PV STRATEGY PRESENTATION

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UNITED SOLAR OVONIC
PV STRATEGY PRESENTATION Subhendu Guha May 20,
2005
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UNITED SOLAR OVONIC
WORLD SHIPMENT
Shipment Growth
1200
800
MW
400
0
1997 1998 1999 2000 2001 2002
2003 2004
Calendar Year
Source Strategies Unlimited
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UNITED SOLAR OVONIC
REGIONAL MARKET (2004)
MW
Note that Europe has emerged as the largest market
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UNITED SOLAR OVONIC
Thin Film Shipment Growth
Global shipment in MW
Source Strategies Unlimited
Source Ken Zweibel
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UNITED SOLAR OVONIC
CAPACITY EXPANSION AT UNITED SOLAR OVONIC
2002 25 MW
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UNITED SOLAR OVONIC

• Key challenges that faced us in 2003
• How to ramp up sales?
• How to ramp up production?
• How to get an operating profit?

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UNITED SOLAR OVONIC
Production from top 10 players in 2004
C- or pC-Si with glass cover dominate the
market Challenge How to compete with them?
30 MW
300 MW
90 MW
Note We shipped about 14 MW in calendar year
2004
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UNITED SOLAR OVONIC
PV MARKET BY MARKET SEGMENT
Figures in MWp annual sales (calendar year)
Grid Market (Commercial residentiial)
Fastest growing segment
288 675 1700
TOTAL (MW)
2006 market segments are estimates
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PV Market for Building Roofing Systems1000 MW in
equivalent roof oportunity
UNITED SOLAR OVONIC
Assumptions Residential roofing (2.5 kW
average), commercial building (100 kW average)
PV systems 1000 MW p.a.
RESIDENTIAL
400,000 Homes
60 W/m²
OR
Roof area 16 mio m² p.a.
COMMERCIAL
10,000 Buildings
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UNITED SOLAR OVONIC
BUILDING INTEGRATED PV VISION
INTEGRATED SYSTEM
ADD-ON PRODUCTS
High installation cost
Low installation cost
PV ROOFING
PV

ROOFING
CourtesySIT
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UNITED SOLAR OVONIC
SALES STRATEGY

• Develop OEM customers (roofing contractors/manufac
  turers) for Building-integrated PV (BIPV)
• They must depend on us as we depend on them for
  mutual growth (sustainability)
• Market
• Maintain strong existence in Europe
• Address U.S. market
• Select opportunities in ROW
• Pricing
• Sell at market price
• Offer better value to the customer
• Obtain large projects offering total solution

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UNITED SOLAR OVONIC
Sustainable Expansion Through Strategic Partners
Alwitra Corus/Kalzip ThyssenKrupp Sarnafil Rheinzi
nk Biohaus
Solar Integrated Technologies
Strategic Partners
Worldwide Distributors
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UNITED SOLAR OVONIC
Sales Strategy Additional opportunity
C U S T O M E R
PV Array
PV Module
PV Array Roof BIPV
BIPV System (incl. BOS)
Installation (Mech. Electr.)
Certification Warranty
UNI-SOLAR PV Array (Roofing or Power Modules)
CHARGE CONTROLLER (optional)
COMBINER BOX
AC DISCONNECT
INVERTER DC ?AC

DC DISCONNECT
AC OUTPUT TO GRID AND/OR HOUSE LOADS
Battery Energy Storage (Optional)
Increase the Value chain in being a solution
provider with better control of the sale and
higher margin
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UNITED SOLAR OVONIC
PV ROOF SYSTEM VALUE BUILD-UP
100
ADD-ON PRODUCTS
Electr. installation
Mechanical installation
BOS
THERE IS SCOPE FOR ADDITIONAL PROFITABILITY WTH
SYSTEM SALES. TOTAL SYSTEM SALES USUALLY NEED
FINANCING
50

• Balance-of-System
• power inverter
• cables/connectors
• switches

PV Modules
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UNITED SOLAR OVONIC
WHAT WE OFFER TO THE MARKET

• UNI-SOLAR and its partners offer
• A portfolio of standard UNI-SOLAR system design
  solutions for ground-mounted and all commercial
  roof types
• Low-slope, Flat Roof (Membrane, Modified Bitumen,
  BUR)
• Architectural Roof (sloped standing seam metal,
  Al)
• Complete solutions
• Data Acquisition Systems
• Engineering support services for new construction
  and/or retro-fit applications
•  

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UNITED SOLAR OVONIC
SALES-TOTAL SYSTEMS APPROACH

• We offer turn-key systems for the total PV
  solutions
• Installed 300 kW PV on Beijing Museum
• 100 kW order with CES 1 MW order for GM building
  

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UNITED SOLAR OVONIC
Sales Growth (MW)
FISCAL YEAR
Our sales strategy is working we could sell much
more if we were not production limited. We shall
hit our production target of 2 MW/month in June
2005
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UNITED SOLAR OVONIC
CAPACITY GROWTH
ECD has raised the necessary financing to build a
plant for us to double our production capacity.
ECD machine division team is working with
Uni-Solar Ovonic to build the plant that would be
located within a few miles of our current
location. The plant which would be an improved
clone of the present one is expected to start
shipping products in the last quarter of 2006 We
are also discussing opportunities to build plants
outside US through JVs
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UNITED SOLAR OVONIC
MANUFACTURING ISSUES

• THROUGHPUT
• Downtime
• Yield
• EFFICIENCY

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UNITED SOLAR OVONIC
Throughput
The design changes in going from the 5 MW to the
25 MW processor were huge. Over the last one year
we have systematically improved operation by
addressing failure and yield issues.We shall be
reaching our goal of attaining 25 MW/year
production by June 2005
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UNITED SOLAR OVONIC
Efficiency Improvement
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UNITED SOLAR OVONIC
Further improvement in efficiency through Design
of Experiments
(Based on 2 MW of laminates)
We have already raised our power rating from 128
W to 136 W. We expect to raise it further to 144
W.
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UNITED SOLAR OVONIC
RD Contribution to Triple-junction Cell
Schematic Diagram of a Triple-Junction Cell

• Requirement to Obtain High Efficiency/innovations
• Back reflector for light trapping
• -correlation of texture with light-trapping
• High quality intrinsic layer
• -improved microstructure by hydrogen dilution
• High quality doped layer
• -nano-crystalline p layer(high conductivity/transp
  arent)
• Cell matching
• -current limit by cell with the highest fill
  factor
• Device engineering
• -Ge profiling to obtain better hole transport

Collaboration with the members of thin film
partnership team have stimulated the growth of
Uni-Solar
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UNITED SOLAR OVONIC
RD Contribution To Manufacturing
Amorphous Silicon Processor

• Design consideration based on RD input on
  component cells
• Our target is to improve stable efficiency from
  observed 8 to 8.5.

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UNITED SOLAR OVONIC
Futuristic RD for terrestrial application
Nano-crystalline silicon is actively being
pursued as a replacement for a-SiGe alloy-Sharp,
Kaneka etc Under thin film partnership we have
been investigating this material and have already
made significant progress. Many challenges still
remain, specially the question of deposition rate
Progress in cell efficiency (active-area) at
Uni-Solar
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UNITED SOLAR OVONIC
Where do we go from here?

• Our challenges still remain the same
• How do we increase efficiency without increasing
  cost?
• How do we increase deposition rate without
  lowering efficiency?
• Over the last decade, members of Thin Film
  Partnership have
• made substantial contributions to address these
  issues. We have
• successfully demonstrated team working without
  barriers. With
• reduction in funding, many of these efforts would
  be truncated.
• Japan believes in the future of Thin Silicon
  Films and NEDO is
• supporting many industries (at least 3) and
  several (gt10) universities
• and research institutes to address these issues.
• I hope we do not lose our leadership position
  because of the
• budget cuts

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UNITED SOLAR OVONIC
THIN FILM SHIPMENT AND LEADERSHIP POSITIONS
Total thin film PV shipment in 2004 was 60 MW.
Thin film Si constituted more than 80 (49 MW).
This excludes shipment of HIT cells and products
for consumer market. Japans commitment to the
development of thin film silicon technology is
already paying dividends. Out of 49 MW shipped in
2004, Japan contributed to 30 MW. We have
already lost to Japan in conventional PV
technology (X-Si, pX-Si). Can we afford to lose
in this area as well? We must maintain the
technology lead through improved funding.