Rhone Resch, President & CEO of the Solar Energy Industries Association (SEIA), presented at the GW Solar Institute Symposium on April 19, 2010. For more information visit: solar.gwu.edu/Symposium.html

1. GW Solar Symposium Rhone Resch President & CEO Solar Energy Industries Association

3. Represent over 80,000 people employed by solar

4. 14 state and regional chaptersSEIA’s Mission Expand Markets Remove Market Barriers Strengthen R&D Improve Education and Outreach Voice of Solar in US We Represent the Industry’s Interests in the U.S.

5. Annual Growth of US Solar Energy Capacity Additions CAGR 2000-2009 Electric: 41%* Thermal: 5%** CAGR 2006-2009 Electric: 49% Thermal: -8%*** * Electric includes PV and CSP (including off-grid PV) ** Thermal includes solar water heating, solar pool heating, space heating and space cooling. *** Decline in annual thermal shipments is due to a decline in pool heaters. Solar water heating grew over this period. 3

6. Grid-Tied PV Capacity Additions Grid-tied PV grew by 38% in 2009 Annual growth from 2000-2009: CAGR = 69% Shifting demand in each market segment. Notable increase in residential market share in 2009. Utility sector* nearly tripled in annual MW from 2008. * "Utility sector” refers to all capacity that feeds electricity directly into the distribution grid or the transmission grid, rather than primarily serving on-site use. It includes utility-scale solar power plants, utility-owned distributed systems, and non-utility owned distributed systems located on customer property that connect to the grid on the utility side of the meter. 4

7. Growth Expected to Continue

8. Average Installed Cost of PV In 2009, PV Module prices fell 40 percent. Average price per watt in mid-2008 was $3.50-4.00.* Average price per watt at the end of 2009 was $1.85-2.25.* This is beginning to help bring down the installed cost. * Paula Mints, Navigant Consulting, Inc. ** Capacity-Weighted Average. Data from OpenPV.nrel.gov downloaded 3/30/10. 6

9. Global Solar Electric Capacity 7 Global solar electric capacity has passed 21 GW. Germany has nearly half the cumulative global capacity.

10. International Solar Electric Capacity Rankings New Capacity in 2009 Cumulative Capacity in 2009 Top 10 countries ranked four ways: US does well on measures of capacity. US is doing less than other countries on a per capita basis. Megawatts Watts per Capita * Country rankings include off-grid estimates for US. ** Includes estimates for several other countries; not a global figure. 8

11. Utility-Scale PV Project Pipeline Shows Massive Potential PV is poised to go big. Over 6,500 MW of utility-scale projects are now in the works. Some of the largest projects in the world will begin construction in the US this year. Rooftop installations will remain strong. * "Utility-scale” solar power refers to projects that generate wholesale electricity, typically for sale to utilities. These projects can be tens to hundreds of megawatts in size are typically not sited on customer property. Utility-scale solar power plants may be any solar technology – CSP, PV, or CPV. 9

12. CSP Getting Ready to Take Off Dozens of CSP projects totaling over 10,500 MW are now under development. The US has more operating CSP capacity than any other country. 10

13. Solar Heating and Cooling Annual Shipments CAGR 2000-2009 Total: 5% Solar Water Heating: 22% Solar Pool Heating: 4% CAGR 2006-2009 Total: -8% Solar Water Heating: 25% Solar Pool Heating: -11% * Water heating figures include collectors for combined water heating and space heating applications. 11

14. Solar On Track In 2009: Solar installed 481 MW Wind installed 10,000 MW Wind has a 12-year head start 30% ITC for solar adopted in 2006 PTC for wind first adopted in 1994 When first four years of support are compared, solar is keeping pace. 12

15. HR 1 American Recovery and Reinvestment Act 19 Provisions to benefit solar Improves existing tax credits Refundability Remove subsidized energy financing penalty Improves loan guarantee program Increases government procurement ($25 billion) Creates new manufacturing tax credits State energy program funding ($3.1 billion) Expands CREBS funding ($1.6 billion) Funds school repair and construction ($53.6 billion) Funds water treatment repair and construction ($6 billion) Supports construction of new transmission Increases access to federal lands Increases DOE solar appropriation Improves tax credit for solar water heating Funds worker training Increases profile of solar with top political leaders

16. Jobs Bill - April Purpose is to grow domestic industries that create jobs Kammen et al PV Creates 8 time as many jobs as coal 4-37 Job years/MW Navigant 9-35 Job years/MW – midpoint 23/MW 190,000 by 2016 Industry’s ask Extension of the Treasury Grant Program Restore/refine Loan Guarantee Program 30% Manufacturing Tax Credit Increase residential ITC to 50% Clean energy bank

17. New Energy Bill – June/July Comprehensive Energy Legislation House passed bill in December Senate refining legislation Solar industry priorities Renewable Electricity Standard (25% by 2025) DG/Solar carve out Transmission legislation 30-year PPA authority Net metering and Interconnection standards Clean energy bank Carbon cap and trade program (83% decrease by 2050)

18. Grid-Parity: 30% ITC + Bonus Depreciation 100% debt financed* 8% APR 20 years 30% ITC Bonus Depreciation Commercial systems only Las Vegas Los Angeles Honolulu Miami New York Philadelphia Chicago Boston *4% Discount rate, bonus depreciation assumed to be worth an additional 20% of capital costs

19. Grid-Parity in US Cities: 30% ITC + Bonus + Green Bank 100% debt financed - 8% 4% APR - 20 years 30% ITC Bonus Depreciation Commercial systems only Does not include state incentives! Las Vegas X Los Angeles Honolulu Miami New York Philadelphia Chicago Boston *4% Discount rate, bonus depreciation assumed to be worth an additional 20% of capital costs

20. Emerging Issues for our Industry Environmental Health and Safety Recycling Fire safety Manufacturing waste Trade Customs Tariffs Antidumping Countervailing Duty Labor Buy American Act U.S. Feed-in-Tariff Public Awareness Campaign Sunday, 2010-04-18 © 2009 SEIA 18