Why crystalline technology is the right solution for the UK solar market

UK  PV  Conference  by  Solarplaza  

22  June  2010  London,  UK  

Ben  Hill,  Vice-­‐President  Europe  

Company  Snapshot  

●  Founded  in  1997,  in  Changzhou,  China    

●  $845.1  millions  of  Revenue  in  FY09  

●  8,000  employees  worldwide1    

●  Listed  on  the  NYSE  (under  TSL  Qcker)  

●  One  single  manufacturing  campus  

Our  Advantage:  Ver0cally  Integrated  Business  Model  

Ingot   Wafer   Cell   Module   System  

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Over  700MW  modules  shipped  since  2006  

1_As  of    March  2010   2  

2010E 750-800MW

Germany 29-31%

Spain 10-12% Italy

19-21% Belgium 7-10%

USA 13-15%

ROW 2-3%

France 4-6%

China 3-5%

Czech Rep. 4-6%

Spain 12%

Global Market Share: ~ 9%

Our  CompeQQve  Advantage  

>  Modules  ranked  by  TUV  Rheinland  (GER)1  and  Desert  Knowledge  Center  (AUS)2  tests  as  one  of  the  best  performing  module  versus  leading  internaQonal  brands  >  Center  of  excellence:  world  class  in-­‐house  tes0ng  center    

>  A  single  campus  to  ensure  op0mal  yield  and  quality  throughout  the  whole  manufacturing  process  >  Efficient  management  of  supply  chain  –  just-­‐in-­‐Qme  management    

>  Cell  efficiency:  Achieved  18.8%  for  mono  &  17.5%  for  mulQcrystalline  end  of    20093  >  Goal:  reach  up  to  19.5%  mono  and  18.0%  mulQ  by  end  of  2010    

>  Maintained  healthy  financials  all  year  round,  for  a  FY09  Gross  Margin  of  28.1%    >  As  of  December  31,  2009,  the  Company  had  $478.1  million  in  cash  and  cash  equivalents  and  restricted  cash  

The Best $/kWh Value

3  1_  TUV  Reinland's  Energy  Yield  2008”    (period  from  June  1  to  September  30,  2008)    2_  see  slide  12  for  more  details  

3_  Test  producMon  line  basis  

Quality      

Ver0cal  Integra0on  

Efficient  Technology  

Good  Financial  Posi0on    

The  Best  $/kWh  Under  The  Sun  

4  

Result  for  the  Photon  Test,  September  2009  (in  kWh/kWp)  

95,9  94,2   94,1  

91,1   90,5   90,2  88,4   88,1   87,8   87,7  

86,9  

83  

Trina  Solar  panels  offer  one  of  the  highest  electricity  generaQon  

The  Best  $/kWh  Under  The  Sun  

5  

Even  under  the  harsh  summer  condiQons  of  the  Australian  summer,    Trina  Solar  recorded  one  of  the  best  performance  

4,3  

4,5  

4,7  

4,9  

5,1  

BP  Poly   BP  Mono     Sunpower   Trina  Solar     Kyocera  

4,69  

4,86   4,89  

5,07 5,16  

Average  Daily  output,  2009  (Jan-­‐Dec),  in  kWh/kWp  

How  much  more  electricity      do  you  get  by  using  Trina  Solar  module?  

Trina  vs.  

BP  Mono   +8.0%  

SPWR   +4.7%  

BP  Poly   +4.5%  

Kyocera   -­‐1.3%  

Source:  Data  collected  by  the  Desert  Knowledge  Australia,  a  public  iniMaMve  supported  by  the  Australia  Energy  Ministry  

Alice  Spring  

STEADY  growth  to  becoming  a  leader,    

while  maintaining  HEALTHY  financials  

1_Source:  company  data  2_Source:  Company  releases  

The  Roadmap  to  Leadership  –  Module  Shipments  

2006  shipment  MW1   2007  shipment  MW1   2008  shipment  MW1   2009  shipment  MW2   2010  shipment  MW2  

435  

180  

363  

309  

498  

458  

1,112  

704  

27  

76  

201  

399  

6  

750-­‐800  

#  5  

Top  10  

Top  15  

Top  20  

On  track  to  be  among  the  largest  producer  

of  PV  modules  

Long-­‐Term  Expansion  Plans  

Integrated  manufacturing  capabiliQes  allows  bener  control  of  

cost   quality   yield   product  development  � � � � cycle  0me  �

Trina  Photovoltaic  Park  Facility  Site  

 Strategic  locaQon  of  key  suppliers    

 Suppliers  bring  benefits  like  cost  savings  

East  Campus  (Phases  2  and  3)�  

 500+MW  producQon  facility  

 Single  manufacturing  campus  

 Increased  degree  of  verQcal  integraQon  and  automaQon

Phase  1  -­‐  Finished�  -­‐   �

Trina  PV  Park    Facility  Site  

Phase  2  (Current)  

Phase  3    

7  

7  

R&D  and  manufacturing  cluster  

 Cluster  effect    

 Sharing  research/test  lab  capabiliQes  

Module  Capacity  Expansion  

Module  Shipments  (MW)   Main  facts  

170  –  290Wp  Module  Power  Range  

Wafer  Thickness  

Cell  Efficiency1  

Polysilicon  Usage  

180  µm  

Up  to  19.5%  mono  Up  to  18.0%  mulQ  

6.0g/W  in  1Q  2010  

1_Test    producMon  line  basis  2_  Cell  and  Module  Capacity�

8  

Module  Capacity  (MW)  

75  150  

350  

6002  

850-­‐9502  

2006   2007   2008   2009   2010  

27  75  

201  

399  

750-­‐800  

2006   2007   2008   2009   2010  

Global  PV  Supply  Demand �

Most  major  financial  insQtuQons  est.  2010  Demand  =  Min.  10  GW      

Sources:  Various  Company  Reports  

PV  Demand  Future  DiversificaQon  By  Region,  2010-­‐2012  

10  

  Europe  to  conQnue  steady  growth,  but  lose  in  overall  global  market  share    APAC  markets,  parQcularly  China,  India,  and  Japan,  will  grow  dramaQcally  in  coming  years    North  American  markets  (US  &  Canada)  poised  for  rapid  growth  in  next  3  years  

Global  PV  demand  is  quickly  shiiing  from  Europe  to  other  emerging  regional  markets  

Europe 62%

NA 16%

Asia 20%

ROW 2%

2011 Global PV Demand (Est)

Europe 78%

NA 9%

Asia 12%

ROW 1%

2010 Global PV Demand (Est) Europe 54% NA

18%

Asia 24%

ROW 3%

2012 Global PV Demand (Est)

Source:  Internal  EsQmates  based  on  various  reports  

11  

UK  SituaQon:  Policy  Update  Approved  For  2010-­‐2013      

Good  Reasons  To  Supply  The  UK  Market  

12  

               A  New  Clean  Energy  Cash  Back  Scheme  for  PV  was  launched  last  April.  As  a  

global  PV  leader,  Trina  Solar  strategy  is  to  diversify  markets  and  to  be  present  in  every  country  where  PV  exists  

Other  reasons:  

•  The  tariffs  have  been  formulated  to  deliver  an  IRR  of  5%  to  8%    •  Householders  who  install  small-­‐scale  systems  are  eligible  to  receive  up  to  

£1,000  a  year,  tax  free  for  25  years  •   The  Department  of  Energy  and  Climate  Change  (DECC)  has  targeted  seven  

million  households  -­‐  owner-­‐occupied  and  rented  -­‐  to  benefit  from  the  FiT  scheme  by  2020    

•  We  see  these  incenQves  sQmulaQng  demand  mainly  in  the  residenQal  sector  •  This  market  could  see  new  installaQons  in  2011  reach  200  MW.    •  Managed  correctly,  UK  could  grow  as  the  German  market  did  10  years  ago!  

Trina  Solar  Strategy  in  the  UK  market  

-­‐  Expand  product  line  to  serve  more  customer  segments  and  markets  worldwide  -­‐  Large  product  line  from  175Wp  to  290Wp  -­‐  New  products  tailored  for  residenQal  and  uQlity  systems  

-­‐  Internal  reliability  tesQng  on  module  &  materials  -­‐  Accelerated  Life  TesQng  reliability  tests  –  25yr  warranty    -­‐  Working  closely  with  UL,  ICIM,  TUV  and  customers  

-­‐  Offering  top  quality  products  with  all  cerQficates,  including  MCS-­‐cer0fied  modules  -­‐-­‐  the  only  ones  eligible  for  FiT  in  UK!    -­‐  Full  verQcal  integraQon  to  ensure  top  quality  at  each  step  

-­‐ By  choosing  the  best  partners:  prominent  distributors  &  integrators  for  residenQal  &  commercial  segments  &  building  alliances  with  PV  developers  

-­‐ Local  sales  &  technical  team  to  support  sales  -­‐  On-­‐line  aser  sales  service  launched  -­‐  Develop  global  &  diversified  customer  base  to  miQgate  risk  and  reduce  currency  exposure  

DELIVER  THE  BEST  VALUE  TO  CUSTOMERS  &  INVESTORS  

13  

13  

PV  SoluQons  for  UK  market:    The  AestheQc  SoluQon  

14  

56%  

37%  

6%  

ResidenQal  

Commerical  

UQlity  Scale  

Germany  

20%  

50%  

30%  

ResidenQal  

Commerical  

UQlity  Scale  

Italy  

Growing  residenQal  segment,  

requires  Special  soluQon    

BIPV  

AestheQc  soluQons  

Basic  Data  &Technology  of  the  AestheQc  SoluQon  TSM-­‐DC01  Black  module  

15  

-­‐  AestheQc  Appearance  through  Black  Design  

-­‐  AnracQve  appearance  on  residenQal  and  commercial  roofs  

-­‐  Robust  anodic  oxidaQon  aluminum  frame  for  none  fading  black  look  and  feel    

-­‐  PosiQve  tolerance  (0/+3)  

-­‐  Module  bears  pressure  up  to  5400  PA    

-­‐  Manufactured  according  to  InternaQonal  Quality  and  Environmental  Management  System  (ISO9001,  ISO14001)  

-­‐  Independently  cerQfied  by  internaQonal  cerQficaQon  body  (TÜV,  UL,  ICIM,  VDE,  JET,  CSA  and  SGS)  

PV  SoluQons  for  UK  market:  Higher  efficiency  QuadMax  module  

16  

TradiQonal/old  shape  of  MONO  crystalline  cells  

UQlizaQon  of  space  is  subopQmal      

New  cell  technology  has  opQmized  the  usage  of  space    

TradiQonal  MONO  Cell  Layout  of  tradiQonal  

MONO  cell  OpQmized  usage  of  

space  

Trina  Square  MONO  cell  –  Normal  manufacturing  process  

New  manufacturing  process  has  been  developed  to  produce  

square  MONO  cells.    

QuadMAX–  High  Efficiency  manufacturing  process  1.  Two  high  temperature  thermal  processes  

2.  AddiQonal  prinQng  and  cleaning  step  

3.  Usage  of  special  paste  for  cell  surface  

→  Conversion  efficiency:   up  to  18.8%  →  Average  efficiency:   18.2%  

Cell  type  1:Trina  Square  MONO  cell-­‐Normal  

Cell  2:Trina  Square  MONO  cell-­‐High  Efficiency  

1.  Technology  –  Basic  Idea  

Technology  –  Basic  Idea  -­‐  Square  MONO  module  

18  

72cells  MONO  module  =  180-­‐185W     72cells  MONO  module  =  200-­‐205W    

ImplemenQng  this  new  technology  in  a  module  the  unuQlized  surface  which  would  be  able  to  produce  energy  sums  up.  

Power  output    W  [%}  

Quad  MAX  W[%]  

TradiQonal  octagonal  cell  W

[%]  

+  8%  

Crystalline  VS.  Thin  Film:  Shipments  per  Technology  2008  &  2009  

19  

Shipments  per  technology  in  2008  &  2009  (source:  Navigant  Consul0ng)  

Forecast:  Thin  film  versus  Crystalline  Shipments  2013  

20  

Shipments  per  technology  2010-­‐2013  (source:  Navigant  Consul0ng)  

18%  

82%  

EvoluQon  of  c-­‐Si  versus  Thin-­‐Film  

21  

 (source:  EPIA)  

www.trinasolar.com

CHINA  

JAPAN  

KOREA  

U.S.A.  

SWITZERLAND  

GERMANY  

ITALY  

SPAIN