National Sun

(Names Removed)

Project Description Methodology Market Research Financial Research Recommendations Questions

Agenda

National Semiconductor

Market Research Project◦Market Analysis◦Potential Success ◦Recommendations

Project Description

Optimizes energy output Ideal for non-uniform conditions Increases array output 10% – 30%

SolarMagic

Initial research◦Internet articles◦Press releases

Technical research◦Interviews◦Financial statements◦Analyst reports

Methodology

Analysis◦Excel models

Recommendations development

Methodology

Market Research

Growth potential

2008 install capacity and generation

Projected 40%-50% CAGR

Industry maturity 2030

Forecast

Customers◦Growing Markets◦Existing solar system owners

International Market Segmentation

◦Spain ◦Germany◦Australia◦Japan

◦China◦India◦Africa◦USA

United States◦Go Green◦Stimulus Package

Spain and Germany◦Backward Integration

Japan◦ High Demand

Top 3 Market Segments

Industry Leaders◦The top 10 module manufacturers

Business Partner Evaluation

◦Kyocera ◦Sharp◦Sanyo◦Suntech◦Sunpower◦Conergy

◦Sunergy◦First Solar◦Solarworld◦Q-Cells

Sharp Q-Cells Suntech Power◦Strategy◦Market share◦Forecast◦Financials

Top B2B Partner Strategy

Q-Cells

◦# 1 leader in PV manufacturing

◦ Growth

◦ U.S. Focus

Top B2B Partner Strategy

Sharp

◦# 2 leader in PV manufacturing

◦ Located in key market

◦ Huge growth and support

Top B2B Partner Strategy

Suntech Power

◦Growth and strength

◦ Strategic in Spain and Germany

◦ China based

Top B2B Partner Strategy

Enphase Energy◦Enphase Energy Inverter Micro Inverter

MorningStar ◦Sunsaver Maximum Power Point Tracking

Act Solar◦Power String

Competitor Products

Financial Research

Pricing Model

Pricing Model

Cost Per Kilowatt 0.25 Recaptured Kilowatt 1277.5

% of Shades 0.03Recaptured Annually (S)

319.375

% Power Loss 0.25Decreased in Payback Period

2.41134

Average Sunlight 5 Annual Savings ($)

319.375

Recapture Rate 0.5Annual Savings Per Unit

9.98047

Net Cost for System 25536 Estimated Life of Unit 25

Value Pricing per Solar Magic

$ 173.79

Pricing Model

PG&E Baseline Territory X

Value Proposition

Cost/kWh

Baseline – 360 kWh $0.11

101% - 130% $0.13

131% - 200% $0.26

201% - 300% $0.38

Over 300% $0.44

Demand: 700 kWh

Value Proposition

5.6 kW 4.2 kW 2.8 kWGrid Electricity (kWh)

170 300 440

Annual Cost Savings

$160 $130 $140

Equivalent Panels 9 6 4Payback Period 22 21 13ROI 1% 1% 6%

Demand: 1300 kWh

Value Proposition

5.6 kW 4.2 kW 2.8 kWGrid Electricity (kWh)

770 900 1050

Annual Cost Savings

$540 $400 $280

Equivalent Panels 9 6 4Payback Period 7 7 6ROI 14% 14% 15%

700 kWh 1000 kWh 1300 kWh0

5

10

15

20

25

5.6kW4.2kW2.8kW

Payback

700 kWh 1000 kWh 1300 kWh0%

2%

4%

6%

8%

10%

12%

14%

16%

5.6 kW4.2 kW2.8 kW

Return on Investment

Recommendations

Push Strategy

◦Module Manufacturer

◦Local Installers

Strategic Recommendations

Module Manufacturers◦Increase efficiency ◦Increase TAM◦Ingredient branding

Local Installers ◦Increase service line◦Backward and forward◦Support

Strategic Recommendation

Recap:◦ International focus U.S., Germany and Spain, Japan

◦B2B: Q-Cells, Sharp, Suntech Power

◦Price ceiling $175

Strategic Recommendation

Questions