TAKING ENERGY FORWARD enabling a world powered by reliable and affordable solar electricity.

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2 TAKING ENERGY FORWARD enabling a world powered by reliable and affordable solar electricity. First Solar Overview PV a Solution to Contemporary Energy Problems The Role of Utility-Scale PV Copyright 2013, First Solar, Inc.

3 First Solar at a Glance Over 8 GW installed worldwide and over 3GW contracted pipeline Cost competitive with conventional energy sources today Partner of choice for leading utilities and global power buyers Driving innovation across entire value chain and plant solution Strongest financial stability & bankability in the industry Founded in 1999 and publicly traded on Nasdaq (FSLR) 3

4 History of Leadership Across Entire Solar Value Chain 1 st global module recycling program 1 st to break $1/watt cost barrier 1 st to produce 1GW in single year World record 18.7% cell World record 16.1% module Acquired EPC & project DEV World s largest PV plants Proprietary plant controller Acquired disruptive x-si technology Financed ~9B solar plants Industry leading tracker technology State-of-the-art Operations Center Integrating into the global energy mix 4

5 Global Offices & Manufacturing 5

6 Site System Size Owners Agua Caliente, AZ, USA 290MW NRG Energy & MidAmerican Solar Site System Size Owners Greenough River, WA, Australia 10MW Verve Energy & GE Energy Financial Services Site System Size Owner Developer Templin, Brandenburg 128MW Commerzreal Belectric

7 Copyright 2013, First Solar, Inc. First Solar in Europe Project Development & Execution Sustainable Markets Southern Europe, Turkey Self Consumption solutions Partnership & Acquisition Markets with reliable RE regulation Joint Project Development Pipeline Acquisition Modules, AC Power Blocks, Services Technology Sales Project Business only 7

8 TAKING ENERGY FORWARD First Solar Overview PV - a Solution to Contemporary Energy Problems The Role of Utility-Scale PV Copyright 2013, First Solar, Inc.

9 Europe & Germany: Energy Policy Goals./. 40% (2020)./. 85% (2050) vs % (2020) 80% (2050)./. 20% (2020)./. 50% (2050) 18% (2020) 60% (2050) 9

10 Share of RE on Gross Power Consumption in GE and GE Government Targets 10

11 Germany: Energiewende Elimination (Phasing-Out) of Nuclear power production in 2022 Municipalities contribute to reach CO 2 reduction targets and renewable energy 2020 targets As a result: Renewable Energy will form the backbone of energy generation in Germany As most Renewable Energy Sources are fluctuating, grid integration, storage and backup solutions are necessary Grid expansion program (for Off-Shore-Wind) and local transmission necessary, but distributed local energy production can reduce expansion needs Energy Research Funds should promote Storage, Grid Technologies and Integration of RE in market and grid 11

12 Germany: Energiewende How can PV power plants benefit the Energiewende? By enabling decentralization of power generation close to existing clients whereby maintaining zero CO 2 emissions By empowering municipal utilities to green and broaden their power generation portfolio By providing competitive power generation on a fixed price for 25 years By fitting perfectly into power generating portfolios, in particular with wind and gas By being suitable for integration in local grids and provide grid stabilization mechanisms 12

13 Impact of Project Finance on PV Electricity Cost PV has high upfront capital costs with low ongoing operating costs Cost of Capital significantly impacts total cost of ownership De-risking the project cash flow, lowers the cost of capital available to a project OpEx 8% Development 5% BoS 26% Financing 36% Module 25% Cost of Financing is a Key Driver of LCOE 13

14 TAKING ENERGY FORWARD First Solar Overview PV - a Solution to Contemporary Energy Problems The Role of Utility-Scale PV Copyright 2013, First Solar, Inc.

15 Market Segments 15

16 Cost Competitive with Conventional Energy Sources Today $0,60 $0,50 $0,40 $0,30 $0,20 $0,10 $0,00 a Coal Nuclear b b c Gas Combined Cycle Gas Peaking Diesel U.S. (NG) Japan (LNG) U.S. (NG) EU (NG) Japan (LNG) India Australia EU First Solar Sources: Coal and Nuclear: Bloomberg New Energy Finance LCOE Update: Q2 2013; Gas Combined Cycle, Gas Peaking, and Diesel: Lazard LCOE Sensitivity Analysis June 2013; First Solar: Internal data. (a) Does not include cost of carbon capture. (b) NG = natural gas. LNG = liquefied natural gas. Data assumes natural gas prices of $10 in Northern Europe and $18 in Japan (all in US$ per MMBTU). (c) Assumes diesel prices of $3.00 for India, $4.30 for Australia, and $7.00 for Northern Europe (all in US$ per gallon). Diesel assumes a high end capacity factor of 30% representing intermittent utilization and low end capacity factor of 95% representing base load utilization, O&M cost of $15 per KW/year, heat rate of 10,000 BTU/KWh and total capital costs of $500-$800 per KW of capacity. 16

17 Applications for the German Market Self-Consumption Solutions Contracting Adding solar PV to local/regional power generation protfolios 17

18 PPAs Seek to Balance Utility and Investor Interests Utility Off-Taker Interests Successful procurement of reliable, predictable power Protect ratepayers Keep rates low Diversify generation portfolio Meet load growth Meet renewable energy targets Investor Interests Financeable project with predictable, long-term revenues Terms acceptable to lenders and investors Secure revenue stream to service debt Avoid risks best controlled by utility Limit lender downside Creditworthy off-taker Sufficient revenue to service debt Stable revenue stream Term of PPA covers term of loan 18

19 Securing the PV Project Cash Flow Regulator Power Feed-in-Tariff Land Lease O & M Debt Service Dividends Sovereign Risk Regulatory Risk Utility/IPP Power Feed-in-Tariff Land Lease O & M Debt Service Dividends Energy Market Risk Corporate Risk 19

20 Goal of Research and Methodical Approach Cost Analysis Comparison of fossile and renewable power production considering the 40- year-lifecycle Regional consideration of LCOE Competitiveness of solar power plants in an European comparison Integration to the Energy System Possible allocation of technological system services (grid stability) Analysis of the energy generation profile of solar power plants Role of utility solar power plants in Germany 20

21 RES LCOE in Germany (excluding grid costs) on 20-year-timeframe Region 1 Region 2 Region 3 Region 4 Source: Prognos AG 21 21

22 Average LCOE of the Single Energy Generation Sources According to Regions* 40 Year Life-Cycle Region 1 Region 2 Region 3 Region 4 Source: Prognos AG * excluding grid costs 22

23 Solar Power Production is Predictable Planned and Realized Power Production 2012 Source: Fraunhofer ISE 23

24 Utility-Scale PV Grid Integration and Plant Control Systems Actively stabilize the electricity grid and enhance its reliability Manage variability with existing infrastructure Offer significant value to plant owners and grid operators ADVANCED PLANT FEATURES Regulate voltage and power factor Control active and reactive power Control ramp rates Regulate frequency Fault ride through Curtailment impact mitigation 24

25 Utility-Sale PV is a Competitive Renewable Energy Source in Germany Utility-sale PV is a competitive RES in Germany A higher share of utility-scale PV in energy generation portfolio contributes to cost reduction of RES production and of the overall energy-system-transition Utility-scale PV power plants offer long-term fixed power production cost; the hedging value of PV power generation has been calculated between and /kwh (Source: LBBW, EPIA, 2009) Utility-scale PV should be seen as independent RES and have their own capacity expansion target Systemic aspects/advantages of RES need to be considered However: Starting end of 2013, building and operating solar power plants is uneconomic under current political framework conditions The feed-in-tariff cap at 10 MW per plant and the restricted site selection limit the exploitation of the cost reducing potential. The 52GW PV cap should be reviewed to consider the advantages of utility-scale PV 25 25

26 Europe Team Sales & Business Development Stefan Degener Andreas Wade Jörg Veldmann Order Management & Customer Service Luca Rigoni Project Finance Sonja Altesellmeier Marketing Communications Sarah Junior Office Management & Sales Support Carina Würzberger 26

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28 BACKUP Copyright 2013, First Solar, Inc.

29 Feed-in-tariffs for utility solar power plants show significant decrease Development Entwicklungof der nominal nominalen Feed-in-tariffs EEG-Vergütungssätze for solar power plants für Freiflächen-Solarkraftwerke dependent on total PV market capacity in Abhängigkeit vom gesamten PV-Marktvolumen in Cent/kWh (in cents/kwh) 11,8 11,0 10,4 9,9 9,2 8,6 8,1 8,8 7,6 8,5 7,1 8,2 6,6 8,0 6,2 7,8 5,8 7,5 5,4 7,3 5,1 7,1 4,7 9,7 9,6 9,4 9,3 9,2 9,0 8,9 8,8 8,6 8,5 8,4 8,2 8,2 6,9 6,7 4,4 4,2 Bei Zubau zwischen 5,5 und 6,5 GW Bei Zubau zwischen 3,5 und 4,5 GW Bei Zubau zwichen 2,0 und 2,5 GW Bei Zubau zwischen 4,5 und 5,5 GW Bei Zubau zwichen 2,5 und 3,5 GW Bei Zubau zwichen 1,5 und 2,0 GW Jan 13 Apr 13 Jul 13 Okt 13 Jan 14 Apr 14 Jul 14 Okt 14 Jan 15 Apr 15 Jul 15 Okt 15 Jan 16 Apr 16 Jul 16 Okt 16 Source: Prognos AG Threshold of 10cents /kwh was undercut in October