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Beyond 2012: A Solar Odyssey Dr. Zhengrong Shi, CEO & Founder, Suntech

June 6, 2012

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Myth bustingsolar delivers affordable energy

Win-winscenario forconsumers

Stable coststhrough PPAs

Assured &predictableelectricity

Cheaper thandiesel in off-grid regions

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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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2012Challenging timesfor the solar industry

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Today’s challenges, tomorrow’s opportunities

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The Journey Ahead:Four Trends that Will Change Solar

Cost Reduction ThroughInnovation 

Diversification –

A Key Strategy 

Bankability Matters 

Smart Grids

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Cost Reduction ThroughInnovation

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Declining silicon costsAnd improvements in wafer technology have made solar cost competitive

0

10

20

30

40

50

60

70

80

90

   2   3  -   M  a  r  -   1   1

   3   0  -   M  a  r  -   1   1

   6  -   A  p  r  -   1   1

   1   3  -   A  p  r  -   1   1

   2   0  -   A  p  r  -   1   1

   2   7  -   A  p  r  -   1   1

   4  -   M  a  y  -   1   1

   1   1  -   M  a  y  -   1   1

   1   8  -   M  a  y  -   1   1

   2   5  -   M  a  y  -   1   1

   1  -   J  u  n  -   1   1

   8  -   J  u  n  -   1   1

   1   5  -   J  u  n  -   1   1

   2   2  -   J  u  n  -   1   1

   2   9  -   J  u  n  -   1   1

   6  -   J  u   l  -   1   1

   1   3  -   J  u   l  -   1   1

   2   0  -   J  u   l  -   1   1

   2   7  -   J  u   l  -   1   1

   3  -   A  u  g  -   1   1

   1   0  -   A  u  g  -   1   1

   1   7  -   A  u  g  -   1   1

   2   4  -   A  u  g  -   1   1

   3   1  -   A  u  g  -   1   1

   7  -   S  e  p  -   1   1

   1   4  -   S  e  p  -   1   1

   2   1  -   S  e  p  -   1   1

   2   8  -   S  e  p  -   1   1

   5  -   O  c   t  -   1   1

   1   2  -   O  c   t  -   1   1

   1   9  -   O  c   t  -   1   1

   2   6  -   O  c   t  -   1   1

   2  -   N  o  v  -   1   1

   9  -   N  o  v  -   1   1

   1   6  -   N  o  v  -   1   1

   2   3  -   N  o  v  -   1   1

   3   0  -   N  o  v  -   1   1

   7  -   D  e  c  -   1   1

   1   4  -   D  e  c  -   1   1

   2   1  -   D  e  c  -   1   1

   2   8  -   D  e  c  -   1   1

   4  -   J  a  n  -   1   2

   1   1  -   J  a  n  -   1   2

   1   8  -   J  a  n  -   1   2

   2   5  -   J  a  n  -   1   2

   1  -   F  e   b  -   1   2

   8  -   F  e   b  -   1   2

   1   5  -   F  e   b  -   1   2

   2   2  -   F  e   b  -   1   2

   2   9  -   F  e   b  -   1   2

   7  -   M  a  r  -   1   2

   1   4  -   M  a  r  -   1   2

US$79 /kg

US$28.4 /kg

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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 innovationwill determine cost reduction in future

Scaling high conversion efficiency intoproduction

Strong R&D infrastructure and heritage

Redesigning the solar module to use lowercost materials

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Suntech has achieved higher cell efficienciesthrough consistent R&D investments

STP156 

STP125 

STP156S 

STP125S 

STP125S 

Mono Target 

2002 – 2004 2005 – 2007 2008 – 2010 2011 -- 2012

   C   o   n   v   e   r   s   i   o   n    e

    f    f   i   c   i   e

   n   c   y

14%

15%

16.5%

17.8%

19.2%

21%

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Diversification – A Key Strategy

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Solar industry started in Europe, Japanand then United States

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Asia Pacific, MiddleEast & Africa willdrive the second

era of PV growth

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For Suntech, APMEA’s share of total

revenue has increased steadily overthe last three years

2009 2010 2011

12.0% 13.3%

19.7%

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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 win-win result

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Bankability Matters

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Solar is a

25-YearRelationship 

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Customers want to work with partners

who can justify ROI

ROIQuality

InnovationProven

track record

Consistency

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Suntech has one of themost 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 grids tomanage energy consumption and generation

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Solar has a long journey ahead

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Beyond 2012: Four things toremember

Cost Reduction ThroughInnovation 

Diversification –

A Key Strategy 

Bankability Matters 

Smart Grids

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The future is bright

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Thank You