-Legal).

Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

3,404.762

Page 177 of 189

PV-Outlook A.D. 2010 v1.5 Country

Switzerland
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

47 00 N, 8 00 E 41,277 7,604,467 316.1 484.1 -1.80% 41,600 63.93 57.62 32.74 31.6 0.096 0.17 FiT Began in 1991. Revised with the March 2008 Swiss Electricity Supply Law.

Page 178 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates

Fixed FIT for 25 years. Size < 10 kW < 30 kW < 100 kW > 100 kW Ground-mounted 65 (60.4) 54 (50.2) 51 (47.4) 49 (45.6) Roof-mounted 75 (69.7) 65 (60.4) 62 (57.6) 60 (55.8) BIPV 90 (83.7) 74 (68.8) 67 (62.3) 62 (57.6) 2008 CHFct (2009 $ct) per kWh for installations (NREL) Applies reference yield to account for locational variations (similar to Germany's program) (NREL, Gipe). Degression of 8% per year starting in 2010 (Gipe).

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

To be reviewed every 5 years.

47.900

[Excerpts from National Survey Report of PV Power Applications in Switzerland 2008 Prepared by Nova Energie GmbH Schachenallee 29 CH-5000 Aarau March - Sept 2009] Switzerland PV installations boomed in 2008. In March 2008 the federal government announced the new feed in tariff scheme to be set into force by Jan. 1. 2009. Registration started by 1. May 2008 and with 48 hours the allotted amount of PV installation within the legal framework was overbooked by 3 to 4 times. Since projects holding a valid building and grid connection permit by April 30st 2008 where all eligible for a Feed in Tariff contract starting 1.1.2009, the PV installation market almost doubled compared to the previous year. Swiss PV industry (mainly equipment manufacturer) benefit for the better time of the year from a very strong global demand for new manufacturing capacity along the value chain as well as a global increase in installed capacity by over 100%. Page 179 of 189

PV-Outlook A.D. 2010 v1.5 Installed PV power Installed PV Power increased by 80% compared to 2007 and more than quadrupled compared to 2006. Installed capacity per capita reached 6 Wp. One driving force behind this increase where a lot of farmers with the largest roofs in the (PV) size of 30 up to more than 100 kWp Costs & prices Switzerland is fully depending on the European module market. Since the module price stayed tough due to the strong demand from Spain also the system prices did not decrease considerably in the first 3 quarters of 2008. PV industry Along the value chain: One manufacturer produces ingot and wafers for the global market (Swiss Wafers AG, approx. 100 MW). There are several small companies with modul production in the Megawatt scale. BOS: Switzerland has a world top manufacturer of inverters (Sputnik engineering AG) and many companies with products for cabling (Huber & Suhner AG), Connectors (Multi Contact AG) and support structures resp. module framing (Solrif). Manufacturing equipment: The leading companies for wire saws are both situated in Switzerland (HCT, Meyer Burger). Oerlikon Solar successfully exported several production lines for its thin film technology process. 3-S is a leading manufacturer of laminators and other equipment and more than quadrupled its turnover compared to 2007. Applications for photovoltaics In Switzerland, the majority of PV Installations are grid-connected plant, built mostly on the roofs of buildings. Larger installations (> 50 kW) are usually flat-roof mounted on commercial buildings, offices etc. The smaller grid-connected PV Installations (Typically around 2-5 kW) can normally be found on the roofs of single-family homes. Traditionally, off-grid installations for week-end chalets and alpine huts are relatively small (< 1 kW). PV implementation highlights, major projects, demonstration and field test programs 1. Due to the new regulations for new renewable electricity production plants, the Swiss PV market boomed in 2008 to a record of newly installed capacity of more than 1.5Wp per capita. 2. The PV industry also increased their turnover by almost 50% to an estimated 1,450,000,000 Swiss francs (mainly for exports). 3. The outlook is uncertain for the coming years, 2009 will be again better than 2008 but because of the cap set by the Swiss parliament for the preferential feed in tariff scheme, there might be a dramatic decrease in new installed capacity by 2010. 4. Due to the federal cap as mentioned above some cantons start to think about their own preferential feed in tariff schemes. Page 180 of 189

PV-Outlook A.D. 2010 v1.5 Production and production capacity information for 2008 for each manufacturer

Notes on manufacturers: No.1: Solterra SA produces a range of PV modules. Figures on production are not available. No.2: SES, Socit d Energie Solaire SA, based in Geneva, produces and sells the SUNSLATES, SUNWALL and SUNSHADE lines standardized building elements for roofing and facades- as well as customer-specific modules. Figures on production are not available. No.3: The 3S Swiss Sustainable Solutions company produces custom laminates up to sizes of 2 x 3.5 m using bought-in cells laminated onto glass. Also, appropriate roof and faade-mounting systems are developed and sold. No.4: VHF Technologies produces thin-film amorphous cells on plastic foil (polyimide) substrate (Brand name Flexcells). Initial applications are in small electronics applications and various products are commercially available, including a charger for portable phones that can be rolled up. A pilot line for larger foil-modules is in operation, production figures are confidential. Large scale production shall start in 2009. Business value The value of PV business has increased at least by 50% from 2007 to 2008. This is due to a very competitive export industry of PC production equipment, inverters and other BOS components. The total end financial value of PV plant installed is estimated at around CHF 100 Million. This is estimated on the basis of PV power installed in 2008 and average turn-key prices. As practically all cells and the greater part of PV modules in Switzerland are imported, the added value figure is probably more interesting: This amounts to around CHF 40 to 45 million. Highlights and prospects With the introduction of a preferential Feed in Tariff FiT scheme in Switzerland starting January 2009 and the fact that installations commissioned after Jan. 1st 2006 until April 30st 2008 are also eligible Page 181 of 189

PV-Outlook A.D. 2010 v1.5 for this and further on that installations holding a valid building permit for the PV installations by the April 30st 2008 can be built with approx. 1 year Switzerland installed capacity has been almost doubled within one year. 2009 will also be a good market for PV with the expectations that the market will grow another 50%. Since the cap for the FiT has been reached within days and weeks after start of registration May 1st 2008 for all renewable technologies (wind, solar, biomass, hydro, geothermal) there will be a sharp decline in installed capacity in 2010. It depends on the Swiss parliament whether the FiT cap target will be revised early enough in order to have at least for 2011 a recovery of the market.

Page 182 of 189

PV-Outlook A.D. 2010 v1.5 Country

Taiwan
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

23 30 N, 121 00 E 35,980 22,974,347 693.3 357.3 -4% 30,200 225 233 0 0 0.067 0.086 Abbreviated Programs

Renewable Energy Development Act of 2009. Details not yet set, but expected to begin at the late 2009/early 2010. No capacity cap expected.

Page 183 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Developed to encourage domestic market since Taiwan has solar cell manufacturers that ship overseas (shipped about 900 MW in 2008). Goal of 10 GW RE in 20 years. Pricing not yet finalized--solar companies want NT$8/kWh (24.2 cents USD) but government-owned Taiwan Power Co. only wants to pay NT$2/kWh (6 cents USD). Applies to solar and other types of RE, but not finalized.

Page 184 of 189

PV-Outlook A.D. 2010 v1.5 Country

Thailand
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments

15 00 N, 100 00 E 513,120 65,998,436 535.8 266.4 -3.50% 8,100 135.2 129.5 773 2.784 0.075 0.094 FiT Officially began in 2006. Small, short-term pricing subsidies had been offered for RE from small & very small power producers (SPP & VSPP) since 1992, but the programs were not really FITs until 2006, because that was

Page 185 of 189

PV-Outlook A.D. 2010 v1.5

when they made RE generation economic (Ruangrong).

Cost Calculation Methodology Tariff Application Duration Tariff Rates

Fixed adder on top of the normal purchase price of electricity received by SPPs from utilities (Ruangrong). Fixed FIT for 10 years. Solar (PV) Existing Adder 8 (23) Additional Adder for southern provinces 9.5 (28) Baht ($ct) per kWh for installations in 2009 (Gipe) Special adder provided for SPPs/VSPPs in 3 southernmost provinces (Yala, Pattani, Narathivath) to "alleviate investment risks" (Ruangrong).

Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]

Adjusted in 2007 because of lack of wind/solar participation; as of 2008, no wind/solar projects had been undertaken (Ruangrong).

RPS enacted in 2004. Government money from Energy Conservation Fund will be provided to RE projects (Ruangrong). "Adder Bidding" available for RE other than wind & solar (e.g. biomass), and awards 0.30 Baht/kWh via competitive bid, up to 300 MW capacity.

Page 186 of 189

PV-Outlook A.D. 2010 v1.5 Country

Uganda
Flag

Map

Geographic coordinates Area [sq km] Population GDP at purchasing power parity [billion USD / year] GDP at official exchange rate [billion USD / year] GDP real growth rate (2009 est.) GDP per capita [USD / year] Electricity production [TWh / year] Electricity consumption Electricity exports Electricity imports Electricity price for industry [USD/kWh] Electricity price for households Incentive type Legislation & Amendments Cost Calculation Methodology

1 00 N, 32 00 E 241,038 32,369,558 42.18 15.66 4% 1,300 2.256 2.068 30 0

Abbreviated Programs

Separated by peak, off-peak, and shoulder.

Page 187 of 189

PV-Outlook A.D. 2010 v1.5 Tariff Application Duration Tariff Rates Differentiation Adjustment Degression Application Process & Queuing Program Financing RE Generator Obligations Utility/Grid Operator Obligations Tariff Revision Effects on GHG Emissions, Employment, RE Industry Stakeholder Reactions Additional Incentives/Subsidies Additional Notes PV Modules manufacturing capacity [MWp / year] (2009 est.) PV Modules production [MWp / year] (2009 est.) Known installed cumulated PV capacity [MWp]
Applies to hydropower and cogeneration. Granted for 20 years. Higher for years 1-6 than for 7-20.

Page 188 of 189

PV-Outlook A.D. 2010 v1.5

Page 189 of 189