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First Solar Announces Two California Solar Projects with Southern California Edison

Tempe, Ariz., Jul 16, 2008
Source: First Solar Inc, press release
http://investor.firstsolar.com/releasedetail.cfm?ReleaseID=322481

First Solar, Inc. (Nasdaq: FSLR) announced today that Southern California Edison (SCE) has selected First Solar to engineer and supply the PV power plant system for a 2 megawatt project to be installed on the roof of a commercial building in Fontana, CA. This is the first installation in SCE’s plan to install 250 megawatts of solar generating capacity on large commercial rooftops throughout Southern California over the next five years. SCE began installation of this initial project on July 14, 2008, and expects to connect the PV power plant to the grid in September 2008. In March, SCE, with California Governor, Arnold Schwarzenegger, announced the five-year solar PV installation project, which is the largest rooftop solar program ever proposed by a U.S. utility.

In addition, on July 10, 2008, the CPUC approved project terms of a 20 year power purchase agreement between First Solar and SCE for the sale of electricity generated by a PV power plant. First Solar plans to build the new plant in Blythe, CA. The PV power plant will be a minimum of 7.5 megawatts, with an option by First Solar to increase the size to 21 megawatts, and when completed will be the largest ground based PV power plant in California. First Solar will serve as the engineering, procurement and construction (EPC) contractor for the PV power plant, and maintain the PV power plant over its lifetime. Subject to the satisfaction of remaining contingencies, including the extension of the federal solar investment tax credit, First Solar expects to begin construction of the PV power plant in 2009.

“By harnessing the clean, renewable energy of the sun that is abundant in California, these innovative solar projects are helping to meet our long-term energy and climate change goals,” Governor Arnold Schwarzenegger said. “These projects are evidence that California’s ingenuity is spurring a clean tech boom that will bring companies and investment dollars to California while reducing the state’s carbon footprint.”

The Governor has set a goal of increasing California’s renewable energy sources to 20 percent by 2010, and he supports reaching 33 percent by 2020. “These projects represent significant steps towards the deployment of low cost, solar electric generation resources for California,” said Mike Ahearn, CEO of First Solar. “First Solar looks forward to developing these and other projects which will move California closer to its renewable energy and greenhouse gas reduction goals.”

“We are pleased to be working with First Solar on these important renewable energy projects,” said SCE President John R. Fielder. “Their successful bid to supply the first system for our major utility solar project is helping SCE provide solar PV generation to our customers at a lower cost than traditional PV installations.”

First Solar is the cost leader in the solar PV industry, driven by an advanced thin film semiconductor manufacturing process. At the end of 2007, over 300 megawatts of First Solar PV modules had been installed worldwide, with an additional 400 megawatts scheduled for installation in 2008. With its project partners, First Solar has supplied several of the largest ground and rooftop PV power plants in the world.