ADVANTAGES

Solar power generation has emerged as one of the most rapidly growing renewable sources of electricity with several advantages over other forms of electricity generation:

• Reduced Dependence on Fossil Fuels. Solar energy production does not require fossil fuels and is therefore less dependent on this limited and expensive natural resource. Although there is variability in the amount and timing of sunlight over the day, and throughout the year, a properly sized and configured solar power production system can be designed to be reliable;

• Environmental Advantages. Solar power production generates electricity with a limited impact on the environment as compared to other forms of electricity production;

• Matching Peak Time Output with Peak Time Demand. Solar energy can effectively supplement electricity supply from an electricity transmission grid, such as when, in hotter climates (mainly due to increased use of air conditioning), electricity demand peaks in the summer;

• Modularity and Scalability. As the size and generating capacity of a solar power system are a function of the number of solar modules installed, the application of solar technology is readily scalable and versatile;

• Flexible Locations. Solar power production facilities can be installed at the customer site, which reduces the level of investment required for production and transportation infrastructure; and

• Government Incentives. A growing number of countries have established incentive programmes for the development of solar and other renewable energy sources, such as (i) net metering laws that allow on-grid end users to sell electricity back to the grid at retail prices; (ii) direct subsidies to end users to offset costs of PV equipment and installation charges; (iii) low interest loans for financing solar power systems and tax incentives; and (iv) government standards that mandate minimum usage levels of renewable energy sources.

The solar power market has grown significantly in the past decade, supported largely by government subsidies. According to Jetion’s Admission Document dated 3 July 2007, the global solar power market, as measured by annual solar power system installations, increased from 340 MW in 2001 to 1,744 MW in 2006 and over the last five years annual growth has averaged over 42 per cent.

Under its Production Led scenario, industry sources (see Jetion’s Admission Document dated 3 July 2007) estimate that the global solar PV power market will increase to 7,630 MW by 2011.

As a result the global solar power industry is experiencing, and is expected to continue to experience, a significant and sustained growth in revenues, growing globally from approximately US$2.0 billion in 2000 to approximately US$31.5 billion in 2011.