Solar PV Outlook

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					Solar PV Outlook
       August 2008
Welcome to SunPower Philippines Mfg Ltd. (SPML)




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    Safe Harbor Statement
     Certain statements in the following presentation relate to
     future results that are forward looking statements as defined
     in the Private Securities Litigation Reform Act of 1995.
     Actual results may differ materially from
     those projected as a result of certain risks and uncertainties,
     including but not limited to those noted in our Annual Report
     on Form 10-K and other filings with the SEC.




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    Contents

          Sunpower Company Overview


          PV Market


          Cost Trends


          Sunpower Philippines Overview


          Photo Gallery

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Sunpower Company Overview
    Corporate Overview
     Incorporated in 1985
     HQ in Silicon Valley, California
     Nasdaq: SPWR
     Manufacturing: Philippines, US
     Highest-performing solar
     electric systems worldwide
     Deliver most energy/m2




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    Global Reach
    Mission
     As the leader in delivering innovation and complete solar energy solutions
     to our customers, we work as a team to continuously set new standards
     for systems performance, value, appearance and customer experience.
     We will compete with retail electric rates by reducing system cost
     by 50% by 2012.

                                          Germany


               California    New Jersey       Switzerland        South Korea
                                          Spain
           Hawaii
                                                               Philippines


        Regional HQ

        Regional Office




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    History
     Founder: Dr. Dick Swanson
     Founded in 1985
     Utility-scale solar dish
     application
     Great technology, high cost
     All-back-contact cell
     developed
     NASA & Honda early
     customers




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Solar Market
 World Electricity Generation by Fuel Type
                                                Natural Gas,
                                                    19%

                                                                     Other
                                                                  Renewables,
                                                                      18%




                                                                     Solar, <1%
              Coal, 41%


                                                                  Nuclear, 16%



                                                        Oil, 6%
Source: U.S. Energy Information Administration, 2003


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 Current Energy Sources




                                                         Solar, <1%




          Source: US Energy Information Administration
          International Energy Annual 2005

          Table Posted: September 4, 2007
          Next Update: June 2008



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 Solar Market Context
     $1 trillion global electric power market

     Global power demand to roughly double by 2025

     Solar power market share today < 0.1%

     Policy driven by rate increases, security and environment

     Solar power within reach of mass-market cost-effectiveness


     SunPower is managing to an incentive-free solar market



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 Drivers of Solar Market Growth
     Global Power Needs
     – Roughly Double by 2025—US DOE

     Energy Prices
     – Oil up to $110 per barrel—Goldman Sachs

     Climate Change
     – Need 30% Renewables by 2030—NREL

     Solar Price Parity
     – <10 yrs for Major Markets—EPIA




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 Solar’s Role in Climate Stabilization
      Continuing at Recent Growth Rates, Renewable Energy
          Can Achieve Atmospheric Carbon Stabilization
Examples of Global
   Primary Energy
               1600                                                                                 Solar
               1400                                                80% by 2100                      Wind
                                                                                                    Biomass
               1200
                                                                                                    Geothermal
               1000                        50% by 2050                                              Hydroelectric
                800    20% by 2020                                                                  Nuclear
                                                                                                    Fossil Fuel
                600

                400

                200

                   0
                   2000    2010    2020    2030   2040    2050   2060   2070   2080   2090   2100


 Source: Don Aitken adapted from Bull and Billman, NREL 2004


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 Solar Scale Drivers
     Better Technology
     – Higher efficiencies, mass-production designs

     Better Manufacturing
     – Design discipline, scalability

     Lower Customer Costs
     – Materials, manufacturing, and retailing

     Demand Pull Policies
     – Strong, steady demand drives investment
       and innovation throughout the supply chain




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 Industry Growth

                        Regional Solar Market Size Forecast
                                                  (MWs)
     7000                                                                              Rest of World
                                                                                       Rest of Europe
     6000
                                                                                       U.S.
     5000                                                                              Japan
                                                                                       Germany
     4000

     3000

     2000

     1000

          0
                2002       2004        2006       2007        2008       2009   2010

 Source: Photovoltaic Services Program at Navigant Consulting, Spring 2007


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 Industry Growth – Aggressive Outlook




       Source: PHOTON Consulting


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Cost Trends
 Value Chain Cost Distribution


Polysilicon



Polysilicon     Ingot     Wafer      Solar Cell   Solar Panel System $/W

              2006 US Solar System Cost Allocation by Category




                                                                 50%

                                            30%
               20%
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 Solar Price Learning Curve
               Solar Panel Cost Drops by 19% with
             Each Doubling in Manufacturing Capacity
             100
      1979              1979
     $30/W             $32/W

                                                81% Progress Ratio


     Module
      Price 10                                                 2002
     (2002$)                                                  $3.10/W



                                                        Silicon
                                                       Shortage
              1
                   1           10         100          1000             10000
                               Cumulative Production (MW)


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 PV Solar Cost Forecast
       Global price outlook to 2010


                         2006         2007    2008    2009    2010


       Module Price
       (Factory Gate)    $4.01        $3.78   $3.60   $3.30   $3.03


       Module Price
       (Wholesale)       $4.21        $3.97   $3.78   $3.47   $3.19


       Non-Module        $3.46        $3.45   $3.09   $2.85   $2.67


       System            $7.67        $7.42   $6.87   $6.31   $5.86

       Source: PHOTON Consulting



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Sunpower Philippines
 SunPower Philippines Overview

     SunPower’s Manufacturing Center
     – First Semiconductor Wafer Fab in Philippines


     First Large-Scale Investment of High-Tech Front-end Semiconductor
     Processing Equipment in Philippines.
     – 8.8 Billion Php invested in Phase I


     Currently around 2200 employees growing to 3400 by 2008
     – High-end jobs, all Lead techs working in fabs are engineering graduates


     Planted the seed for the Philippine PV/Semi Economy
     – Infrastructure to support unique chemical & gas requirements
     – Proof-of-concept for front-end wafer fabrication in Philippines


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 SunPower Manufacturing
 SunPower Manufacturing
 Philippines Limited (SPML)

     Two fabs now on-line
     –   Fab1 plant: Laguna
     –   Fab2 plant: Batangas

     Highly educated engineers
     Line 1, 2, 3 and 4 operating:
     –   108 MW nameplate capacity
     Lines 5–7 operating:
     –   107 MW nameplate capacity
     Lines 8-12 planned for 2008:
     –   205 MW nameplate capacity


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 Key Milestones
     Construction Start                                 Nov 03
     Plant Inauguration                                 Mar 04
     Line 1 Production Ramp-up Starts (FAB1)            Sep 04
      – First 25MW, 8 million cells / year
     Line 2 Expansion Ramp (FAB1)                       Nov 05
      – Adds 25MW capacity, Total of 50MW
      – Ramped to full output in 8 weeks
     Line 3 Expansion Ramp (FAB1)                       Jan 06
      – Ramped to full output in 6 weeks
     Line 4 Ramp      (FAB1)                            Oct 06
      – Adds additional 35MW capacity, Total of 110MW
     Line 5 Ramp (FAB2)                                 July 07
      – Adds additional 35MW capacity
     Line 6 Ramp (FAB2)                                 Aug 07
     Line 7 Ramp (FAB2)                                 Feb 08
     Line 8 Ramp (FAB2)                                 May 08
     Lines 9 – 14 (FAB2)

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SPML Head Count




                  *Data as of WW13 of 2008


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 Philippine Market
     The Philippines now has the highest performance solar manufacturing
     capability in the world and it’s first wafer fab.
      – Capturing the “Solar Economy”
      – Support industries expanding; equipment suppliers moving to Philippines
      – Yet a very small PV market today


     Commercial / Residential PV market is small
      – Large, up-front investment needed for Solar Power
      – Little PV support infrastructure


     Yet, Opportunity Exists
      – Rising Electricity Prices
      – Large, remote populations without electricity
      – National Agenda Item



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Photo Gallery
 Grupe Green, Rocklin, CA
 2.4 kWp, 144 Homes, SunTile® System




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 Sunset Home, Silicon Valley, CA
 4 kW, SunPower Solar Electric System




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 Microsoft Silicon Valley, 480kW
 480kW PowerGuard® & SPR 210 Panel




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 FedEx Express
 Oakland Hub, CA—904 kW




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Lowe’s Home Improvement Stores
Union City, CA—690 kW (of 2.4 MW on 4 stores)




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Target Stores
Los Angeles, CA―378 kW (of 6 MW on 18 stores)




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Johnson & Johnson Consumer Companies
Skillman, NJ—505 kW (of 1.9 MW on 6 sites)




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 Serpa Power Plant, Serpa, Portugal
 11MW SunPower Tracker System




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 Select Large Customers

       Commercial         Public Sector




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Community Involvement
     The Eternal Flame




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 The Panels




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 Just Before Lighting




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 The Light of Freedom




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 Out with the old Genset




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 School Electrification




                          Electrification of School and Community on Pulo
                          Island, Talisay, Batangas




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 SERED Project

    Alliance for Mindanao
 Off-
 Off-Grid Renewable Energy
      (AMORE) Program




                             Electrification of rural households
                             and educational facilities


                             Materials & Services donated by
                             SunPower along with matching
                             grant from USAID



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 Project Sites

• 2 new barangays                                             • 15 schools electrified
electrified                                                   • 1 new barangay
                                                                electrified and 2 others
                                                                for installation
                                                              • 152 households
                                                                intensified



     • 6 schools electrified
     • 257 households
       intensified




                               • 10 schools electrified   • 9 schools electrified

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 SINAG




         First Philippine Solar Car competing in World
         Solar Challenge in Australia in Oct 2007


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