US Solar is one the leading renewable energy market in the world after China. Annual growth is expected to be ~8-10 GWp /year.

1. US Solar Market Outlook and Growth Trajectory

2. Long term PPA based Utility Scale Solar Market growth outpaced with CAGR of ~ 7.78% in past 5 Years,
Strong Utility & Corporate Offtakes, Long term strong RPS and Federal/States Incentives, Stable Clean
energy Policies & legislation are key drivers, South West Market are no longer the primary engine of growth
• US has installed PV capacity of ~ 62.40 GW till Q4’18, Utility scale accounts for ~
70% share and expected to be leading solar market
• Minimal Impact in growth of Utility Scale PV has been observed due to section 201
Duty as capacity addition plunged by 3% compare to 2017
• For the sixth straight year, solar was one of the top two sources of new electricity
generating capacity in the U.S.
• Rich Sunny States like Nevada, Arizona are seeing Lowest PPA price record for
Solar ($23.76/MWh) and Solar +Storage ($26.51/MWh)
• Utility Scale PPA price is consistently below the price of new Built CC natural Gas
• Emerging growth trends are seen in the regulated market (South east/west due
to higher solar carve outs and Voluntary procurement.
Source: Wood Mack
Market Outlook
• Non RPS (Voluntary procurement, PURPA, Retail procurement ) market share is
increasing
• 9 States and 100 Cities, 4 IoUs shown commitment to become carbon neutral, Push up
the renewable energy demand
• Utilities are actively including solar energy program for the next 5-15 years in their IRPs
• 2018 Market is lead by IT, Telecommunications & Industrial, 10x growth vs 2008-18
• Apart from utilities, key Corporate off-takers are AT&T, Microsoft, FB, Walmart, Google,
J&J, Target, T-Mobile, Kohler, Group Bimbo, Nike, Nestle, GM, IR, Adobe, Switch etc.
• Tumbling System cost, Federal and State Incentives are playing key roles in driving the
overall demand for Solar
• Phasing out of Coal (~ 35.07 GW) will push power market to create huge demand of PV
along with Storage in Majority of States in US
Growth drivers & Enablers
2
4% 8% 9%
27% 27% 30%
40%
33% 30%24%
29%
41% 7%
25%
39%
26%
23%
13%
36%
51%
31%
47%
43%
29%
28%
41%
56%
32%
10%
16%
10%
1% 0%
0%
0% 0%
2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8
N E W P O W E R C A P A C I T Y A D D I T I O N T R E N D : 2 0 1 0 - 1 8
Solar Wind Natural Gas Coal Other
1% 11%
65%
21%
2%
UTILITY PPA DRIVERS ,PPA SIGNED IN 2018
PURPA
RPS
Voluntary
Procurement
Corporate
Procurement
CCA
2012 2013 2014 2015 2016 2017 2018
Market wise Annual Utility Scale PV Capacity Addition : 2012-18
California MISO New York Northwest
PJM Southeast Southwest SPP
1.90
3.41
4.18 4.24
10.12
6.85 8.09
Source: GTM, Wood Mack, BNEF, EPRI

3. The Phase out of Federal Tax incentive will drive growth and expected to add 50 GW utility scale till 2023,
Market Continue to expand geographicaly from West to East, Solar is becoming competitive (LCEO Basis) with
Wind and New Natural gas CC in some of the States, Higher Module will reduce the EPC going forward
• Growth Rate :Utility Scale Market expected to see growth rate of 3.57% YoY and will add 50 GW in next 4-5 years Due to phase of ITC from 30%
to 10% by 202. State level RPS, Clean Energy Commitment will advanced the pipeline in South East, South West and New York, Texas
• Safe Harbor : Modules are generally preferred as they are the most easily applicable across multiple projects/sites. Other equipment and cost
components, such as inverters, may risk falling below the 5% threshold depending on future costs.
• Phasing out of Coal (~ 35.07 GW) will push power market to create huge demand of PV along with Storage in Majority of States in US
• Tumbling of CAPEX: CAPEX will fall further as demand of PV Module is uncertain in some of the geographies, ASP might touch $0.19/Wp by Q4
2024. Higher Power Class and Mono PERC will potentially reduce the CAPEX by ~5.50% YoY in next 4-5 Years , Acceptability of Bi-facial Module
will increase after third party results
• Corporate PPA Demand : Sustainability pledge, Energy Arbitrage and Re100 Commitment will create ~28 GW of Solar demand by 2026
• Lowest Tariff & More Storage in West : Due to higher Solar Radiation and Energy arbitrage , Sunny States (Nevada, Arizona, CO, Utha) will see
plunged in tariff and more project will come up with Storage.
3
Source: GTM, Wood Mack, BNEF, RE 100
7.78
10.03 10.38
8.65 8.63
9.27
2019 2020 2021 2022 2023 2024
US Utility Scale installation Forecast (in GW), 2019-24
2.00
1.51
1.25 1.23
1.01 0.95 0.89 0.84 0.79
0.74 0.73
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
CAPEX Trend & Forecast : 2015-2025
Module Inverter BOS EPC Other Total Capex
Projected
Market Outlook
20
30
40
50
60
70
2019 2020 2021 2022 2023 2024 2025 2026
ECONOMICs of New Source of Generation : LCOE
($/MWh)
PV utility-scale Wind onshore
Gas Coal