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Solar Manufacturing Solar Manufacturing in Arizona Mark C Willingham Spire Corporation
Solar ManufacturingSolar Manufacturing in ArizonaMark C WillinghamSpire Corporation
Presentation Outline
• A Global Solar Company.p y• The Land of Renewable Energy.• The Many Advantages of Crystalline Silicon.• Distributed Module Manufacturing.• Jump in!
M ki th C St t th S l St t• Making the Copper State the Solar State.• Creating a Greener Country.
The Turnkey Solar Factory Company
A global solar company
• Publicly traded (Nasdaq: SPIR) 25+ yrs.• Solar expertise in many segments.• History of technology innovation.History of technology innovation.
• 50+ patents.• $100M in R&D.
“Spire makes the machinesthat make the PV modules.”
Spire Across the Value Chain
R&D• Crystalline• GAs CPV
Equipment• Cell Tester• Laminator
Turnkey Lines• Module
Assembly
Material Supplies• Silicon Cells
PV Systems• Design• IntegrationGAs CPV Laminator
• Stringer• Simulator
sse b y• Cell Lines• Factory
Management
• Silicon Cells• Silicon Wafers
Integration• EPC Contracting
Where we have Been
4000
4500
5000
3000
3500
4000
MW
-DC
)
1500
2000
2500
Dem
and
(M
0
500
1000
2000 2001 2002 2003 2004 2005 2006 2007 2008
United States Germany China/Taiwan Japan ROW ROE
Source: Greentech Media 2009
110
Where we are Going
90
100
110GW Production Volume
Bright future
60
70
80 PV = established industry reduced cost
30
40
50Grid parity utility take-off
10
20
30Grid parity consumer take-off
0
Subsidy Driven Consumer Grid Parity Off‐Grid Utility Grid ParitySource: Greentech Media 2009
What’s Next for Solar?
Solar Comes toSolar Comes toSolar Comes to Solar Comes to America !America !
Opportunity
“USA to become the world’s largest solar energy market.”
- SolarPlazaApril 1, 2009April 1, 2009
US Market Drivers
• Stimulus bill to jump start the market.•PV Systems 30% Granty•Focus on US Job Creation
• Utility arrays growing in size to 100 MW +• State incentives being implemented• RPS 24 states and growing• FIT Emerging• ITC extended 8 years
•Grid Parity in 5-7 Years
Green-Collared Jobs
• “PV power has been demonstrated to have the most beneficial impact on job creation ”most beneficial impact on job creation.
~Solarfeed.com 7/2009• Familiar jobs, repurposed & expanded.
• Well-paying all skill and education levelsWell paying, all skill and education levels.• By 2030, ~ 10 million f/t jobs created.• Estimated Job Creation per Megawatt:
Production 10 jobs/MWInstallation 33 jobs/MWWholesaling / Indirect Supply 4 jobs/MWResearch 2 jobs/MW
US Market Projections
3000
3500
Solarbuzz/Prometheus/Lazard - 2009
2500
3000
1500
2000MW
500
1000
02008 2009 2010 2011 2012
US Market xSi Manufacturing Short Fall
3500
Capacity Shortfall ~ 1800MW in 3 Years
2500
3000
3500U.S. Based Capacity Shortfall
U.S. Based Capacity
1500
2000
2500
MW
500
1000
1500
0
500
2008 2009 2010 2011 2012
xSi Will Dominate
• xSi costs down to ~$50/kg.
• Lower cost of modules.
• xSi high efficiency drives down BOS.g y
•Cost parity in most systems
• xSi demonstrated 20 year life spanxSi demonstrated 20 year life span.
• PPA Market will demand xSi.
• $/kw hr x 20 years Lowest Cost!• $/kw-hr x 20 years – Lowest Cost!
Crystalline Silicon
Polycrystalline Ingot
WafersCells
Polysilicon
Ingot
Modules
SandSystems Integration
Minimum Cost Effective Factory Size
Cost of Minimum Factory
Spire Turnkey Module Lines
Comprehensive package including:• State-of-the-Art Equipmentq p
• Business Planning
• Factory Layout
• Certification Assistance
• Complete Module Design & Implementation
• Material and Vendor Lists• Material and Vendor Lists
• Key Material Supply
• Job Descriptions
• Installation and Training
Spire Turnkey Module Lines
SemiAuto
$0.800
$0.850
12MW
S iAuto Fully
$0.700
$0.750
t Less Ce
ll ost) ‐$/W
Semiy
SemiAuto Fully
A t$0.600
$0.650
Mod
ule Co
st(w
/o Cell Co
25MW
50MWAuto
Fully
$0 500
$0.550 100MW
$0.500
$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 Estimated Equipment Cost ($M)
12 MW Module Line 25 MW Module Line 50 MW Module Line 100 MW Module Line
50MW Automated Module Line
Key Facts
• 30 000 Ft2 for Production30,000 Ft for Production
• Creates 711 Jobs• 80 Direct Labor• 35 Indirect Labor• 35 Indirect Labor• 43 SG&A• 221 Community Based Direct• 332 Community Based Indirect332 Community Based Indirect
•$0.62 / W Production Costs
50 MW Automated Module Line
Automated Assembly in Key areas220W Module Designg15.5% Efficient CellTurnkey Line + Bldg < $10M
Module Production Cost – 50MW Line
OverheadOperations & Maintenance
$0.047%
Labor$0 2
$0.012.3%
$0.1219%
Non‐Cell Materials$0.4572% $0.62 / W
50MW Automated Turnkey Factory
$100k ⇓ in Capex $0.0004/Watt $ p $
1% ⇓ in Uptime $1,075,000 Revenue% ⇓ p $ , ,
One Month Delay in ~$9 M Lost RevenueOne Month Delay in Certification
~$9 M Lost Revenue
€140 $100
US xSi Distributed Module Manufacturing
• Module Assembly in Region of Demand.• From solar cellsFrom solar cells. • Relatively standard.• IP is retained in the cell.
• Modest levels are cost effective.• Cost savings in shipping & handling and inventory.• Local markets are stimulated & Jobs Created.
U.S. 50 MW Module Line
$0.192
$0.180
$0.200
W)
$0.159$0.152
$0.120
$0.140
$0.160
erial Cost ($/W
$0.040
$0.060
$0.080
$0.100
Exclud
ing Mat
US: 50 MW Semi‐Automated US: 50 MW
US: 50 MW Fully
$0.000
$0.020
Automated US: 50 MW Fully‐Automated LCC: 100 MW
Semi‐Automated
Operations & Maintenance Labor Overhead Depreciation
U.S. 50 MW Module Line
$0.192
$0.180
$0.200
W)
$0.159$0.152
$0.120
$0.140
$0.160
erial Cost ($/W LCC Costing
• Labor @ 1/3 US• No Additional Yield Loss
Lo A to High Labor$0.100
$0.040
$0.060
$0.080
$0.100
Exclud
ing Mat • Low Auto – High Labor
• Materials same as US
US: 50 MW Semi‐Automated US: 50 MW
US: 50 MW Fully
$0.000
$0.020
Automated US: 50 MW Fully‐Automated LCC: 100 MW
Semi‐Automated
Operations & Maintenance Labor Overhead Depreciation
U.S. 50 MW Module Line vs. LCC
$0.192
$0.180
$0.200
W) LCC Additional Costs
$0.159$0.152
$0.161
$
$0.120
$0.140
$0.160
teria
l Cost ($/W
Shipping Yield Loss (.1%)
Shipping Carrying Cost
$0.002 / W
$
LCC Additional Costs
$0.040
$0.060
$0.080
$0.100
Exclud
ing Mat
Overseas Shipping
Module Cost (w/oMaterial Cost)
$0.026 / W
$0.033 / W
US: 50 MW Semi‐Automated US: 50 MW
d US: 50 MW Fully
$0.000
$0.020Material Cost)
Automated US: 50 MW Fully‐Automated LCC: 100 MW
Semi‐Automated
Module Cost vs Cell Cost
3 504.00
50MW/Year
2 503.00
3.50
$1 87
50MW/YearModule Cost
M d l
1.502.00
2.50 $1.87Cell Cost
Module$/W
0.50
1.00
$1.250.00
0.00 0.50 1.00 1.50 2.00 2.50 3.00Cell $/W
Job Creation – 50MW Automated Line50MW Li
160
180
700
80050MW Line
Company/Community Induced
43
35
100
120
140
221
158
500
600
Community BasedSG&A
IndirectProducedLabor
43
60
80
100 221
300
400Based IndirectJobs
SG&A
Direct
Jobs
Jobs
80
0
20
40332
100
200 Community Based InducedJobs
DirectProducedLabor
0
~158 Jobs0
50 MW Automated ‐ 711 Jobs~711 Jobs
US Manufacturing Opportunity
• 50 MW/year production lines.•12MW and 25MW Options
• Production 2.5 GW.• 50 factories each 50 MW/year. • One per state?
• Use state + ARRA subsidies.
States With Manufacturing Initiatives
Oregon MontanagMichigan New YorkMassachusetts ArizonaNew Mexico VirginiaNew Mexico VirginiaTexas WashingtonColorado New Jersey
Arizona – The Solar Capitol of the Nation
• 89 petawatts of global sunlight/year.• 6 000x more than electrical power consumed• 6,000x more than electrical power consumed.• Arizona 90% of year has sunlight.
• AZ’s SB 1403 Bill.•10% return of $ spent on facility.• Higher wages than state average.g g g• 80% property tax break.
AZ in Center of PV’s Best Location
9%World’s PV 52%World’s PV
Source: NREL 2009
Let’s Go !
It is not too late to get in early
Mfg Lines from ~$2MPlentiful SupplyLow Technology RiskHottest Growth MarketAdvantage to local suppliers
Spire’s Unique Position in US Market
Over 40 Successful Turnkey Lines with Proven ProcessData Modeling; Name Recognition; Spire Certified
Spire equipment used as primary test for All North American Test Labs
Data Modeling; Name Recognition; Spire Certified
F t M t i t h R h i i
Customer Senior
LeadershipCustomer Business
Development
Customer Finance
Management
Factory ManagementOperations
Management Team
Quality Management
MaterialMgmt Team
Collaborative Development
Process Quality
HumanResource
Management
Spire equipment used as primary test for All North American Test Labs and Agencies including: UL, TÜV, NREL, FSEC, CSA, Bodycote
Factory Management services to enhance Ramp phase in new region TeamEngineering Management
Procurement
Manufacturing Management
Facilities Management
Inventory Control
Production Planning
Q yAssurance
Customer ServiceQuality Control and Inspection
ManagementResource Planning
Resource Training
Payroll and Benefits
Line and Production Supervision
Line Operators
Buyers
Material Handlers
Process EngineersMaintenance and Support
Customer Service
24/7 Service & Support Infrastructure located in Region or On-Site
Spire’s Unique Position in US Market
Board member of Primary US Lobbying Agency for Solar Power Industry
Maximize Job Creation – Spire Equipment, services and capabilities most aligned with goals of US Federal and State Incentives
Already in pipeline of DOE Funding on new and emerging programs
most aligned with goals of US Federal and State Incentives
Already in pipeline of DOE Funding on new and emerging programs $100M of Gov’t funding
Solar Pioneer Growing at twice the Global PV Market
Spire CorporationOne Patriots ParkBedford, MA 01730
NASDAQ: SPIRNASDAQ: SPIRNASDAQ: SPIRNASDAQ: SPIR
