Delivering Better Energy
Vertical Integration into High Efficiency Solar Module Technology and Manufacturing
Forward-Looking
Statements
This presentation contains forward-looking statements that involve
risks and uncertainties, including statements regarding SolarCity’s
forecast for manufacturing cell efficiencies; expected reductions in
manufacturing costs; potential financial and other benefits of the
acquisition; and assumptions related to the foregoing.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or results
will be achieved, if at all. Forward-looking statements are subject
to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested by
the forward-looking statements. Additional key risks and uncertainties
include the level of demand for our solar energy systems, the
availability of a sufficient, timely, and cost-effective supply of solar
panels and balance of system components, the effects of future tariffs
and other trade barriers, changes in federal tax treatment, the effect
of electric utility industry regulations, net metering and related policies,
the availability and amount of rebates, tax credits and other financial
incentives, the availability and amount of financing from fund investors,
the retail price of utility-generated electricity or the availability of
alternative energy sources, risks associated with SolarCity’s rapid
growth, risks that consumers who have executed energy contracts
included in reported nominal contracted payments remaining and
backlog may seek to cancel those contracts, assumptions as to
retained value under energy contracts and contract renewal rates and
terms, including applicable net present values, performance-based
SolarCity Corporation | page 2
incentives, and other rebates, credits and expenses, SolarCity’s limited
operating history, particularly as a new public company, changes in
strategic planning decisions by management or reallocation of internal
resources, and general market, political, economic and business
conditions. You should read the section entitled “Risk Factors” in our
most recent Quarterly Report on Form 10-Q, which has been filed with
the Securities and Exchange Commission, which identifies certain of
these and additional risks and uncertainties. We do not undertake any
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as otherwise required by law.
SolarCity Corporation | page 3
High Efficiency Solar Module
Technology and Manufacturing
••Technology and integrated manufacturing capability to create industry-leading cost structure
that aims to make solar competitive with grid costs
••Triex tunneling junction technology produces high efficiency at a low cost due to a simple,
proprietary manufacturing process
••Manufacturing capacity will create the most vertically integrated solar company – from modules
and mounting hardware to finance, installation, and energy sales
••Transaction value of $200M with up to $150M in earn-outs based on volume and cost targets
SolarCity Corporation | page 4
Triex Tunneling Junction:
High Efficiency at Low Cost
Greater Revenue at Lower Cost per Watt
Tunneling layer =
Higher Efficiency
— Lower system costs
— Less solar panels required for the same system size
24% target cell efficiency
Simple process =
Low Manufacturing Costs
— Lower panel costs
— Simple manufacturing process
— Copper electrode metallization
Crystalline-amorphous hybrid cell =
Better Energy Harvest
— More revenue per watt
— Lower temperature coefficient
-0.22%/C cell
-0.27%/C module
SolarCity Corporation | page 5
Target Cell Efficiency of 24%
Cell Efficiency When Compared to Equivalent Cost Structures
25%
24%
21%
Cell Efficiency
20%
17-18%
15%
13-14%
10%
Silevo
Target
Silevo
Current
Standard
Efficiency
Thin-Film
26.4% cell efficiency possible in ground-mounted or tilted flat-roof applications
SolarCity Corporation | page 6
Higher Efficiency Reduces Space,
Materials, and Cost
Cell Efficiency of 24% Reduces Number of Panels per Equivalent Installation by 25%
Standard installation
24 panels
× 250 Watts per panel
= 6 kW System Size
Triex installation
18 panels
× 340 Watts per panel
= 6kW System Size
Higher efficiency requires
fewer panels per system size
and reduces cost/watt of:
•• Installation/Labor
•• Balance of System
•• Mounting Hardware
Silevo’s high efficiency enables 340-W modules with the same form factor as standard
250-W modules today
SolarCity Corporation | page 7
Highest Energy Harvest on the
Market Today
More Power at Higher Temperatures Result in Greater kWh Production throughout the Day
Comparative energy harvest
Normalized Power
0.95
0.90
Module
0.85
Silevo Triex Tunneling Junction
0.80
Silevo Triex
0.75
Existing high efficiency module
Standard efficiency module
0.70
7am
SolarCity Corporation | page 8
10am
1pm
4pm
Energy
Advantage
-
High Efficiency
(3.7%)
Standard Efficiency
(7.8%)
Low Cost from Simple Process and
Unique Technology
Simple Manufacturing Process Yields High Efficiency at Standard Efficiency Costs
••Only six core production steps
••Copper metallization eliminates traditional usage of higher-cost silver
••Highly automatable
••Off the shelf equipment from the semiconductor and flat panel display industries
••Use of standard n-type wafers
••Current manufacturing facility operating at a 32MW capacity is shipping UL listed, CEC verified modules
SolarCity Corporation | page 9
Module Manufacturing Integration
Critical to Cost Goals
Large Integrated Manufacturing Facility Planned within the United States
••In advanced discussions with partners to contribute towards capital investment
••Expected to create thousands of jobs
••Silicon Valley research facility and pilot plant to be created to enable rapid iteration
Domestic Manufacturing Expected to Achieve Competitive Costs with
Overseas Manufacturing
••No import tariff
••Lower energy and transport/shipping costs
••Lower labor content per module due to higher efficiency and increased automation
Polysilicon
Module
Mounting
Hardware
Finance
Installation
O&M
Inverter
External
SolarCity Corporation | page 10
Vertical-Integration from Module to Energy Delivery
End-User
Energy
Delivery
Silevo Management Brings
Extensive Semiconductor
Manufacturing Experience
••CEO and Co-founder Dr. Zheng Xu was previously Corporate VP and GM of equipment business at
Applied Materials and holds PhDs in both Material Sciences and Electrical Engineering from Osaka
University
••CTO and Co-founder Dr. Jianming Fu was previously PVD General Manager, Applied Materials and holds
a PhD from Penn State University
••VP of Product Engineering Dr. Jiunn (Ben) Heng was previously Senior Integration and R&D Engineer at
Intel and holds a PhD in Electrical Engineering from University of Illinois at Urbana-Champaign
••EVP of Global Operations and Planning Christopher Beitel, was previously GM, Managing Director Thin
Film Solar Business Group at Applied Materials
••President of Silevo China Tobby Wu was formerly VP and GM of Hareon Solar’s Cell Business Unit and holds
a PhD from Materials Science School of Materials Science & Engineering, Shanghai Jiao Tong University
In aggregate, Silevo senior management bring decades of engineering experience
from top tier solar and semiconductor manufacturing businesses.
SolarCity Corporation | page 11
Taking the next step forward in
our strategy to vertically integrate
best-in-class technology to
enable solar at an unsubsidized
cost that is less than fossil fuel
based generation
SolarCity Corporation | page 12
Questions & Answers
SolarCity Corporation | page 13
Appendix - Acquisition Terms
Acquisition of Silevo for $200m Upfront with Earn-outs
••Upfront investment composed of $168m in stock, the assumption of $23m in liabilities,
and $9m in cash (though cash portion is subject to change prior to closing).
••Earn-outs of up to $150m in stock based on MW production and cost targets through 2016
••Expected to be accretive with payback of 3-4 years once at scale vs. module market price
SolarCity Corporation | page 14
Thank You
Questions & Answers
solarcity.com