The Landscape of Solar Industry in China

1. The Landscape of Solar Industry in China

2. Landscape of Solar Industry in China • 8 IPO’s since 2005 • 100+ solar fab’s built • Ecosystem has been built up and tuned up • Value chain covers polysilicon, wafer, solar cells, and solar modules. • Infrastructure built includes solar production equipment and materials. • Slowing down investments in polysilicon production in 2009 in light of WW over-supply seen in 2009.

3. Government Support of Solar Industry • Central government announced policy to support BIPV with subsidy of 20RMB/W in March of 2009. • Central government approved 10MW solar farm project in western China targeting 1.09RMB/KWh in June of 2009. • Central government announced support to Golden Sun Demonstration Projects in July of 2009 and committed to pay 50% to each of 257 approved projects ranging from 500KW to 50MW each for a total of 600MW. • Power companies in China started active acquisition of land for utility scale solar farms in 2009.

4. New Energy Stimulus in Support of Solar Industry • China to establish 15% renewable energy by 2020. • China to achieve 40-45% carbon reduction from 2005 level by 2020. • China to increase solar power capacity from 100MW in 2009 to 20GW by 2020, note a 200X ramp in 11 years. • Central government will provide 3T+RMB investment in New Energy Industry (Nuclear, Wind, and Solar). • Sources said that central government will eventually put in ~4.5T+RMB as stimulus and that will attract the investment at the scale of ~9T+RMB from both the public sector and the private sector. • Chinese government has been steadily putting RMB’s behind the push for New Energy.