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 forward-
looking 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 high-
efficiency 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

$237
$11 $79

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SunPower Applications
Residential Retrofit New Production Homes

Commercial & Public Power Plants

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Product Families
Roof Integrated Systems Fixed Tilt Systems
PowerGuard® SunTile® T10 Roof Tile

SunPower Trackers

T0 Tracker T20 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 Conventional
210 – 230 W 165 W

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50K Ft2 Commercial System
SunPower Conventional Thin Film
628 kW 410 kW 204 kW

SPWR 150% kW
SPWR 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%
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 Sunset Home, Silicon Valley, CA
Residential Roof 4 kW, SunPower Solar Electric System

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Roof Tiles for New Home Construction

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 FedEx Express
Commercial Roof 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, Muehlhausen, Bavaria, Germany, Trujillo, Extremadura, Spain-Elecnor

8.4 MW SunPower T0 Tracker 6 MW SunPower T0 Tracker 23 MW SunPower T0 Tracker

Jumilla, Murcia, Spain-Elecnor Serpa, Portugal Lebrija, Spain,

23 MW SunPower T0 Tracker 11 MW SunPower T0 Tracker 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.
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.
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 utility-
scale photovoltaic plants.
PG&E Announces Two Huge Solar Deals
SunPower, Optisolar Plan Nation’s Biggest
Plants in San Luis Obispo County
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 Commercial Large Warehouse Distributed Large Power

1-10 kW 10 kW -1 MW 10 kW -1 MW Ground Mounted Plants
>10 MW >250 MW

Distributed 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

Note: Simple payback not accurate measure of value

Because of different product life times.
Need to compare ROI
ROI

HVAC Upgrade
Lighting

Controls

PV

Insulation
ROI Hurdle
??

Energy Delivered or Saved

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Energy Efficiency Building Blocks
ROI

HVAC Upgrade
Lighting

Controls

PV
• 25 year life

Insulation
• Clear policy incentives
• Adaptable to PPA financing ??
or utility ownership.
• Not on company balance sheet.

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
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 SunPower Energy Efficiency Results

Why Integrate Energy Efficiency with PV?

  Great Economics   Simplify Procurement   Improve Facilities

and Implementation –  Improve facility ops
–  Maximize your ROI
–  Combine financing –  Upgrade equipment
–  Capture Utility and
Tax Incentives –  Consolidate –  Increase your comfort
accountability and productivity

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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 $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

Energy
1.1 MW Solar 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 $600,000 in

Over $6
Savings of Additional
Million NPV
24% 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

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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

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 Thank You
Let’s Work Together to
Make a Sustainable World

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