How To Make $3 Billion in Green Tech: Sunpower and Other Ideas

HOW TO MAKE $3 BILLION
IN GREEN TECH
SUNPOWER AND OTHER IDEAS
T. J. RODGERS
PRESIDENT & CEO
MAY 5, 2010
NATIONAL VENTURE CAPITAL ASSOCIATION

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 1
PHILOSOPHY
BE A GLOBAL WARMING SKEPTIC LIKE ME
DO NOT RELY (FOR LONG) ON GOVERNMENT FUNDING
DEMAND STAND ALONE ECONOMIC VIABILITY
DO IT THE OLD FASHIONED WAY
SUPERIOR TALENT
SUPERIOR TECHNOLOGY
RELENTLESS DRIVE FOR SUCCESS BASED ON SELF INTEREST (IPO)
DO IT THE VERY OLD FASHIONED WAY
BELIEVE IN FREE MARKETS
BELIEVE IN THE BILL OF RIGHTS
FREEDOM OF SPEECH (1ST AMENDMENT)
PRIVATE PROPERTY OWNERSHIP (4TH AMENDMENT)
LIMITED GOVERNMENT (10TH AMENDMENT)
RUN LIKE HELL WHEN YOU HEAR ANY OF THE FOLLOWING:
GREEN JOBS, GREEN ECONOMY…
GOVERNMENT-INDUSTRY “PARTNERSHIP”
CARBON TAX

OPPOSED
GOVERNMENT
SUBSIDIES TO
HIS OWN
INDUSTRY

SILICON LIGHT MACHINES: FRIEDMAN ON SUBSIDIES
Milton: “Do you believe in the flex tax?”
TJ: “Yes.”
Milton: “Why?”
TJ: “It removes the deduction game—the government's meddling in
personal choices—and eliminates billions of dollars of tax
preparation overhead.”
Milton: “Good. Then, of course you’re not going to take any deductions
on your income tax this year, correct?”
TJ: “No!”
Milton: “Why?”
TJ: “Because the low flat tax rate has not passed yet and I would
pay about 55% of my income without deductions.”
Milton: “So, you will take every deduction legally available to you under
the current law, even as you argue that the flat tax is better for
the country?”
TJ: “Yes.”
Milton: “So why would you do any less for your shareholders? Get
everything they are entitled to and still argue for an end to
government intervention into your business.”

2000: NEW HEADQUARTERS BUILDING
350KW, 33% OF TOTAL CONSUMPTION, ROI = 7 YRS

DICK SWANSON
SUPERIOR TALENT
EARLY PRODUCT
DISH CONCENTRATOR
HIGH EFFICIENCY
BACK CONTACT
VERY HIGH COST

NASA’s SOLAR CHALLENGER
250’
7’
39,375 WATTS = 53 HORSEPOWER

NASA’s SOLAR CHALLENGER
WORLD RECORD: 96,863 FT
14 MOTORS
@ 2 HP EA
2000 PRODUCT
HIGH EFFICIENCY
BACK CONTACT
MEDIUM COST

2003: THE A-300 SOLAR CELL
HIGH EFFICIENCY
BACK CONTACT
VERY LOW COST
BACK SIDE FRONT SIDE

SUPERIOR
TECHNOLOGY
SUNPOWER
20 - 22% Silicon wafer
N-type Silicon – 270 um thick
EFFICIENCY P N P N P N
Electrical contacts
CONVENTIONA
N
L Electrical
14 - 17% contacts
EFFICIENCY P
21%
= 50% MORE POWER
14%
SUNPOWER CONFIDENTIAL
MODULE PRICING
MODULE PRICE ($/WATT)
$100.00
$62.20 in 1976
$10.00
$8.36 in 1990
$3.67 in 2002
$2.11 in 2010
$1.00
0.1 1 10 100 1,000 10,000 100,000
CUMULATIVE MODULE SHIPMENTS (MW)
Source: Strategies Unlimited, 1999, inflation corrected to constant 2001 dollars

NAVIGANT MARKET FORECAST
3,500
On-Grid Utility
Industry Shipm ents (M W )
3,000
22% CAGR On-Grid Commercial
2,500
On-Grid Residential
2,000
Indoor
1,500
43% CAGR Consumer Power
1,000
Remote Habitation
500
Remote Industrial
0

FIRST: CALIFORNIA RESIDENTIAL

Due Papaveri Agriturismo
Modena, Italy
20
TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL

2007: SOLAR SUPPLY CHAIN
INDUSTRY 2.1W (14%)

SUNPOWER 3.1W (21%)
6” CELL PANEL INSTALLED

$2.50/WATT(C) $3.50/WATT(C) $8.00/WATT(P)

2003: SUNPOWER’S NEW (USED) MANILA
FACTORY
100 MEGAWATT @ CAPACITY 32M WAFERS/YEAR

BIG SCALE
100 MW / YR = 32.3 M WAFERS / YR

X 8G / WATT = 800 TONNES SI / YR
= 15 TONNES / WK
= 2 TONNES / DAY

THE OLD THE NEW

AUTO LOAD / UNLOAD

ETCHER, CLEANER
SCREEN PRINTER
METALIZATION
SUNPOWER MODULE
COMPETING 75 W
SUNPOWER 95 W

SUNPOWER
EXTREME HOME MAKEOVER
PIESTEWA FAMILY IN ARIZONA

SUNPOWER SOLAR PANELS
(SEASON FINALE)

VAR Business Unit
Dealer base
EOQ2 2007 : 123 active Dealers
Canada
3 Dealers CT
IL 2 Dealers
1 Dealer VT
1 Dealer
WI
1 Dealer
NY RI
Colorado Ohio 8 Dealers 1 Dealer
8 Dealers 1 Dealer
NorCal NJ
35 Dealers 6 Dealers
PA
3 Dealers VA/MD/DC
New Mexico NC/SC 3 Dealers
1 Dealer 2 Dealers
Arizona
Texas South East
SoCal 3 Dealers
3 Dealer 1 Dealer
37 Dealers
Hawaii
2 Dealers
78 Residential only
11 Small Commercial only
17 Both (Residential and Small Commercial) 32
2006: ACQUIRED POWERLIGHT
PowerLight's SunTile™ Solar Systems

U.S. Navy
Coronado, CA – 924 kW

Extend Technology Leadership:
PowerTracker®
Lowest cost tracker
Up to 35% more energy
Single controller drives

250 kw

Bavaria Solarpark
Mühlhausen, Germany – 6.3 MW of 10 MW total

NELLIS VERSION V1

NELLIS AFB
POWER: 15 MW
ENERGY: 40 GWh/YEAR
SYSTEM COST: ~$100M
SIZE: 140 ACRES

NELLIS AFB

STRONG REVENUE GROWTH
$M
1600 $1,430
1400
1200
1000
$774
800
600
400 $237
200 $79
$11
0
2004 2005 2006 2007 2008

STRONG PRETAX EARNINGS
$M
$250
$206
$200
$150
$116
$100
$50 $36
$0
-$50
2004 2005 2006 2007 2008

Governor Schwarzenegger
Richmond Office
42

President Obama at FPL DeSoto
Arcadia, Florida
43

SUNPOWER—HOME RUN
INVESTMENT (4 ROUNDS):
$142.8 MILLION
52.0 MILLION SHARES
$2.74 AVG. SHARE PRICE
RETURN:
$677 MILLION CASH
$2,516 MILLION SHARE DISTRIBUTION
$61.38 AVG. SHARE PRICE
ROI:
22.4 TO 1

SPWA STOCK PRICE TREND—POST SPIN
$SPWRA
80
70 SPIN $70.93
(MKT. CAP. $6.0B) GERMAN SUBSIDY CAP
60 ITALIAN SUBSIDY UNCERTAIN
GREEK MELTDOWN
50
SOLAR INDUSTRY $150B  $40B
40
TODAY $16.05
30
(MKT. CAP. $1.5B)
20
10 DO NOT RELY (FOR LONG)

ON GOVERNMENT FUNDS
0
Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10

DEMAND STAND ALONE
ECONOMIC VIABILITY
BELIEVE IN FREE MARKETS

THE COPENHAGEN SUMMIT 2009

GLOBAL WARMING—A SECULAR RELIGION

“Population, when unchecked, increases in a
geometrical ratio. Subsistence increases only
in an arithmetical ratio. A slight acquaintance
with numbers will show the immensity of the
first power in comparison of the second.”
—Thomas Malthus, British Economist, 1798

COERCIVE UTOPIANS
VS. LIMITED
GOVERNMENT

FEWER FEED MORE

THE AIR IS MUCH CLEANER THAN IT WAS 25 YEARS AGO

SOCIALISM AS A SOLUTION

WHO IS THIS MAN?
Borlaug’s Revolution
Joe Malchow/ THE WALL STREET JOURNAL–
July 2007
In 1944, when Norman Borlaug arrived in Mexico, the nation

was in the grip of crop failure. Cereals like wheat are dietary
staples. But in Mexico, an airborne fungus was causing an
epidemic of "stem rust," and acreage once flush with golden
wheat and maize yielded little more than sunbaked sallow
weeds. Coupled with a population surge, famine seemed in
the offing.
Dr. Borlaug left Mexico in 1963 with a harvest six times what it was when he arrived. From acres of arable land
sprung a hyperactive strain of wheat engineered by the scientist in his laboratory, fertilized and nurtured
according to his methods, and irrigated by systems he helped to design. Mexico's peasantry was not only fed --
it was selling wheat on the international market.
Over the next 30 years, Dr. Borlaug devoted himself to the undeveloped world, undoing crop failure in India and
Pakistan, and rescuing rice in the Philippines, Indonesia and China. He has arguably saved more lives than
anyone in history. Maybe one billion. Dr. Borlaug was awarded the Nobel Peace Prize in 1970, yet his name
remains largely unknown.
TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL SOURCE: The Wall Street Journal
59
ZERO POPULATION GROWTH
Global average birth rate for ZPG≈2.33 children per woman
WEALTH ECONOMIC FREEDOM

FRASIER INSTITUTE
Average
World ZPG Rate
U.S. ZPG Rate
Russia E.U. Avg.
China
Swtz.
Japan
Source: CIA

THE “TIPPING POINT” IN 1969

U Thant, U.N. SECRETARY-GENERAL (1961-1972)
BORN: BURMA (MYNAMAR) 1909

TEACHER, HEADMASTER
SECRETARY, MINISTRY OF INFORMATION
“The whole aim of practical politics is to keep
the populace alarmed (and hence clamorous to
be led to safety) by menacing it with and
endless series of hobgoblins, all of them
imaginary.”
—H.L. Mencken
1880 – 1956

INTELLECTUAL
ARROGANCE, AKA HIGHER
LIFE FORMS

HIGHER LIFE FORMS

MALTHUS, ALIVE AND WELL

JULIAN SIMON MAKES PAUL EHRLICH A BET
JULIAN SIMON PAUL EHRLICH TEN YEARS

Economist Biologist LATER
It’s September 29, 1980, Simon Ehrlich agrees. He selects copper, Human population grew by 800
challenges Ehrlich to pick a basket of chromium, nickel, tin, and tungsten— million.
five commodity metals. metals he‘s sure will appreciate.
Every metal declined in price.
Simon bets they’ll be cheaper in ten Ehrlich buys $200 of each metal, on
years. paper, setting an index price.
DATA: WIRED Magazine

EHRLICH LOST

The New York Times on
“An Inconvenient Truth”
A.O. Scott Mar 24 2006
Intellectually exhilarating…the idea

that worrying about the effect of
carbon-dioxide emissions on the
world's climate makes you some
kind of liberal kook is as tired as the
image of Mr. Gore as a stiff,
humorless speaker…He is, rather,
the surprisingly engaging vehicle
for some very disturbing
information…the images are stark,
illuminating and powerful…I can't
think of another movie in which the
display of a graph elicited gasps of
horror.
SOURCE: NYT

AN INCONVENIENT MANDATE IN BRITAIN
Every British Teen to See Gore's An Inconvenient Truth
CBC - 02 February 2007
“The British government will send a copy of Al Gore's film about global warming, An Inconvenient Truth, to every
secondary school in the country, the U.K. environment minister announced Friday.
Schools must warn of Gore climate film bias

DAILY MAIL - 03 October 2007
“Schools will have to issue a warning before they
show pupils Al Gore's controversial film about
global warming, a judge indicated yesterday. Mr.
Justice Burton is due to deliver a ruling on the
case next week, but yesterday he said he would
be saying that Gore's Oscar-winning film does
promote 'partisan political views'.
This means that teachers will have to warn pupils
that there are other opinions on global warming
and they should not necessarily accept the views
of the film.”
SOURCE: The Daily Mail

11 “FACTS” CHALLENGED
1. The film claims that melting snows on Mount Kilimanjaro evidence global warming. The Government’s expert was forced to
concede that this is not correct.
2. The film suggests that evidence from ice cores proves that rising CO2 causes temperature increases over 650,000 years. The
Court found that the film was misleading: over that period the rises in CO2 lagged behind the temperature rises by 800-2000
years.
3. The film uses emotive images of Hurricane Katrina and suggests that this has been caused by global warming. The
Government’s expert had to accept that it was “not possible” to attribute one-off events to global warming.
4. The film shows the drying up of Lake Chad and claims that this was caused by global warming. The Government’s expert
had to accept that this was not the case.
5. The film claims that a study showed that polar bears had drowned due to disappearing arctic ice. It turned out that Mr Gore
had misread the study: in fact four polar bears drowned and this was because of a particularly violent storm.
6. The film threatens that global warming could stop the Gulf Stream throwing Europe into an ice age: the Claimant’s evidence
was that this was a scientific impossibility.
7. The film blames global warming for species losses including coral reef bleaching. The Government could not find any
evidence to support this claim.
8. The film suggests that the Greenland ice covering could melt causing sea levels to rise dangerously. The evidence is that
Greenland will not melt for millennia.
9. The film suggests that the Antarctic ice covering is melting, the evidence was that it is in fact increasing.
10.The film suggests that sea levels could rise by 7 meters causing the displacement of millions of people. In fact the evidence
is that sea levels are expected to rise by about 32cm over the next hundred years and that there is no such threat of massive
migration.
11.The film claims that rising sea levels have caused the evacuation of certain Pacific islands to New Zealand. The Government
are unable to substantiate this and the Court observed that this appears to be a false claim.
TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL SOURCE: English and Wales High Court Decisions
75
(IPCC)

ATMOSPHERIC CARBON DIOXIDE HAS RISEN
380
280
Source: IPCC 2007

THE FAMOUS “HOCKEY STICK” CURVE

VOSTOK ICE CORE DATA NO MODEL EXPLAINS
THIS DATA
YOU ARE
HERE

CO2 BUILD UP FOLLOWS TEMPERATURE RISES
NOT VICE-VERSA
SOURCE: William Happer, Princeton

GLOBAL WARMING PRECEDED THE CO2 BUILD UP
This figure shows changes of the global average temperature adopted by the IPCC during the last 100 years or so. It also shows the temperature
changes in the Arctic (both positive and negative), which are much larger than those of the global average. (I. Polyakov)
The figure indicates also the consumed energy sources, coal, oil, natural gas and nuclear energy during the same period. It can be seen that the
temperature increased from 1910 to 1945 and then decreased from 1945 to 1975; the latter period coincided with the period of a rapid increase of
fossil energy consumption. The cause of this temperature increase and decrease is not well known. Some scientists (and news media) declared at
the time of the decrease from 1945 to 1975 that a new Ice Age was coming and that we should urgently prepare for it with rhetoric that sounds very
similar to that used for the present global warming. The temperature began to increase again from about 1975. One can see at least that the
relationship between temperature changes and the amount of CO2 released into the air is not simple at all.
-- Syun-Ichi Akasofu, Founding Director of the International Arctic Research Center of the University of Alaska Fairbanks (UAF)
SOURCE: Syun-Ichi Akasofu

IPCC ‘90: IT WAS HOTTER IN 1200 AD THAN IT IS TODAY
1200 AD
1990
Source: IPCC 1990

TROPICAL GREENLAND 1200 AD
GREENLAND SETTLEMENTS BEGAN ABOUT 986
(MEDIEVAL WARM PERIOD 1100-1300 AD)
THE LAST SCANDINAVIANS WERE GONE BY THE LATE 1400’S
(LITTLE ICE AGE 1500-1900 AD)

IPCC’95: THE MEDIEVAL WARMING PERIOD WAS TRUNCATED
LITTLE ICE AGE
IPCC 1995

IPCC ’01: THE MEDIEVAL WARM PERIOD
AND LITTLE ICE AGE ARE GONE!
THE FAMOUS “HOCKEY STICK” CURVE
IPCC 2001

IT IS NOT CLEAR THAT 380 PPM OF CO2 IS BAD
WHAT IS THE OPTIMAL LEVEL?
THE 280 PPM PRE-INDUSTRIAL LEVEL?
THE 1,000 PPM USED IN GREENHOUSES?
THE 8,000 PPM SAFE LIMIT ON SUBMARINES?
TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL SOURCE: William Happer, Princeton
89
ENHANCED AGRICULTURAL YIELDS FROM MORE CO 2
TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL SOURCE: William Happer, Princeton
90
HURRICANES ARE NOT INCREASING

NEITHER ARE TORNADOES
Source: W. Happer, Princeton

SEA LEVELS ARE RISING SLOWLY YOU ARE
—AS THEY DO AFTER EVERY ICE AGE HERE

20 CM/CENTURY
= 7.9”/CENTURY

SEA LEVELS RISE AND FALL NATURALLY
DODGE HEMI
ENGINE 1969
INVENTION OF
MODEL-T 1908
FIRST OIL
DRILLING 1869

“POLAR BEARS WILL BE CONSIGNED TO HISTORY…”
World Wildlife Fund
“Paddling across the ice, polar bears are beautiful animals.
To Greenland—part of my own nation, Denmark—they are
a symbol of pride. The loss of this animal would be a
tragedy. But the real story of the polar bear is instructive.
… Once you look closely at the supporting data, the
narrative falls apart.
Over the past few years, this story has cropped up many
times, based first on a World Wildlife Fund report in 2002
and later on the Arctic Climate Impact Assessment from
2004. Both relied extensively on research published in
2001 by the Polar Bear Specialist Group of the World
Conservation Union.
But what this group really told us was that of the twenty
distinct subpopulations of polar bears, one or possibly two
were declining in Baffin Bay; more than half were know to
be stable; and two subpopulations were actually increasing
around the Beaufort Sea. Moreover, it is reported that the
global polar-bear population has increased dramatically
over the past decades, from about five thousand members
in the 1960s to twenty-five thousand today, through stricter
hunting regulation.” —Bjorn Lomborg, 2008

ANTARCTIC ICE IS GETTING THICKER, NOT MELTING

HOW TO MAKE $3 BILLION
IN GREEN TECH
SUNPOWER AND OTHER IDEAS
T. J. RODGERS
PRESIDENT & CEO
MAY 5, 2010
NATIONAL VENTURE CAPITAL ASSOCIATION

THE DEBATE IS NOT OVER
“The debate in the scientific community is over."
Al Gore, on “This Week with George Stephanopoulos.”
June 2006.
“So the house passed the Waxman-Markey climate-change bill. In political terms, it was a
remarkable achievement. But 212 representatives voted no. A handful of these no votes came
from representatives who considered the bill too weak…And as I watched the deniers make
their arguments, I couldn’t help thinking that I was watching a form of treason—treason against
the planet.”
Paul Krugman, New York Times
June 29, 2009
“It is my intention to destroy your career as a liar. If you produce one more editorial against
climate change, I will launch a campaign against your professional integrity. I will call you a liar
and charlatan to the Harvard community of which you and I are members. I will call you out as
a man who has been brought to Corporate America. Go ahead, guy. Take me on.”
Michael T. Eckhart, President
American Council of Renewable Energy, 2007

APPENDIX

Residence
Connecticut
106

“You never want a serious crisis to go to
waste”.
—Rahm Emanuel
2008

Cell Efficiency: 1% Gain = 5% System Cost Benefit
Gen 2 Cells Mean Efficiency = 22.4%

25%
Gen 2: 22.4%
20%
15%
A 300: 20.8%
10%
5%
0%
1
5
5
7
0.
0.
0.
0.
0.
1.
1.
1.
2.
2.
1.
1.
2.
2.
-2
-2
-2
-2
-2
-2
-2
-2
-2
-2
-2
-2
-2
-2
.0
.2
.6
.6
.0
.4
.4
.8
.0
.2
.4
.8
.2
.6
20
20
21
20
20
20
21
21
21
21
22
22
22
22
108 108

MALAYSIAN FAB 3 (1,000 MW)
Fab 3
Construction Progress
109

“In this present crisis, government
is not the solution to our problem;
government is the problem.”
—Ronald Reagan
“We will meet these challenges,

not through big government.”
—Bill Clinton
GOVERNMENT AS THE
TJR SOLUTION TO PROBLEMS
NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 113
A LACK OF SOCIALISM IS
THE PROBLEM

For which of you, intending an IPO, sitteth not down
first, and counteth the cost of future rounds of funding,
whether he have sufficient funds to finish it?
RODGERS 1:1

FARM PRODUCTIVITY UP 15X
BELIEVE IN
FREE
MARKETS
COST ↓ 6X OUTPUT ↑ 2.5X

BGR

BUILDING AROUND TEMPERATURE SENSORS
John Martin Reservoir, CO (Davey 2005)
Tucson , Arizona

SunPower
>1 GW solar PV deployed 2009 revenue of $1.5B
Diversified portfolio: roofs to power plants 550 MW 2010 production

~1000 dealers and growing rapidly 5,000+ Employees; 100% solar
4+ GW power plant pipeline Publicly listed NASDAQ: SPWRA, SPWRB
Residential Commercial Power Plants
© 2010 SunPower Corp.
124
Solar PV Power Plants Are Cost Competitive
LCOE by Resource $/MWh: 2009 - 2012

Renewables
Solar PV $87 - 196
Solar Thermal $129 - 206
Wind $57 - 113
Conventional
$216- 334
Gas Peaking
Gas Combined 0 $69-96

Cycle
0 50 75 100 150 200 250 300 350 400
Levelized Cost ($/MWh)
Prices include federal incentives
Source: Lazard Capital Markets 3/18/2009
© 2010 SunPower Corp.
125

2010 Status – 2/3 Complete
$/Watt 2006 Downstream 2/3 of 50% Plan
Achieved By 2010
Cell/Panel
Silicon
Efficiency
2012
Residential Example
126

SunPower Value Chain Focus
Polysilicon
Polysilicon Ingot Wafer Solar Cell Solar Panel System
• Highest conversion efficiency

• Unique, proprietary technology
• Manufacturing excellence
• Low engineering labor cost locations

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HOW TO MAKE $3 BILLION

NATIONAL VENTURE CAPITAL ASSOCIATION

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 2

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 3

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 8

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 9

VERY HIGH COST

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 11

39,375 WATTS = 53 HORSEPOWER

WORLD RECORD: 96,863 FT

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 13

BACK SIDE FRONT SIDE

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 14

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 17

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 18

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 19

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL

INDUSTRY 2.1W (14%)

6” CELL PANEL INSTALLED

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 21

100 MEGAWATT @ CAPACITY 32M WAFERS/YEAR

100 MW / YR = 32.3 M WAFERS / YR

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 23

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 24

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 26

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 30

PIESTEWA FAMILY IN ARIZONA

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 31

EOQ2 2007 : 123 active Dealers

PowerLight's SunTile™ Solar Systems

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 33

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 34

Lowest cost tracker

Up to 35% more energy

Single controller drives

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 35

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 36

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 37

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 38

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 39

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 40

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 41

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 44

10 DO NOT RELY (FOR LONG)

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 45

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 47

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 48

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 49

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 51

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 52

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 55

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 56

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 57

In 1944, when Norman Borlaug arrived in Mexico, the nation

Global average birth rate for ZPG≈2.33 children per woman

WEALTH ECONOMIC FREEDOM

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 60

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 62

BORN: BURMA (MYNAMAR) 1909

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 64

TJR NVCA KEYNOTE – MAY 5, 2010 – CONFIDENTIAL 65