Julie Blunden: Julie Blunden Solar Energy Conference 2007 October 25, 2007


Safe Harbor Statement: Safe Harbor Statement This presentation contains forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. We use words such as “believes,” “plans,” “will,” and “expects” and similar expressions to identify forward-looking statements.  Forward-looking statements in this presentation include, but are not limited to, statements related to the benefits of financial transactions, our plans and expectations for financial performance and the development and future cost structure of our products and the solar power industry.  These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements, including difficulties encountered in integrating the merged businesses; the uncertainty of business and economic conditions and growth trends in our business and the solar power industry; our ability to obtain adequate supply of polysilicon and silicon ingots and the price we pay for such material, our ability to ramp new production lines  and other risk factors are contained in documents that the company files with the SEC. SunPower is under no obligation to, and expressly disclaims any responsibility to update or alter, its forward-looking statements, whether as a result of new information, future events or otherwise. Note that the financial information includes, and identifies as such, non-GAAP financial information.  Management will provide a reconciliation to GAAP for this financial information.


SunPower Applications: Residential Retrofit New Production Homes Commercial & Public Power Plants SunPower Applications


Crystalline Silicon Value Chain: Crystalline Silicon Value Chain Wafer Solar Cell Solar Panel System Ingot Polysilicon Silicon Shortage Has Led to Higher Panel Prices


Value Chain Cost Distribution: Polysilicon Wafer Solar Cell Solar Panel System $/W Ingot Polysilicon Value Chain Cost Distribution 20% 30% 50% 2006 US Solar System Cost Allocation by Category


Cost Reduction Roadmap Plan: 50% by 2012: Cost Reduction Roadmap Plan: 50% by 2012 $/Watt 2006 Downstream Panel Cell Silicon Efficiency 2012 25% 5 % 5 % 10% 15%


Silicon Costs Will Come Down: Silicon Costs Will Come Down SunTech Asia Silicon Contract Announced Today: $300 / kg Delivery begins in late 2008


Silicon Utilization Improving Rapidly: Silicon Utilization Improving Rapidly


Cell Efficiency Improving: Cell Efficiency Improving


SunPower is Highest Efficiency: SunPower is Highest Efficiency


Scale Improve Cost: Scale Improve Cost 20 MW 110 MW 430+ MW 250+ MW 63 MW 600+ MW


Cell R&D Yields Panel Efficiency Improvements: Cell R&D Yields Panel Efficiency Improvements SunPower 215 W Conventional 165 W


System R&D Yield Higher Energy Delivery: System R&D Yield Higher Energy Delivery SunPower T10 Roof Tile Commercial Roof Mount SunPower Tracker Ground System


Consequences: 6.5 MW Power Plant: Consequences: 6.5 MW Power Plant SunPower Conventional Thin Film 34k m2 52k m2 72k m2 SPWR 150% m2 / -2% kWh SPWR 210% m2 / -20% kWh


Goal: Compete with Utility Power Prices: Goal: Compete with Utility Power Prices Source: US DOE Solar America Initiative


Global Annual Installed Solar Systems: Global Annual Installed Solar Systems MW Source: MarketBuzz 2007 History Forecast