Materials Matter™:

Solar Panel Reliability and Impact

on Financial Returns

DuPont Photovoltaic Solutions

Seesun Yeh
Global Channel Manager, PVFM
DuPont Electronics & Communications

August 2, 2012

Image Copyright National Geographic

 We are applying our science to find
solutions to some really
BIG challenges…

FEEDING THE WORLD REDUCING OUR DEPENDENCE KEEPING PEOPLE AND

ON FOSSIL FUELS THE ENVIRONMENT SAFE
2
© National Geographic images © E I DuPont 2012
DuPont - the largest material supplier in PV (ex silicon)

1.6
Over $1.4 billion in sales in 2011
Annual Sales ($ Billions)

1.4

1.2

1.0

0.8

0.6

0.4

0.2

Note: Includes 50% of JV revenues

© E I DuPont 2012 Page 2

Providing industry leading materials

Solamet® Tedlar® Elvax® and Ionomer

Metallization Pastes Backsheet Films Encapsulants

Driving higher energy Protecting PV Delivering long term

conversion efficiency modules protection of cells

All Driving Lower Levelized Cost of Energy

(LCOE)
© E I DuPont 2012 Page 3
 From Materials to Modules -- Fundamental PV Materials Science
and Cell and Module Processing, Architecture, and Testing
Capabilities

Cell Development - Sunnyvale, CA

Cell to Module - Wilmington, USA Cell to Module - Shanghai, China

Cell to Module - Meyrin, Switzerland

© E I DuPont 2012
DuPont Owns PV systems Around the World
Shenzhen, China Taoyuan, Taiwan Hyderabad, India

Rooftop Thin Film Rooftop c-Si Rooftop Thin Film & c-Si

Wilmington, DE

Ground Mount c-Si Rooftop Thin Film Rooftop c-Si

Wimea, HI Tlalnepantla, Mexico Parlin, NJ

Ground Mount c-Si Ground Mount Thin Film Ground Mount c-Si

© E I DuPont 2012
 Materials Matter™

- Material vendors and PV module producers: an increasingly intimate relationship

- An inside perspective: materials suppliers have a distinct opportunity to view trends

- Expect consolidation: large PV module producers, large materials suppliers

- Increasing dependence on materials suppliers for processes, tech support, roadmap

- Renewed attention to long-term reliability and quality of materials in PV products

© E I DuPont 2012
What’s trending…

- Dropping prices for solar panels -- manufacturing margins shrinking

- Materials substitution as means to lower module cost

- Expect consolidation -- fewer PV module producers

- Reduced incentives in established markets -- introducing in new markets

- Opportunities in new solar cell architectures, materials and process innovation

- Increasing dependence on materials suppliers for processes, tech support,

roadmap

- Renewed attention to long-term reliability and quality of materials in PV products

- Broad achievement of U.S. grid parity in 2015

- Potential restrictive trade actions – may impact global solar adoption rate
© E I DuPont 2012
Module price declines expected to continue

Module
Prices
($/W)

c-Si

Thin film

Source: iSuppli

© E I DuPont 2012
 Many Elements Drive Lower PV Electricity Cost
Material Selection is a Critical Element

System
Revenue

• System Efficiency (“BOS” cost)

System • Operating & Maintenance Cost
IRR Cost • System Cost

PV LCOE
÷
• System Efficiency
• System Life
• Power Output Degradation
Lifetime Rate
Power Output • Component Failures
• Shading
• Low-light Performance
• Insolation
Materials Choices Influence

© E I DuPont 2012
Cost Savings Must be Balanced by Risk to Get Best Value

Changes to a component’s…
• Design
• Bill of Materials
• Manufacturing Practices

Lower
…may… PV System …but can mean… Higher
Cost PV LCOE
$/W $/kWh

…if it results in:

• Decreased lifetime
• Faster power
2008 2012
Average Module Selling Price $4.00/W $.85/W degradation
(Tier 1 Module)
• Increased
performance risk
11
© E I DuPont 2012
Materials Impact Three Critical Areas Essential to
Lowering LCOE

1. Efficiency 2. Lifetime 3. BoS* Cost

Industry roadmap to Robust materials Lower cost, light-

20+% c-Si cells, enabling >25 year weight polymers to
enabled by module lifetimes with replace glass and
new materials high performance metals

Drive Lower PV LCOE

to Achieve Grid Parity

© E I DuPont 2012 *Balance of System

Roadmap to Grid Parity

Timeline 2012 2013 2014 2015 2016 2017

c-Si Standard High Efficiency Back Contact

15%-16% 18% 20%

Module
Efficiency
Thin Tandem Junction Roll to Roll
Film CZTS on Flex
10% 14%

Module 20-25 yr @ 80% 30-40 yr with >80%

Lifetime of initial power of initial power

System Bankable Retail Grid Parity in

Cost Broad Grid Parity
Capacity >10 GW portions of EU & US

© E I DuPont 2012
Increasing module efficiency lowers cost of solar
Source: University of Delaware

LCOE (¢/kWh)

Module Price ($ / m2)

Increasing efficiency from 14% to 20% reduces LCOE by 25%

© E I DuPont 2012
PV Cell Efficiency Improvement Has Primarily Been
Driven by DuPont™ Solamet® Metallization Technology
Evolution of c-Si Cell Efficiencies
20
PV17F+LDE
PV17A+LDE
PV17X
18 PV16X
PV15X

PV142/9
Efficiency, %

16

PV145/6/7/8

14

PV143
12

10
2000 2002 2004 2006 2008 2010 2012 E

The recent success of PV17x drives industry performance to the next level
© E I DuPont 2012
DuPont™ Solamet® PV17F Achieves Finer Line Design
• Higher Efficiency
• Lower Laydown
• Better Adhesion
Efficiency Improvement
PV17A vs. PV17F Lower Laydown
PV17A vs. PV17F

PV17A PV17F

Better Adhesion
PV17A vs. PV17F

2012/8
/13
© E I DuPont 2012
 17

DuPont™ Ionomer Encapsulants

Benefits of Ionomer encapsulants in c-Si modules:

• Excellent blue light transmission resulting in

higher module efficiency
• UV stable (NREL data)
• Protect cells from PID (potential induced
degradation) - PID reduces module efficiency
over time; no PID with PV5400 (NREL data)
• Compatible with Glass-Glass packaging
• Protect cells from moisture

© E I DuPont 2012
 18

Longer life systems deliver best financial returns

Relative Electricity Cost of PV System

Source: Sunpower; DuPont

System Life (years)

© E I DuPont 2012
DuPont™ Tedlar® Film

As the only films with 25+ years of field proven performance in PV

applications across a broad range of climatic conditions, DuPont™ Tedlar®
PVF films enable the design of superior backsheets, providing the most
reliable and durable protection to solar modules, maximizing total power
output and ensuring safe utilization over the PV system’s expected lifetime

Tedlar® PVF Films Tedlar® TPT™ backsheet

 Only films with 25+ years of Tedlar® PVF film
proven field performance in PV
PET
applications across a broad
range of climate conditions Tedlar® PVF film
 Desert
 Sea Shore
 Mountain Tedlar® TPE backsheet
 Offers the optimal balance of Tedlar® PVF film
 weatherability PET
 adhesion
Tie layer
 mechanical strength
© E I DuPont 2012
Tedlar®-based Backsheet Enables Lower Cost of Energy

100%
Relative Electricity Cost of PV System

90%

80%

70% Reduction in cost vs. 10 year life system

60%
48%

50%
58%

40%
10 15 20 25 30 35 40
System Life (Years)
Source: Sunpower; DuPont
20
© E I DuPont 2012
 Proven Backsheet Materials Provide Superior Performance
(Lower Degradation)

Power Degradation in 20-Year-Old Modules

Data Source: Joint Research Centre (JRC) *

80
70
Power Loss (%)

60
50
40
30
20 Typical module
warranty:
10 Less than 20%
0 power
degradation
Glass Plastic Polyester, Silicone Tedlar®, Tedlar® after 20 years
Al Al
Average Power Loss
27% 45% 27% 11% 13% 5.5%
after 20-years

*All of the above backsheets are with EVA Encapsulants.

© E I DuPont 2012
When materials fail, consequences are dire

Encapsulant discoloration Backsheet failure

Glass delamination Backsheet delamination

Source: NREL, DuPont
© E I DuPont 2012
Poor Materials Choices = Poor Results

All are non-Tedlar® backsheets

Poor Materials Choices May Result in Safety Issues, Power Loss &
Investment Loss
© E I DuPont 2012
Sound Materials Choices = Excellent Results
All-Tedlar®-based backsheets

• > 20 year old module (1980’s vintage)

• Double-sided Tedlar® backsheet
• Two inactive cells (out of 72)
• 20 year old module • Still generating >92% rated power
• Double-Sided Tedlar® backsheet • No hot spots, no visual degradation
• Still generating 92 W • Passed wet-leakage test (safe)

© E I DuPont 2012
 Any performance reduction over time is costly
Project IRR

Annual reduction in power produced

Notes: 1.0 MWp Sized System , Commercial Ground Mount System, Location: New Jersey, USA
$4.00/W installed, 22 ¢/kWh incentives, 9 ¢/kWh electricity price, 30% ITC

© E I DuPont 2012
Proven Backsheets Ensure
Lifetime Power Output & Investment Returns

© E I DuPont 2012 26
 Myth: “Module Warranty Will Cover Performance Risk”
Reality: Relying on Warranties is Not an Effective Risk Management Tool

Our Experience

Example 1 Example 2
42kW ground array; c-Si modules 40kW roof array; c-Si modules
4 years old at time of discovery 4 years old at time of discovery
• Installation error • Shattered glass – 3% of modules
• Backsheet puncture • Mechanical stress from installation
• Front side cell and metallization corrosion • Interconnect breakage

• Module form factor no longer available. End result = • Cannibalized array

no recourse • “Finger pointing” installer and module maker
• Module maker subsequently out of business
• 6 months downtime

© E I DuPont 2012
 Few Materials Have Lengthy Field Experience

0 5 10 15 20 25 30 35 40

Tedlar®

3-Layer PET

Single-Sided
Fluoro (e.g., PVDF)

Nylon

Backsheet is a vital barrier protecting solar cells 28

© E I DuPont 2012
Things You Can Do to Manage Your Risk

• Shift your thinking to LCOE from cost per watt – it is more precise and
comprehensive.

• Use proven design, materials and manufacturing processes. Consider the

environment and weather, the application, and your plans for maintenance
and monitoring.

• Know what materials are in your PV system – a module isn’t just a module
– there are big performance differences. Specify to performance
standards and then ask that your modules be certified with the materials
needed to meet your performance standards.

• Pick your partners up and down the value chain wisely – work with well-
established partners who continue to invest and advance the technology
that advances and protects the industry.

© E I DuPont 2012
In Summary

• Reduce PV LCOE by 50% to achieve broad-based grid parity

• Materials improvements deliver improved efficiency, lifetime

performance and cost

• Clear roadmap to grid parity…driven by materials innovations

• Don’t risk your long-term investment on unproven materials

• DuPont has the most comprehensive materials technology

understanding of any PV company in the world

• We want to work with you to ensure your investment is protected

© E I DuPont 2012
 photovoltaics.dupont.com

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