This document discusses the topic of grid parity for solar power. It summarizes that: 1) The price of solar panels has dropped rapidly in recent years due to manufacturing advances and increased production in China. This has fueled demand for solar systems. 2) Many parts of the world have already reached grid parity, where solar electricity is cost competitive without subsidies. By 2022, over 30 million homes and businesses in the US are expected to be able to get solar cheaper than grid power without subsidies. 3) Third-party solar financing options, where homeowners pay nothing up front, have been a major driver of solar adoption as they allow customers to immediately benefit from grid parity. Further innovations in power electronics

1. GRID PARITY:
ARE WE THERE YET?
Craig Lawrence, VP Marketing
APEC 2013
2013 CONFIDENTIAL | 1

2. ABOUT SOLARBRIDGE
SolarBridge is the leading supplier of microinverter technology
used in AC PV Modules
• Founded by world-renowned power electronics experts at the University of
Illinois. Headquarters in Austin, TX
• Design, manufacture, and sell microinverters and monitoring solutions used in
residential and commercial PV
• OEM Partner to leading solar module manufactures globally
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3. THE SOLARBRIDGE AC MODULE SOLUTION
A complete ACPV solution including inverter and monitoring solution,
designed as a “white label” solution for module OEMs.
AC MODULES
POWER PORTAL
POWER MANAGER
2011 CONFIDENTIAL | 3
2013

4. GLOBAL DEMAND FOR ENERGY IS GROWING
Source: EIA, International Energy Outlook 2011 Source: IEA, World Energy Outlook 2012
Global energy demand rises by 35% in the period to from 2010 - 2035, underpinned
by rising living standards in China, India & the Middle East
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5. OUR FUTURE SUPPLY DEPENDS ON RENEWABLES
Source: IEA World Energy Outlook 2012
Renewable energy sources are expected to account for over half of new global
electricity capacity
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6. THE PRICE OF SOLAR IS DROPPING RAPIDLY
Source: GreenTech Media Source: Yingli Green Energy and Maxim Group
• The price of PV modules has dropped, rapidly accelerating the past 2 years
• From 1985 to today, we have seen a 100X reduction in PV module prices
• Price drops have been fueled by manufacturing process advances, and by a
massive investment in production in China
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7. THE INDUSTRY IS CONSOLIDATING
• Many PV Module companies focused on new technology innovation (e.g. thin film)
have failed due to cost reductions of traditional crystalline-silicon technology
• European and American module companies have not been able to keep pace with the
Chinese
• This pain felt by the “upstream” suppliers has resulted in a market boom “downstream”
to other parts of the value chain who benefit from oversupply and lower costs
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8. LOWER PRICES HAVE FUELED DEMAND
Source: IMS, World Market for PV Inverters 2012
• Demand for PV expected to grow 20% annually through 2016, fueled by falling prices,
increased electricity rates, and government incentives
• Incumbent leading markets in Europe (Germany, Italy, Spain) are no longer driving
growth.
• Future growth to come from the U.S., China, Japan, India, and the developing world,
following their increased demand
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9. FROM SUBSIDIES TO GRID PARITY
Source: Stephen O’Rourke/Deutsche Bank
• “Grid Parity” is a term used to describe the point at which PV is cost competitive with
incumbent sources of electricity without any subsidies
• Grid Parity is a local phenomenon – depends heavily on the local cost of electricity and
PV. There is no one point in time that we hit parity.
• We are already at Grid Parity today in many parts of the world (CA, HI, Australia, Japan)
• By 2022, it is expected that 38 million homes and businesses in the US will be able to
get solar cheaper than the grid without any subsidies
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10. THIRD-PARTY FINANCING DRIVING DEMAND
• 3rd party financing of solar pioneered by SunEdison for commercial customers, is now
available to homeowners across the country by multiple vendors
• You get solar for $0 down, and a monthly lease or energy payment designed to be less
then the amount you save on your bill. This is “grid parity” today for home and
business owners without any capital investment.
• This type of financing is the major driver for growth of PV in the United States, and is
now spreading to other countries
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11. THE FOCUS IS SHIFTING TO “SOFT” COSTS
Source: Lawrence Berkeley Lab
• With low module prices, the majority of PV system costs are now “soft” costs –
customer acquisition, design, permitting, installation labor, etc.
• Mature markets, such as Germany, are much more efficient when it comes to soft
costs, although they still represent a majority of the system cost
• Power electronics play a unique role, as they have the ability to influence soft costs in a
positive or negative way
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12. THE LEVERAGE OF POWER ELECTRONICS
• Power electronics have unique leverage in impacting overall system costs.
• Innovations in power electronics can influence multiple hard and “soft” cost factors
and drive the industry to grid parity faster
Innovation Benefit
Improved Energy Harvest Lower Equipment Cost
Simplified Architecture Lower LCOE
Increased System Integration Lower Installation Costs
Improved Safety Reduced BOS Costs
Improved Reliability Reduced Permitting Costs
Improved Monitoring Lower O&M Costs
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13. MANY INNOVATIONS ARE HAPPENING
DC Optimizers Microinverters AC Modules
• Significant innovations addressing energy harvest, system architecture, safety,
reliability, monitoring, etc. are occurring in the industry today
• Driven by both incumbent power electronics companies, and new start-ups, these are
having a real, measurable impact on the drive to grid parity
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14. MICROINVERTER MARKET TRACTION
Microinverters have seen rapid adoption in markets where they have
been introduced. In the US, they have captured 30% market share of DG
Motivation for adoption:
→ Higher energy production
→ Simplified design and
installation
→ No single point of failure
→ Module-level diagnostics
reduce operations and
maintenance costs
→ Safer, no high-voltage DC
Source: California Solar Initiative (CSI) Data, 2013
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15. POWER ELECTRONICS - LINK TO THE “SMART” GRID
• Solar energy is an intermittent source of energy. As the penetration of solar increases,
the impacts on the grid will become significant, and will ultimately increase the cost to
grid operations (which get passed to consumers)
• As the only “intelligent” portion of the PV system, power electronics can and will play a
key role in helping integrate more PV to the grid without increasing it’s cost
• Utilities may need or require several new capabilities from PV systems
 Remote on/off and Power limiting
 Voltage and frequency ride-through limits
 Support local grid voltage (transition voltage control mode)
 Reactive Power, VAR control
 Short- and Long-term energy forecasting
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16. THANK YOU
Craig Lawrence, VP Marketing
APEC 2013
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