Empowering a Solar Tomorrow Dr. ZhengRong Shi Chairman & Chief Executive Officer October 17, 2011
2002 2008 2001 2005 2011 10 years from inception to solar leadership Founded by Dr. ZhengRong Shi with technology from U.N.S.W. Listing on the NYSE (STP) Over 5GW of installed base 2001 2011 10MW capacity production started in Wuxi, China. Production capacity reached 1GW
30 locations worldwide Sales, support, production and R&D Representative Office R&D/Production Facility Invested Operations
>5GW of installations in over 80 countries worldwide 01 Representative Office R&D/Production Facility Invested Operations
Powering families
Powering businesses
Powering cities
Powering remote communities
43% CAGR in Suntech PV shipments in last 5 years 2,200 6 30 68 160 364 496 704 1,572 PV MW Shipments 2003 2004 2005 2006 2007 2008 2009 2010 2011E
2.4GW PV module and cell capacity by end 2011 1,000 1,100 1,800 2,400 PV cell capacity (MW) 30 60 150 270 540 2003 2004 2005 2006 2007 2008 2009 2010 2011E
Gaining market share year on year 2006 MW 2007 MW 2008 MW 2009 MW 2010 MW 435 389 582 1100 1573 253 363 504 704 1400 180 336 494 595 1300 160 207 473 586 1100 155 200 300 525 1000 111 176 290 520 102 170 282 400 96 165 272 399 90 145 237 397 86 132 215 Gintech 368
Among global energy sources 15 World Energy Use 15 TW-yrs per year 23 Wind 70 11 Natural Gas 6 OTEC 170 4 Biomass Petroleum 0.3 Tides 0.5 Waves 2 Geothermal Hydro 220 Uranium 900 Total reserve Coal 12 Richard Perez Used With Permission
Solar is by far the most abundant 15 World Energy Use 15 TW-yrs per year 23 Wind 70 Solar 11 Natural Gas 40,000 TW-yrs per year 4 6 Biomass OTEC 170 Petroleum 0.3 Tides 0.5 Waves 2 Geothermal Hydro 220 Uranium 900 Total reserve Coal 13 Richard Perez Used With Permission
65% CAGR worldwide solar industry for past 5 years Equivalent to 17 nuclear power plants in 2011 Source: PV Industry Growth Data from Paula Mints, Principal Analyst, Solar Services Program, Navigant
2.5% increase projected for conventional electricity costs Sources: U.S. Energy Information Administration (EIA) ; DOE, Annual Energy Outlook, 2011
Retail Electricity Rates Are Rising While PV System Installation Costs Are Declining U.S. Average Annual Electricity Rates (units in $ / kwh) Average PV System Installation Cost (units in $ / W) $0.12 $0.11 $10.00 0.09 $0.10 $0.10 8.00 0.06 $0.07 6.00 $5.39 0.03 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 4.00 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Residential Commercial All Sectors Industrial Since 2000, U.S. electricity rates have steadily increased by approximately 3.5% to 4.0% per year across all markets Capacity-Weighted Average Cost Since 2000, the capacity-weighted average cost of installing a PV solar system in the U.S. declined by 5.5% per year
Solar price drops Mirror High Tech Consumer Goods Driven by Innovation, Automation, and Scale Digital Cameras Cell Phones with plan DVD Players
Annual Global Demand (GW) Growth (%) The Solar Rollercoaster 25 20 Demand (GW) YoY Growth 180% 160% 140% 15 120% 100% 10 80% 60% 5 40% 20% 0 Source: Solarbuzz 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e 0%
Declining silicon costs have made solar affordable
Cost reductions are achieved beyond raw material savings
Achieve scale in production through mass commercialization
Incremental innovations To achieve sustainable and commercial results Longevity & reliability Maximizing yield Uniformity over large areas
A flexible & efficient supply chain to capture price opportunities & shorten time to market
Higher cell efficiencies through material and process innovations
Conversion efficiency Striving for higher cell efficiencies through focused innovations STP156 STP125 STP156S 16.5% STP125S 17.8% 19.2% STP125S 21% Mono Target 15% 14% 2002 2004 2005 2007 2008 2010 2011 -- 2012
450 R&D personnel delivering breakthrough innovation
SuperPoly cell technology Lower production cost of poly at mono efficiency & benefits
25% world record laboratory efficiency with Pluto cell technology
% Semiconductor Finger Technology Overcomes limitations of Screen-printed solar cells Self-aligned selective emitter 18.3% efficiency with FF of 79.5% Large scale manufacturing 2006 S6A-33452 100 90 80 70 60 50 40 EQE Reflection IQE 30 20 10 0 300 400 500 600 700 800 900 1000 1100 1200 Wavelength (nm)
PLUTO Technology Replaces photolithographic processes High speed low cost ARC patterning Unique metallisation approach 19.1% av efficiency p-type CZ 20-21% generation 2 PLUTO
Reflection (%) Unique Features of Pluto Cells Reflection of SLAR coating 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 300 500 700 900 1100 Wavelength (nm)
Efficiency (*100%) Recent Production Results 0.194 Solar cell efficiencies in 2 consecutive batches (500 cells) 0.192 0.19 0.188 0.186 0.184 0.182
Efficiency(*100%) Mass production results (cells) 3 months mass production results indicated that PLUTO technology is an extreme robust technology One week mas s produc tion res ults of multic rys talline s ilic on s olar c ells 0.180 0.175 0.170 0.165 0.160
From lab to production Applications of PLUTO technology in other low quality wafers String Ribbon Wafers Compared with screen print technology, PLUTO cell has better current due to low shading lose and better Fill Factor due to better BSF and concentrated doping under metal contactors Typical solar cell results Voc: 607mV Jsc: 35.2mA/cm2 FF: 77.4% Eff: 16.53%
From lab to production Applications of PLUTO technology in other low quality wafers EFG Wafers Again, PLUTO cell has better current due to low shading lose and better Fill Factor due to better BSF and concentrated doping under metal contactors Typical solar cell results Voc: 614 mv Jsc: 34.6mA/cm2 FF: 76.8% Eff: 16.3%
From lab to production Applications of PLUTO technology in other low quality wafers UMG Wafers Efficiency is slightly lower comparing with multicrystalline, string ribbon and EFG wafer solar cells, but has quit large reverse current Typical solar cell results Voc: 635 mv Jsc: 33.1mA/cm2 FF: 78.6% Eff: 16.52% Irev: 1.036A
Mass production results (Modules) Statistic of a typical single day module production results (> 100 modules with 72 156*156 mm2 cells) Average Voc: 45.3V Average Isc: 8.45A Average FF: 77.52% Average Pmpp: 297W Average cell efficiency: 16.9%
Mass production results (Modules) Power output distribution of a typical single day module production modules made by 72 156*156mm multicrystalline cells
Mass production results Fraunhofer ISE confirmed one of cell results from mass production
World record polysilicon cell efficiency Fraunhofer ISE confirmed module result (the module was made by 72 125*125mm multicrystalline silicon solar cells) Voc: 45.3V Ise: 5.54A FF: 77.5% Pmpp: 194.3W Module efficiency with frame 15.2%
Over 16.6% Calculated module aperture efficiency
Polycrystalline Silicon Thin Film Module
CSG Solar Accomplishments One of only few companies able to prove high performance in the field: >6 MW fielded. Demonstrated performance ratios >90%. Product certified by TÜV Rhineland to IEC 61646 and 61730 with proven durability. R&D efficiency 10.4% 3.14 MW CSG + 3.3 MW mcsi
CSG Solar Next Step Actions More development effort to make the technology more competitive: Efficiency greater than 12% Production cost smaller than $1/Wp Capex lower than $0.3/Wp Production yields ~95%
As we grew, we created many more downstream jobs Every 10 jobs in our factories 15 jobs in customer markets
Strategic partnership network delivering value & low LCOE EPCs Suppliers Suntech Local partners Customers
Flight to quality Customers want 25 year partnerships
Sustainable development A corporate mission
A multi-faceted approach required People Society Environment
We have a good record but more needs to be done 20,231 employees in 2010 50% reduction in manufacturing wastewater in 2010 2 toxic chemicals phased out of production 17% reduction in accidents in 2010 129% compound annual shipment growth rate since inception 24% energy consumption reduction over the last 2 years
50% of countries will reach grid parity by 2015
The future is bright
250GW of solar capacity required to meet 5% of total energy requirement in 2015 World energy demand in 2015 21.7 trillion KWh New generation capacity 5,000 GW 5% solar 250GW
Solar is ready now Solar 17 GW Coal 6.7 GW Wind 5 GW Natural Gas 5.5 GW Solar added more than 17 GW worldwide in 2010 All other sources combined only added 14.7 GW in the US in 2010 Source: Erik Shuster, National Energy Technology Laboratory, Tracking New Coal-Fired Power Plants, January 14, 2011(Natural Gas includes NGCC at 4GW and NG GT as 1.5 GW.)
TODAY 1 million people have access to power from Suntech solar panels
20 million people powered by Suntech panels by 2020
Empowering Solar for a better tomorrow