ROLES OF EFFICIENCY AND DISTRIBUTED PV
Santa Barbara Summit on Energy Efficiency UC Santa Barbara, May 20-21, 2009 Dick Swanson
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions. The company uses words and phrases such as "expects," “believes,” “plans,” “anticipates,” "continue," "growing," "will," to identify forward-looking statements in this presentation, including forward-looking statements regarding: (a) our plans and expectations regarding our cost reduction roadmap, (b) cell manufacturing ramp plan, (c) financial forecasts, (d) future government award funding, (e) future solar and traditional electricity rates, and (f) future percentage allocation of SunPower solar panels within our systems business. Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of risks and uncertainties, some beyond the company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) the company's ability to obtain and maintain an adequate supply of raw materials and components, as well as the price it pays for such; (ii) general business and economic conditions, including seasonality of the industry; (iii) growth trends in the solar power industry; (iv) the continuation of governmental and related economic incentives promoting the use of solar power; (v) the improved availability of third-party financing arrangements for the company's customers; (vi) construction difficulties or potential delays, including permitting and transmission access and upgrades; (vii) the company's ability to ramp new production lines and realize expected manufacturing efficiencies; (viii) manufacturing difficulties that could arise; (ix) the success of the company's ongoing research and development efforts to compete with other companies and competing technologies; and (x) other risks described in the company's Annual Report on Form 10-K for the year ended December 28, 2008, and other filings with the Securities and Exchange Commission. These forward-looking statements should not be relied upon as representing the company's views as of any subsequent date, and the company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forwardlooking statements, whether as a result of new information, future events or otherwise.
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History Original funding VC/DOE/EPRI Utility-scale solar dish application High performance required All-back-contact cell developed NASA & Honda early customers Great technology, high cost
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Corporate Overview Teamed with Cypress Semiconductor in 2001 to commercialize highefficiency one-sun cells IPO - 2005 HQ in Silicon Valley, California Manufacturing: Philippines, US Highest-performing solar electric systems worldwide Deliver most energy/m2 500 systems / 400 MW
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PowerLight Acquisition Acquisition closed January 10, 2007 PowerLight incorporated in 1995 − Worldwide Leader Large Solar Systems − Innovator: > 70 patents/applications − 89% CAGR 1997-2006
Showcase power plants include: – 14 MW Nellis Air Force Base, Nevada – 11 MW Serpa Power Plant, Portugal – 10 MW Bavaria Solar Plant, Germany
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SunPower Revenue Growth Annual Revenue $ Millions
$1,443
$775
$11
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$79
$237
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SunPower Applications Residential Retrofit
New Production Homes
Commercial & Public
Power Plants
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Product Families Roof Integrated Systems PowerGuard®
Fixed Tilt Systems T10 Roof Tile
SunTile®
SunPower Trackers T20 Tracker
T0 Tracker
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Superior Performance & Aesthetics Up to 50% more power Or, same power, smaller footprint Uniformly black, attractive Deliver most energy/m2 SunPower customers benefit from lower electric bills, higher carbon emissions savings and a superior appearance
SunPower 210 – 230 W
Conventional 165 W 9
50K Ft2 Commercial System SunPower 628 kW
SPWR SPWR
Conventional 410 kW
Thin Film 204 kW
150% kW 310% kW
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Value Chain Cost Distribution
Polysilicon
Ingot
Wafer
Solar Cell
Solar Panel System $/W
2006 US Solar System Cost Allocation by Category
50% 30% 20% 11
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Residential Roof
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Sunset Home, Silicon Valley, CA 4 kW, SunPower Solar Electric System
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Roof Tiles for New Home Construction
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Commercial Roof
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FedEx Express Oakland Hub, CA—904 kW
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Commercial Roof
U.S. DOE Headquarters
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Distributed, Ground Mounted Power Plants
Isla Mayor Spain, 8.4 MW SunPower T0 Tracker
Muehlhausen, Bavaria, Germany, 6 MW SunPower T0 Tracker
Trujillo, Extremadura, Spain-Elecnor 23 MW SunPower T0 Tracker
Jumilla, Murcia, Spain-Elecnor 23 MW SunPower T0 Tracker
Serpa, Portugal 11 MW SunPower T0 Tracker
Lebrija, Spain, 3.84 MW SunPower T0 Tracker
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PG&E Announces 250 MW SPWR Power Plant
Two Large Solar Plants Planned in California Companies will build two solar power plants in California that together will put out more than 12 times as much electricity as the largest such plant today, the latest indication that solar energy is starting to achieve significant scale.
Here Comes the Sun Power Pacific Gas and Electric Co. announced plans Thursday to buy 800 megawatts of photovoltaic solar power from two Bay Area companies - a giant deal that would provide enough electricity to power 239,000 homes and would create the country's first utilityscale photovoltaic plants.
PG&E Announces Two Huge Solar Deals SunPower, Optisolar Plan Nation’s Biggest Plants in San Luis Obispo County
PG&E Orders Photovoltaic Plant PG&E, a California power company, has placed an order for what are believed to be the world’s two biggest photovoltaic solar farms, giving a strong endorsement to a technology that few power generators have yet considered to be ready for utility-scale use.
For more than a year, San Jose's SunPower has been touting a 14-megawatt photo-voltaic solar array at Nellis Air Force Base in Las Vegas as the largest in the nation. That's about to change in a big way. Pacific Gas & Electric announced two deals Thursday that will result in 800 megawatts of power from massive facilities using PV panels — enough to power nearly a quarter-million homes, according to the utility.
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Large Power Plant
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PV Application Spectrum
Residences 1-10 kW
Commercial 10 kW -1 MW
Distributed
Large Warehouse Distributed 10 kW -1 MW Ground Mounted >10 MW
Large Power Plants >250 MW
Central
High $/kWh value, High BOS
Low $/kWh, Low BOS
More Efficiency Like
More Generation Like
Energy Efficiency Synergy
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Energy Efficiency Building Blocks
PV Insulation
Controls
HVAC Upgrade
Lighting
ROI
Note: Simple payback not accurate measure of value Because of different product life times. Need to compare ROI
ROI Hurdle ??
Energy Delivered or Saved
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PV • 25 year life • Clear policy incentives • Adaptable to PPA financing or utility ownership. • Not on company balance sheet.
Insulation
Controls
HVAC Upgrade
Lighting
ROI
Energy Efficiency Building Blocks
??
Energy
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Why Combine Energy Efficiency and Solar? Electric Rate Escalation: Rates are rising faster than inflation
Carbon Neutrality: Combining is a great path to carbon neutral
Cost Reduction: Reduce Peak Demand, total usage and rate fit Increased Energy Hedge: Rates can be unpredictable - lock in a higher percent of your load from PV by doing EE Leverage a Single Project: Capture the benefits of reducing emergency expenses and improving quality and control LEED, ZEB, and Best Practices: Advance your company’s standards 22
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SunPower Energy Efficiency Results Why Integrate Energy Efficiency with PV?
Great Economics – Maximize your ROI – Capture Utility and Tax Incentives
Simplify Procurement Improve Facilities and Implementation – Improve facility ops – Combine financing – Upgrade equipment – Consolidate accountability
– Increase your comfort and productivity 23
Economic Benefits Cut Energy Costs – reduce consumption Maximize NPV Double the Environmental Impacts Combination Impact – Source 2008 Macy’s Project Solar
Solar EE
$1.85/SqFt/yr
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$1.55 /SqFt/yr
$1.15 /SqFt/yr
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Example Project: Combination Solar and EE Project
Detail
Solar System Size
1.1 MW
Solar Financing
Power Purchase Agreement (20-Year)
Efficiency Project
Lighting, HVAC, Controls
Energy Efficiency Financing
Capital Lease
Annual Electric Cost
$1,350,000
Average Electric Rate
$0.137
Utility Escalation
6%
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A Project Example
1.1 MW Solar
Energy Efficiency
One Bottom Line
First Year kWh
1,400,000
800,000
2,200,000
Equipment Life
25 Years
15 Years
Cumulative kWh
28,000,000
12,000,000
40,000,000
Net Present Value
$580,000
$451,000
$1,031,000
PPA Rate $/kWh
$0.13
$0.07*
$.106*
* Energy Efficiency shown as the equivalent PPA rate but is not currently available under the PPA.
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Case Study: Macy’s 2007 28 California Stores First Year Savings of 24%
Over $6 Million NPV
$600,000 in Additional Rebates
Comprehensive Lighting Retrofits Display Lighting Strategies Back Stock Lighting and Dual Sensors Nine Central Plant Replacements Eight Retro Commissioning projects EMS System Upgrades and Replacements 27
M&V – Tracking Savings A regression analysis removes the weather as a variable in calculating savings
We can also correlate usage to other variables as well, such as occupancy or production.
Case Study: Rodney Strong Winery 766 kW Solar Power System combined with EE Measures 50% reduction in annual electric bill
6AM
Noon
6PM
10PM
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Case Study: St. Francis Winery Annual Electric Savings 40% Energy-Efficient Lighting Improved Light Levels Better Controls
Before
After
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Case Study: Moscone Center Extensive lighting upgrade Energy Management System Retro-commissioning
Before
After
Moscone Center, SF 31
Thank You Let’s Work Together to Make a Sustainable World
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