Beyond 2012: A Solar Odyssey

Dr. Zhengrong Shi, CEO & Founder, Suntech

June 6, 2012
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Myth busting solar delivers affordable energy

Assured & predictable electricity
Stable costs through PPAs

Cheaper than diesel in offgrid regions

Win-win scenario for consumers

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And it has witnessed tremendous growth in the last 10 years

Source: Marketbuzz Annual World Photovoltaic Market Review, March 2012 by Solarbuzz

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2012
Challenging times
for the solar industry

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Todays challenges,

tomorrows opportunities
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The Journey Ahead: Four Trends that Will Change Solar

Cost Reduction Through Innovation

Diversification A Key Strategy

Bankability Matters

Smart Grids

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Cost Reduction Through Innovation

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10

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40

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have made solar cost competitive

US$79/kg

Declining silicon costs And improvements in wafer technology

US$28.4/kg

23-Mar-11 30-Mar-11 6-Apr-11 13-Apr-11 20-Apr-11 27-Apr-11 4-May-11 11-May-11 18-May-11 25-May-11 1-Jun-11 8-Jun-11 15-Jun-11 22-Jun-11 29-Jun-11 6-Jul-11 13-Jul-11 20-Jul-11 27-Jul-11 3-Aug-11 10-Aug-11 17-Aug-11 24-Aug-11 31-Aug-11 7-Sep-11 14-Sep-11 21-Sep-11 28-Sep-11 5-Oct-11 12-Oct-11 19-Oct-11 26-Oct-11 2-Nov-11 9-Nov-11 16-Nov-11 23-Nov-11 30-Nov-11 7-Dec-11 14-Dec-11 21-Dec-11 28-Dec-11 4-Jan-12 11-Jan-12 18-Jan-12 25-Jan-12 1-Feb-12 8-Feb-12 15-Feb-12 22-Feb-12 29-Feb-12 7-Mar-12 14-Mar-12

And today, solar is affordable and has reached grid parity in many regions around the world

Sources: 1976 -1985 data from IPCC, Final Plenary, Special Report Renewable Energy Sources (SRREN), May 2011; 1985-2010 data from Paula Mints, Principal Analyst, Solar Services Program, Navigant; 2011 numbers based on current market data

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However, the solar game has changed

Incremental innovation
will determine cost reduction in future
Scaling high conversion efficiency into production

Strong R&D infrastructure and heritage

Redesigning the solar module to use lower cost materials

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Suntech has achieved higher cell efficiencies

through consistent R&D investments

Conversion efficiency

STP125S STP156S

21% 19.2%
Mono Target STP125S

STP125 STP156

17.8% 16.5%

15% 14%
2002 2004 2005 2007 2008 2010 2011 -- 2012

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Diversification A Key Strategy

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Solar industry started in Europe, Japan and then United States

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Asia Pacific, Middle East & Africa will drive the second era of PV growth

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For Suntech, APMEAs share of total revenue has increased steadily over the last three years
19.7% 13.3% 12.0%

2009

2010

2011

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Project financing crucial to the growth of solar in APMEA

Strong financial institutions like ADB critical

Innovative financing models

Collaboration with local partners for a winwin result

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Bankability Matters

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Solar is a

25-Year Relationship

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Customers want to work with partners who can justify ROI

Innovation Proven track record

Quality

Consistency

ROI
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Suntech has one of the most advanced quality testing labs in Asia

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Smart Grids
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With the increase in renewable energy mix to our total

energy supply, it is important to have smart manage energy consumption and generation

grids to

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Solar has a long journey ahead

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Beyond 2012: Four things to remember

Cost Reduction Through Innovation

Diversification A Key Strategy

Bankability Matters

Smart Grids

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The future is bright

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Thank You

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